Tired of living or vacationing on the mainland and only enjoying the view of the islands from a distance? Maybe it’s time you gave island life a try.
Island living offers all of the amazing things you love about being in the tropics. Except it comes with a panoramic 360 degree view and without all the tourist traps and high-rise developments you might have to endure on mainland beaches.
It’s also entirely attainable!
Whether you choose to find a quiet lot on a larger, more developed island or even go looking for an entire private island for sale, here are 20 pics to remind you what you could be waking up to every day if you decided to call an island your home.
Boca Chica, Panama
VivaTropical
Off Panama’s Pacific Coast, in the Gulf of Chiriquí, lies an archipelago of over 50 islands, which National Geographic described as “myriad emerald isles strewn like jewels in a sapphire sea.”
Galapagos Islands, Ecuador
Planet Gordon
Located roughly 600 miles off the coast of Ecuador, the Galapagos Islands were described by Charles Darwin as a place where, “in both space and time, we seem to be brought somewhat nearer to that great fact–that mystery of mysteries–the first appearance of new beings on this earth.”
Marietas Islands, Mexico
Khayla
Off the coast of Puerto Vallarta, Mexico, lie Las Marietas Islands. Now a national park, thanks to efforts first championed by Jacques Cousteau, they’re home to the island of Playa de Amor which is pictured above. More commonly known as Hidden Beach, this area is accessible only by swimming through a short tunnel from the open ocean.
South Water Caye, Belize
Jorge Torres
Belize’s South Water Caye Marine Reserve is another protected marine park. It offers long stretches of white sand, some gorgeous views, and a resort with luxury accommodations.
Roatan, Honduras
John Colby
Direct flights from the U.S. make Roatan an ideal destination for tourists and expats alike. It’s just developed enough to offer a wide variety of restaurants, bars, and other goods and services. Yet it doesn’t suffer from the overcrowding that plagues a lot of islands that offer these same great amenities.
Little Corn Island, Nicaragua
August Gregg
Little Corn Island is one of Nicaragua’s best kept secrets. It’s home to beautiful beaches, a number of diving and snorkeling spots, and some of the Caribbean’s friendliest folks. It’s a great place to get away and relax, while still enjoying a few modern conveniences.
Utila, Honduras
Simon Hooks
One of the Bay Islands of Honduras, Utila is one of the most affordable places to enjoy a scuba diving vacation. It offers over 60 dive spots on and around the Mesoamerican Barrier Reef, as well as some amazing sunsets.
Isla del Cano, Costa Rica
Jason Barnes
Located near Costa Rica’s Drake Bay, Isla del Cano is significant for both its environmental and archeological value. On land are headstones that are believed to mark the graves of pre-Colombian indigenous tribes, and in the waters surrounding the island are a wide variety of coral and a wealth of marine life.
Bocas del Toro, Panama
Roman Königshofer
The islands of Bocas del Toro are one of Panama’s most popular Caribbean destinations. From lush rainforests to crystal clear reefs to thick mangroves to authentic indigenous villages to pristine beaches to a slow, laid-back lifestyle, they have everything they need to compete with the top spots in the region.
Isla Holbox, Mexico
D. Aniela
Located in Quintana Roo, north of Cancun, Isla Holbox is a welcome break from the high-rise hustle and bustle. Its sandy streets and open-air bars and restaurants offer a much more relaxed atmosphere. It’s also a great place to see whale sharks, which feed in the plankton-rich waters that surround the island.
Laughing Bird Caye, Belize
D. Scott
Just over 10 miles off the coast of Placencia, Belize, lies the photogenic Laughing Bird Caye. While no overnight stays are allowed on the island, it’s a popular stop for diving and snorkeling outfits due to its many unique coral formations. Its picnic tables and grills make it a convenient spot to break for lunch.
Dunbar Rock, Honduras
Sonja Stark
Dunbar Rock is a privately-owned island and home to Dunbar Villa, which offers gracious accommodations, amazing views, and a top-notch diving experience. It’s also a great example of what you get when you combine island ownership with a little imagination and ingenuity.
Tortuga Island, Costa Rica
Mauricio Diaz E
Tortuga Island lies off the tip of Costa Rica’s Nicoya Peninsula. Its many opportunities for adventure make it a popular place for day tours. These attractions include tranquil beaches, zip line canopy tours, snorkel and dive sites, and plenty of places for hiking or enjoying aquatic activities.
