Andrew Hall
You may know Nicaragua for its affordable living and quaint colonial cities. But have you ever considered the country as a contender for island living?
If not, then it’s time you did. Nicaragua has a number of great island options for those looking to buy their very own private island. Or at least a sizeable lot on a larger isle.
Here are a few reasons Nicaragua is such a fantastic choice for those considering island life.
1. Much of Nicaragua is still undiscovered. At least…for now.
Located just south of Costa Rica, one of Central America’s biggest tourist draws, Nicaragua has historically flown just a little further under the radar. Not known as a vacation hotspot like some of its neighbors, the country has attracted a more adventuresome breed of pioneering expats.
However, even so, the vast majority of expats and retirees have gone elsewhere when seeking their dream destination in Central America. That is, until recently.
The Nicaraguan government has been investing significantly in its country’s future as a tourist destination and expat haven. They’re spending much-needed dollars on infrastructure and getting the word out about factors like the country’s affordability and safety.
As a result, more and more North Americans are adding Nicaragua to their short list of places to live abroad. There are still plenty of isolated properties and real estate bargains to be had. But those wanting to buy an island in Nicaragua while it’s still up-and-coming (before it truly arrives) had better act fast.
2. Speaking of bargains, Nicaragua offers a lot of island bang for your buck.
Generally speaking, island properties are more expensive than their mainland counterparts. One reason is because of their scarcity. You can always tack on more floors to a high-rise condominium development. You can’t construct a new island.
However, while islands are more expensive in comparison to other properties, Nicaraguan islands are a steal compared to the rest of the Caribbean.
Not only is the real estate itself affordable, but the cost of living in Nicaragua is another thing that makes buying an island there an appealing option. Most couples can get by on as little as $1200 per month.
Zsuzsa Poor
3. The archipelagos of Nicaragua offer the quintessential island experience.
Since Nicaragua borders Costa Rica, it offers much of the same natural beauty, great surfing, and near-perfect weather as its more popular (read: more expensive and crowded) neighbor.
Many of its islands are inhabited by nothing but lush vegetation and a myriad of rarely seen wildlife. Their beaches offer wide stretches of golden sand. The waters are calm. There are great spots for diving, fishing, and more.
The more populated islands are equipped with a few restaurants, reggae bars, and humble tourist accommodations. But even those areas still offer that Robinson Crusoe solitude just a few yards off the beaten path.
There’s also a lot of authentic culture in Nicaragua. The locals are friendly, as are the relatively few expats who call the country home. The lifestyle is laid-back, and the pace is as slow as you could hope for.
4. With two oceans and a gigantic lake, there are plenty of island options available.
The islands of Nicaragua don’t get a tremendous amount of press, compared to some of their Central American competitors like Ambergris Caye, Belize, and Roatan, Honduras. But the country actually has a surprising number of islands to choose from.
There’s the Corn Islands in the Caribbean, with their beautiful unspoiled beaches and glistening turquoise water. On the Pacific side of the country, Lake Nicaragua (the largest in Central America) also has a number of options, such as Ometepe Island.
For those who prefer a private island all to themselves, rather than a small lot on one of theses more populated choices, there are hundreds scattered throughout both oceans. You can find one that’s completely untouched or even an island complete with a guest house, docks, a swimming pool, and a full-time caretaker.
Kristian Golding
5. Buying an island in Nicaragua can be relatively painless.
Finding your dream property is the first hurdle to overcome in the buying process, and luckily there’s quite a bit of inventory available on the islands of Nicaragua. You’ll need to understand the nature of Central American real estate, as realtors and firms don’t work together in cooperation like they do in first-world countries.
Once you find a property, you’ll need to do your due diligence before you sign on the dotted line. Research things like any zoning issues, whether the island has any problems with erosion, and what you’re allowed to build on the property.
Note: This type of investigation is best handled by a qualified attorney who has LOTS of experience with land transactions (and islands, in particular) in Nicaragua. It’s so important to thoroughly research the title to ensure there are no other liens or claims to the land and that the seller does indeed have the ownership rights to be able to sell the land in the first place. Once you’re comfortable proceeding, the rest is about what you’d expect.
Do know that it’s buyer beware, so all the work you and your attorney do on the front end is absolutely invaluable in exchange for the peace of mind you’ll have when you’re confident in knowing the property is yours fair and square.
Alba Sud Fotografia
There are a lot of great island options in Central America, and Nicaragua is only one of many. If you’re interested in the concept of island living, but want a place that’s a bit more established in terms of infrastructure and commerce, take a look at Boca Chica, Panama.
Map of Nicaragua
Nicaragua Fast Facts
- Population: About 5.99 million
- Typical temperature: There are three temperature zones in Nicaragua. In the lowlands (Pacific and Atlantic coast) temperatures vary roughly between 72° F at night and 86° F at daytime (22° C – 30° C). Temperature can reach 100° F in May (38° C). The central part of the country is about 9° F (5° C) cooler, and in the mountains in the north it’s about 18° F (10° C) cooler.
- Nearest airport with U.S. flights: Managua
- Nearest U.S. consulate: Managua
It’s true that the consumer marketplace is becoming increasingly more global. Look around you. Check the tags on some of your clothing, the stickers on your fruit, or the assembly information on your electronics.
Chances are you’re surrounded by things that were grown, developed, or manufactured in places other than North America. It’s the state of the world these days.
Victor Amark
Now look at your investments. The odds are here that you’re probably buying goods from all corners of the globe yet your portfolio is heavily, if not entirely, invested in only U.S. stocks and other financial products. And that’s understandable.
International investing is an intimidating concept, particularly for the individual investor but even for the large firm whose name may appear on your quarterly financial statement. (Although that has more to do with the fact that they lack the resources to due the necessary due diligence or the willingness to assume any risks associated with foreign investments.)
It’s not that your broker doesn’t see the value of international options. It’s just that pitching them to his boss (who would be required to sign off on such an unconventional investment) would probably get him laughed out of the office at best. Most firms just aren’t set up to accept those types of holdings.
*Note: An obvious exception here are mutual funds, as there are many international funds where advisors will probably recommend that you stash 20-30% of your portfolio. Individual foreign stocks are also becoming increasingly more accessible, but they can often result in more hassle and foreign commissions.
What we’re suggesting is more of a hands-on approach to your international investing. You’ll save on commissions and fees, and you’ll also have the ability to sell underperforming stocks and reap the tax benefits.
That being said, we aren’t investment gurus or tax professionals. We’re just a couple of guys who’ve seen from our own experience in the international market that the following are some very real truths and benefits to international investing.
Victor Amark
1. If you only invest in U.S. markets, you’re missing out on over half of the options out there.
It’s true that the U.S. stock market is the world’s largest. However, when looking at the bigger picture, it only represents 49% of the $24.2 trillion value (as of 2010) of the world’s stocks. Throw in the U.K. (10%), Japan (10%), the rest of Europe (19%), the Pacific (6%), and Canada (5%) and you’ve doubled your choices.
If you’re limiting your portfolio to only U.S. stocks and domestic mutual funds, you’re only skimming the surface of the available investment options.
2. If you assume the U.S. is always number one, you’re wrong.
Whether you realize it or not, the U.S. isn’t always at the top of the charts when it comes to investment performance. In fact, in looking at the past four decades, the U.S. stock market came in dead last in two of them when compared to the annualized returns of other world indexes (according to the Ibbotson Stocks, Bonds, Bills, and Inflation Yearbook).
