Should I Hire Software Developers in Brazil or Mexico?

Brazil has the largest population in Latin America, with more than 210,000,000 people. Naturally, it also has a much larger pool of software developers than Mexico, a country with only around 131,000,000 people. But that doesn’t mean Brazil is the better source of software engineers.

While both countries boast strong nearshore talent, they differ in terms of time zone, culture, cost, expertise, and other factors. So, should you hire software developers in Brazil or Mexico? Let’s take a look.

Proximity and Time Zone Alignment

Mexico has four time zones, and all of them are well-aligned with the US. Mexico City, for example, is in CST, in the same time zone as Chicago, 1-2 hours ahead of San Francisco, and 1-2 hours behind New York City.

Brazil has four time zones as well, with fewer overlapping business hours. For example, São Paulo uses Brasília Time (BRT), which is 4-5 hours ahead of San Francisco.

While Brazil still has some overlap in business hours with the US, Mexico and the US are more closely aligned, facilitating better synchronous collaboration and standups. Moreover, Mexico is the US’s direct neighbor, with the countries sharing a border. Proximity and shorter flights make potential travel for in-person meetings or on-site collaboration considerably easier and more cost-effective.

Tech Investment and Ecosystem

Brazil and Mexico have growing tech ecosystems, with branches of major tech giants like Amazon, Google, Microsoft, SAP, Oracle, IBM, and Dell setting up shop in both countries. 

Innovation is a priority in areas like Brazil’s São Paulo and Campinas and Mexico’s Guadalajara (also known as Mexico’s Silicon Valley) and Mexico City, among other locales.

While Brazil, the most populous country in Latin America—and one of the countries with the highest populations in the world—previously led LatAm in venture capital funding, in the second quarter of 2025, Mexico outpaced the larger market, according to Crunchbase. 

For the first time since 2012, Mexican startups raised more VC dollars than Brazilian startups, $437 million (up 85% year over year) to Brazil’s $350 million (dropping 23% year over year). This reflects Mexico’s growth and recognition as a premier tech hotspot.

It is important to note that both markets have seen substantial tech investment, with each offering different specialties. Brazil is well known for data and cloud niches, while Mexico’s claims to fame include AI, fintech, and mobile expertise. 

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Cultural Similarities

As nearshore markets, both Mexico and Brazil have cultural similarities with the US. However, Mexico is the US’s next-door neighbor and has more similar business operations than Brazil.

Mexican professionals typically have a greater cultural affinity with US businesses, facilitating smoother working relationships and rapport.

There is also the matter of language differences. While both countries have moderate levels of English proficiency (higher among college graduates and skilled professionals like engineers), Spanish is Mexico’s official language, and it is widely spoken in the US. Meanwhile, Brazil’s official language is Portuguese, which is less commonly spoken in the US. This could affect collaboration, even if you expect to mainly communicate with your engineers in English.

Education

Both Mexico and Brazil are home to educational institutions with top-ranking tech programs, such as the National Autonomous University of Mexico and the University of São Paulo. But Mexico boasts an abundance of educational initiatives, with the government highly invested in producing talented professionals, particularly in STEM-related areas. The average number of years of education for people in Mexico is higher than in Brazil, too: 7.2 years to 4.9.

Brazil faces many challenges in its education system, including inequalities. In the Northeast, just 45% of students have completed basic education. Many schools lack computers, which prevents students from gaining important technological and professional skills.

That said, there have been initiatives to improve education in the country, such as UNESCO’s efforts to bolster teacher qualifications through technology and technical and vocational projects that encourage students to leverage “innovative technologies” necessary for the job market.

However, Mexico stands out for its efforts to improve education, particularly in the STEM sphere. For example, Jalisco is focusing on revising technical education programs to ensure they align with the information and communication technologies industry.

Meanwhile, educational institutions are incorporating immersive technologies and AI-driven learning analytics to make education more personalized and engaging.

Costs

Software engineer salaries are competitive in Mexico and Brazil. In both countries, they are considerably lower than the median US salary of $182,500.

However, Brazilian software engineer salaries tend to be a bit higher than those in Mexico: $104,670 (Brazil) to $99,450 (Mexico).

Brazil also has high employment costs of around 80%, including Social Security (INSS) and payroll taxes. That’s on top of the base salary. Employment costs are also lower in Mexico.

In short, hiring engineers in Mexico is more cost-effective than it is in Brazil.

Should I Hire Software Developers in Brazil or Mexico?

Brazil and Mexico both offer an abundance of tech talent and specialized skills. However, when you’re considering whether to hire software developers in Brazil vs. Mexico, Mexico’s closer nearshore alignment, stronger education systems, lower costs, and cultural similarities make it a better fit for many organizations across industries and niches.

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