San Blas Islands, Panama
Ben Kucinski
Also known as the Kuna Yala archipelago, these islands total 378 in number although only 49 are inhabited. Located just east of the Panama Canal, they’re home to mostly Kuna Indians. Visitors, however, are entirely welcome, with accommodations and meals consisting of small huts and the local fishermen’s catch of the day.
Cozumel, Mexico
Mega Udonitron
Also located near Cancun is the island of Cozumel, which has become increasingly popular among tourists in recent years. Mexico’s largest island, it offers attractions in every category, such as snorkeling, bird watching, and shopping. February’s Carnival is a festive celebration and a great time to visit.
Ambergris Caye, Belize
Ian Morton
Claiming over half of all tourists to Belize, Ambergris Caye was also named the #1 best island in the world by the users of TripAdvisor. For the second year in a row. It’s convenient due to its proximity to the mainland as well as to the Belize Barrier Reef and some of the world’s best diving. It’s a great place to live or visit. Laid-back, but with all the modern conveniences.
Cayos Cochinos, Honduras
Dennis García
Also part of the Bay Islands, the Cayos Cochinos are two small islands and 13 small coral cays that occupy a land area of less than 1 square mile. They’re part of a protected marine area, which National Geographic described as “a marine biologist’s dream: protected by the government, off-limits to commercial divers and fishermen, and busy with creatures that may not yet have names.”
Ometepe Island, Nicaragua
Ashokboghani
With a name that means “two hills” in the native language, Ometepe Island houses two towering volcanoes connected by a small strip of land. Its fertile soil and excellent fishing allow its local population to thrive. They also warmly cater to tourists who come to the island, located in Lake Nicaragua, to enjoy its beautiful landscapes, rich archaeological history, and hospitality.
Coco Island, Costa Rica
Petrusbarbygere
Costa Rica is ripe with pirate tales, and none of its locales can top the rich history of Coco Island. Dubbed the world’s most beautiful island by Jacques Cousteau, this destination was considered for one of the new seven wonders of the world. It’s easy to see why its miles of rugged coastline might be popular among marauders or merely adventure-seeking vacationers.
Contadora Island, Panama
Gaspar Serrano
Part of the Pearl Islands archipelago, Isla Contadora is a popular tourist destination located in the Gulf of Panama. With regular flights to and from Panama City, it’s a convenient and easily accessible destination. A resort island, it’s also dotted with impressive homes owned by wealthy Panamanians.
Living on or owning your own island may not seem like a possibility to you. But the reality is, it’s easier than you think.
Depending on the level of development and amenities available, island ownership can be surprisingly affordable. And Central America is a fantastic place to score a tropical island getaway for a fraction of the cost of what the rest of the globe has to offer.
To learn more check out our listings, updated frequently, of Central American islands for sale.
Viva Tropical Radio
Author, Ayahuasca, and plant expert Jonathon Miller Weisberger joins us from his lodge located deep in the jungle of the Osa Peninsula in Costa Rica. His book Rainforest Medicine is a classic study on the subject of plant medicine as used in indigenous cultures, specifically Ayahuasca and the Secoya people from the Upper Amazon.
Join the discussion about the history of Ayahuasca use in indigenous cultures and how the West’s new interest in the plant is growing, while at the same time overlooking years of history and experience built up by the indigenous people of the Amazon.
Tune in and hear about the “vine of the soul,” at least while the cell phone signal holds up.
In this episode, we discuss:
- What is a Shaman?
- What is Ayahuasca?
- How the Secoya people use the vine and why you should pay attention.
- What not to do if you decide to pursue the vine.
- Why this ancient culture and practice is getting lost.
And much more.
Listen to the show
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About the Author
With over 20 years experience of ground-level environmental and cultural conservation, author Jonathon Miller Weisberger’s commitment to preserving the fascinating, unfathomably precious relics of the indigenous legacy shines through.
Chief among these treasures is the “shimmering” “golden” plant-medicine science of Ayahuasca or yajé, a rainforest vine that was popularized in the 1950s by Western travelers such as William Burroughs and Alan Ginsberg. It has been sampled, reviled, and celebrated by outsiders ever since.
Currently sought after by many in the industrialized West for its powerful psychotropic and life-transforming effects, this sacred brew is often imbibed by visitors to the Upper Amazon and curious seekers in faraway venues, sometimes with little to no working knowledge of its principles and precepts.
Perceiving that there is an evident need for in-depth information on Ayahuasca if it is to be used beyond its traditional context for healing and spiritual illumination in the future, Miller Weisberger focuses on the fundamental knowledge and practices that guide the use of Ayahuasca in indigenous cultures.
