When looking at lists published by international living gurus citing the best places to live in and retire to overseas, the nations of Ecuador and Panama consistently appear among the places with the highest rankings.
As beautiful, affordable tropical destinations go, they’re among the best of the best. And, while they’re both excellent overall as places to retire, raise a family, start a business, or just live for a short time, each has certain areas where it shines brighter than the other.
We’d be hard-pressed to say which country is the best or, even more specifically, which one is the best for YOU and your particular situation. That decision is best left up to your family, based on your individual needs and priorities.
What we can do is highlight a few categories that are important to expat families and tell you which country excels in that area.

D. Bmcnicol
Round #1 – Lifestyle Hacks
Winner: It’s a Tie
One of the coolest things about living abroad is the ability to enlist help for tasks that you might be fed up with doing yourself, but would’ve never had the means to hire out in North America. Some examples are maids, gardeners, drivers, tutors, and nannies.
And domestic help is abundant and affordable in both Panama and Ecuador. We’d be tempted to give this category to Ecuador for its lower cost (around $10 per day for the services of a maid vs. $15 for the same work in Panama).
However, as is often true, you tend to get what you pay for. So some might argue that the quality of service you receive from domestic helpers is superior in Panama.

Eddie Codel
Round #2 – Connectivity
Outcome: Panama By a Nose
This is another area where both countries excel far beyond the reach of most of their Latin American neighbors. And, up until recently, this category would have gone to Panama by a landslide.
However, Ecuador is aggressively working to improve its internet coverage. As a result, the country’s connectivity is increasing by leaps and bounds with a goal of access in 50% of households by 2015. (It’s currently closer to 35%.) Free public access centers are also widely available across the country.
While Ecuador’s connectivity is great, Panama’s is excellent due in part to a long-standing U.S. military presence. In fact, it ranks #2 in all of Latin America for technology and internet penetration and #1 for wireless availability.
Most Panamanian cities offer affordable broadband service, and there are free wi-fi hotspots nationwide. Because of its technological advances, companies such as Dell, 3M, and Philips have chosen it for their regional headquarters and customer service centers.

Pavel Kirillov
Round #3 – Living Options
Slight Edge: Panama
Both Ecuador and Panama have a lot to offer in terms of variety of living options. When it comes to mountain towns, Cuenca, Ecuador, and Boquete, Panama, are among some of the top expat destinations in Latin America. There are others as well, such as Loja, Quito, and Vilcabamba in Ecuador and Volcan, El Valle, and Santa Fe in Panama.
There are also popular beach towns in both countries. Salinas, Ecuador, has been compared to Miami’s South Beach. There’s also Montanita and Manta. Panama has Bocas del Toro, the quintessential Caribbean beach town, as well as Coronado and Pedasi.
Panama City trumps places like Ecuador’s Quito and Guayaquil if you’re looking for something that more closely resembles a first-world city. The other place where Panama takes the cake is with its options for island living. Ecuador has the Galapagos Islands, a great place for tourists to visit or explore but not necessarily live.
However, Panama offers options like Boca Chica Island, which offer nature-loving expats the opportunity to own their very own piece of a private island that’s only a hour away from the country’s second-largest city and an international airport.

Wogo 24220
Round #4 – Green Living
Winner: Ecuador
While Panama has long had its sights on continuing to improve its infrastructure and commerce, it lags a bit behind in its sustainability initiatives. However, it is making some strides in the right direction. Take for instance the village of Kalu Yala, a development that has a goal of becoming the world’s most sustainable residential community.
Most green efforts in Panama are more grass roots and less government-driven. On the other hand, Ecuador has the unique distinction of being the only country in the world where the rights of the natural environment are protected by the nation’s constitution.
Sustainability issues are on the government’s radar in Ecuador as it battles issues like the threat of drilling in its Yasuni National Park, the most biodiverse place on earth.

Vilseskogen
Round #5 – Cost of Living
Clear Winner: Ecuador
Ecuador and Panama both offer the ability to live satisfying lifestyles for a fraction of the North American budget. As you can imagine, prices vary greatly from one city to the next, with some of the more developed areas running much closer to U.S. prices.
However, overall the cost of living is considerably less in Ecuador. In fact, it’s often one of the country’s biggest selling points, with many expat couples claiming to live just fine on a mere $1200 per month including rent, which averages around $450. This includes luxuries like high speed internet and once-a-week maid service.
Both countries have great discount programs for their senior adults, with Panama’s pensionado program being one of its most attractive benefits for retirees. However for most expats, particularly young families, it’s cheaper to live in Ecuador.

Rivera Notario
Round #6 – Ease of Access
Advantage: Panama
This was an easy one. Mainly because the majority of Ecuador’s incoming flights have layovers in places like Panama City (as well as Miami, Bogota, and places in the Caribbean). As a result, travel to Ecuador is longer and a bit more expensive.
It does have great public transportation once you fly in to Quito or Guayaquil, as well as connecting flights to a number of regional airports.
By contrast, Panama’s recently expanded Tocumen International Airport receives direct incoming flights from multiple U.S. cities, as well as various points in South America. David’s Enrique Malek International Airport will also soon begin welcoming international flights, opening up the western regions of Panama to expats and tourists from all over the world.

Matthew Straubmuller
Round #7 – Business Climate
Champion: Panama, Hands Down
To decide this category, you only need to look at the stats. The International Finance Corporation ranks Panama 55th in the world for ease of doing business, compared to Ecuador’s rank of 135th. This survey is based on factors that affect one’s ability to start and operate a local business.
This comes as no surprise, as Panama’s government has historically been extremely pro-business and pro-investor. It’s also somewhat of a tax haven and an increasingly popular place to open an offshore bank account. Panama also offers a whole host of visa options, with the number of choices increasing frequently.
Ecuador, on the other hand, has a reputation of being a bit unstable and unpredictable. It struggles with issues such as high government turnover rates and an economy that is based a bit too heavily on petroleum.
However, Ecuador’s economy is growing. The country is also taking steps to reduce the government’s influence in certain business sectors.

Gaspar Serrano
Round #8 – Banking
Advantage: Panama
Both Ecuador and Panama benefit from having a dollarized economy. However, both have seen requirements tightening in recent years due to laws like FATCA and other U.S. tax evasion agreements. As a result, it’s becoming increasingly difficult for foreigners to open an account.
That being said, the banking process is far more friendly to foreigners in Panama. It’s home to a number of international banks and is emerging as a major player on the global banking scene.
Ecuador, on the other hand, suffers from inconsistent regulations and subpar accounting standards, although its banks’ performance has improved in recent years. Due to the inconsistencies, however, the process of opening an account can be a bit long and tedious.

thinkpanama
Round #9 – Investment Opportunities
Our Pick: Panama
When you look at the ingredients for a savvy investment, they include factors like low costs, massive infrastructure projects, a focus on tourism, and government incentives. Both Ecuador and Panama have all of these. And lots of them.
Panama just has more. Its real estate is still affordable. The government has recently invested $15 billion in projects like airport expansions, new roads, and a metro system. There are tax breaks on everything from the importation of building materials to build a hotel to income tax on land purchased for reforestation.
Ecuador offers many of those same advantages, and often at a lower cost. So you could argue that in Ecuador there’s a bit more room for appreciation. However, the benefits of investing in Panama are just still too good to award this category to anyone else.

