Playa del Carmen, Mexico has become a favorite destination for expats seeking a Eurocentric atmosphere on the shores of the Caribbean. The strong European, Canadian, and Argentinean influences of this beachside location have made it the fasting growing community on Mexico’s Rivera Maya.
With such a cosmopolitan vibe, it’s little wonder that the number of new residential units and high-end resort properties is growing throughout the metropolitan area. Being able to choose between a modern condominium unit with state-of the art amenities, luxury resort living, or restoring one on the older properties near the center of town makes shopping for real estate an enjoyable task.
Sharon Hahn Darlin
Six Important Tips for Enjoying Life in Playa del Carmen, Mexico
With its unique ambiance, living in Playa del Carmen, Mexico can truly be a life-changing adventure. Here are some tips to maximize your experience.
Embrace the Cultural Blend
Nowhere else in Latin America is the influence of old world European style expressed as strongly as in Playa del Carmen. Often compared to continental resort communities, such as Nice, Playa is becoming a place to see and be seen. For those seeking the best of Euro-chic style and Mexican spice, Playa del Carmen is the place to be.
The central hub of activity is Quinta Avenida, literally translated as Fifth Avenue. With popular stores such as Louis Vuitton, H&M, and Christian Dior, it is little wonder that this former sleepy fishing village is on track to becoming both a cultural and economic magnet for the entire Yucatan peninsula. Despite all its growth, Playa still retains its charm as a small Mexican town and artist colony. One important step that was taken to achieve this was to limit building height within the town center to five stories.
Appreciate the Location
Playa del Carmen, while technically part of the Riviera Maya, is certainly off the normal “tourist track.” Being able to enjoy a more cosmopolitan, less frenetic pace while still being close enough to the action truly provides a style of life that embraces the best of both worlds.
Don’t Worry About Getting There
With its close proximity to Cancún and Cozumel, transportation to Playa del Carmen, Mexico is easy to arrange. The international airport in Cancún has many regularly scheduled flights from most major U.S. cities. Once there, it is just a relaxing one-hour drive along the coast to reach Playa.
A second option is to fly into Cozumel and take the twelve mile ferry ride across the bay. The ferry service offers regular airport transfers making this another option for reaching your destination.
No Spanish? No Problem
One feature of Playa that will definitely appeal to those who are concerned about navigating in a foreign language is that English is widely spoken. As the expat community continues to grow, finding English speakers is increasingly easier.
For those seeking a more rustic Mexican experience the smaller pueblos outside of the metropolitan area still provide a window into the culture of Yucatan. Here Spanish is the dominant language, and English speakers are far less common.
Grand Velas Riviera Maya
Play and Explore
Playa has a number of great opportunities to relax, explore, and enjoy all that this Caribbean beach town has to offer. The growing number of luxury resorts in the area offers the kind of recreational options that one would expect to find on the European coastline.
The full range of beach activities (scuba, snorkeling, flyboarding, etc.) provides a variety of ways to enjoy the Caribbean waters. For those who enjoy the opportunity to catch their dinner, fishing charters will help anglers hook the big one. After the catch, finding a local restaurant to cook your fish is easy and inexpensive as well.
Less strenuous but equally enjoyable are a number of catamaran and sunset cruises that are readily available beachside. Appreciating the sunset while floating on the warm waters of the Caribbean Sea is a great way to finish off a day in paradise.
Eco-tours to the special reserves of Sian Ka’an Biosphere and Ria Lagartos give nature lovers the opportunity to get up close and personal with the flora and fauna of the region. For those who desire a more adrenaline-fueled natural encounter, summertime cruises near Isla Mujeres give adventurers the chance to swim with Whale Sharks and Manta Rays.
The nearby Mayan ruins of Chichen Itza and Tulum (among others) are just a short distance away from Playa. These once in a lifetime experiences are perfect for anyone who wants to discover the mysteries and heritage of the ancient Mayan culture that existed in the area.
Understand That All These Elements Make Owning Now Irresistible
Playa del Carmen, Mexico has a tremendous upside for both expats seeking a unique beach location and investors looking for growth potential. The rich, “Eurocentric” atmosphere blended with the relaxed Mexican vibe makes property ownership both desirable and profitable.
The continued increase in the tourist trade (with cruise lines adding Playa del Carmen as a port of call) and the growing number of expats seeking to settle outside the more heavily trafficked areas of Cancun and the Cozumel districts have resulted in new construction of residential units as well as resorts.
Playacar, a planned tourist and residential center, is a prime example of the development that is going on. For investors, the purchasing of lots or finished units here has a strong potential for a good return on investment. For those seeking to make Playa their home, the well-developed infrastructure can support a cosmopolitan lifestyle while keeping the distinctive cultural aspect of the region.
Michael Muraz
The Most Important Tip of All
Mexico has a number of opportunities that investors and expats may not be aware of. Playa del Carmen is one of the special places that combines the potential of a strong investment return with a special ambiance that retirees, expats, and tourists will all be drawn to.
The best way to appreciate what life would be like in Playa is to go there. Walk the beaches, browse the shops along Quinta Avenida, and immerse yourself in the Euro-Mexican cultural atmosphere. There is no better way to start your Mexican experience.
Canoa, Ecuador is not the first place expats might consider when thinking of a tropical destination. However, this beachfront community is poised to become part of Ecuador’s “Gold Coast” along with the neighboring villages of San Clemente, Bahia, Manta, and Crucita.
With the longest stretch of beach in Ecuador (17 km), this rustic fishing village is an ideal location for intrepid investors seeking to get in on a ground floor opportunity. With lots available at very reasonable prices, there is a strong potential for growing your investment dollars.
Elkin Sulvará
The One Thing That You Must Understand About Canoa Ecuador
For those who are considering adopting the expat lifestyle for the first time, Canoa, Ecuador may seem a bit out of the way. Yet it is important to understand that the potential of this small community is nearly limitless both in terms of living there as well as developing a profitable investment base.
There are a number of reasons why Canoa’s prospects are so bright. Some of the highlights can be found below:
The Laid-Back Atmosphere Is a Value-Added Feature
One of the major elements that contributes to Canoa’s potential is the relaxed lifestyle. This is the vibe that one would expect from a beach community where the “endless summer” is always being pursued by lovers of ocean sports.
While there are tourists, the area is not overwhelmed by them. Retirees and others who want a more serene existence will find such an atmosphere easy to come by. Additionally, developers seeking to build investment properties will find a residential market waiting to be established.