Weaving first-person narrative with anthropological and ethnobotanical information, Rainforest Medicine aims to preserve both the record and ongoing reality of Ayahuasca’s unique tradition and, of course, the priceless forest that gave birth to these sacred vines.
The Show Notes
- Visit Jonathon’s lodge just south of Drake Bay bordering Corcovado National Park, Costa Rica
- Join Jonathon on a trip to Ecuador in November to visit Secoya People. Check here for details.
- Join Secoya elders in Costa Rica when they visit Jonathon’s lodge in January 2015. See here for dates and times.
- Buy Jonathon’s book: Rainforest Medicine: Preserving Indigenous Science and Biodiversity in the Upper Amazon. Featuring words from Amazonian shamans–the living torchbearers of these sophisticated spiritual practices–the book stands as testimony to this sacred plant medicine’s power in shaping and healing individuals, communities, and nature alike.
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.
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?
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
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
- 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
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.
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.
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.
As comfortable in a dug out canoe as as a yacht, Josh’s adventures take him and his business partner into uncharted regions all over Central America.
Viva Tropical Radio is about the people, places and ideas discovered on those journeys.
On its surface the show is about the Latin Tropics, but Josh’s multitude of interests take the show much deeper.
From strange local myths and unique plants, to how to retire to the region. From offshore investment strategy to how to build a sailboat.
We welcome you to an eclectic mix of subjects as diverse as the region.
In the inaugural episode Josh has a discussion with Park Wilson about what you should know before you invest in Central America.
In this episode, Park and I discuss the following:
- Why Market Stages are a must understand when buying property in the tropics.
- How to approach different regions in Central America
- Common mistakes most folks make when buying real estate in Central America
- If you only have 72 hours to buy how you should prepare for quick trip.
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 | 72.6MB | 45:12
- 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
- Market Stages Chart that Defines the Stages – by Viva Tropical
- Map of Market Stages in Panama – by Viva Tropical
- Understanding Market Stages: The Key to Profiting on Central American Real Estate – by Josh Linnes for Escape Artist
The Transcript
Transcript coming soon!
photo by Best of the Better
Can I be frank for a minute? And forgive me if you already know this, but…it’s important that you, as someone who’s interested in investing or living in Latin America, understand that you can’t trust what anyone out there is telling you about international living.
Not even us.
Why, you ask?
Well, it should hopefully come as no surprise to you that those who write about topics like living and investing overseas aren’t just doing so out of the goodness of their heart. Like everyone else these days they’re ultimately looking to turn a profit in some form or fashion.
Whether it’s selling ads on their website, getting you to buy their ebooks, luring you to a seminar, or even selling you a piece of tropical real estate. And those are all perfectly acceptable means of making money. Just so long as you, the consumer, know to take their opinions and advice with a grain of salt.
Why we’re only slightly more trustworthy than other international living sites
Around a decade ago, my business partner and I both sat right where you are. Working in unfulfilling careers in corporate America, trying to get ahead, and dreaming about what it might be like to break free and start a life with our families in a completely new context.
Long story short…we both mustered up the courage and took the plunge. Now we and our families have never been happier.
What’s more, we think there are a lot of other North Americans (maybe even you) who might benefit from making a similar move. They just need a little guidance and reassurance. We wanted to serve as an unbiased, reliable resource for individuals like you.
I say unbiased, because we soon realized that there are a lot of marketers and gurus out there spouting a whole bunch of misinformation. Because they have something to gain from your subscription or your investment, they tell you a lot of what you want to hear and gloss over the tough parts about life abroad and the process of uprooting your family.
The truth is that becoming an expat isn’t always easy. You know how hard it is to move your family from one side of town to another. Imagine that multiplied exponentially when it comes to transitioning to a new country and a different culture.
We’ve seen the devastating effects that unrealistic expectations can have on families, marriages, finances, etc. We want to help you learn how to see through those scams and objectively evaluate tropical destinations and the expat lifestyle for yourself.
That being said, while we at VivaTropical try to provide you with the most relevant, accurate, and unbiased information available, even our articles are biased by our own opinions. It isn’t intentional. It’s just inevitable. There’s no substitute for forming your own objective opinion.
Pay close attention to the man behind the curtain.
The first step in evaluating any recommendation on tropical destinations or tropical real estate is to consider your source. And, if we’re being completely honest here, a lot of the articles out there about international living are written by people that you probably wouldn’t even listen to for more than 30 seconds if they were standing in front of you.
