The AIRINC Global 150 Index compares cities around the world across four key factors — Salary, Taxes, Costs, and Lifestyle — to determine their attractiveness for expatriates and globally mobile talent.
Latin America presents a region of contrasts: Caribbean financial centers are rising fast, while several South American hubs remain challenged by inflation, tax regimes, and infrastructure pressures.
The Caribbean stood out as the top-performing subregion in Latin America, with several financial centers making strong gains.
Key Trend: Caribbean hubs remain attractive for global talent seeking low-tax environments and strong salaries, although lifestyle scores remain modest compared to Europe or North America.
Key Trend: Central America offers value destinations, but outcomes vary significantly by city, reflecting local economic and political conditions.
South American cities showed a mix of modest improvements and setbacks, with many still weighed down by cost inflation and weaker salary scores.
Key Trend: South America remains diverse and volatile — some cities are regaining competitiveness, while others continue to struggle under structural economic challenges.
Financial centers such as Cayman, Bermuda, Curacao, and Aruba continue to offer low-tax, high-salary environments. These are ideal for expatriates in finance and professional services, but companies should account for limited lifestyle appeal compared to larger global hubs.
Opportunities exist in markets like Guatemala and Panama, but program design must consider infrastructure and security differences. Housing allowances and family support services can make or break an assignment.
Talent costs remain competitive, but companies should expect inflation-driven volatility and factor in higher support needs for assignees. Buenos Aires’ recovery shows potential, but broader challenges remain in the region’s largest economies.
Inflation touches every economy, but in Latin America, the impact is often sharper and more volatile. For organizations managing expatriate assignments in the region, understanding how inflation translates into compensation challenges is critical. Here are three key factors to watch:
Currency Depreciation: Exchange rates in Latin America can swing significantly against hard currencies such as the USD, GBP, or EUR. Without regular reviews, allowances can quickly fall behind reality. Frequent monitoring ensures expatriates’ packages remain aligned with their true costs.
COLA Adjustments: Cost of Living Allowances (COLA) are a frontline tool for protecting purchasing power. In high-inflation environments, annual updates are not enough—quarterly or even more frequent adjustments may be necessary to prevent financial disadvantage for assignees.
Salary Increases: Inflation also drives larger-than-average salary increases across the region compared to other markets. For employers, this means moving beyond the traditional annual cycle and considering more frequent salary reviews to remain competitive and retain talent.
Latin America demonstrates a dual story in the Global 150 Index. Caribbean hubs are surging thanks to strong financial competitiveness, while South American giants are still constrained by economic headwinds. Central America sits in between, with a mix of bright spots and challenges.
For mobility teams, this means taking a nuanced, city-by-city approach — leveraging low-tax havens for financial services, while carefully structuring packages for South American assignments to address costs, inflation, and infrastructure.
AIRINC's Global 150 Index has been offering valuable insights into the world’s leading cities for seven years. Over this time, the rankings have reflected shifts in salary levels, tax rates, living costs, and lifestyle conditions. The 2025 edition underscores how quickly conditions can change: U.S. cities gained ground on the back of cost and tax improvements, Canadian cities slipped due to lifestyle declines, and Tokyo recorded the largest drop in the 2025 Index. From established leaders like Zurich and Geneva to fast movers such as Houston, Chicago, and Guatemala City, the rankings continue to highlight the dynamic balance between financial strength and quality of life. Subscribe to our blog for more updates including more on each region!