Remote But Still Connected
Canoa, Ecuador does not have the infrastructure of some of the larger communities of Manabi Province. That being said, access to the larger towns of San Vicente and Bahia requires no more than a short bus ride.
With the same shopping options, banking facilities, and other services normally found only in larger population centers, Canoa is well connected to the rest of the country, while retaining all the benefits of its more remote location. For those needing the 24/7/365 connectivity of the internet, many of the hotels and hostels in Canoa do have access to the web.
Finding the “Perfect Wave” Is Still Easy
The adrenaline-fueled sports of surfing, paragliding, stand up paddleboarding, and kite surfing have all become popular pursuits in Canoa. Enthusiasts (amateur and experienced) seeking to find a less crowded destination to sharpen their skills have made this Ecuadorian fishing village a popular location. For entrepreneurs seeking to find investment potential, this ready-made market holds great promise.
Building Paradise Is Less Expensive
One of the key aspects that adds to the potential of Canoa, Ecuador is the lower cost of materials and labor. Being able to construct and develop property at a lower cost is another enhancement that makes Canoa a prime location for growth.
You Aren’t Alone
As more and more foreign visitors discover the beauty of Canoa, the English-speaking expat population continues to grow. For those who are not comfortable with a new language, having neighbors who speak English can make the transition to life in this fishing village much more comfortable.
The Tax Burden Doesn’t Loom As Large
One of best features about owning property in Ecuador is the extremely low property tax rate. Assessed between 0.025% and 0.5%, it is rare to pay more than $400 per year.
Another benefit is that those over 65 are only required to pay half of the tax assessed; this certainly is an important benefit for retirees who are living on fixed incomes. When combined with affordable prices, a great beachfront location, and a laid-back lifestyle, it is easy to understand the potential waiting in Canoa Ecuador for those adventurous enough to seek it out.
Canoavilla
Building Your Tropical Dream in Canoa, Ecuador
Finding affordable land in Canoa is an easy proposition. There are a number of parcels, with attractive views of the ocean, that an adventurer could turn into his or her own tropical oasis. Here are some prime examples of what’s currently available:
Canoa Beachfront Lot. For $90,000 you can purchase a beachfront lot that’s located close to town but still quiet and unassuming. It’s ready to build on and could be the perfect place to establish the tropical destination of your dreams.
Beachfront with Income Potential. Also available are twin 1,000 square meter beachfront lots that could easily be used to build four mini casitas. With only an $80,000 initial investment, buyers could have the opportunity to to live in paradise, while having rental income from the other three units. This is a rare opportunity that should not be overlooked.
One Important Consideration
Ecuador has designated the land within 50 km of the national borders and coastlines as National Security Areas. As a result development in these zones is prohibited.
With Canoa being located on the beach, obtaining the services of an experienced real estate attorney can help you ascertain the legal status of any property before committing time and money to the project. This due diligence on the front end will certainly save you a tremendous amount of headaches in the long run.
paradiseintheworld
Summing Up
For those just beginning to explore Canoa, Ecuador as a potential destination, understanding the scope of the possibilities that exists is a necessity. The best way to identify this potential? Go there, walk on the sands, and envision yourself as a part of the growth of what promises to be the next Pacific “Gold Coast.” There is no time like the present to begin the journey.
If you’re considering relocating to or investing in Costa Rica, then an important step we recommend is taking an extended trip, as long as possible, to explore the area and everything it has to offer.
Sure you read those occasional stories about the guy who got a hankering, got on the internet, bought a property sight unseen, sold all his belongings, moved to the tropics, and never looked back.
Unfortunately, stories like that are the exception, not the rule. The reason being, there’s just no substitute for seeing and experiencing a country, a region, a city, even a neighborhood for yourself before you make any major life-altering decisions.
But if you haven’t been to Costa Rica before, or at least not since you honeymooned at that all-inclusive resort many moons ago, then how do you know which areas to visit, where to stay, what to eat, etc.? The answer? Ask a local.
Mauge
The Guidebook That’s Just Like Having a Real, Live Tour Guide
There are plenty of books and websites that will claim to tell you everything you need to see and do in Costa Rica. If you’ve read any, you’ll probably even notice (spoiler alert)…they’re usually all the same.
Why? Because half the people who write those things have never even been to those places or eaten at those restaurants. They’re recommending what they’re told to recommend or what 10 other people have already written about and recommended. Don’t fall for it.
What’s better is to rely on local sources, natives, or even other expats. They know the hole-in-the wall restaurants, the best dish that’s not on the menu, and the day of the week when you should steer clear because it’s “gringo night.”
So, now you’re probably thinking “But I don’t know anybody in Costa Rica.” Well, that’s not a problem. Because our friend Camille Willemain has written an incredible ebook called “The Ultimate Guide to Costa Rica.” It’s a great resource, and I highly recommend that you check it out if you’re planning on visiting Costa Rica.
MF Carter
Experience Costa Rica Like a Local
Even if you aren’t already planning a trip in the near future, this ebook might just be enough to convince you to book a flight. It’s full of tips and recommendations, as well as some really amazing photos.
In the book you’ll find everything from which beaches you absolutely cannot miss seeing to how to stay safe and healthy when you’re traveling in Costa Rica. The author has even outlined detailed two-week itineraries for experiencing the best of Costa Rica’s beaches, wildlife, or the Caribbean coast…a tremendous help for someone who wants to pack a whole lot into a single trip.
And the sights, tastes, and experiences highlighted in this guidebook aren’t your typical touristy attractions and hangouts. They’re places where you can get an authentic Costa Rican experience and truly immerse yourself in the culture and lifestyle, just like a local.
Matthew Karsten
Take it From An Expert
The author is a self-proclaimed expert on Costa Rica, and I would have to say that’s a fair statement. She’s traveled all over the country and seen pretty much everything there is to see. When I read her advice about the best places to visit in Costa Rica I could tell…this girl knows her stuff.
This ebook is the perfect starting point for someone who’s considering a new life in Costa Rica. It’ll help you skip all the tourist traps and see firsthand what living in Costa Rica is really like. Give it a read. Then get to planning! Your pure life awaits you.
Perhaps the most important question for expats considering a move to Latin America is: What is the cost of living? The differences in prices for basics, such as food, utilities, and rent, can often be the determining factor in choosing one location over another.
By comparing the cost of living of three of the most popular Latin American destinations – Costa Rica, Panama, and Ecuador – you can get a better understanding of the budget needed to make your tropical dream a reality. Learning about these (and other) popular destinations is a great way to begin the search for that perfect piece of tropical paradise.