Presidencia de Republic de Ecuador
Round #10 – Health Care
Outcome: Another Tie
Ecuador and Panama both benefit from having excellent health care systems, with skilled medical staff and modern facilities. English is widely spoken by doctors in both countries, many of whom trained in the U.S, and hospitals offer the latest in technological advancements.
The low cost of care is also a big plus, with procedures generally running about ¼ of the price for the same service in North America. Health insurance is also affordable and widely available.
Both countries suffer from the same main drawback in this category: availability in rural areas. While they both have state-of-the-art hospitals, they’re found only in the largest cities. Clinics in more remote locations may be limited to basic services or even first aid only.

ThinkPanama
Round #11 – Consumer Goods
Winner: Panama
Both Ecuador and Panama have a surprisingly good selection of consumer goods. As a result, you usually need only drive to the nearest city to find exactly what you’re looking for, or at least a comparable replacement.
Where Ecuador suffers in this arena is due to its ever-increasing taxes. Many items have become more difficult to find, or at least more expensive, in recent years. Consequently, fewer and fewer items (like vehicles and cell phones) are being imported.
Panama, on the other hand, has become quite the shopping hub for folks all across Latin America. This is due in part to its low value-added tax of 7% (vs. 12% in Ecuador). We’ve even seen people who traveled from Ecuador to Panama City to buy several flat-screen TV’s due to the better prices and availability.

D. Rorfold
Round #12 – Foreign Land Ownership
Victor: Panama
In both Ecuador and Panama, foreigners who buy property have their rights protected by the constitution just the same as nationals of that country. There are also few restrictions on what land they can buy. Well, there’s only one really, and it’s in Panama where foreigners can’t own land within 10 kilometers of the border.
Both countries offer an abundance of land available at, in some cases, rock-bottom prices. However due diligence is absolutely necessary before buying land in either country.
Purchasing real estate as a foreigner can be a challenge, but the whole process is a bit easier in Panama. A good attorney is a must, so choose one who’s experienced in land transactions and can handle things like researching the title, drafting contracts, and registering the deed.

D Rorfold
And the Grand Champion Is…
Nah. We didn’t keep score. There’s just too much to love about both of these countries for us to try to give the trophy to one or the other.
What’s more important than our opinion is your own experience with each of these fine countries. So, if Ecuador and Panama are on your short list of potential expat destinations, then we suggest you open a new tab and start looking for flights. There’s no better way to pick a winner than to just let the two duke it out firsthand.
Map of Panama
Panama Fast Facts
- Population: 3.8 million
- Typical temperature: Temperature typically varies from 72°F to 91°F
- Nearest airport with U.S. flights: U.S. bound flights leave daily from Tocumen International Airport
- Nearest U.S. consulate: Panama City
Map of Ecuador
Ecuador Fast Facts
- Population: About 15.49 million
- Typical temperature: Ecuador is known for its micro climates.
- Major airports with U.S. flights: Quito, Cuenca and Guayaquil. Complete list of airports in Ecuador.
- Nearest U.S. consulate: Quito and Guayaquil
Everything you need to know that happened in the last 2 months in Mexico.
Each day we sift through hundreds of articles in English & Spanish to bring you the very best ones from Central America. From investment indicators to new infrastructure projects. Adventure stories to politics. It’s all here.
Mexico June 2014.

Daquella Manera
Mexico Tourism
- Mexico Earns $4.43 Billion from Tourism in Q1 (Latin American Herald Tribune) An estimated 3.7 million foreign tourists were in Mexico from January-March 2014 in which the nation earned $4.43 billion. This is an increase of 14.8 percent from the same period in 2013.
- Mexico Shoots for Top Five International Destinations (The Travel Agent Central) If all goes according to plan, Mexico is set to become one of the world’s top five tourist destinations. According to a new report from Timetric, Mexico’s travel and tourism industry is expected to grow significantly through 2018.
- Mexico Vacation Destinations 2014: Chichen Itza, Copper Canyon Among Top Spots To Visit This Year (Latin Post) There are probably more than 10 reasons you should visit Mexico. It offers a wide range of activities, so you can either get a tan on the beautiful beaches or learn a bit of Latin America history.

Serge Melki
Mexico Lifestyle
- U.S. Retirees Living Well in Mexico (CNN) American retirees are living the high life in Mexico. Many say they have a very active social life and more friends in Mexico than they ever did in the United States, mainly because Puerto Vallarta is full of people just like them.
- Where Gardens Grow Year-Round (The Star) You might not be able to enunciate it, but Ajijic, Mexico might be a gardener’s paradise. Besides all kinds of exotic heat-loving flowers, you can actually grow ordinary northern vegetables here; even better, most grow all year round.
- 10 Things You Probably Don’t Know about Mexico City (CNN) Mexico City is big-city bustle. With its delicious food, massive markets and more cultural events in a day than anyone can ever keep track of, CNN offers up 10 more exciting reasons why you should visit the nation’s captial.
- Health Care, and Patients, Go South — to Mexico (USA Today) The Affordable Care Act won’t change that Mexican immigrants head south of the border for medical treatment, experts said, even though it has expanded coverage to millions of people, including many Latinos.

Cerulean 5000
Mexico Economy
- Mexican Economy Still Has Room to Grow (The Daily Texan) It has the 14th largest economy in the world, but Mexico is still suffering from long-term development issues.
- Mexican Risks to Growth Have Eased – Central Bank Minutes (Reuters) Mexico’s central bank cut interest rates three times last year to spur economic growth. A majority of Mexico’s central bankers believe an economic recovery will continue in the coming months, though risks to growth remain.

Photographer Glen
Mexico Investment
- Mexico Plans to Invest 180 Billion Pesos ($13.8 Billion USD) in Tourism Infrastructure (The Yucatan Times) Mexico has everything necessary to become a tourism power at the global level and might just do it with its planned investment of $13.8 billion in tourism infrastructure.
- Mexico Outlines Airport Investment Allocations as Part of National Infrastructure Plan (CAPA) Mexico has announced, via the Presidency’s website, details of the country’s National Infrastructure Plan 2014-2018 which includes investment in a number of airports across the country.

Arturo Avila
Mexico Environment
- Environmental Groups Fight Tourism Project Threatening World Heritage Site in Mexico (Latino Daily News) The Cabo Dorado project is being called a hit on Mexico’s environment. Environmental organizations are demanding the Mexican government block a proposed tourist project in the northwestern state of Baja California Sur, saying it would pose a severe threat to the Cabo Pulmo marine reserve.
- Water a Precious Resource in Mexico (News 24) In Mexico 9.1% of its 118 million people have no direct access to drinking water. Jose Cohen, who made a documentary on Mexican water problems entitled H2O MX, says it is important to raise public awareness on this issue before it is too late.
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A R Vindgrove
There are so many good reasons to live in Panama. Some make the move for the climate, the friendliness of the Panamanian people, and of course because it is home to one of the best retiree discount programs in the world.
So it’s easy to see why Americans are choosing this country as their retirement haven.
But sometimes the best advice and position on life in the tropics comes from those who are living the expat lifestyle every day. Today, in our Expat Interview series we focus on three expats in Panama who share their living experiences and reasoning behind their decision to pick up their lives and move them to the tropics.
Expat Interview #1: Kris C.

