United States Immigration Laws & Its Important Effects on Relocation

March 18, 2025
Relocation & Mobility

The alterations in policies and the United States immigration laws, driven by the new administration, have generated uncertainty and challenges for expats and businesses. Leading them to explore alternative destinations for relocations in the mid-long future.

Here, we will explore the new policies, how they might impact expatriates and the relocated workforce, and how Latin America presents itself as a viable and accessible destination.

Navigating New United States Immigration Policies:
Key Considerations for Expats and Employers

Recent changes in U.S. immigration policies, including stricter enforcement and evolving visa regulations, may impact expats, temporary visa holders, and employers relying on global talent. The administration’s approach could lead to:

Stricter Visa Processing
Enhanced vetting may lead to longer processing times and additional documentation requirements for new and renewal applications.
Employment-Based Visa Changes
Programs like H-1B may face new eligibility criteria, wage requirements, or reductions in available visas, affecting employers and expats.
Increased Compliance Measures
Companies hiring foreign talent may encounter more audits and regulatory oversight, emphasizing the need for strict legal compliance.
Travel Restrictions
Some policies may limit visa holders’ ability to travel freely, requiring them to stay informed about re-entry requirements.
Temporary Protected Status (TPS) Updates
Policy changes could affect individuals previously covered under TPS, necessitating a reassessment of legal options.

With these shifts, expats and employers must explore alternative relocation options.

Latin America stands out as an attractive destination, offering a favorable business climate, lower living costs, and diverse opportunities for growth. Many countries in the region provide visa-friendly policies, tax incentives, and a high quality of life, making it an appealing choice for both individuals and companies.

Additionally, its strategic location, expanding economies, and growing focus on nearshoring create a promising environment for investment and professional development.

Some of the top 4 key advantages include:

1. Nearshoring Opportunities

Nearshoring, the relocation of operations to nearby countries, is gaining momentum, with Latin America emerging as a prime destination. Countries like Mexico, Brazil, and Costa Rica offer proximity to the U.S. market, competitive labor costs, and growing industrial sectors. The Inter-American Development Bank (IDB) estimates that nearshoring could add $78 billion annually in additional exports across Latin America and the Caribbean, particularly in automotive, textiles, pharmaceuticals, and renewable energy industries.

While the U.S. remains the primary market for nearshoring, other Latin American countries such as Costa Rica and the Dominican Republic offer attractive business opportunities. The region’s shared cultural and economic ties make trade and collaboration more seamless, reducing logistical challenges and operational risks compared to Asia.

For more information on the advantages of nearshoring in Latin America, click here.

2. Low Cost of Living & Business Operations

Latin American countries often offer significantly lower living expenses compared to the United States. For example, the cost of living in the United States is approximately 126% higher than in Mexico. In Colombia, the average monthly disposable salary after tax is $474.66, whereas in the United States, it is $3,258.85, highlighting the substantial difference in living costs.

Similarly, in Costa Rica, the average monthly cost of living is approximately $1,073, significantly lower than the $2,317 average in the United States.

3. Visa-Friendly Policies

Many Latin American countries have introduced visa programs to attract digital nomads, entrepreneurs, and foreign investors, providing more flexible residency options than the United States. These visas typically require proof of remote work, independent income, or investment in the local economy, granting temporary or permanent residence without the need for local employment.

For instance, Costa Rica offers a digital nomad visa valid for up to two years, requiring proof of a minimum monthly income of $3,000. Colombia has a similar program, with a lower income threshold of $900 per month, making it one of the most accessible options in the region.

Conversely, Brazil offers multiple pathways for foreign residents, from digital nomad visas to investment-based visas. The country provides opportunities for investors in real estate, technology, and business sectors, allowing them to obtain residency through capital investment. This makes Brazil an attractive option for remote workers and those looking to establish long-term business ventures in Latin America.

Beyond these programs, several Latin American nations also offer pathways to permanent residency, making them appealing destinations for expatriates seeking a more affordable and flexible alternative to the United States.

4. Tax Incentives

Several Latin American countries offer tax-friendly policies to attract foreign investment, remote workers, and skilled professionals, making them more financially appealing than the United States. Many countries use territorial tax systems, taxing only locally earned income, or provide special exemptions for foreign income, reducing tax burdens on expatriates and business owners.