Super0923
What Goes into Figuring the Cost of Living
There are a lot of factors that can be included when calculating how much it would cost to live in one place as compared to another. Looking at the big picture is one way to get an idea of the comparative pluses and minuses of each location.
Below is a chart that compares prices and consumer spending power (on a macro level) between Costa Rica, Panama, and Ecuador:
| Ecuador | Costa Rica | Panama |
| Rent Prices are 59.25% lower than in Panama | Rent Prices are 86.62% lower than in Panama | Rent Prices are 59.25% higher than in Ecuador |
| Consumer Prices are 17.89% lower than in Panama | Consumer Prices are 9.65% higher than in Panama | Consumer Prices are 17.89% higher than in Ecuador |
| Grocery Prices are 23.82% lower than in Panama | Grocery Prices are 5.78% higher than in Panama | Grocery Prices are 23.82% higher than in Ecuador |
| Local Purchasing Power is 20.15% lower than in Panama | Local Purchasing Power is 19.03% higher than in Panama | Local Purchasing Power is 20.15% higher than in Ecuador |
Information Source is Numbeo.com as of May 2015
As can be seen, each country has positives and negatives in terms of the cost of living. Ecuador has the lowest rent, Costa Rica has the highest local purchasing power, and Panama occupies the middle ground on most categories.
This is also a direct reflection of the stage where each of the three countries find themselves in terms of growth. Costa Rica has the most developed market in terms of expats, Panama is in the middle of a growth spurt, and Ecuador is just now emerging as an expat hotspot.
sitzmansitzman
Looking at Specific Items That Go into the Cost of Living
To better explain how these percentages impact expat budgets, it helps to look at the actual dollar amount that such things as food, housing, and transportation cost in these three countries. This comparison appears in the chart below:
| SAMPLE GROCERY ITEMS | Costa Rica | Ecuador | Panama |
| Milk (regular), (1 liter) | $1.40 | $1.06 | $1.47 |
| Loaf of Fresh White Bread (500g) | $1.61 | $1.45 | $2.06 |
| Rice (white), (1kg) | $2.14 | $1.41 | $1.48 |
| Eggs (12) | $2.83 | $1.81 | $2.17 |
| Local Cheese (1kg) | $6.35 | $4.76 | $7.73 |
| Chicken Breasts (Boneless, Skinless), (1kg) | $6.97 | $5.94 | $7.15 |
| UTILITIES | |||
| Basic (Electricity, Heating, Water, Garbage) for 85m2 Apartment | $70.65 | $44.13 | $69.84 |
| 1 min. of Prepaid Mobile Tariff Local (No Discounts or Plans) | $ 0.07 | $ 0.17 | $ 0.14 |
| Internet (6 Mbps, Unlimited Data, Cable/ADSL) | $53.16 | $44.07 | $41.99 |
| TRANSPORTATION | |||
| Gaosline (1 Liter) | $1.34 | $0.50 | $0.90 |
| Volkwagen Golf 1.4 90 KW Trendline (or similar new vehicle) | $22,569.12 | $25,000.00 | $19,500.00 |
| RENT PER MONTH | |||
| Apartment (3 bedrooms) in City Centre | $833.13 | $661.34 | $1,780.77 |
| Apartment (3 bedrooms) Outside of Centre | $654.21 | $524.29 | $ 967.86 |
| Information Obtained from Numeo.com as of May 2015 |
Again, the differences reflected in the cost of certain items mirrors each country’s particular characteristics. Panama, long recognized as the commercial hub of Latin America, benefits from the ready access to imports in the form of lower prices for cars and gasoline. Both Costa Rica and Ecuador have significantly lower rental costs than Panama; the modern wonder that is Panama City is a prime example of this disparity.
Interestingly, the food items selected for comparison are all roughly the same in cost across the three countries. The accessibility of locally grown produce and meat can further reduce the food budget across the board.
Mauge
What Does It All Mean?
Panama, Ecuador, and Costa Rica each have unique qualities that have made them three of the top locations for foreign investors, expats seeking a new or different lifestyle, and retirees looking for that tropical paradise. Depending on where you live, the cost of living may be higher or lower than these examples.
If a more rustic lifestyle is the preferred choice, the amount spent will be lower; conversely, for those seeking a luxury residential location with modern amenities, the cost will obviously be higher. In any event, what one would spend for these items in the U.S. is going to be different than in any Latin American location.
Ultimately, the question that has to be answered is a simple one: Does this place (Panama, Costa Rica, Ecuador, or elsewhere) call to you? Being realistic about your own monetary resources is another important facet in the expat process.
Learning about each country by connecting with others who have made this leap of faith, and, hopefully, visiting those places that appeal to you, is the best way to put everything into context. You can then measure the cost of living in the context of the cost of making a dream come true.
The continuing growth in popularity that Cuenca, Ecuador is enjoying comes as no surprise to expats and investors who have made the decision to become part of this thriving Andean Highlands town. The combination of a great climate, an established expat presence, and property values that are still reasonable are all reasons many prospective expats love Cuenca and why it promises to be a magnet for relocation, retirement, and investment potential for years to come.
Keeping a balance between having the amenities of a major metropolitan community while maintaining the rich, cultural heritage of the region, is an important value-added element to Cuenca’s real estate market. Taking a look at properties, both in the city center and the outlying area, is a good way to get an understanding of what Cuenca may hold for your long-term living and investment plans.
M&MdelEcuador
So Many Reasons to Love Cuenca
There are many reasons to love Cuenca. Discovering and experiencing them firsthand will only add to the allure that has made this vibrant Ecuadorian destination figure so prominently in the future plans of those seeking to live and invest in Latin America.
Awesome Weather
When most people hear the word “tropical,” the first impression concerning the climate is, generally, hot and humid. Cuenca’s weather is a far cry from that stereotypical image. The moderate daytime temperatures average in the high 60s to low 70s, while the nights offer great sleeping weather in the 40s and low 50s. It’s a good idea to have a sweatshirt or jacket available for those evening strolls and early morning walks.
This Andean highlands climate translates into savings on electricity (not needing the air conditioner as often) which in turn makes life more affordable, an important feature for retirees on fixed incomes. Additionally the lower humidity and lower dew points of the region are much more tolerable than humid, tropical locations for those with chronic sinus issues.
A Symbiotic Blend of History and Modern Amenities
Another reason that investors and expats love Cuenca is the unique blend of a historical and cultural setting that comes complete with modern amenities. The clean streets, functioning utilities, access to cable television and high speed internet service mesh perfectly with the colonial buildings, (the city center is a UNESCO World Heritage Site) the vibrant atmosphere of a college town (there are several institutions in Cuenca), and a growing artistic scene.