Kris C.
Why did you choose to move to Panama? And how long have you lived there?
We were nearing retirement age and realized we didn’t have enough money to retire comfortably where we were, and that was if we worked until we were 70. We needed something more affordable.
We made a checklist of what we wanted – close enough to the US for visits to family, warm climate, stable government, crime under control, decent infrastructure…. and Panama just rose to the top of the list. We visited Panama City first and loved the country, but not the hectic pace of the city. Next we looked at David and knew it would work for us. We have been here 1-1/2 years and are very happy!
Where were you living previously?
Sarasota, Florida for 17 years.
What do you do with your time?
I don’t know how I stay so busy every day! There are still the usual daily chores, and I tend to cook from scratch more with all the great produce available here. I have more time for my photography hobby. I write a blog which is growing, and more and more people contact me through the blog. I’ve been riding my bicycle almost every day which is good exercise, and I’m also getting to know the city better and meeting new people.
I enjoy spending time with my friends. I try to study Spanish a bit every day. I like to work in the yard. I like to sew. Well looking at that list, it’s no wonder I stay busy. We are also traveling more both in and out of Panama.
What surprised you when you first came to Panama?
It is SO beautiful here. I think I loved it from the moment I saw those lush green mountains from the airplane window. I expected it to be really hot but it’s actually more comfortable than Florida in the summer. We hardly ever see mosquitoes and rarely get bitten or stung by anything even though we are outdoors a lot. The people are so friendly and welcoming, and adjusting to life here has been much easier than I expected. We have been made to feel like a part of the community, and members of a number of families.
If given a chance, which other South American country would you want to live in, and why?
When we decided that Panama was good for us, we really didn’t research other options. Something would have to change a lot before we’d consider moving. If it came to that, maybe Mexico, or Nicaragua? I hope to travel through Central America so when we get a chance to visit these other countries we should have a better idea of where else might work for us.
Expat Interview #2: Christopher Powers, Panama for Real

Chris Powers
Why did you choose to move to Panama? And how long have you lived there?
I chose to move to Panama because my wife, Marlene, is Panamanian, we lived 8 years together in the U.S., and we just decided we wanted a fresh, new start. Since she’d given my country a try for so long, it just made sense to try hers. Plus, I’d constantly moved our family from one place to the next in the U.S., at the whim of my employer, and it got to where my family was alone all the time.
For holidays, birthday, and any other significant event, it was only us. We’d just had twin boys, making it 4 kids total, and we wanted our kids to be surrounded by family and a warmer atmosphere. Panama is very family-oriented. Now, my kids have more of a life than we do. It seems they’re always at a cousin’s birthday party or a family get-together. We’ve lived in Panama going on 5 years.
Where were you living previously?
Prior to moving to Panama, we were living in Columbus, Ohio.
We’ve lived all over the place though. We started our family in Anchorage, Alaska, when I was stationed there while in the U.S. Air Force. From there we moved to South Florida (Boca Raton and Palm Beach Gardens) and then on to Chicago, Illinois before finally landing in Ohio.
What do you do with your time?
I spend most of my time working on my website, which is a site dedicated to helping people understand everything about Panama before they make the decision to move here. We (my family and I) travel all over this country. I write detailed reports and put together videos about each province, town, and neighborhood in Panama.
I tell you all about the cost of living, entertainment, utilities and infrastructure, medical care, and everything else you need to know. Plus, I write a lot of blog posts and articles giving people tips and pointers about living in or visiting Panama.
For example, I just wrote this post about the new Metro train system in Panama or my newest, probably most popular post yet on dating in Panama and if you just want to learn about one of the neighborhoods, here’s a video on the most popular beach town in Panama.
When I’m not working on Panama For Real, I’m busy punching out my next novel. If you happen to like dark urban fantasy (very action-packed and violent) check out my first novel, Mirror Images Book 1: The Darkness of Man. It’s only $.99 right now on Amazon (for Kindle).
What surprised you when you first came to Panama?
What surprised me most about Panama is how easy it actually is to live here. You spend so much time contemplating and trying to make sense of everything involved in a move overseas.
Then, when you finally do it, you realize it’s not all that difficult. You just have to adapt to your new lifestyle. The two most difficult things are learning Spanish (something I’m still struggling with all these years) and learning to truly relax.
Most people move to Panama because they want a slower pace, but they don’t realize what that actually means. Yes, it’s much more chill here in Panama. Everything slows down, but you have to realize that means EVERYTHING, to include anything involving the government. Don’t expect to get any paperwork filed easily. It takes forever here.
If given a chance, which other South American country would you want to live in, and why?
This is a tough one. Which country other than Panama would I like to try? If I could afford it, I think I’d have to say Argentina. Have you ever seen the photos and videos of the Argentina vineyards? I’m not even a wine drinker (I like my beer), but I think owning a vineyard would be awesome. And Argentina just looks so stunning. Yes, I’ll go with Argentina.
Expat Interview #3: Elizabeth Vance

Elizabeth Vance
Why did you choose to move to Panama? And how long have you lived there?
My former executive position brought me to Panama six years ago. We’ve lived since then – almost six and a half years.
Where were you living previously?
In the Chicago, Illinois area.
What do you do with your time?
I’m a writer and the bestselling author of two books about Panama. They include The Gringo Guide to Panama: What to Know Before You Go, and The Gringo Guide to Panama II: More to Know Before You Go. Both launched in the last 18 months, and have hit #1 and #2 for books about Panama on Amazon during that time.
In addition to writing, I run our household (which is more than it sounds like, but this is a developing nation, so everything takes longer than expected), and I consult part-time with companies considering moving to Panama and setting up business in Latin America.
What surprised you when you first came to Panama?
Ha! Almost everything. Probably the biggest thing that surprised me was that the city of Panama appears so glamorous with all the skyscrapers and glitzy night clubs and gorgeous hotels, but when you get down to conducting business and day to day life, the inefficiency and processes of getting anything accomplished can be exhausting.
Things here generally take three times longer to get done than they might in the U.S. I talk a lot about this and the realities of acclimating to life as an expat coming from North America to Panama in my first book.
If given a chance, which other South American country would you want to live in, and why?
I adore Colombia for the people and the culture. Bogotá is my favorite place, and my husband loves Medellín. The people are welcoming and warm. The food is delicious, and the shopping (especially for silver and leather goods) is fantastic.
Add that to the stunning mountain backdrop of either city and you have a winning combination. The ability to travel easily from Panama to every other capital in Central and South America is another reason why we chose to relocate here. That’s also a topic I cover in the second Gringo Guide book.
You can read more about me and my stories about Panama here.
In this episode Josh calls up his friend Rich Lipner, owner of Dos Jefes coffee farm in Boquete, Panama. Rich has been diligently producing his own coffee called Cafe De La Luna as well as giving coffee tours on his private farm. His knowledge is very high when it comes to the world of coffee.
Think of this show as your introduction to coffee growing as you hear from two passionate coffee drinkers.
In this episode, we discuss:
- Where is the best area on the globe to grow coffee.
- Perfect French Press, The exact time to wait before you press.
- What are the best ways to prepare coffee.
- Where the most expensive coffee in the world is grown, up to $300 a pound.
- Why you should ask where the beans come from at your local coffee shop.
And much more.
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The Show Notes