If you’re wondering, those worst decades were the 1970s (5.9%) and the 2000’s (-.9%). Only in the 90s did the U.S. outperform all the other indexes with 18.2% returns.
Interestingly, over the course of those 40 years, all the indexes averaged between 9.6% and 10.7%, with the U.S. coming it at an even 10%. So, while there’s not one region that consistently outperforms the others, the U.S. does not do so either. In other words, there’s just no logical reason to ignore international investments.
3. Neither is the U.S. leading in innovation.
There was a time when the U.S. was leading the world in technology, development, and innovation. That time was the 1970s. It’s well behind us.
Today the country cranking out the most patents is Japan. The U.S. is next, followed by China and South Korea. If you look at patent applications relative to factors like GDP and population, the U.S. falls even further down the list.
This just proves that the U.S. is no longer the leader in innovation and economic development. Other nations are catching up fast, and the only way to take advantage and ride the wave of their rapid growth is to invest in international stocks.
F Delventhal
4. Diversification protects against a number of risks.
We mentioned that there are ups and downs across the global market and it’s impossible to know which will perform well in any given year. Different countries are affected in various ways by things such as economic and political stimuli, as well as natural disasters and other factors. Investing in countries with little cross-correlations can greatly reduce risk.
Performance is understandably a huge motivating factor for international diversification. When money is invested in assets with similar long-term returns but differing short-term returns, the most effective strategy has proven to be holding a varied mix of those investments.
For example, given the 1970-2010 average returns mentioned earlier, $1,000 invested in a global portfolio turned into $65,307 vs. $49,378 in only Pacific stocks, $49,655 in U.S. stocks, or $63,906 invested in ony European stocks. Consequently, the best strategy appears to be to hold a portfolio that’s diversified across several countries.
*The exception here is during periods of global financial crises, in which across-the-board losses are often unpreventable.
Exchange risks are another area where diversification offers protection. Since the relationships between currency values change on a daily basis, international investing can also provide a hedge against the struggling U.S. dollar. Considering the U.S. government finances much of its shenanigans by merely printing more money, this is an important benefit.
5. While there are risks with international investments, they’re easily outnumbered by the benefits.
No investment comes without some level of risk. And, considering the volatility of international markets, international stocks are more risky than domestic ones.
When dealing with overseas investments there are also factors like political instability and shaky property rights. Other worries include looser government regulations, which can lead to problems like manipulation and fraud.
There are also the aforementioned exchange risks should another country’s currency lose value in relation to the dollar. So an increase in the exchange value of the dollar, a good thing for the U.S. in general, would in essence actually hurt the value of your foreign investments.
Not to mention, it’s hard enough to keep up with the goings on in the domestic economy, much less monitor headlines to determine if China’s bubble is likely to burst or whether Greece’s economic turmoil could in turn send all of Europe down the tubes.
Then again, it’s equally difficult and even more risky to rely solely on the performance of U.S. stocks. Despite the volatility in markets across the globe, the Vanguard Total International Stock Index reports a 7.21% 3-month return vs. only a 4.79% increase for the S&P 500 during the same period.
Pat (Cletch) Williams
6. Real estate is a great option for a less volatile long-term investment.
When choosing from a number of vehicles in which to invest abroad, real estate is a great option for even the most amateur investor. It offers some huge benefits over less tangible investments. Not to mention, it’s actually something you can USE if you’d like.
Real estate is finite. There’s only so much of it. Values can certainly fluctuate, but at the end of the day it always holds some intrinsic value. That’s more than you can say about a stock certificate. Land also has the benefit of being exempt from exchange risks, since it’s a hard asset that retains its value independent of any fluctuations in currency values.
Another perk is that a land investment is also yours to do with as you choose. You can sell it, rent it, develop it, or merely hold on to it for a while until a significant event, such as a new road or nearby development, causes its value to increase due to no action on your part whatsoever.
Not to mention, owning land is FUN. When you invest in a piece of property or a development, you have the ability to influence what goes on there. You’re invested not only in the dirt and trees, but in the community and its future.
Why We Believe So Strongly in International Real Estate Investments
This is one of the things we love about building our Adventure Colonies. We go in to emerging areas, find land that’s a great deal, develop it into usable lots or home sites, and then sell those to people who share our vision for the area.
Some buy the land to use as a place to retire or raise their families. Others choose a spot where they can launch the ecotourism business they’ve always dreamed of. Still more simply invest in the project because they believe in our mission and see can see the potential to profit tremendously as the surrounding area continues to grow and develop. And land investments can meet all of those goals.
If you’d like to learn more about investing in international real estate and our proven blueprint for success in this arena, check out our free ebook Pay Dirt. We believe in this model for international land investment, and we’d love to share our experience with you.
Paul D’Ambra
Almost everyone has at some point found him- or herself on vacation in a tropical setting, looked across the water to a secluded island, and thought…I want to vacation there.
For the more intrepid traveler, maybe it even goes a step further. Perhaps you’ve found yourself wanting to actually LIVE there. Or, heck, even own the whole stinkin’ island for yourself.
But then there’s that little voice in the back of your mind that beckons you back to reality. You know the one. The little whisper reminding you that there aren’t any 24 hour pharmacies on that island, that there are however a number of poisonous critters, and that there may also not be any internet access to speak of.
So you wonder. Could you really do it? I mean, sure you could survive there for a few days, or maybe even a week. But could you really live on a sparsely populated, or even…[gulp]…DESERTED island?
It’s true that island life isn’t for everyone. It’s basically a matter of considering your priorities and values, as well as weighing the pros and cons of living in a remote setting. We should also add that a number of those pros and cons pull double duty, as what is one man’s ideal picture of paradise might be another’s vision of absolute hell on earth.
It’s a weighted ranking system, really. And one where only you can assign each positive or negative attribute the importance it deserves. But to help you out, here are a few of the best and worst realities about living on an island.
Paul D’Ambra
Pro: Their undisturbed beauty is unrivaled by any planned development you can fathom.
Picture it. Powdery sand beaches, colorful splashes of tropical flora…with no signs of human intervention other than a hammock slung between two trees that’s gently calling your name. All this sits on the shores of the warm turquoise waters of your own private swimming pool that stretches infinitely toward the horizon.
There are no high-rise condos to block your view, no obnoxious souvenir vendors peddling their wares, and no loud neighbors blaring Jimmy Buffett on constant replay. Just you and whomever and whatever you’ve elected to bring with you.
Con: Sometimes a little development is a good thing.
Sure you’re considering island life because of its simplicity. But keep in mind that many islands, particularly the smaller, undeveloped ones, lack any utilities or infrastructure whatsoever. There may be no electricity, no hot water, no phones, no convenience stores.
What’s more, some islands that aren’t developed have remained that way because it’s not possible to get permission to develop them. So you can’t assume that you can later add some of the amenities you desire. That’s not always an option.
Compromise: If you’re someone who absolutely has to have a little bit of development to feel content or secure, you have basically two options available to you.
The first option is to choose a relatively larger island that has a few more amenities. There are some great options, like Roatan, Honduras, or Ambergris Caye, Belize, that offer all of the perks of island living but also have access to goods and services you might not find on a smaller island.
You won’t exactly be living the life of Robinson Crusoe, unless you can find a secluded lot somewhere well off the beaten path, but you’ll have those creature comforts you crave. You’ll also pay considerably more for property on one of these more developed islands.