What makes all of this even more special is the fact that Cuenca is a distance away from the major commercial centers of Guayaquil and Quito. As a result, the area is not burdened with the frenetic pace of a major urban center yet still has all of the infrastructure advantages of those larger communities.
Henry Vélez
A True Sense of Community
Of all the reasons to love Cuenca, one of the most important is having a true sense of belonging to the community. Cuenca is very English-friendly which greatly reduces the trepidation potential expats may have about moving to a country where English is, generally, not the principal language.
The ever-increasing numbers of expats who live there make transitioning to life in Cuenca much easier than other locations. Being able to have contact with those who have already “learned the ropes” is a great way to become part of a significant population group.
An important aspect of the number of foreigners living and investing in Cuenca has been the increasing amount of expat-friendly businesses that cater to these new transplants to highlands life. A new arrival can easily find merchants, restaurants, and entertainment venues where English is spoken as frequently as Spanish.
Great Real Estate Investment Potential
Cuenca’s growing expat community is one of the major financial engines driving the strong return on investment dollars. Here are some prime examples of what is on the market:
- Farm 39 acres / 16 Hectares. For investment and development potential, this 39.5 acre farm located just 13 miles from the heart of Cuenca is a perfect location for residential development. The pasture area, which has good interior roads, ready-to-use building pads, access to electricity, and other basic infrastructure elements is roughly 11 acres in area. The remaining 28 acres is highlands forest; being able to have the natural beauty of the region as a backdrop for homes, and close to the city, makes this an opportunity meriting serious consideration for an incredible price of $160,000.
- Beautiful house in Balzay, Cuenca. Located within walking distance of the Old Cathedral, in the heart of Cuenca, this unique property actually is comprised of two buildings. With 6+ bedrooms and bathrooms total, there is more than sufficient space for a large family. The separate suite, complete with its own kitchen, bedroom, dressing room, and bathroom, is independent from the rest of the house and can only be accessed through the garage. This arrangement makes for a great rental potential even while the property is being used as a retirement or expat home with an unbeatable asking price of $368,000.
- 4 Bed / 3 Bath / Office / 3 story House. Being offered for $380,000, this unique property has ample room for everyone. In addition to the four bedrooms an three bathrooms, this home has two livings rooms, a large entertainment room and both a formal and informal dining room. For those who value security, the home is secured (enclosed) with a 12′ concrete privacy wall in the back courtyard and nicely constructed 12′ iron fenced wall in the front. With s an updated security system and ts no less than 7 guard stations (24/7) in the neighborhood, you can feel comfortable that your investment is secure and safe.
Along with modern construction, there are also possibilities of finding colonial era properties that can be restored, as well as undeveloped lots that can be customized or retained as investments as property prices continue to rise. Exploring the real estate market helps both the investor and the expat find the perfect location to fulfill their tropical dreams.
Casey
Is Cuenca Worth It? YES!!
For investors, retirees on fixed incomes, and expats seeking a new start, the big question is whether the cost of living in Cuenca will translate into a value added scenario. The answer is an unqualified YES!!
With rental prices averaging between $300-$1500 per month (depending on location, size, amenities, etc.), and basic utilities costing less than $100 per month, life in Cuenca is definitely affordable. When compared to all that Cuenca has to offer, the value (both intrinsic and actual) returned on investment far exceeds that of most U.S. cities of comparable size.
The cultural richness, moderate climate, vibrant entertainment and educational venues, and the serenity of the highlands lifestyle make the idea of investing or living here an almost irresistible proposition. Visiting this Ecuadorian gem is the best way to learn whether the Cuenca “big picture” features you in a starring role.
When Tulum, Mexico is mentioned, the first images are often of impressive Mayan ruins, stunning beaches, and the vibrant party scene of nearby Riviera Maya. However, the best of Tulum encompasses much more, which is why investors and other expats are flocking to this Yucatan destination.
Well known as a popular tourist destination, this small seaside town is rapidly become a growth center for those looking to find alternatives to the more populated, tourist-centric locations nearby. With property prices still quite affordable, finding options in this beach town (yes, Tulum is a beach community) may be as easy as a click of a mouse.
Megan
How To Discover The Best Of Tulum For Yourself
The Tulum area has steadily been gaining attention as an up and coming expat destination. Publications like USA Today have called it “the fastest growing town in Latin America”; similarly, the Wall Street Journal recently noted that the area has become “the hottest section of Mexico.”
Knowing where and how to look for those gems that are the best of Tulum involves being open to new experiences and adventures. Below are some pointers that can make your search more successful and enjoyable.
Learn About The Geography And Climate
Located just 45 minutes south of Playa del Carmern, Tulum sits on Mexico’s Caribbean coast and is part of what has been called, “Mexico’s Rivera.” One of the oldest towns in Mexico, Tulum itself can actually be divided into three separate districts.
Tulum Pueblo
The pueblo is the actual town and is where the greater majority of supermarkets, retail stores, the bus stations, smaller hotels, hostels and inns are located. The town reflects the more of the local atmosphere than some of the more modern and developed areas nearby. This rustic vibe may be preferable for those seeking to find a quieter, less “touristy” place to live.
Tulum Playa
Though known primarily for its archeological treasures, Tulum is very much a beach town as well. Tulum Playa is bordered by the Sian Ka’an Biosphere (an ecological reserve) and white sand beaches to the east, as well as a wetlands and mango reserve to the south.
Not surprisingly this dynamic combination of natural beauty and pristine beaches has been a key factor in the growth of Tulum Playa as a preferred location for the development of new residential properties, higher-end resorts, and spas. Boutique properties dedicated to ecology are also a growing commodity here.
Tulum Ruinas
The Mayan ruins, some of the best preserved in Mexico, are unique due to their seaside location. In addition to the main set of ruins, there are twenty-three additional sites in the the Sian Ka’an Biosphere. While there are fewer residential options here (for obvious reasons), the close proximity of these symbols of a bygone era and culture are a powerful drawing card for foreigners who want to live close to history.
Learn About The Climate In Tulum
Tulum is an up-and-coming area. One of the major reasons is the climate, which is ideal for those whose love of the beach is irresistible.
The warm, tropical temperatures of the Gulf of Mexico, a dry season that matches perfectly with winter in the US, and a large expat presence make this the prime area for anyone wanting to live by the sea.
Learn The Easiest Ways To Get There
One aspect that belongs in any list of the best of Tulum is how accessible the village is from the US. The number of regularly scheduled flights into the international airport in Cancun leaves adventurers with only a ninety minute drive to Tulum.