Laughing Bird Stock
When looking for a tropical destination that scores big on many levels, more and more expats are considering purchasing Belize real estate as the backdrop for their next adventure.
The tiny country (it’s barely bigger than New Jersey) is the northernmost of Central America, tucked neatly under Mexico’s Yucatan Peninsula. It’s also the only one that borders only the Caribbean Sea, which is a factor that heavily influences its real estate offerings.
With just over 320,000 inhabitants in the entire country (about as many as St. Louis, Missouri), it has a laid-back small-town feel. Even the capital of Belize City, which has only 70,000 residents.
There’s also a very youthful vibe, with 40% of the country being age 15 and under. And, although the country encompasses only 8,800 square miles, it claims a whopping 149 miles of Caribbean coastline. What’s more, it’s all protected by the world’s second largest barrier reef.
Expats are drawn to Belize real estate for its affordability, as well as the natural beauty that abounds throughout much of the country. They love the climate, the friendly locals, and the familiarness of the ways of doing things.
Belize Has Always Been a Refuge
Belize, unlike any other country in Central America, was originally founded as a British (not Spanish) colony. In fact, until 1973 it was still known as British Honduras. It only gained independence from Great Britain somewhat recently, in 1981.
It’s long served as a refuge of sorts, beginning with pirates looking for a place to trade their treasures. Other immigrants included Mennonite farmers who fled their homes in Germany and the Netherlands seeking religious freedom.
The British were next, establishing colonies in Belize where they could do their banking in private. Immigrants from neighboring Mexico and Guatemala also flocked to this peaceful country to escape turmoil and caste wars in their own nations.
Today, it’s expats from all over the globe who are drawn to Belize. This history of refuge-seeking immigrants has resulted in a fantastic cultural fusion that is evident throughout the country. From the languages to the cuisine, there are so many ethnicities reflected in every region and in every aspect of life in Belize.

Anoldent
The Unique Appeal of Belize Real Estate
What makes Belize real estate such a hot commodity is the fact that much of what it offers literally cannot be found anywhere else. That’s not an exaggeration or a marketing strategy. It’s the God’s honest truth. Here are a few of the factors that have made this haven so popular among expats.
It’s Close to North America in More Ways than One
Due to its physical location, Belize is one of the easiest places to get to in Latin America. And while expats obviously desire to get away when they relocate overseas, it’s not uncommon to want to find that home away from home as close to your original home as possible.
You can find direct flights to Belize from a number of U.S. cities, such as Dallas, Houston, Miami, and Atlanta. Even better, it’s three hours tops.
Not only is Belize physically close to the U.S., it’s also similar in a number of other ways. Due to its origins as a British colony, Belize is English-speaking. There’s a lot of Spanish floating through the streets, but the important stuff (i.e. street signs, legal documents, menus, newspapers, and television stations) is all in English.
The court system is based on British common law, which is familiar to U.S. residents. The education system is also all done in English and is well-regarded, which is important for families with children.
There’s no metric system, so it’s all inches, feet, miles, and acres. And while there is an official form of currency, the Belize dollar, it’s permanently tied to the U.S. dollar at a rate of two to one. So there are no conversion issues. Not to mention, the U.S. dollar is accepted practically everywhere (except government offices).
Belize Is an Ocean Lover’s Dream
Due to its geographical location, much of Belize’s population (and most of its desirable real estate) lies along and near the coast. What’s inland is overwhelmingly undeveloped (Read: There’s little to no infrastructure.).
In fact, an estimated 80% of the country is not being used by humans. That’s not to say it’s wasteland. Belize’s inland areas are packed with jungles, waterfalls, ancient ruins, and thousands of species of flora and fauna. So one could argue that it’s also a land lover’s paradise. But that’s not why most people come here.
What they do come for is the Mesoamerican Barrier Reef, the longest in the western hemisphere and the second largest in the world (after Australia’s Great Barrier Reef). It’s the country’s top tourist attraction and offers some of the world’s best fishing, scuba diving, and sailing.
If you’re not into all of those active aquatic adventures, there’s also the fact that it’s just gorgeous. In fact, the Great Blue Hole is one of the most spectacular sights on earth.
Not only does Belize offer an extensive amount of coastline, off its shores lie roughly 450 islands. Some are among the world’s most popular tourist destinations. Others are sparsely populated. A few are completely uninhabited and available for purchase. Not many tropical destinations can make such an offering.

Anoldent
It’s an Easy Place to Buy and Own Property
Not only does the end result of owning a piece of Belize real estate sound pretty appealing, but the process itself is a relatively simple one as Latin American transactions go. For starters, Belize places no restrictions on foreigners buying property, even beachfront real estate. That’s unheard of in many countries that are popular with expats.
There are also no capital gains taxes. You will have to pay a transfer (or stamp) tax, but even that is low, usually around 5% of the value of the property. Even annual property taxes are low, with even the priciest lots accruing no more than $200 or $300.
Many other transactions are also easy in Belize, making it an ideal destination for those who wish to invest or operate a business. In fact, it’s a popular offshore banking center and a great place to set up a corporation or trust. Opening a bank account is a relatively simple process, and interest rates are quite favorable (as high as 6% on deposit accounts).
The country is also politically stable. It’s a fairly young nation with a small population. Politics are a matter of great concern for most residents, and they’ve been known to show up at rates as high as 75% for national elections. While politically interested, however, everyone remains peaceable and good-natured with their political opinions.
Belize Real Estate Outlook
Belize is a great example of a tropical place whose property values have seen tremendous increase in recent years. However, there’s no indication that this trend appears to be slowing. Growth in Belize has been steady, stable, and consistent. The stable government deserves some of the credit for this.
Future growth projections are promising, particularly with the prospect of direct flights from Europe on the horizon. Tourism is on the rise, and the government is actively taking steps to ensure that popular attractions, like the rainforests and natural coastline, remain intact as development continues.
Current property values are often as low as half of that of similar lots in the nearby Bahamas. However, with the influx of new visitors from Europe, prices can be expected to rise drastically as the market is opened up to a whole new set of buyers. This could be great news for current Belizean property owners or those looking to invest in land in the immediate future.

P Shoun
Popular Places to Own Real Estate in Belize
As mentioned, much of the available (and desirable) real estate in Belize is located near the coast. However, even more specifically, there are several key areas that are the most popular among expats.
Ambergris Caye
Belize’s largest island, Ambergris Caye has become increasingly popular among scuba divers and fishermen, thanks to its proximity to the Belize Barrier Reef. Because of its popularity and numerous amenities, it is one of the pricier places to own Belize real estate. However, there are still bargains to be had if you don’t mind a bit of a walk to the beach.
Caye Caulker
Even though Ambergris Caye has a distinctly small-town feel, the atmosphere of Caye Caulker is even more laid-back. It has only about 1,500 residents and no motorized vehicles. Prices are lower than its larger island neighbor, but that gap is likely to close as Caye Caulker increases in popularity.
Stann Creek District
While the first two hotspots are island destinations in northern Belize, there are also a lot of expats buying homes in the Stann Creek area to the south. One of the most popular spots is Placencia, which sits on a peninsula.
Some claim that it has a more authentic Caribbean feel than the luxurious island developments. It also has wider beaches with whiter sand that are often virtually empty of other people in some spots. This area can also be pricey, but good value can be found just a little further outside of town.