Another alternative is to choose a secluded, private island that’s NEAR a place that has more development. A perfect example is Boca Chica Island, Panama. (Unashamed plug for our island!) There you can be completely alone with your thoughts and then, after only a 10-minute boat ride, find yourself on the mainland with access to all of the basic necessities you might need. For even more variety, the large city of David is only another half hour away once you reach the shore.
Salvatore Freni Jr
Pro: Island living is the epitome of freedom and easy living.
With no nosy neighbors, no authorities, no subdivision covenants, no schedules or deadlines, island life gives you the once-in-a-lifetime opportunity to live your life exactly the way you want to.
You make the rules. You set the agenda and the dress code. You essentially create your own reality. You can get up when you want to, spend your time doing whatever it is that fuels your existence, maybe take a siesta, and then get up and do it all again.
Con: There’s such a thing as something that’s too easy and too free.
While some people might jump at the chance to live a life of leisure and do nothing but swim, surf, fish, or snooze, there are others among you who might already be asking yourself what you’re going to do AFTER you’re done doing all those things.
The truth is that, for some, island life can become a bit monotonous and…well…downright boring without something productive to do or some way of contributing. Cabin fever can set in really quickly, especially if you’re living somewhere that’s completely deserted.
People from first-world countries have been conditioned to seek challenges and find satisfaction in overcoming obstacles. And by that we mean something a little more difficult than just figuring out how to get the coconuts down from that really tall tree.
Without enough healthy struggles, many people might quickly become frustrated with an all-too-easy lifestyle.
Compromise: Again another option is to choose a more populated or developed island with a few more options for socializing or a wider variety of activities to participate in.
You can also stick with the more secluded place and just look for other ways to find your purpose. A lot of island dwellers choose their locations because they’re the perfect setting for working remotely. The solitude and natural surroundings are great fuel for uncluttered thinking and ultimate productivity.
WWT
Pro: There’s an unlimited supply of fresh fish, fruit, and more.
Talk about fresh, organic, wild-caught foods. It doesn’t get any more natural than all of the amazing ingredients that are readily available on a tropical island.
You’ve never caught fish so easily in your life. And everything that grows on the trees is such a great natural complement to the flavors of the seafood. Coincidence? We think not.
So many people report weight loss and better health after moving to a tropical destination, even if they aren’t even trying to focus on their health. It’s just a natural consequence of island living, which is also often much more inherently active than even other tropical living options.
Con: On an island there’s little else in the way of supplies and consumer goods.
Depending as always on the level of development of your particular island, there may be very little access to the goods and services you need. You may have no stores at all, maybe just one, or perhaps only a boat that comes periodically to the island from the mainland and may or may not have the things you’re after.
The level of inconvenience to you will also depend on how high-maintenance your needs are. If you’re only slightly bummed that the local store doesn’t carry your brand of breakfast cereal, than that’s no biggie. If you absolutely can’t handle the fact that you never know whether the supply boat will have milk this week or not, then that’s a bigger issue.
There’s also the issue of paying slightly more for what’s sometimes lesser quality items, due to the added cost of transporting the goods. Transportation and availability become even more time- and money-consuming when it comes time to build an island home or make repairs or renovations as everything has to be brought over by boat.
Compromise: There isn’t really a whole lot you can do about this issue. What’s available is what’s available and your best bet is to just learn to have an extra measure of patience and to sweet talk the local business owners every opportunity you get.
This is also another area where living on a more populated island, or one that’s closer to civilization, affords you a much higher number of options in terms of goods and services. You just have to find the right balance between solitude and convenience.
Paul D’Ambra
Pro: Owning an island will make you a big hit at parties.
Let’s face it. Island ownership is the ultimate status symbol. Islands are the real estate equivalent of diamonds, extremely beautiful and valuable in their own right, but made even more desirable by their rarity.
Islands convey exclusivity, freedom, power, and a lot of other qualities associated with celebrities and other elite groups. It’s like having a yacht, except it’s a solid investment in real property.
Nothing shuts up the token show-off or the one-upper who’s bragging about his last blowout vacation like when you casually mention, “Yeah, that sounds kind of like my private island.”
That’s not to say that you should buy an island just for the bragging rights. In fact, that’s far from the mindset of most people who invest in island real estate. But there’s still the satisfaction of knowing you could brag about it. If you wanted to.
Con: There probably won’t be many parties on your deserted island.
Unless you’re willing to throw a soiree and somehow transport several dozen of your closest friends out to the island to attend it, you’re probably going to have to go elsewhere to find the above-described cocktail party.
Otherwise you’re going to have to be the one traveling to maintain any semblance of a social life. For that matter, you’re also going to have to travel a considerable distance for things like matches, movie nights, boat repairs, and access to postal services.
These occasional trips might not be a big issue to some, but it can be frustrating to run out of paint with ¾ of your room completed and a 45 minute one-way haul to the nearest hardware store.
Compromise: When loneliness creeps in or you discover your significant other just ate the last slice of bread you’ll get for a week, the best solution is to remind yourself of all of the amazing benefits to island living that far outweigh the occasional inconvenience.
Running out of eggs is a small price to pay for a panoramic view of both sunrise and sunset from your wrap-around porch. Spotty internet is not a bad trade-off when compared with the ability to enjoy complete solitude and total silence, save the howler monkeys and toucans flitting overhead.
Island living isn’t for everyone. And it isn’t for the faint of heart. But if you’re one of those for whom this lifestyle is a perfect fit, you’ll spend the rest of your days wondering why you didn’t make the leap sooner.
Don’t waste another one merely staring at that island in the distance. See what’s available and give island living a try for yourself.
Jorge Luis G
Are you looking for a change? One that involves a healthier lifestyle, a more well-rounded cultural experience, and a fatter wallet?
If so, look no further than Ecuador.
With its beautiful surroundings, ever-improving infrastructure, and near-perfect weather, more and more would-be expats are ending their search by finding themselves living in Ecuador. It’s a great place for investors, young families, retirees, and just about anyone else we can think of.
Here are a few of the reasons that those looking for a better life often find it living in Ecuador.
1. Ecuador is consistently ranked one of the best places to retire abroad.
Each year International Living ranks destinations based on factors like climate, cost of living, and friendliness of the locals in its Annual Global Retirement Index. Ecuador has been performing well in most categories in recent years.
In fact, in 2014, it came in a close second (with a score of 91.2 to 91.1) to Panama as the #2 overall destination. The survey results cite a number of reasons that living in Ecuador in retirement is such a great choice, many of which appear later in this list. Two big ones were its affordability and its variety of lifestyle options.
It’s also an easy place to do business. Processes like buying property, investing in business, and getting a visa are all relatively simple in Ecuador.
2. Its various micro-climates offer a little something for everyone.
Not only is it blessed with immense natural beauty, Ecuador is one of the most biodiverse countries in the world. It boasts close to 50 different ecosystems, in a country that’s roughly the size of Nevada.
Overall, most of the country enjoys spring-like weather year round (with merely a wet and dry season), due to its location along the equator. As in most Central American countries, adjusting the temperature or humidity while living in Ecuador is just a matter of moving up or down the mountain as both generally decrease as you ascend.
The Pacific Coast offers an array of picturesque beaches. There are also two chains of the Andes Mountains, which offer relief from the heat and a number of historic colonial cities.
There’s also the tropical and humid Amazon Rainforest which is largely unexplored, save a recent spike in adventure travel. And don’t forget about the breezy Galapagos Islands, a popular attraction among tourists and scientists for decades.