Whether you choose to do the driving yourself or use one of the many buses, shuttles and taxis, the transfer from airport to Tulum is uncomplicated. Local taxis or shared vans, known as collectives, can help visitors get to and from their lodging to the beach area, the pueblo proper, and the ruins.
Wikipedia
The Investment Potential Is Definitely Part Of The Best Of Tulum
Unlike nearby locations such as Cancun and Playa del Carmen, Tulum is still largely undeveloped. As such, being able to purchase lots for investment projects becomes much more affordable and can bring a higher return on cash outlay.
The Mexican Trust has made it possible for foreigners to own property within the 30 mile coastal zone. Having beach access is another value-added feature of buying in Tulum.
There are a number of projects that are in various stages of completion that could provide rental income as well as an ultimate retirement palace. Tulum 20-12, Eden Zama, and Zama Village are examples of these developments that offer modern condo living, with state-of-the-art amenities, and the desirability of the Rivera Maya location.
There are half-acre beachfront lots located on the other side of Peninsulafor as little as $79,000. There are also plenty of other opportunities in this fast moving market that be may the perfect choice for your expat investment plans.
Gianni Maestri
Become Part Of The Best Of Tulum
With all the positives that Tulum offers, there is one remaining element that should be added to the best of Tulum-YOU!! Make plans to visit this ancient Mayan location and learn, firsthand, how moving here can be a great way to build for the future, while investing in the present.
Boca Chica, Panama is the tropical island that can truly be said to be the stuff of dreams. The special combination of a secluded setting that is still less than an hour a away from the major city of David promises to be a key factor in the rapid expansion of an expat population seeking new adventures and opportunities for reinvention.
Island living is not wihtout its challenges but the rewards of having a unique lifestyle that has been the stuff of dreams far outweighs any adjustments that may be required.
While not as well known as other Pacific locations in Latin America, Boca Chica may be the best bargain of all. The growing number of available properties-from lots ready to be developed to high end condos-bear witness to the desirability of this ocean side community.
Panama Travel
Island Living In Boca Chica-A Reality Check
Island living has a lot of pluses to commend it as a lifestyle change. There are also some challenges that prospective “Robinson Crusoes” should keep in mind as part of the decision process.
Seclusion Can Be Both A Plus And A Minus
One of the most compelling features about Boca Chica is its remoteness from the rush of larger metropolitan areas such as Panama City. This can be both a positive and a negative feature.
While having a quieter, more laid back atmosphere is a benefit for many expats, the inability to easily purchase items such as computers, electronics (phones, tablets, etc), and vehicles can take some adjustment. You have to decide whether having ready access to these stores is more important than the tranquility of a secluded beach village.
Fortunately, the city of David is just a short diatance away and has plenty of shopping options that can meet most daily needs. For some speciality items, however, a trip to Panama City may be required.
The Infrastructure Is Undergoing Growing Pains
With a single road leading into Boca Chica from the Pan American Highway, it should come as no surprise that the infrastructure of the area is still in a development stage. Again, this may prove to be problematic for expats who want all the comforts of home when they first arrive.
Even in paradise, growing pains are a necessary evil when a location, like Boca Chica, is developing as rapidly as it is. The long term outlook, however is that of increased value and accessibility that make investing now a great option.
Happily, the continual increase in expats and investors is also having a positive effect on upgrading the infrastructure in Boca Chica to be able to handle the needs of an increasing population.
Increased Access And Investment Potential
With the opening of the new international airport in David, getting to and from Boca Chica becomes much easier than one might have expected even five years ago. Another plus is that, unlike other popular island destinations – for example, Roatan (which requires a 90 minute ferry ride to the mainland) – getting to nearby locations is simply a matter of a quick boat ride to the mainland to connect to other places.
This also is reflected in investment potential. Boca Chica is still largely undeveloped and not as well known as other islands in Latin America. With prices still extremely low, getting in at the start of the anticipated investment growth will cost less and, arguably, could result in much higher returns on investment.
Viva Tropical
The Real Estate Market In Boca Chica Continues To Grow
The recent attention given to the archipelago of the Gulf of Chiriqui in general, and Boca Chica in particular, has led to greater number of options for relocation and/or investment. Some of the examples of properties available in Boca Chica are listed below. The price points are still reasonable but can be expected to increase as demand increases for these beachfront locations.
Entire 11 Acre Island in Panama
If owning your own island and molding it into your own particular concept appeals to you, the island of Isla Iglesia Mayor is the answer to your search. Located just a short fifteen minute boat ride off the coast of Boca Chica mainland, this largely undeveloped island parcel is in its natural state with a wide variety of flora and fauna present.
Reminiscent of deserted tropical islands of literary farm, the potential for private or personal development is limited only by the imagination of the new owner. Priced at $1,500,000, the possibility for a strong return on the initial investment expenditure is quite good. Panama’s favorable tax structure and aggressive approach to attracting foreign dollars are further incentives to consider buying at this time.
2 Bed with Pool, Dock, Solar, Everything
This modern eco-friendly house sits on a ½ acre, ocean front lot, on Boca Chica Island. The solar powered electrical system is not only convenient but also budget friendly. Using solar power is also good for the environment and helps create a special kind of connection with the natural surroundings of the 400 acre private island where the lot is located.
This 2 bedroom 1 bath home also comes with a private dock, swimming pool and outdoor shower. With 100 feet of ocean frontage, it is difficult to imagine many homes with these benefits being offered for only $199,000.
Viva Tropical
The Total Package: Beachfront, Elegance, Amenities, Nature, and Adventure
For potential buyers looking for a high-end turn-key property with Spanish Colonial flair, oceanfront views, and top-shelf finishes throughout the house, this 4600 sq. foot home checks all the boxes. Situated on a 30,000 square foot lot, this 4 bedroom, 5 bathroom well appointed home also has a separate maid’s quarters with a separate bathroom.
Quality cabinetry, custom window treatments, a spacious upper balcony, and premium kitchen appliances (just to name a few of features) speak volumes about the quality of workmanship that when into the construction of this dwelling.
Located in Rincon Beach Estates, which is part of one of the premier gated communities in Panama, the Boca Chica Plantation and Club, residents have access to many special amenities such as an equestrian center, boat ramp and storage and even a helipad. The $799,000 asking price almost seems small when measured against all the extras that this stunning property has going for it.
The growth curve for Boca Chica is only expected to increase in the next few years. This is good time look at the properties currently on the market to find your place in the tropical sun.