Belize Cove
What Your Money Will Currently Buy in Belize
Here are a few properties listed for sale in Belize at the time this article was written.
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A mere $75,000 will get you a 1 bedroom, 1 bath cottage on over an acre in Esperanza Village, near the Guatemalan border.
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The same $75,000 buys you a 2.89 acre lot with around 75 feet of beachfront on Cross Caye in the Stann Creek District.
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For $431,000 you can own a 2 bedroom, 3 bathroom beachfront home on Maya Beach in the same area, complete with a pool, high end finishes, and lots of great outdoor space.
These are just a few of the great opportunities available in Belize. Depending on your individual preferences there are tons of other options that could make for the perfect setting for you to begin your expat life overseas.
Due to the inefficiencies of the real estate market, prices can often range all over the board for properties with similar features. So plan to set aside plenty of time to perform your search. Most importantly, you’ll want to plan a trip soon to see for yourself what this beautiful country has to offer. The pictures don’t do it justice.
Map of Belize
Belize Fast Facts
- Population: About 324,000
- Typical temperature: 84 degrees
- Nearest airport with U.S. flights: Belize City, Belize
- Nearest U.S. Consulate: Belmopan, Cayo, Belize

Global Pacific
The decision to move abroad and join the thousands of expats who are living in Boquete, Panama, is an exciting adventure. But it can also be a bit daunting.
There are a million questions to answer and hurdles to surmount before you actually, finally find yourself living in your own tropical paradise. One of the biggest ones is the question of housing.
Renting is often the best option for those who might want to take their time finding a more permanent place to live. It’s also great for those who only plan to live in Boquete for a short time, like families who spend only a year or two overseas to experience other places and cultures.
Much like buying a home, finding the perfect property to rent can be a complicated process. But here are some great options and ideas to help simplify your search.
1. Walk the streets.
If you’re already on the ground in Boquete, one of the best ways to find a place to live is by strolling the streets in the area where you want to be. Look for “For Rent” signs. Check bulletin boards in grocery stores, restaurants, and other businesses to see if any ads are posted.
It’s a great way to meet people and get a feel for the area. It also allows you to immediately rule out any places that don’t look up to par.
2. Check local websites.
Even if a home exchange doesn’t work for your particular situation, local websites are a great resource when searching for rental properties. A few examples are Craigslist.com, Viviun.com, and Encuentra24.com.
Check these sites often for new listings, and follow up on all possible leads. Don’t rule out a potential property based on the posting alone. You never know what you might be able to negotiate if you just reach out to the seller.
In addition to searching, you can also try posting your own ad indicating what type of property you’re searching for. Post the same ad on all your social networking sites. You could have a friend who has a friend who has a property that fits your exact specifications.
3. Read blogs.
There are a number of local bloggers in Boquete who might have leads that can help you. Those sites are authored by folks who are right there on the ground. They have lots of knowledge they can probably share. You just need to ask.
A few local sites in Boquete are ChiriquiChatter.net and BoqueteGuide.com. The authors of this site also have a few connections to Boquete.

Kris
4. Try the local newspapers.
Most local newspapers, both Spanish and English, have classified sections with real estate listings. That’s another good place to find out about available properties. Most papers also have a website.
In Boquete, there’s El Visitante, La Prensa (the national newspaper), and El Informante (based in David). It’s also a great idea to place your own ad, much like with the classified sites.
5. Ask around.
In addition to asking friends and friends of friends, you can also reach out to Boquete locals on forums or by contacting members of expat clubs and organizations. You might come across someone who was toying with the idea of renting their property or stumble on a great listing before it’s even offered to the general public.
Boquete.ning.com is a great expat community site. Post a discussion or try reaching out to key people in the community.
6. Try a home exchange.
As times get tougher, many expats and travelers are looking to save a few bucks on costly hotels and apartment rentals by offering their home to willing residents in their destination city. It’s pretty simple. You open up your home to a Boquete homeowner, and they do the same.
What you get is comfortable, furnished living quarters for virtually no cost whatsoever. It’s also a great way to see what it’s like to truly live like a local.
You can find available properties by signing up for an online home exchange club or just by posting ads on local Boquete sites like forums and classified pages.

Best of the Better
7. If all else fails, contact a professional.
There are certainly ways to locate a property on your own, but if you find it difficult or if time is of the essence you can always hire a real estate agent. They can scour all of the resources available for property listings and set up showings for you when you come to visit. Or they can supply you with all the information you need to make a decision sight unseen.
Keep in mind that realtors are often paid a little differently overseas, so you might need to consider payment for their time and not just a commission when the property is located.
What’s on the Market Now
Just to give you an idea of what’s out there, here are a few properties that are currently listed for rent in and around Boquete.
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A monthly rate of $500 gets you a 1 bedroom studio apartment on an organic farm in the mountains just ten minutes outside of town. The property is gated, fenced, and monitored by a full-time caretaker.
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For $675 per month, you can rent a 1 bedroom (plus loft) casita in the beautiful Volcancito area of Boquete. It comes fully furnished and includes utilities as well as gardening services.
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$850 per month will put you in a recently renovated 3 bedroom, 1 bath home that’s a minute walk from downtown and offers sweeping views of the valley. It features high-end finishes and all new electrical and plumbing systems.
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For $1,350 per month, you can have a 3 bedroom, 3 bath home that faces Volcan Baru, Panama’s highest peak. It’s 5 miles from town and features two fireplaces and an outdoor kitchen.
These are just a sample of what’s available, but there are plenty more just waiting for you to give them a look. Whether you’re seeking a villa outside of town or a luxury condominium within walking distance of everything, you’re sure to find what you’re looking for in Boquete.
Call, click, or visit today!
Map of Boquete, Panama
Boquete Fast Facts
- Population: About 22,435
- Typical temperature: Average temperature is 70 degrees
- Nearest airport with U.S. flights: U.S. bound flights leave daily from Tocumen Airport, both domestic and international flights to San Jose, Costa Rica depart from Enrique Malek International Airport in David
- Nearest U.S. consulate: Panama City
Everything you need to know that happened in the last 2 months in Guatemala.
Each day we sift through hundreds of articles in English & Spanish to bring you the very best ones from Central America. From investment indicators to new infrastructure projects. Adventure stories to politics. It’s all here.
Guatemala May 2014.

Fernando Reyes Palencia
Guatemala Tourism
- 5 Movie Locations to See on Your Next International Vacation (Travelers Today) Taking a trip to Tikal National Park in Guatemala will place you smack-dab in the middle of Yavin IV, home of the rebel base in the classic movie “Star Wars.” Indeed, the towering Mayan temple of that movie’s ending sequence is one of the most enduring and exotic images in all of cinematic history.
- 10 Most Sacred Spots on Earth (Fox News) Nestled in the Guatemalan Central Highlands, and bordered by three volcanoes, Lake Atitlán is the deepest lake in Central America and steeped in Maya history and culture.
- Avianca and Regional Tourism Ministries Want You to ‘Discover Central America’ with Deep Travel Discounts (The Tico Times) Want to visit Guatemala? Then now is the time to act with Avianca Airlines offering discounted rates on round-trip airfare in the region.

S. Zeke
Guatemala Lifestyle
- The Cost of Living in Guatemala (Reach Financial Independence) As long as you are prepared, life in Guatemala is very affordable.
- Buildings Violate Conservation of Antigua Guatemala (Prensa Libre via Google Translate) Buildings in Antigua, Guatemala are being made to look ‘less old’ and violating conservation laws established to retain the city’s colonial charm.