Many Latin American nations also have lower income tax rates than the U.S., where rates reach up to 37%. In contrast, Mexico, Colombia, and Argentina cap income tax at 25% to 35%, while Paraguay offers a flat 10% rate, making it appealing for professionals and investors.

Additionally, tax-free zones and economic regions provide corporate tax exemptions, reduced tariffs, and trade incentives. Panama’s Free Trade Zones offer benefits for global businesses, while Uruguay’s Zonamerica grants tax exemptions to companies operating in its business hub.

Unlike the U.S., which taxes citizens on worldwide income, Latin American tax policies offer greater flexibility, making them attractive for expatriates, remote workers, and investors looking to lower their tax burden.

The Top Latin American Cities to Relocate Based on Industry

As mentioned before, relocating to Latin America and the Caribbean offers numerous opportunities for businesses and expatriates. With rapid economic growth and industry-specific advancements, the region presents strategic advantages for professionals and companies seeking expansion. However, choosing the right destination is key to long-term success.

With foreign direct investment surpassing $224 billion in 2022, LATAM cities are emerging as industry hubs in technology, finance, manufacturing, healthcare, tourism, logistics, and energy, as follows:

Technology: São Paulo, Mexico City, Buenos Aires, Medellín
Finance: São Paulo, Panama City, Mexico City, Santiago
Manufacturing: Monterrey, Guayaquil, São Bernardo do Campo, Barranquilla
Healthcare: São Paulo, Mexico City, Buenos Aires, San José
Tourism: Cancún, Punta Cana, Rio de Janeiro, San Juan
Logistics: Panama City, Santos, Buenos Aires, Cartagena
Energy: Santiago, São Paulo, Montevideo, Bogotá

For more details and an in-depth look at the most strategic city in the region based on your company’s industry, click here.

Navigate U.S. Immigration Laws & Explore New Opportunities with LARM

As U.S. immigration laws and policies shift, Latin America and the Caribbean emerge as strategic alternatives for businesses and individuals seeking new opportunities.

At LARM, we specialize in seamless relocation solutions across 28 countries, ensuring a smooth transition for individuals and corporate assignees. We handle every detail—from legal processes and housing logistics to school-finding assistance and cultural integration.

Ready to Relocate? Let LARM simplify the process and plan every detail. Contact us today for expert guidance!

Disclaimer:
Immigration laws and policies are subject to change, and their interpretation can vary based on specific circumstances. The information provided in this document is for general informational/commentary purposes only and should not be construed as legal advice. This content does not constitute or substitute professional legal consultation.

Sources:

• “Key Changes in U.S. Immigration Policy Under New Administration.” PPID, 2021, https://ppid.com/blog/key-changes-in-us-immigration-policy-under-new-administration/.

• “Nearshoring: La Solución Actual para el Comercio Exterior.” Thomson Reuters México, https://www.thomsonreutersmexico.com/es-mx/soluciones-de-comercio-exterior/blog-comercio-exterior/nearshoring-la-solucion-actual-para-el-comercio-exteior.

• “Nearshoring Can Add Annual $78 Billion in Exports for Latin America and the Caribbean.” Inter-American Development Bank, 2023, https://www.iadb.org/en/news/nearshoring-can-add-annual-78-bln-exports-latin-america-and-caribbean.

• “How U.S. Immigration Laws and Rules Have Changed Through History.” Pew Research Center, 30 Sept. 2015, https://www.pewresearch.org/short-reads/2015/09/30/how-u-s-immigration-laws-and-rules-have-changed-through-history/.

• “¿Qué es el Nearshoring y Cuáles Son Sus Ventajas?” ConnectAmericas, https://connectamericas.com/es/content/%C2%BFqu%C3%A9-es-el-nearshoring-y-cu%C3%A1les-son-sus-ventajas.

• “Advantages of Nearshoring.” Savvycom, https://savvycomsoftware.com/blog/advantages-of-nearshoring/.

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https://internationalliving.com/the-cheapest-places-in-the-world-to-live/

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https://visitworld.today/blog/2387/cost-of-living-in-argentina-average-cost-of-accommodation-food-entertainment-and-budget-per-month-in-buenos-aires#prices-for-renting-housing-in-argentina

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https://nomadsembassy.com/south-america-digital-nomad-visas/

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https://www.imidaily.com/analysis/live-tax-free-in-these-5-latin-american-countries/.

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