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.