Fernando Reyes Palencia
Guatemala Investment
- Queen Sofia Strolls in Guatemalan Capital Zone Restored with Spanish Aid (Fox Latino News) Spain’s Queen Sofia took a walk through a formerly neglected, crime-ridden section of the Guatemalan capital which was restored with Spanish aid funds.

Cayambe
Guatemala Economy
- Palm Oil: Guatemala’s Newest, Biggest Cash Crop? (Tico Times) If there’s one thing Guatemala has in abundance, it’s land and most of it is perfect for growing Palm oil trees. Palm oil, in fact, now represents one-third of the vegetable oil consumed worldwide, and its use is increasing thanks to its high productivity.
- Guatemala Considers Taxing Poppies, Marijuana: Legalizing Their Sale Could Curb Drug War (Latin Post) With an increase in growing of poppy flowers, the Guatemalan government is considering taxing their farming to pay for rehab and other social programs.
Guatemala Environment
- Five Remarkable, Endangered Spots You Should Know About (USA News) The Global Heritage Fund wants you to know it’s time to take in our worldly treasures. Among those is Mirador, Guatemala – a mix of wetlands, mountains, rivers, and lakes which covers an area larger than Yellowstone National Park and is called the cradle of Maya civilization.
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New York Times best selling author Patrick Vlaskovits joins Josh for a Spunky Conversation. Their discussion touches on subjects from what you should really be thinking before you start a business to a broken board leash and a harrowing at-sea rescue. The latter occurred the last time they stand-up paddled in a secret location in Panama. Enjoy!
In this episode, we discuss:
- How to start a reliable business in an expat town.
- How to avoid dumb mistakes most people make.
- Why you should use Lean Business philosophy to make your next venture profitable.
- How the biggest obstacles to your success can be dealt with before you even start.
And much more.
Listen to the show
You can listen to the show using the player above or grab it and listen on the go via one of the following options:
- Click here to download the mp3
- Click here to subscribe via iTunes
- Click here for the RSS feed (non iTunes)
- Click here for the show archive
React to the Show
We appreciate your reaction to episodes of Viva Radio and feedback about how we’re doing.
Send us your thoughts any time in an email or comment below.
The Show Notes
- The Lean Entrepreneur by Patrick Vlaskovits and Brant Cooper
- Follow Patrick on Twitter
- Eric Ries the inventor of Lean Philosophy
- Boca Chica Panama – an article by Viva Tropical
- Boca Chica Island– Our adventure colony project in Panama.

OliverH
There’s a lot of buzz about Ecuador as an expat haven that’s among the world’s best places to retire or live in Latin America. But not a lot of people know much about it.
Like, for starters, where is Ecuador? I mean, it’s on the equator, right? Hence the name. But doesn’t that mean it’s unbearably hot?
And is it a long way away? How do I get there and how long is the flight?
We’ll answer these and other questions you may have about this popular destination. But let’s start with the most important one.
Where Is Ecuador on a Map?
There it is! Right there on the west coast of northern South America. Between Colombia to the north and Peru to the south. The equator does pass through it, roughy ¼ of the way down, near Quito.

Andrew Turner
How Do I Get There?
Ecuador has two main airports. There’s Mariscal Sucre in Quito and Simon Bolivar in Guayaquil. Quito’s airport is new and modern. It even has an on-site hotel that’s currently being built. However, both are a bit of a hike from the city. The old airport, which was more centrally located, is now closed and is being transformed into a park.
Some travelers also fly into Guayaquil on the coast. It also has a modern international airport with all the amenities you’d expect, like restaurants and duty-free shopping. It’s only a few minutes north of the downtown area.
Once in the country, buses are plentiful and affordable. There are also a number of regional airports, including two in the Galapagos Islands, which can only be accessed via mainland Ecuador.
What Airlines Fly into Ecuador?
U.S. Airlines that offer flights to Ecuador include Delta, United, and American Airlines. TAME, an Ecuador-based airline, flies into New York City. LAN Ecuador also flies there, as well as Miami.
From the U.K., you can fly American Airlines from Heathrow to Quito. KLM will also get you to Quito from Heathrow, by way of Amsterdam.
Other airlines that fly into Ecuador from destinations throughout Latin America are Copa, Avianca, Aeromexico, Iberia, and TACA.

Morpholux
Do I Need a Visa to Go There?
Not unless you want to stay for more than three months. By presidential decree, citizens of any country may visit Ecuador and stay for a period of 90 days. You won’t need a visa. However, you’ll want to check with your embassy to see what other paperwork might be required. For North Americans and most European travelers, it’s usually just a passport and a copy of your return ticket.

Sara Y Tzunky
When Is the Best Time to Go?
Because Ecuador is located on the equator, it has roughly the same weather year-round. So there’s really no bad time to visit. However, depending on the region, some seasons are a little better than others, as Ecuador’s climate varies greatly among its four distinct areas.
The coastal lowlands stay between 80 and 90 degrees. During the rainy season (December to April), you can expect a torrential downpour pretty much every day.
The Andean highlands are much cooler with daytime highs in the mid 70s. Nights can get pretty cool with lows around 50 degrees. The rainy season is the same, with April generally being the wettest month and June to September representing the driest period.
The Amazon region is probably much closer to what most people picture when they try to imagine a climate along the equator. Predominantly tropical lowland rainforest, it’s hot and humid with temps in the 80s and 90s and steady rainfall throughout the year.
It’s still popular among adventure travelers despite its challenging climate. The frequent showers make for excellent whitewater rafting and kayaking.
Despite being situated almost directly along the equator, the Galapagos Islands get some relief from the heat thanks to the cool Pacific waters. As result, they enjoy temps between the mid 60s and upper 80s with surprisingly little rainfall.
What Places in Ecuador Should I Visit?
Ecuador is jam-packed with natural wonders and cultural attractions. Here are some of the most popular spots that you won’t want to miss.
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Banos is the adventure capital of Ecuador. It sits at the foot of the active Volcano Tungurahua. It’s also surrounded by a number of hot spring mineral baths.
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Canoa is a beach town that hasn’t lost its appeal as primarily a laid-back fishing village.
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Cotacachi is a small village that’s only 90 minutes from the capital city of Quito. It enjoys a rich cultural heritage.
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Cuenca is a beautiful colonial city in the mountains that’s quickly becoming one of the most popular expat destinations in Latin America.
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Esmeraldas is a cozy beach town that’s a little more laid-back but still one of the country’s most popular.
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The Galapagos Islands are an archipelago scattered far off the country’s coast. Made famous by Charles Darwin, they’re visited by scientists and nature lovers from all over the world.
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Guayaquil is the largest city in Ecuador. A bustling coastal town, it’s a functioning port city with a relaxed Caribbean feel.
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Loja is another mountain town that’s growing in popularity. Smaller and more affordable, it’s known for its cultural importance and musical roots.
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Manta is a beach town that offers coastal living combined with all the big city amenities of a modern industrial city.
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Montanita is another popular beach town. Known for its surfing and nightlife, it attracts a whole host of colorful characters from all walks of life.
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Otavalo is another mountain town that has retained its quaint, authentic appeal. It’s most famous for its popular textile market.
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Quito is Ecuador’s capital city. Located in the mountains, it has a well-preserved historic district and a monument situated on the equator marking the “middle of the world.”
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Riobamba is the gateway to Mount Chimborazo, Ecuador’s highest peak. It’s also the starting point of the famous train ride down the Nariz del Diablo.
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Salinas is a crowded beach town that’s often dubbed the Miami of Latin America. It’s popular among locals and boasts a number of water sports.
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Vilcabamba is located high in the mountains. Its water comes from melting glacier pools and is among the purest on earth, possibly contributing to the good health and longevity of its residents.
As you can tell, there’s a lot to see and do in Ecuador. It’s also one of the least expensive destinations of its kind. Now that you know how to get there, consider taking a trip to experience the sights of Ecuador firsthand.
Ecuador Fast Facts
- Population: About 15.49 million
- Typical temperature: Ecuador is known for its micro climates, learn more here.
- Major airports with U.S. flights: Quito, Cuenca and Guayaquil. Complete list of airports in Ecuador.
- Nearest U.S. consulate: Quito and Guayaquil
Phil and his wife Meg came to Panama to meet Josh and Park on their island (Boca Chica Island) about a year ago. At that time Phil and Meg had never been to Central America. Meeting the guys was his first stop on a multi-stop tour of the region.
Since then he has traveled all over Central America from Panama to Mexico, at which point Josh caught up with him to discuss what has happened since their island meeting.
In this episode Phil and Josh discuss why he left the NFL and what led him to consider the Latin Tropics for living. After he traveled all over the region to find the perfect place to reside, Phil talks about why he wanted to leave the U.S. and look for greener pastures.
In this episode, we discuss:
- Why Phil and his wife traveled all over Central America by bus.
- What places they liked and why.
- Why he isn’t very excited about the current direction of the U.S. and why you might need to protect yourself in the future.
And much more.
Listen to the show
You can listen to the show using the player above or grab it and listen on the go via one of the following options:
- Click here to download the mp3
- Click here to subscribe via iTunes
- Click here for the RSS feed (non iTunes)
- Click here for the show archive
React to the Show
We appreciate your reaction to episodes of Viva Radio and feedback about how we’re doing.
Send us your thoughts any time in an email or comment below.
The Show Notes
- Chris Martenson Website
- Crash Course Book
- Boca Chica Panama – an article by Viva Tropical
- Boca Chica Island– Our adventure colony project in Panama.
Everything you need to know that happened in the last 2 months in Costa Rica.
Each day we sift through hundreds of articles in English & Spanish to bring you the very best ones from Central America. From investment indicators to new infrastructure projects. Adventure stories to politics. It’s all here.
Costa Rica May 2014.