ARKNTINA
3. Your U.S. dollars stretch a lot further living in Ecuador.
One of the most appealing characteristics about Ecuador is its low cost of living. With the exception of some harder-to-find consumer goods, most everything is considerably cheaper than in North America. Also, we mentioned U.S. dollars, because that’s the currency the country uses, since 2000.
You can find a furnished property to rent for as little as $500 per month. Fresh fruits and veggies for the week (enough to feed two) are fresh, readily available, and will only set you back about $15-$20 per week. Fuel in Ecuador is subsidized and hovers right around $1.50 per gallon.
While real estate prices have been steadily climbing in recent years, it’s still extremely affordable compared to North American prices (although costs can vary greatly from one city to the next). You can also splurge on the services of a maid or domestic helper, which will run you about $10-$15 per day.
All in all, most couples find it possible to lead a satisfying lifestyle living in Ecuador on less than $1500 per month.
4. The country’s conditions are conducive to a healthy lifestyle.
The population of Ecuador is one of the healthiest in the region, particularly in cities like Vilcabamba, which is known as the “Valley of Longevity” as its residents reportedly live longer than in any other place on earth.
Much of their well-being is attributed to the clean air and clean water. There’s little pollution, and the rivers that flow down the mountains are fed by the overflow of glacial pools high in the mountains that are rich in minerals and nutrients.
This pure, healthy water nourishes the fruits and vegetables, most of which grow year-round due to the conducive weather conditions. There’s an abundance of organic oranges, bananas, avocados, almonds, papayas, and more.
Due to the fresh produce, as well as the topographical barriers that make importing unhealthy packaged foods rather difficult, most Ecuadorians eat very healthy diets. They’re also quite active, tending gardens on the slopes of the mountains and using their own two legs as their primary mode of transportation.
Maurizio Costanzo
5. Ecuador is rich with culture of every kind.
Whether you’re looking for the arts and music offerings of a first-world country or the authentic cultural charm of a developing one, Ecuador is happy to oblige. It’s home to 13 indigenous populations, many of whom still adhere closely to their native traditions.
You can find groups of natives who still speak their own language and wear their native dress. Yet at the same time, Ecuador’s larger cities offer many of the luxurious amenities you’d expect from the most highly developed destinations.
Cities like Cuenca, Guayaquil, and Quito have the usual list of cultural happenings, such as symphonies, art exhibits, festivals, and museums. Cuenca and Quito are also UNESCO World Heritage Sites, which makes for the perfect blend of historic and modern culture.
The people of Ecuador are friendly and welcoming. They’re very receptive to foreigners and, as a result, Ecuador is home to people from all over the globe who’ve embraced the country as a fantastic place for enjoying a rich multi-cultural experience.
6. It’s well-connected, both physically and technologically.
Another thing that makes living in Ecuador so convenient is its easy access. It has two international airports, Quito and Guayaquil, and direct flights from the U.S. are less than four hours long.
You can fly straight to Quito from Miami, Houston, and New York, as well as from nearby Panama City, Panama, and Bogota, Colombia. Once in the country, local transportation is also widely available, reliable, and inexpensive.
The country also has a high rate of internet connectivity. Cell phones have relatively good reception, and there are internet cafes throughout most decent size cities. Many homes have high-speed internet, and the government is actively working to increase this percentage.
7. Ecuador offers excellent healthcare.
While you might have to sacrifice a few first-world conveniences when making the transition to living in Ecuador, quality health care isn’t one of them. Quite the contrary.
In most of Ecuador’s larger cities you’ll find world-class medical facilities with the latest technology. Many doctors speak English, and a large number of them trained in the U.S. They spend more one-on-one time with patients, often offering their personal cell phone numbers or calling patients at home to check on their progress.
Despite the impressive quality of the medical care in Ecuador, the prices are only a fraction of what you’d pay for the same services in North America. As a result, it’s become a popular destination for medical tourism.
Patients travel to Ecuador to receive services such as plastic surgery, dental procedures, orthopedics, and more. The country is also well known for its alternative medicine and natural healing options.
Maurizio Costanzo
8. Ecuador is a great place to pursue the American (or any other) Dream.
Many North Americans these days would agree that the American Dream is broken. It’s becoming increasingly more difficult to realize success and have the things you want for your family, while still having enough spare time and money to enjoy them.
The reality is, though, that all of the things associated with that ideal quality of life we dream about are available in much greater abundance in Ecuador. It’s the South American Dream, if you will.
Living in Ecuador you can spend more time doing what you love (in some fantastic surroundings, we might add) and less time doing the bland, tedious, hurried things you wish you never had to do again.
That’s not to say you can’t pursue your passions and live the life you’ve always envisioned in North America. You can. It’s just that the ability to do so is now financially out of reach for most of its residents.
Who wants to expend every last drop of their time, energy, and money just to pay the bills and stay afloat in a merely nice suburb when you can work less, experience more, and enjoy the unsurpassed beauty of a place like Ecuador?
Give Living in Ecuador Some Thought
These and other reasons are why so many families are realizing their version of the American Dream, just a little further south of the border. Ecuador is a great place to live immersed in authentic culture, without giving up any of the modern conveniences you crave, and with still enough left over to explore everything else the region has to offer.
There’s a reason Ecuador continues to top the charts of best places to retire or even visit abroad. And it’s been further validated by the thousands of expats who now call it home. Living in Ecuador is more than just a bargain retirement. It’s a value proposition that’s definitely worth considering.
Map of Ecuador
Ecuador Fast Facts
- Population: 15,439,429
- 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
William Friar
Thousands of North Americans each year are leaving their homes and their homeland and heading for the Latin Tropics. And they aren’t all retirees.
In fact, the median age for expats is getting lower and lower as many young families, entrepreneurs, and business owners are joining the ranks of the hordes of senior citizens living in the tropics collecting their Social Security checks.
However, unlike their retired counterparts, these savvy individuals aren’t just coming for the nice weather and lower cost of living. They’re also in it for the world of opportunity available just a little further south.
Why Do Expats Choose to Do Business in Latin America?
Whether they’re retirees looking to supplement their pensioner’s income or young dreamers hoping to make it big in paradise, there are a number of factors that motivate expats to go into business overseas.
They’re looking for a new experience.
Maybe you’ve always dreamed of opening a bed and breakfast, or perhaps you just want a way to make a living pursuing your passion for deep sea fishing. If so, you’re in the same boat (pun intended) as a number of other North Americans with a desire to spend their livelihood doing something they truly enjoy.
Baby boomers are particularly prone to this mindset. As many of them near retirement age, they view the rest of their lives as a beginning, not an end. It’s a time to explore new frontiers and rediscover themselves.
They’re taking advantage of the lower operating costs.
Not only does it cost less to live in Latin America, practically every aspect of opening and running a business runs significantly less than in North America. That’s true of everything from corporate taxes to printing costs to legal services to accountants and more.
With far less start-up capital required, it’s much easier to stretch your dollar. As a result, you can attempt those things you’ve always wanted to try, without worrying quite so much about the risks involved.
They realize the world is becoming increasingly flatter.
With so many people working online these days, there’s an increasing number of professions where literally all you need is an internet connection and you can work from anywhere in the world.
Many expats start online businesses, launch websites, or try their hand at freelancing. North American employers are also increasing receptive to allowing their employees to work from abroad. They recognize the valuable experience their workers, and as a result their companies, gain from the multicultural exposure.