Island Living Can Be A Life Changing Experience
For those who seek the adventure of moving abroad and finding paradise on a tropical island, Boca Chica is closer than you think. Deciding to become part of island life is a profound experience not to be undertaken lightly. A great way to find out if this choice is for you to go there, put your feet in the sand, and discover your connection to this tropical haven.
The quiet fishing village of San Juan del Sur, Nicaragua was little known outside of the country prior to the Gold Rush era of the middle nineteenth century. Cornelius Vanderbilt used the village as part of his transportation system to help prospectors reach the gold fields of California.
Today, over a century later, a new breed of “prospector” is once again making the trek to the shores of the Pacific coast of Nicaragua. Instead of gold, however, these new adventures come to challenge the ocean on surfboards, become one with the natural eco-system of the area, and immerse themselves in the less frantic pace of living that Nicaragua is becoming known for.
Growth has been rapid in recent years, but as a result the window of opportunity to find your own “gold mine” in this tropical haven could be closing fast.
Inga
San Juan del Sur Is Truly Special
It isn’t often that one can find a unique combination of 19th structures and world class surfing that is meshed with an eco-friendly community. This, however, is precisely what can be found in San Juan del Sur.
A Step Back In Time
The first influx of foreigners to San Juan del Sur came in the 1880s when the Central and South American Telegraph Company brought in personnel to lay submarine cables. The cobblestone streets, laid out in a classic grid pattern, contain some of the best examples of 19th Victorian architecture in Latin America. Walking those streets one is transported to an earlier time.
The Spanish colonial influence is well represented by the impressive statue of Christ of the Mercy. Overlooking the village from a nearby hill, this imposing sculpture stands 82 feet tall. When measured from its base, the total height is actually 440 feet above the Pacific Ocean, making it one of the tallest of its kind in the world.
The Iglesia San Juan Bautista is another popular location that demonstrates the beauty of colonial era religious buildings. Located in the center of the village, this iconic church serves as a reminder of the rich cultural heritage that grew out of the Spanish influence in Latin America.
The Bounty Of The Sea
San Juan del Sur has a rich tradition of fishing. Today’s adventurers can enjoy fresh caught seafood at one of the many restaurants in town. For those who are drawn by the “lure” of the sea, fishing charters are available at the small, but picturesque harbor.
Another ocean based activity that has drawn extreme sports enthusiasts from all over is surfing. Rapidly becoming known for its challenging breaks and 300+ days of offshore winds per year, San Juan del Sur has become a major surfing hotspot.
With smaller crowds than Costa Rica, wave riders have plenty of run to test their skills. The most popular beach, Playa Maderas, just a short distance from San Juan del Sur, has great waves for all surfing levels from novice to expert.
Natural Beauty And Natural Healing
There is a growing number of alternative healing retreats and yoga centers springing up in the village. A nice counterpoint to natural therapies is the nearby access to the Refugio de Vida Silvestre La Flor.
This reserve is managed by the Fundación Cocibolca and features over 30,000 female Olive Ridley turtles that come the area to nest and give birth. New pro-environmental legislation and commitment by the Nicaraguan government is dedicated to increasing protection of these special sea creatures.
JGL Songs
Now Is Definitely The Time To Consider San Juan del Sur As A Place to Invest
One of the major signs that an area is has great potential for investment is the growth of its tourist trade. The last several years have seen a steady upswing in the number of foreigners who have discovered this Pacific paradise.
In response to this increasing influx, developments and residential projects are also expanding. One great example is a 6.25 acre parcel of prime beachfront property that already has 60 permit-ready condominium units and could certainly be expanded, renovated and modified to meet the requirements of your particular vision. The inital investment price of $1,200,000 can be expected to generate a strong return on investment as the indivdual units are sold to other adventurers seeking a fresh start in Latin America.
With many attractive accommodations already on site, a beach area within a sort walking distance, an harbor access, the money making potential of the property is quite high. It is also an ideal spot to offer an eco-friendly or more rustic, back-to-basics kind of living experience.
All that is required is the vision to begin the transformation. There are many similar real estate opportunities throughout Nicaragua that are definitely worth exploring.
Getting There Is Easier Than Ever
Regularly scheduled flights into Managua’s Augusto Sandino International Airport (Central America’s fifth busiest) will help adventurers connect to local bus service to arrive in San Juan del Sur in roughly two hours. Another option that many might not be aware of is to fly into San Jose, Costa Rica, and take the new shuttle service to your Nicaraguan destination.
Paul and Holly Ragan
A Best Kept Secret About To Be Exposed
With all the buzz that San Juan del Sur is generating by word of mouth from those have visited, chosen to relocate, or invest in the area, the window to getting in on a wonderful ground floor opportunity may not stay open much longer. If exploring the possibilities for living and investment in a beach side community that hasn’t become over commercialized appeals to you, now is the time to act. If you don’t check out San Juan del Sur now, you may really regret it later on.
What’s your pick for the best place to live and invest in the Latin Tropics? And what makes that location stand head and shoulders above the rest, in your opinion?
Is it the breathtaking scenery? One could argue that’s a common denominator among a lot of places down here. What about the quality of life? Is there one place that complements your ideal lifestyle better than any other?
What about other factors? Things like cost of living, investment potential, and accessibility. Those characteristics may be important to one person, but have absolutely no bearing on another individual’s decision-making process.
Mohamed Iujaz Zuhair
We’re Listing the Top 50 Places to Live and Invest. And We Need Your Help.
So, what’s the magic formula for determining the best destination in the Latin Tropics? Or is there one? That’s what we’re trying to find out as we undertake a massive project to research, rank, and relay the Top 50 Places to Live and Invest in the Latin Tropics.
Here at VivaTropical we’re asked all the time, by would-be expats and investors, where they can find their perfect paradise in Latin America. But even among those who inquire about moving down, their priorities are often all over the board.
Some want to know where they can score a rock bottom deal on tropical real estate. Others want to find property for sale in a place that already has all of the amenities they’ve grown so accustomed to in North America.
Still more want our opinion on up-and-coming tropical destinations where they could find success starting an expat business or developing rental property. Nobody seems to be looking for the same thing.
You Know What They Say About Opinions…
Not only do our real estate inquiries run the gamut from one extreme to another, so do people’s reactions to the things we have to say about the various cities in the countries we cover.
For every article we’ve written citing the amazing atmosphere and surfing conditions in this or that beach town, there are readers who comment about a terrible experience they had there or about how miserably hot it was.