Zack Kruzins
Costa Rica Tourism
- Marina in Costa Rica Set for June Groundbreaking (Trade Only Today) After suffering a deep economic loss following the departure of the Chiquita Land Company, Golfito Costa Rica is ready for a comeback. Golfito Marina Village & Resort, Costa Rica’s newest resort catering to super yachts, is scheduled to break ground in June in this southern Costa Rican town. Improvements have already begun with the renovation of the town’s central boulevard and roads.
- Natural Riches: Abundant Flora, Fauna Highlight Jaunt through Costa Rica (Commercial Appeal) Though Costa Rica occupies 0.03 percent of the planet’s surface, it hosts 4 percent of worldwide species and is worth putting on your travel agenda in 2014.
- In Search of ‘Wild’ Costa Rica (New York Times) Costa Rica is home to large tracts of untouched yet accessible rain forest and according to News York Times Travel, it is the most bio-diverse vacation you will ever have.
- Tourism Sector in Costa Rica Poised to Grow 5.5% in 2014 (Costa Rica Star) Costa Rica is set for a good year in tourism growth as visitors from Asia and Latin America are willing and more able than ever to travel both within and beyond their borders.
- Costa Rica’s New Border Crossing Fees Are in Full Effect & Causing Delays (Costa Rica Times) Costa Rica’s border crossing fee is in place like it or not. The fee started to be collected on April 1st. It’s a $5 departure tax and a $2 payment for protection services at the border, which are provided by Costa Rica.

PDTillman
Costa Rica Lifestyle
- Costa Rica Is Getting More and More Expensive. Here’s Why: (Costa Rican Star) Is it more expensive for an expat to live in Costa Rica than say Panama? Maybe so, a recent report by Costa Rican TV network Teletica says that expats living in this tropical paradise are not feeling the Pura Vida when it comes to their personal finances, and their stories confirm the ongoing trend of skyrocketing prices in consumer goods and services.
- Eight Factors to Consider When Choosing Your Overseas Retirement Destination (Huffington Post) Do you know what your lifestyle requirements are? Do they fall in line with living abroad in a tropical (and maybe less expensive) climate? Check out Huffington Post’s top eight factors to consider when moving abroad to find out.
- Costa Rica Untapped (Audubon) A real wilderness adventure awaits in one of the world’s most popular nature travel destinations, Costa Rica, where you get off the beaten path (and life’s rat race) on the Osa Peninsula.

Barnaby Wasson
Costa Rica Real Estate
- Real Estate Leads Costa Rica FDI (The Nation via Google Translate) Foreigners are investing in Costa Rica real estate in record numbers. In 2013, $1.16 billion was invested according to information from the Costa Rican Coalition for Development Initiatives (Cinde), the largest contributor to Costa Rica’s foreign direct investment numbers.
- 2014 Real Estate Trends Looking Up in Costa Rica (Digital Journal) The Real Estate market in Costa Rica is looking positive in 2014. With the new wave of retiring Americans and Canadians comes a new wave of buyers and future expats.

Zhu
Costa Rica Economy
- Business in Costa Rica: Intel Outside (The Economist) Intel shuts a factory, slicing away one-fifth of the country’s exports and possibly crippling its export economy. The pain will be felt across the economy. Intel’s operations in Costa Rica are worth around $2 billion a year, making up about 20% of the country’s exports. The firm accounted for 11% of net foreign direct investment in 2000-12.
- Intel and Bank of America Layoffs Stun Costa Rica (The Oregonian) Did Costa Rica’s presidential election cause a fallout in its economic sector? Both Bank of America and Intel might think so. Both companies stunned Costa Rica’s government by announcing they would fire about 3,000 workers in the Central American nation just two days after the opposition won a presidential runoff.