Quite frankly, they need the money.
The decline of the global economy took quite a toll on the pension funds of those nearing retirement, as well as the investment and savings accounts of…well, everyone else. Refusing to give up their dreams of moving overseas, many North Americans, young and old, instead found themselves having to tweak their expat game plans a bit.
They’ve still moved down, but instead of spending 100% of their time relaxing or pursuing their hobbies, many have opted to work at least part time to supplement their families’ income. They teach yoga classes, lead guided tours, or blog about their travels.
William Friar
What Are Some Common Expat Business Ventures?
When it comes to finding a niche market or coming up with a profitable business concept, there’s literally no end to the creativity of North American expats living abroad. However, there are a few genres that lend themselves quite well to the expat lifestyle.
Real Estate
Seeing as how they’ve been through the whole process of finding their ideal property and either making a real estate purchase or negotiating a rental contract, most expats are already naturally well-versed in the ins and outs of the real estate market in their area.
They know what other expats are looking for, since they’ve recently been in the same situation. Not to mention, these expats can easily earn the trust of other new expats who share in their new careers abroad working as real estate agents.
Land Investment
Speaking of real estate, those with an eye for potential (or a relationship with someone who has a proven track record of successful developments) can profit tremendously by investing in raw land in emerging areas.
By buying property that’s somewhat lacking in infrastructure, early land pioneers can make a substantial profit when the government or large developers begin to take interest in an area and build large-scale projects that drastically increase its value.
Tourism
Since many expats are themselves travelers, adventure seekers, and nature enthusiasts, it only makes sense that they might fare well by catering to other tourists. They open operations like deep sea fishing lodges, jungle tour companies, and white water rafting outfits.
Not only do they get to make a living doing what they love, they also give back by employing locals, encouraging sustainable practices, and teaching others about the area, the culture, or the environment.
Hospitality
All those tourists need places to eat, sleep, and drink. So the obvious next suggestion for expat businesses is the hospitality industry. From boutique hotels to beachside tiki bars to restaurants serving up fusion cuisine, many expats find success just by choosing a niche business and filling a gap in the area’s lodging and dining offerings.
Import/Export
Something that will quickly catch your eye in the tropics is the large number of unique items that just aren’t found in your home country. Things like hand-carved vessels, woven baskets, and colorful textiles can all be purchased inexpensively in Latin America and sold in mass quantities in other parts of the world.
While it can be a tricky enterprise to pull off, compared to some of the other options that don’t involve tariffs, the import/export business can be a rewarding and profitable one for the expat who’s willing to do all the necessary research and planning.
Which Option Will Best Fund Your Expat Life?
Too many would-be expats rule out the idea of moving overseas simply because they think they won’t be able to do all the things they want to do with the budget they have to work with. However, with the right combination of ingenuity and persistence, you can easily find a way to make your expat life pay for itself.
Think of it this way. Whatever it is you envision when you think of your life overseas—hiking your way through virgin rainforests, eating fresh-caught seafood with your toes in the sand—chances are, there are hundreds of other folks who have the same dream. They just need someone to make it a reality.
It’s up to you. So what’s it gonna be?
If there’s any link between immigration and economic growth, then it’s high time U.S. politicians took a page from the Panama visa playbook.
While that may sound odd, to suggest that a developed nation should take political cues from a third-world country, it makes a bit more sense when you consider the fact that Panama has posted GDP growth rates averaging around 8.5% over the past decade.
During that same time frame, the U.S. has hovered mostly between 0% and 4%, with a lovely plunge down to -8% circa 2009.
During this period of starkly contrasting economic up- and down-turns, the two nations have also seen their governments’ stances on immigration diverge in opposite directions.
Lady Liberty Is a Liar
First the U.S. Historically a nation that welcomed immigrants from troubled nations, particularly those who had something to offer the economy, the U.S. has become home to over 11 million undocumented workers, a limited number (85,000 to be exact) of work visas for foreigners, and a talented pool of international students who are having to go elsewhere to find work following graduation.
What happened to The New Colossus? “Give me your tired, your poor.” I have a feeling the ancestors of many U.S. residents are rolling over in their borrowed graves.
Oh, and despite this willing group of skilled workers, 39% of U.S. employers reported having trouble filling jobs last year, according to a survey conducted by the Manpower Group. Yet unemployment still held steady between 7% and 8%. Go figure.
Washington’s response? Uh, well, they don’t seem to have one. At least, not yet. Immigration reform is a topic that’s been debated, delayed, and avoided by politicians on both sides of the aisle. Currently, there’s still no resolution in sight.
Panama’s Predicament
Contrast this with Panama. It’s a country that hasn’t been all that hospitable to foreign workers.
Most Panamanian visas prevented immigrants from working for domestic companies, and strict labor union policies kept companies from employing foreigners to fill more than 10% of their available jobs (15% for experts and those in skilled technical roles). All in an effort to keep outsiders from taking jobs away from Panamanians.
These tactics worked,and Panama has enjoyed low unemployment rates (currently near 4%). However, it’s also been blazing a trail as one of the world’s fastest-growing economies.
In a race to catch countries like Singapore and position itself as a communications, logistics, finance hub, Panama has been a frenzy of activity. The construction of new hotels, office buildings, and housing complexes have created a demand for service and construction workers. A multi-billion dollar canal expansion alone has generated more than 30,000 jobs.
Good news, right? Well, yeah, all except for the fact that it’s a bit of a stretch for a country of only 3.5 million people that has no way of importing additional manpower with any kind of quickness.
Not to mention, many of the jobs needing to be filled couldn’t be staffed with Panamanians due to languages or other special skills needed. This kind of training could be provided, but that takes time. So do improvements to the country’s education system, although those were still implemented anyway.
Michaelseangallagher
If You Can’t Beat ’em, Find a Shortcut
Panama needed a solution fast, and President Ricardo Martinelli delivered one when he signed an executive order offering immediate permanent residency to citizens of 48 countries that “maintain friendly, professional, economic, and investment relationships with the Republic of Panama.”
Known as the “Specific Countries” or “Friendly Countries” visa, the decree created a fast track to citizenship for skilled workers who could help meet Panama’s increasing demand. Not only can they meet immediate staffing needs, they can also help train Panamanians for technical jobs and management-level positions they couldn’t have otherwise attained.
It’s quite brilliant really. Rather than fight the labor unions or create a virtual filibuster of political back-and-forth, Martinelli just handled it.
Labor unions want 90% of workers to be citizens? Well, now new residents are attending mass legalization ceremonies called “melting pots” where they’re immediately granted a work permit. They legalized over 5,000 foreign workers in April alone.
Panama is serious about sustaining its record growth and embracing the talent of skilled workers from all corners of the globe. For now, anyway.
There’s a New Sheriff in Town
A new president, Juan Carlos Varela, will take office in July of this year. It remains to be seen whether he will repeal Martinelli’s Friendly Countries visa, as is generally the custom of new incoming administrations.
The president-elect of Panama usually undertakes, as their first order of business, the act of cleaning house and replacing and reversing all the people and policies employed by the previous leader. Hopefully, though, he too has been solidly convinced by the incumbent’s actions and will leave the groundbreaking visa program as is.
The majority of the nation has taken note of the tremendous success the country has seen by acknowledging the need for a talented and diverse workforce in order to sustain its economic growth.
Now, if only Washington would follow suit.