The same is true for other types of destination. A place we think is a great up-and-coming real estate opportunity may be deemed by some as being in the middle of nowhere. And the vibrant cities we describe may remind some expats of the very same exhausting hustle and bustle that prompted them to leave their North American home.
And the thing is…they’re all exactly right!
Nick H.
The Truth About the Best Place to Live in the Latin Tropics
So with so many diverse needs and opinions among would-be expats and investors, how is it possible to say which tropical destination carries the most promise and potential?
We’ll answer that in two parts.
First of all, there is absolutely no perfect place on earth that is right for everyone. It just isn’t realistic. One man’s paradise might be another’s idea of hell on earth. And just because people are flocking to a certain popular destination in droves, that doesn’t mean the priorities of one specific couple or family will necessarily align with the rest of that community.
In short, the decision of where to live, relocate your family, or do business in the Latin Tropics is incredibly subjective. Don’t believe anyone who tells you differently.
The second part of our answer to this question is that, while no place is going to be right for EVERYONE, there are a number of places that will naturally appeal to a LARGE MAJORITY of like-minded folks. Those are the places we want to include on our list.
CW Goodroe
You Probably Have an Opinion of Your Own
And, with that in mind, we’d like your help. Maybe you’re a fellow expat who considered multiple destinations in Latin America before settling on your perfect piece of real estate. Or perhaps you’ve traveled extensively in the region and already have your heart set on the place you’d like to retire when the time comes.
Better yet, maybe you’re someone who had to try out several tropical countries or cities before you finally found the one that was right for you. Whatever your situation, we could think of no better way to kick off our research on the Top 50 Places to Live and Invest in the Latin Tropics than to ask you, our readers.
Now It’s Your Turn
Sure we have some criteria of our own in mind, on which we’ll be relying heavily as we compile our list. (And we can assure you it won’t be based on a single characteristic alone, but rather a collective consideration of many factors such as quality of life, investment potential, infrastructure, and more.)
But we still want to hear from you.
Which place(s) do you think deserve a place on our list and why? We welcome your input as we begin to explore the cities of the Latin Tropics from Mexico all the way to Ecuador. So please take a minute and answer our 5 question survey below. And be sure to check back soon to see if your favorite city made our list! Create your own user feedback survey
Many expats are giving serious thought to living in Panama, as a result of all the attention that has been focused on the potential of the country. An important step in making the decision to move abroad is to actually learn about the pros and cons of life in your prospective destination from those who have already made the journey
The options for expats, investors, and retirees considering Panama as a potential location can range from the modern urban life of Panama City to mountain towns like Boquete to coastal fishing villages like Boca Chica. Regardless of your preference, doing the research about this Latin American country, rightfully known as the Hub of the Americas, is a great place to begin your quest.
descubriendoelmundo
There Is Potential for Expats Living in Panama
There are no perfect paradises in the world. Each location comes with its own unique set of positives and negatives that potential expats should consider before making a decision or committing finances. Panama is one of those destinations that has many desirable qualities for those seeking a life abroad.
Streamlined Residency
The Specific Countries Program that was enacted three years ago makes it easier for U.S., Canadian, and European passport holders to qualify for Panamanian residency in as little as six to eight months. Skilled and educated workers may also qualify for a worker’s permit under recent revisions. Naturally, time frames can vary depending on how fast the government bureaucracy can process applications.
Familiar Currency
The U.S. dollar has been used as legal tender for all transactions in Panama for quite some time. Being able to use your funds without dealing with the hassle of exchange rates and international conversion fees is a great benefit when handling daily transactions such as grocery shopping, paying bills, etc.
Easy Access
Perhaps one of the most popular features of living in Panama is the ease of getting to and from the country. Daily, regularly-scheduled flights from 15 U.S. cities are easy to find and are quite affordable. Inside of Panama the country’s domestic carrier, Air Panama, is also expanding its service to new locations, such as Pedasi. For expats who want the security of being able to return back home to visit friends and family, this convenience is an extremely attractive feature.
Quality Health Care
Health care in Panama is a pleasant surprise for most expats. Modern facilities and equipment are available. For example, the Hospital Punta Pacifica in Panama City is affiliated with the world-renowned Johns Hopkins University and offers the same quality of treatment found in any major U.S. metropolitan area, but for a much lower cost.
Being a Retiree in Panama Translates Into Savings
Retirees, known as pensionados, are entitled to many discounts on services and products throughout the country. For those living on a fixed budget, these savings can make a big difference in the quality of life.
Zhu
Adjusting to Expat Life While Living in Panama
For many expats, living in Panama requires an adjustment period. This “culture shock” can be minimized if new arrivals understand some of the potential issues of daily life in their new tropical home.
This Is the Tropics, After All
Panama is a tropical country; except in the highland areas, the areas along the coast and in Panama City are hot and humid much of the year. For many expats, adjusting to these temperatures can be a surprising challenge. While some like it hot, there are others who may feel that this climate change is too extreme for a long-term commitment.
Traffic Jams Exist in Paradise, Too
Expats who think that cities in Latin America will not have the same congested roads and traffic jams found in many major metropolitan areas of the U.S. are in for a rude awakening. Panama City’s traffic is notoriously bad and can remind residents of the traffic problems back in the States. Even on more rural roadways, rules of the road (think stop signs, red lights, no passing, etc.) are viewed more as “guidelines” than mandates.
Growth Is Challenging the Infrastructure
While Panama City has a modern and urbane environment, other areas of the country are less developed and far more rustic in nature. If having access to modern amenities is a requirement, this could limit the choices for relocation.
Language Is Still Important
Panama does have a significant number of English speaking residents – both native Panamanians and long-term expats who have lived in the country for a while. However, having at least a basic understanding of Spanish (particularly outside of Panama City) can make the expat transition much less difficult. For those who are linguistically challenged, having to learn a foreign language may be an overwhelming negative.
Panama City Is No Longer an Inexpensive Location
As Panama City has continued to grow and develop, prices for the rental or purchase of residential property have also increased. While some online sources tout the affordability of living in Panama, realizing that Panama City’s prices are not that much different from many U.S. cities is something to consider. Fortunately, there are still many properties outside of the metropolitan area that are less expensive and do have a tremendous potential for return on investment.
Adam Mizrahi
Make Living In Panama an Adventure
There are going to be other cultural and societal differences that will impact your daily life in Panama. The laid-back attitude of the country requires adjustment to such things as scheduling appointments, arranging for work to be done, or even standing in line at the store.
This slower, more casual pace, however, is also one of the most attractive features of living here. Remember that escaping the hectic pace of your U.S. lifestyle was one of the main reasons you made the decision to become an expat in the first place.