T_Pixel
Costa Rica Environment
- Greenwashing Away Minority Land Rights in Costa Rica (Huffington Post) Amid the clamor of a presidential runoff election this week, few likely noticed one of Costa Rica’s outgoing president’s last acts: the signing of Law 9223. The law is unique in that it gives recognition of the Rights of Inhabitants of the South Caribbean and does something apparently quite simple: It removes several long-standing coastal communities occupying some 900 acres along Costa Rica’s southern Caribbean coast from the confines of the Gandoca-Manzanillo National Wildlife Refuge.
- Tulemar Receives Costa Rica’s Environmental Blue Flag Award (Digital Journal) For the seventh consecutive year, Tulemar Beach has been named one of the cleanest beaches in Costa Rica.
- Access to Water Becomes Fundamental Right in Costa Rica (Aqua Now) Costa Rica’s Legislative Assembly passed a bill that will make general access to water a fundamental right. The new bill establishes water for human consumption as a priority use.
- Stunning Photos of 8 Million Flower Petals Raining Down on a Costa Rican Village (PetaPixal) Word’s can’t describe it…watch 8 million flower petals shoot out of a volcano in Costa Rica.
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Jeff McNeill
Opening an offshore bank account is a relatively simple process for those who plan to work or simply live abroad. It’s also a great idea even for U.S. residents who wish to diversify their portfolios and reduce their exposure to litigation or political risks.
However, as a U.S. citizen or expat with an offshore bank account, it’s important that you realize the tax and reporting implications of foreign account ownership. It’s also important to note that many of these requirements aren’t tied to income. Merely having a financial interest in the account is enough to get you on the hook.
Who Is Required to Report?
Well, for starters, foreign financial institutions are required to enter into an agreement with the IRS and report on all their clients who are U.S. persons, or else face a 30% withholding tax on all U.S. transactions. (Furthermore, if you as their client do not comply with federal reporting requirements, they’re required to impose the same withholding on any payments to you.)
The IRS can then cross-check this information with the individual filings they have (or haven’t) received. So, if you were wondering whether the IRS could or would ever find your piddly little account and actually do anything about your failure to report it, the answer is yes. And, if that happens, then a 30% withholding tax will be the least of your worries. More on that later.
Bottom line: If you’re a U.S. resident or citizen (no matter where you currently reside) and you have interest in a foreign financial account (no matter whether it’s generating income) that meets the minimum reporting threshold, then you need to keep reading.
What Forms Do I Have to File?
This is probably as good a time as any to mention that we are by no means tax or legal advisers. The United States’ tax and reporting laws are complicated and can change on a whim. They also vary from one individual to the next, based on your specific situation.
Our best advice? Use this outline as a guide to help you know where to start. Consult the IRS website for more specific information or, if your situation warrants, a tax or legal professional with experience in foreign account reporting.
To give you a general idea of the requirements at the time of this post, here are the 3 main forms you’ll deal with:
Form 1040 – U.S. Individual Income Tax Return
If you’re a U.S. citizen or green card holder you’re required to file a U.S. tax return, no matter where you live now. That is, as long as your total income (domestic and foreign) is over $9,350. That’s because U.S. citizens are taxed on their worldwide income.
The U.S. has treaties with a number of foreign countries that may allow you to reduce or even eliminate any U.S. tax liability (if you’ve already paid taxes on the income overseas). However, you still have to file in order to take advantage of these credits. You’ll do this by attaching Forms 2555 and 1116.
Whether or not you’ll need to file a state return depends on where you lived before you moved away, as it varies from state to state. New Mexico, Virginia, California, and South Carolina are among those that will still require you to file.
Form 8938 – Statement of Foreign Financial Assets
In 2010, the U.S. Congress enacted the Foreign Account Tax Compliance Act (FATCA), a statute designed to help recoup federal tax revenues by making it more difficult for U.S. persons to hide assets in offshore accounts. As a result, U.S. citizens are now required to report any financial interests they have in foreign financial accounts or foreign financial assets, provided they meet the minimum threshold.
For those living in the U.S., that’s assets totaling at least $50,000 on the last day of the tax year, or at least $75,000 on any day during that year. This threshold is raised to $100,000 and $150,000 for married couples filing jointly.
For taxpayers who don’t live in the U.S., those minimum limits are raised to $200,000 on the last day and $300,000 during the year for individuals. For married couples outside the U.S., it’s $400,000 and $600,000 respectively.
These thresholds are aggregate, so multiple assets that collectively add up to these amounts also put you on the hook. Amounts are based on fair market value in U.S. dollars as of the end-of-the-year exchange rate.
The Form 8939 is filed with your federal income tax return and is due when your taxes are filed. In one piece of good news, U.S. citizens living overseas are given an automatic two-month extension (to June 15th) on any filing and payment requirements. Additional filing extensions can be requested. However any due payments made after June 15th will be subject to interest and penalties.
Form TD F 90-22.1 – Report of Foreign Bank and Financial Accounts (a.k.a. “FBAR”)
The FBAR is a product of the erroneously-named Bank Secrecy Act, and it’s required of anyone owning (or controlling) foreign financial assets totaling $10,000 or more at any point during the year. The value is determined by reviewing periodic account statements to determine its maximum value for the year and is reported in U.S. dollars based on the end-of-year exchange rate.
While the FBAR is filed with the IRS, it’s done completely separate from your tax return. Due on June 30th (meaning actually received, not just postmarked), it should be submitted electronically through the Financial Crime Enforcement Network (FinCEN) e-filing system.

Image Money
What Happens If I Fail to File the Required Forms?
Well, that depends. Penalties vary based on whether you failed to file one or multiple forms, whether your omission was committed in conjunction with any other illegal activity, and whether or not your failure to file is determined to have been a willful one.
Since the above forms are filed independently of each other, they’re also penalized as such.
Let’s start with the Form 8938. Failure to report any foreign financial assets when you file your tax return can earn you an initial fine of up to $10,000, plus an additional $10,000 for each month thereafter, up to a total of up to $60,000. Depending on the circumstances, criminal penalties may also apply.
With the FBAR, the punishment is even steeper. Even a non-willful violation can be earn you a $10,000 fine. However the penalty for a willful violation starts at the greater of $100,000 or 50% of the total balance of the applicable accounts. This offense can also be criminally prosecuted with additional fines up to $100,000 and/or up to five years in prison.
The limit on that penalty increases to $500,000 and/or ten years in prison (per offense) if you’ve also violated another law (e.g. the Internal Revenue Code) or been involved in criminal activity involving more than $100,000. In other words, there’s a special place in penal hell for those who use offshore accounts to hide their involvement in illegal activity. Don’t do it.
The IRS claims that their goal in enforcing these penalties is compliance with the law, not revenue. We’ll take their word for it on that one, but the bottom line is that everyday unsuspecting citizens can and are being charged these fines for simply failing to do their due diligence on what’s required.
What Determines Whether a Violation is Willful?
An act is considered to be willful when it’s done with the knowledge that it violates the law. Ignorance of the law is a defense. However, it’s a difficult one to prove.
Obviously, if you’re the one who opened the account, you’ve got a weak case. You’re similarly screwed if you intentionally responded incorrectly to question 7a on your Schedule B, Interest and Ordinary Dividends, which asks if you had “financial interest in or signature authority over a financial account (such as a bank account, securities account, or brokerage account) located in a foreign country.”
Oh @$#%! I’m in Big Trouble!
There’s good news for those who’ve either newly become aware of their delinquency or who’ve decided to come clean about their intentional evasion. Under the Offshore Voluntary Disclosure Initiative (OVDI), U.S. persons are given one last opportunity to comply with the law.
In exchange for their honesty, their maximum penalty is reduced to only 27.5% of the highest value of their accounts during the period of which they failed to report. In addition to paying the fines, they must also amend their federal income tax returns for the previous 8 years.
Note, the OVDI program is a voluntary one and is not an option for taxpayers who have already been contacted or are being investigated by the IRS. The process should only be attempted with the assistance of experienced legal counsel and should begin with a phone call to make sure no investigation is underway.
While this amnesty program could be a bit of a relief for some individuals, it’s no substitute for forthright and timely compliance with U.S. tax laws. Owning an offshore account can be of tremendous benefit to expats and investors. But it carries with it some hefty responsibilities.
Don’t find yourself on the wrong end of an IRS investigation. If you choose to take advantage of the opportunities associated with banking and investing overseas, make sure you dot your i’s and cross your t’s.