Park Wilson, professional real estate investor, founder of Viva Tropical, Emerging Terrains and island owner joins the show. You may not know him yet, but he is Josh’s business partner and today they talk about everything you need to know about investing in real estate.
With over 30 years combined experience this is a can’t miss episode for anyone considering buying or investing in Central America.
Don’t miss this podcast/investment course on today’s show.
In this episode, we discuss:
- What makes property values increase
- How to avoid getting killed on your investment
- How to evaluate markets
- How to approach investing like a professional
- Find out how to spot appreciation
- How to control a market
- How assumptions çan kill your deal and what to do about it
And much more.
Listen to the show
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The Show Notes
- Park and Josh’s island
- Get Pay Dirt! Our investment book free!
- Learn more about Real Estate Market Stages
- Our Panama Real Estate Listings
- Our Costa Rica Real Estate Listings
Everything you need to know that happened in the last 2 months in Ecuador.
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.
Ecuador June 2014.
Casey
Ecuador Lifestyle
- South America Emerges As New Hub for Adventurous Expats (Emigrate UK) Ecuador is being touted as the perfect place to live the expat dream for many Americans, but watch out, those Brits are on their way as well.
- Man to Run Across Ecuador’s ‘Avenue of the Volcanoes’ (BBC News) One ultra marathon runner is going to have some hot toes when he attempts a run across Ecuador’s 100-mile ”Avenue of the Volcanoes” in just one day.
- Development on the ‘Lost City of Giants’ in Ecuador (Epoch Times) Grossly large pyramids, unknown to man, have been discovered in the remote jungles of Ecuador. Not so fast, says the government of Ecuador whose team concluded that the site was a natural formation and not man-made, ruling out any government funded excavations, or preservation of the site.
Codelco
Ecuador Economy
- Ecuador Eyes Legal Reform, Tax Incentives to Spur Mining Sector (Reuters) Big plans are in the works for Ecuador to change its mining law and offer tax incentives to attract foreign investors and spur investment. They hope to accomplish this by adjusting a windfall tax and make changes to its mining law.
Rinaldo Wurglitsch
Ecuador Tourism
- Quito, Ecuador Nominated As South America’s Leading Destination for Second Consecutive Year (Zawya) Way to Go Quito! The world’s second highest capital city, one of Latin America’s leading tourist and trade destinations, was nominated for the second consecutive year as the South American Leading Destination at the World Travel Awards (WTA) 2014.
- Hitting Ecuador’s Highlights — and History (Seattle Times) Where can a traveler find direct links to a nation’s past? Ecuador, of course, when they visit a revitalized Quito, centuries-old haciendas and famous Otavalo market nestled in the Andean mountains.
- Ecuador: Taking a Hike in the Clouds (The Province) A jungle hike through Mashpi Preserve in the Chocó cloud forest of Ecuador is like stepping back in time — a long, long time ago.
Presidencia de la República
Ecuador Politics
- Ecuador’s President Backs Indefinite Re-elections, Coy About His Plans (Reuters) How does one keep their presidential job in Ecuador? Ask Ecuador’s President Rafael Correa who is backing a constitutional change which will allow politicians to run indefinitely, potentially paving the way for the leftist himself to seek the top job again in 2017.
- Can Rafael Correa Deliver His Citizens’ Revolution for Ecuador? (The Guardian) President Correa faces tough challenges in modernizing his country’s economy and overcoming an intractable colonial legacy which divides his nation.
Josh Kellogg
Ecuador Environment
- Ecuador Becomes First Country to Undergo Innovative UNCTAD Programme to Assess ‘Green Export’ Potential (United Nations) The United Nations is taking an active role in Ecuador’s move to develop national “green sectors” that will expand exports and employment, while promoting sustainable development, in the first stage of a new programme on green export potential and policies.
- Ecuador Issues Permit to Drill In Pristine Amazon Reserve (Huffington Post) Ecuador has issued an environmental permit for oil drilling in its Amazon reserve. Two indigenous groups living in voluntary isolation inhabit Yasuni, which the U.N. in 1989 declared a biosphere reserve.
- Ecuador Declares Emergency in Galápagos Islands (Wall Street Journal Online) Ecuador has declared a state of emergency on the Galápagos Islands following a freighter accident which was carrying chemicals and dangerous products leaked toxins into the surrounding sea. Ecuador enacted the emergency in order to deal with the nearly 1,000 tonnes of pollutants the ship was carrying.
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W. Farir
Costa Rica has historically been a relatively easy place to enter and live. There were no departure taxes. Income requirements for most visas were relatively low. And border officials were just as laid-back as the rest of the population.
However, in recent years a few things have changed. The minimum proof of income has increased. A border tax now exists. And officials have begun to crack down on “perpetual tourists,” as well as those who’ve outstayed their welcome.
As a result, there’s never been a better time to go ahead and get your hands on a Costa Rica visa. The legal way, that is.
Martingarri
Costa Rica Visa Options
Costa Rica offers a number of visas for those who wish to visit or reside in the country. Here are a few good options.
Tourist Visa
This one’s sort of a misnomer, as it’s really not a visa at all. Visitors from North America, as well as most other nations, don’t need to apply for a visa to enter the country. They’ll merely stamp your passport and authorize you to stay in the country for a period not to exceed 90 days.
After that you’ll need to skedaddle. Or else face a fine of $100 per month (or a proportion of that amount if you’re only days or weeks late).
Many foreigners skirt around this time limitation by taking a trip across the border once every 3 months, for at least 72 hours. Reentering the country gets you a fresh stamp granting you another 90-day stay.
Even though some expats have literally been doing this for years or even decades, it’s quite risky. You’re taking the chance that the border officials won’t notice or care what you’re doing. And while it isn’t technically illegal, it definitely isn’t the aim of the tourist visa.
Judging by the direction the government is headed with their recent changes to immigration laws, it’s entirely possible that you could be escorted out of the country and prevented from reentering for an extended period. Anyone with a home, family, or business at stake might want to consider looking at one of the other options.
Requirements: You’ll need a valid passport that doesn’t expire for at least 6 months. Other things they could (but won’t necessarily) ask you for include proof of departure (either back to your home country or to another destination outside Costa Rica) within 90 days, as well as proof that you have sufficient funds and won’t need to work to support yourself while you’re in the country (i.e. a bank statement).
While they may not ask you for either of these things, they legally COULD. So be prepared, just in case. The country has also recently implemented a departure tax ($7) at all land borders, something that was previously charged only for air travelers ($29).
There have been reports of travelers’ inability to pay this tax at the border due to technical difficulties, so a good suggestion is to pay it at a Banco Credito Agricola branch (or another designated collection point) before arriving at the immigration station. Ironically, the taxes were introduced to help fund some much-needed improvements at the border crossing facilities.
Income Potential: Those visiting Costa Rica with a tourist visa are not permitted to work during their stay.
Pensionado Visa
This one, as well as the others that follow, is an actual residency visa. It’s designed for foreigners living on a lifetime pension, such as social security, annuities, military pensions, or other guaranteed retirement benefits.
While many holders of this visa are older adults, there’s no age requirement for obtaining one. There are plenty of pensioners of all ages, including retired military personnel. Those who hold this visa can claim their spouse, as well as other dependents under 18, without increasing the income requirement.
Requirements: The basic requirements for each visa include marriage and birth certificates, as well as a certificate of good conduct from the police department in your home country. These are also required of all dependents.