But a fancy website, a credible-sounding URL, and the word “Expert” after the author’s name can go a long way in making them seem a bit more legit. So, just make sure you remain as objective as possible and do your best to read between the lines.
For example, if you’re reading an article on a website called ElSalvadorBeachProperties.com then, yes, they’re probably going to tell you all about how that country has Latin America’s best beaches. They’re also probably going to gloss over its crime problem and poor education system.
The same goes for marketers who claim you can move to grand expat cities like Boquete, Panama, and Cuenca, Ecuador, and get by on some ridiculous amount of money. Yeah, you could live on less than $1000 per month. But only if you live like a local and don’t plan to take advantage of the amazing opportunities to travel the region.
Sometimes it’s a little harder to determine a site’s agenda when it’s not explicitly spelled out in their domain name. You might have to look for a copyright or a Contact Us page to find out who’s behind the information and what their motives might be.
But, once you know who you’re dealing with, you can view their information under the right lens and learn to spot a false claim a mile away.
Consider the folks who got married at McDonald’s.
That’s right. More than one engaged couple has, when faced with a plethora of options for a wedding venue, chosen to say their vows beneath the golden arches. We’re talking about linking arms and sipping from straw cups rather than champagne flutes and posing with wedding cakes built out of strategically stacked hot apple pie boxes.
That right there ought to be enough to tell you that what suits one individual or family is by no means right for everyone out there.
One man’s paradise can easily equate to another person’s idea of hell on earth. If you don’t believe us, then just go read an article about a Latin city–any city–and then read the comments people have posted below it.
For every article singing the praises of a certain destination there are usually at least a dozen critics who think it’s the worst place they’ve ever set foot in. Our articles included.
Does that mean we’re wrong about some of these places? No. Well, not exactly. It just means that not everyone is going to share our views about every destination we write about. Nor do we share the opinions of some of the other international living bloggers out there.
It’s all a matter of preference and priorities. The only way to settle on a destination that will make YOU happy is to consider your values and what’s important to your family. Then have the time of your life looking for the place that fits that bill.
Read everything you can find about a place, including the bad stuff.
Once you decide you’re serious about giving the expat lifestyle a try, start researching to narrow down your search. Read guides. Read articles from “experts.” Read the comments from people who think the author is an idiot or at least someone who’s clearly never set foot in that destination.
Join expat forums and chat with people who live in or have been to the city. Ask them questions and get real answers from people who aren’t trying to sell you a timeshare.
Learn to decipher some of the terms or descriptions marketers use to mask some of the less appealing aspects of some tropical cities. A lot of them are the same as the tricks North American realtors use. (You know the ones. A bedroom described as “cozy” might barely accommodate a twin bed. “Tranquil” means it’s in the middle of nowhere, while “convenient” can mean it’s in an area that’s noisy or busy.)
Likewise, with tropical destinations, there are similar cues you can look for. A place that’s “undiscovered” might be cheap, but it probably doesn’t have the most reliable utilities or even paved roads. In a city that enjoys daily afternoon rainbows, you’ll also have to contend with the necessary afternoon rain shower. Don’t miss what the author is really telling you.
Consider it a red flag if an author or source never has anything bad to say about a place. I assure you there’s no problem-free location in Central America, or anywhere for that matter. However, at the same time, don’t be turned off by the slightest negative detail about a city. The cool nights in towns at higher elevations may be too chilly for some, but could be ideal for you.
Always kick the tires and take her for a test drive before you buy.
You can learn a lot from reading articles, looking at pictures, and talking to other expats (and you should definitely do all of those things). But there is NO substitute for actually boarding a plane and flying down to see a place for yourself.
Sure you hear the stories about the folks who buy tropical real estate sight unseen, move their families down, start a business, and live happily ever after in paradise.
That is NOT the process that we recommend.
You need to really see and experience a place for yourself in order to determine if it’s a good fit for you. And not just for one weekend, during the dry season, with a driver, a tour guide and an interpreter. Plan to experience the place the way it would really feel if you lived there.
Walk around and talk to the locals. Eat something they consider a ‘delicacy.’ Go exploring and get lost somewhere. In town. In a jungle. (Ok, well, maybe you should have a tour guide for that excursion.)
Not only does taking a trip and enjoying an authentic experience in a new setting sound like an amazing vacation, it’s often the last step in nailing down that final decision on which tropical city would make the best backdrop for the next chapter of your life.
What are you waiting for? Turn the page. You’re gonna love how this one ends.