All documents must be notarized, approved by the Secretary of State (or the equivalent in another country) and authenticated or apostilled (legally translated) by the Costa Rican consulate in the country where the documents were issued.
For this visa, you’ll also need to show proof of at least $1,000 in monthly income from a guaranteed source that will last throughout the pensioner’s life. This minimum amount is up from just $600 a few years ago.
You’ll need to continue to show proof of income at each annual renewal. You’re also required to enroll in the country’s government health program, called CAJA. Another stipulation is that you must live in Costa Rica for at least 4 months out of each year.
Income Potential: Those with a pensionado visa cannot be employed by a Costa Rican company, but they are permitted to own their own business and receive income.
Rentista Visa
This visa is designed for small investors, and it’s a great option for those who want to give Costa Rica a try without jumping through a lot of hoops or being bound to any long-term obligations. Its holders also have either a guaranteed source of income or, more commonly, the ability to make a sizeable deposit into a Costa Rican bank that can be disbursed over the course of 24 months.
Rentistas can also claim their spouse and other dependents. However, additional income is needed for these additional family members.
Requirements: To obtain a rentista visa, you’ll need to show proof of income of at least $2,500 per month (up from $1,000) from a guaranteed source. This is generally done in the form of a $60,000 deposit in a Costa Rican bank.
You’ll have to show proof of income (or make another deposit) after two years when the visa must be renewed. You’re also required to enroll in CAJA and live at least four months out of each year in Costa Rica. Note, these do not have to be in a continuous period for either visa mentioned thus far.
You’ll also need the required basic documents (with their appropriate authentications) as with the pensionado visa.
Income Potential: Holders of the rentista visa cannot work as employees, but they can own a company and earn income from their business.
Inversionista Visa
Tailored to large investors, this visa is similar to the rentista, but with higher deposit requirements. Spouses and other dependents may not be claimed by inversionista holders. Instead they require their own separate visa.
Requirements: The minimum investment for the large investor visa is $200,000. This amount can be invested in any business. It can also go into specific sectors approved by the government that may have their own set minimums.
In addition to the paperwork needed to document the investment, inversionista applicants will also need the same basic documents as with the previously mentioned visas.
Unlike the aforementioned visa holders, inversionistas must stay in the country at least 6 months out of the year.
Income Potential: Inversionista visa holders may earn income from their investment and/or own a business.
Permanente Visa
Anyone who’s been legally living in Costa Rica for 3 years with another type of visa or who has first-degree relative status with a Costa Rican citizen (by marrying a citizen or having a Costa Rican child) may apply for permanent residency.
It’s a great option for those who tire of continuously going through the hassle of renewing their temporary visas (although “permanent” visas also require their own form of renewal). It’s especially recommended for those who hold a rentista visa and have decided to stick around for a while. They’ll still have to renew once, but a permanent visa can eliminate that third required $60,000 deposit.
While the government makes it easy for those who marry a Costa Rican citizen to obtain residency, the immigration reforms of 2010 tightened some loopholes for those who were just marrying for convenience in order to simplify their immigration process. In short, if you’re trying to obtain residency through marriage, it had better be legit.
No spouse or dependents can be claimed under this visa, as that’s the very purpose of the visa itself. Each individual will have to go through the process himself.
Requirements: To obtain permanent residency you have to have lived in the country on another visa for a minimum of 3 years or be married to (or the parent of) a Costa Rican citizen. As a permanent resident, you’re required only to visit the country at least once a year and stay for 72 hours.
You’ll also need to prove that you’ve lived in the country for the required time limit, which can be tougher than you think.
Income Potential: Unlike holders of temporary visas, permanent residences are permitted to legally work for a Costa Rican employer. They can also own a company and receive income from any investments.
Seantoyer
Obtaining Citizenship
While permanent residency, or even a temporary visa, is often enough to meet the needs of most expats, there may be some who desire to apply for citizenship. This can be done after 7 years of living in the country as a legal resident (two years if married to a Costa Rican citizen or five years if you’re from Spain or certain Latin American countries).
Citizenship gives residents additional rights, such as the ability to vote and obtain a Costa Rican passport.
Requirements: You’ll need to show proof that you’ve lived in the country for the required 7 year (or less) period.
Also, with the exception of citizenship by marriage, you’ll have to renounce your citizenship in your former country. While this isn’t always enforced, it is technically the rule. Dual citizenship is permitted in some cases.
Income Potential: Costa Rican citizens have all the rights to seek employment or own a business, just like permanent residents.
AlphaTangoBravo
Visa and Residency Advice
As you’ve probably noticed, obtaining a Costa Rican visa isn’t always a simple process. And, with recent changes to the rules and requirements, it isn’t getting any easier.
What it is, though, is totally worth it. Holding a Costa Rican visa gives you virtually unlimited access to all the wonders in one of the world’s most beautiful countries, complete with an unrivaled quality of life, a first rate health care system, and some of the happiest people on the planet.
Our advice? Don’t try to go it alone. This is a process that is best navigated with the help of someone who specializes in visa and residency issues on a regular basis. One example is the Association of Residents of Costa Rica (ARCR).
Better yet, get yourself a good attorney who deals with immigration. Do your homework to make sure they’re credible. When your life and livelihood are on the line, that is not the time to try to save a few bucks by hiring some random bozo on the internet.
The process for many visas can take as long as a year or more to complete. Just be patient, always make sure to do everything you can to keep the ball moving forward (even when faced with obstacles), and rest assured knowing you’re doing everything you can to reach your goal.
You’ll be glad you did!
Map of Costa Rica
Costa Rica Fast Facts
- Population: About 4.8 million
- Typical temperature: Mid 80’s
- Nearest airport with U.S. flights: San Jose
- Nearest U.S. consulate: San Jose
Andrea Pignataro is today’s guest, an attorney who specializes in residency in Costa Rica. Get inside information straight from the source in this informative and ultra detailed conversation.
We discuss everything you need to know about residency from the different options to costs involved, to if you even need residency at all. You will learn what is involved in the process, what choices you have and how to hire the right professional.
In this episode, we discuss:
- If you need residency to purchase property, buy a car, or open a bank account in Costa Rica
- What type of residency is best for you or if you need one at all
- How much and what costs are involved in the process
- If you can do it yourself without an attorney
- A fee breakdown so that you know you are not getting ripped off
- What paperwork you need from your home country to apply for Costa Rican residency
And much more.
Listen to the show
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- Click here to download the mp3
- Click here to subscribe via iTunes
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- Click here for the show archive
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Send us your thoughts any time in an email or comment below.
The Show Notes
- Email Andrea or give her a call (506) 8846-0985
William Friar
Whether due to a need to supplement their retirement income or simply due to the same restless spirit that led them to move overseas in the first place, more and more expats are choosing to use their time abroad as an opportunity to begin an encore career in the tropics.
It’s a great way to experience new things and make friends in your new home. It’s also the ideal way to let your expat life pay for itself.
The idea of launching a new career in a foreign country or starting an expat business might seem daunting to some. However, with these help of these tips, the entrepreneurial expat is sure to find the right enterprise to suit his or her city and situation.
Rita Willaert
Step One: Do Your Homework.
Before you choose a business, or even a city to start it in, it’s best to find out everything you can about the area and its requirements. You’ll want to research local labor laws and employment practices. Find out what permits and licenses you’ll need.
Embassies and chambers of commerce can be helpful for this. They can also help you get referrals for credible attorneys, accountants, and other business contacts. Find out about your tax liability, if applicable, and your options for structuring your business.
Explore your visa options and make sure you won’t have any trouble finding an immigration path that will allow you to work or do business.
Step Two: Learn the Local Culture.
Doing all your research from afar is great. But there’s no substitute for actually getting your boots on the ground in your destination city so you can pick up on some of the more subtle nuances of the culture.
Talk to other business owners. Talk to local working people. Find out how difficult it is to find reliable employees and how high the turnover rate is. You’ll need to know where to find good employees and what is the best way to go about recruiting them.
You’ll also need to know what makes your employees tick. What’s important to them and what incentives will help them work to the height of their ability? What’s their idea of a satisfactory work-life balance, and how big of a commitment can you expect from them?
Even if you won’t be hiring help, it’s still important to get to know the ins and outs of the area where you’re moving. If you’ll be shipping (or receiving) products, you’ll want to know the cost and timeliness of deliveries. If working online, it’s important to consider how reliable the internet service is.
photo by William Friar
Step Three: Choose Your Venture.
You’d think this would be the first step, but oftentimes it isn’t. While some expats may know from day one that they want to open a surf school, others may prefer to be a little more strategic and make their choice of business contingent on the location they choose.
In other words, when starting a business or career as an expat, you have two options. You can either search for the best place to start the particular business you’ve always dreamed of launching. Or you can open the type of business you think might be successful in the one place you’ve always dreamed of living.
Here are some common paths expats take:
- Resume your same field overseas. There are many fields that transition easily from North to Central America. Retired medical professionals open small practices in their new city. The same goes for financial advisors and other professional services. Teachers can easily find jobs at international schools. Many workers even find they can continue their same jobs working remotely from overseas.
- Open a franchise. By opening a branch of an already established business, you can save a lot of time and headache. Chain businesses often have a proven business model, marketing strategies, and plenty of support to help you get started.
- Start an online business or website. Because of the low startup costs, Internet-based businesses are a great option for expats. Examples include consulting services, blogs, and other professional services.
- Fill a niche. Because the Latin tropics are still developing, most areas have a number of specialty product and services that aren’t available but that might be welcomed by other expats as well as the local population. You could open a wine shop, a yoga studio, or a restaurant serving up a specific cuisine the area lacks.
Delwin Steven Campbell
Step Four: Take Advice from Other Expats
When becoming an expat business-owner, there’s no better resource than other expats who have already paved the way. There’s much you can learn from their mistakes and successes. They can refer you to trusted attorneys and other professionals, advise you on business options that might not be viable, and fill you in on a number of invaluable tips and tricks.
Owning a business overseas can be rewarding on many levels. But it’s not a venture to be entered into lightly. Doing your due diligence and seeking sound advice from folks who know can help ensure that your expat life is as profitable as it is pleasurable.
Further Info
Viva Tropical founder Josh Linnes recently interviewed Patrick Vlaskovits, author of the New York Times best selling business book, The Lean Entrepreneur. They discussed this very topic and gave several great tips. Click here to learn how to start your own profitable business in paradise.
So, just how happy are you? Do you feel respected? Well-rested?
What about yesterday? Did you smile a lot? Or laugh? Did you learn or do anything interesting?
These are some of the questions participants were asked in Gallup’s recent survey, which compiled respondents’ “yes” answers into a Positive Experience Index. The survey queried residents of 138 countries and, not surprisingly, a whopping 9 out of the top 10 most positive countries are in Latin America.
Central America Dominates the Leaderboard
More specifically, of the 7 countries in Central America, 6 of them appeared in the top 11 slots. Panama took #2 with an estimated 86% of its population claiming positive emotions.
(The missing Central American nation was Belize. Only because it wasn’t one of the countries surveyed. And we’d easily argue that there are some darn positive people there as well.)
Paraguay, in South America, topped the charts for the 3rd year in a row, with 87% of respondents reporting positive emotions on the previous day. After Panama came a 3-way tie between Guatemala, Nicaragua, and Ecuador (83%) and then another tie (at 82%) between Costa Rica, Colombia, and Denmark (the only non-Latin American country in the top 10, which consistently reports high levels of happiness and well-being).
Honduras, El Salvador, and Venezuela, each of which has been plagued by political unrest and slow economic growth, came in next with 81% of their residents reporting positive feelings. The U.S. tied with 8 other countries for 19th place, at 78% positive.
Proof that Money Doesn’t Buy Happiness
What’s interesting about these results is that, while Latin America is certainly known for its laid-back atmosphere and satisfying quality of life, the region (particularly Central America) is also home to some of the world’s highest rates of poverty, murder, and social and economic inequality. Those are stats that aren’t often met with exuberance.
However, the survey’s results found that, while money does seem to influence people’s happiness levels, it’s only to a small extent. In the U.S., for example, previous research found that a higher income does impact an individual’s overall happiness, but only up to $75,000.
Beyond that amount, income seems to have little effect at all. In fact, the population least likely to report positive emotions was that of Singapore (36%), one of the wealthiest and most developed nations in the world.
So it would appear that some of the most prosperous nations in the world can also be some of the most unhappy ones. While those whose residents live in the depths of poverty bask in positivity.
Is It All a Facade?
You may be tempted to ask, as many critics already have, whether Latin America reports more positive emotions merely due to a cultural tendency to hide behind a smile and try to focus on the positive. It’s possible, as the region does seem to generally try to avoid negative statements regardless of their true feelings.
This naturally positive outlook could easily cause them to respond to these, or any, types of questions in a more favorable way than some of their counterparts. A valid point, but you’d have a hard time making a case for why that’s a bad thing.
Contrast this with countries like Iraq, Afghanistan, and Haiti where feelings of unhappiness are what’s socially acceptable. Or Armenia, for example, whose residents feel ashamed about positive experiences such as success.
Other critics claim that Latin Americans, while unarguably positive, are perhaps just emotional in general. This is evidenced by the fact that they also scored the second highest as a region (after the Middle East) in negative emotions.
Sure they laugh a lot, but they also claim to experience a considerable amount of emotions such as anger and worry. In response to this polarization, some Latin Americans agreed that the findings merely highlighted their culture’s habit of focusing on positive elements like family, friends, and religion despite leading day-to-day lives that can often be incredibly challenging.
Funky Tee
What Latin Americans Have to Say About the Results
Nothing explains the survey’s findings better than the words of the respondents themselves. Take the 33-year-old businessman from wealthy Singapore who said the following about his outlook on life:
“We work like dogs and get paid peanuts. There’s hardly any time for holidays or just to relax in general because you’re always thinking ahead: when the next deadline or meeting is. There is hardly a fair sense of work-life balance here,” he said.
Compare this to a 30-year-old surfing instructor in Guatemala, a country that barely ranks higher than Iraq on the U.N.’s Human Development Index, which measures factors like education, life expectancy, and per capita income.
“In Guatemala, it’s a culture of friendly people who are always smiling. Despite all the problems that we’re facing, we’re surrounded by natural beauty that lets us get away from it all.“
Perhaps no one said it better than the street vendor in #1 ranked Paraguay who wasn’t discouraged at all by the country’s tough economic conditions.
“Life is short and there are no reasons to be sad because even if we were rich, there would still be problems. We have to laugh at ourselves.”
It’s true that much of Latin America has struggles that first-world countries know nothing about. But this data proves those difficulties are doing little to get them down.
And if putting on a smile and facing one’s troubles with the world’s documented most positive outlook is wrong, then we don’t want to be right.