Embracing the differences, immersing yourself in Panamanian life, and appreciating the differences is the most important part of living in Panama. Take the time to visit the country and see for yourself what this Hub of the Americas is all about and, more importantly, whether Panama is right for you.
One of the most important parts of expat banking and finances is being able to access your funds, whether in local currency or U.S. dollars, easily and inexpensively. Being able to navigate the local banking system, using the ATMs, and understanding fees and potential issues that may arise while using debit and/or credit cards can reduce stress and save money and time.
Learning the ins and outs of the banking system in your chosen tropical location is as important as discovering other nuances of expat living. Making a checklist that includes information about local banks is a great way to prepare for some of the challenges that may lie ahead.
B Rosen
Understanding the Differences in Expat Banking and Finances
For recent expats (and even those who have been living abroad for a while) dealing with foreign banking systems and how they interact with U.S. banks can still present a variety of challenges. Below are some key points to keep in mind:
Different Banks Have Different Rules
Unlike the U.S., banks throughout Latin America often have different requirements, even within the same country, for foreigners seeking to use their services. Some institutions will only do transactions in local currency; others may not have online bill paying capabilities for such things as utilities, etc. Even business hours may vary; the traditional “banker’s hours” certainly are different in paradise.
Opening a Bank Account Abroad May Not Be So Easy
With the recent passage of the Foreign Account Tax Compliance Act (FATCA), many banks in Latin America are refusing to deal with U.S. passport holders. The reason? With the complicated reporting requirements to the IRS and potential penalties for not reporting, local banks have found it easier just to avoid the problem altogether by not doing business with expats.
Increased concerns involving illegal activities, as reflected in tighter AML (Anti Money Laundering) rules and, of course, the Patriot Act, have also impacted the ability of expats abroad to open local accounts. This is a trend that can be expected to continue to increase for the foreseeable future.
Even those banks that still will permit foreigners to open accounts often mandate massive initial deposits, proof of residency, and other requirements that many new expats, frankly, are unable to meet. As a result, new arrivals in paradise may have to rely on their banks back home as a source for their funds.
Think Panama
All ATMs Are Not Created Equal
As is the case in the U.S., the fees charged by the owners/operators of ATMs for withdrawing cash can vary greatly. In addition, many ATMs only use Spanish for their language option. For those who do not understand or speak the language, this could also result in confusion and create potential problems.
Not all ATMs will have the option of receiving your cash in either U.S. or local currency. Before completing a transaction, make certain that the cash that you will receive is in the currency you were expecting.
Beyond any local fees that local institutions may charge for using their machines (again, not dissimilar to the U.S.), there will be exchange rate fees and transaction fees from your home institution as well. Comparing the various rates banks charge for purchases and cash withdrawals can help you choose an option that can save you money in your new expat life.
ATM Versus Debit Cards
There are differences between ATMs and Debit cards that can impact their usefulness abroad. Generally speaking, Debit cards will have a VISA or MasterCard logo on them and can be used for purchases as well as cash withdrawals; ATM cards are more limited and primarily are used for accessing funds in checking or savings accounts. Inquiring with your institution to see if you can have both issued can be another tool to maximizing your account options.
Think Panama
Problems Involving Expat Banking and Finances (and How to Prevent Them)
There are few things more traumatic to expats building a new life in their chosen tropical paradise than to abruptly discover that they can’t get to their money. Below are some of the most common problems and ways of preventing (or limiting) their impact:
I Can’t Find an ATM That Will Accept My Card
If your home institution is part of the PLUS or Cirrus networks, finding an ATM that is part of those networks should be easy; over 135 countries participate in those programs. If you have trouble finding a local ATM that is a member, there are online directories that can provide the locations of compliant machines.
My PIN Number Doesn’t Work
Many foreign banks will only accept PIN numbers that are four digits long and numeric. If your PIN is longer than four digits, or has letters and/or symbols, consider changing it before you depart for your tropical destination. This simple precaution can prevent a lot of undue worry.
My Card Is Blocked
This scenario is becoming more frequent as international fraud has increased. Unfortunately, banks are not required to notify their customers that a block has been put on, the result being that the first time you may learn of this situation is when your transaction is declined. The best way to limit the impact of this problem is to have more than one option for accessing your cash; having two or more accounts (savings, checking, credit, etc.) will permit you to get to your funds from a different source until the blockage issue can be resolved.
A second preventative measure is to have a travel advisory placed on your account(s) before you go so that your bank/credit union doesn’t think that a fraud is being attempted. Additionally, keep your bank’s contact information readily available in case a question arises; many institutions have online access as well as phone services that are available 24/7/365.
My Card Was Lost or Stolen
Immediately contact the issuing bank and advise them of the situation. Find out from them what their best recommendations are for replacing your card and accessing your funds in the interim. If an Internet site is available, monitor all activity on your account and report anything suspicious.
Final Thoughts
Learning the best methods of getting to your money after arriving in your chosen expat destination may seem daunting but, in truth, it’s only another part of adapting to your new tropical lifestyle. Take the time to examine your banking options, both local and with your current financial institutions, as you prepare for your overseas adventure. Your efforts today can make your tomorrows far less stressful.
Becoming an expat, living abroad and immersing yourself in a new way of life can be an exciting proposition. However, there can be some unpleasant shocks to being new in a foreign country, namely unexpected or higher costs for things that you hadn’t expected or budgeted for.
These increased expenses for the unwary or uninformed expat can have not only financial but also a profound emotional impact. Understanding the development cycle and educating oneself on how the locals spend and shop, can reduce this cultural sticker shock and ease your transition into the tropical lifestyle you had dreamed of.
Jasperdo
What the New Person Tax Is
The new person tax can be thought of as having two parts. The first part consists of those expenses that are necessary to establishing yourself as an expat in your new country. The second part is those prices that expats pay for goods and services that are higher than the local population.
While neither part is a “tax” in the true sense of the word, the unwelcome and unexpected costs of your new lifestyle can feel just as burdensome as a levy from a taxing authority. Here are some examples that illustrate what a “new person tax” is:
Moving Your Personal Property to Your Tropical Escape
Perhaps one of the biggest shocks many expats receive is when they discover just how much it will cost to bring their furniture, clothes, electronics, etc. into their new country. Each country has different rules regarding the dollar amount that can be imported by foreigners without having to pay taxes, or customs duties.
This is particularly important if you are considering bringing a vehicle into the country; registration, insurance, and licensing fees all run up the dollar amount that having your own personal transportation could cost.
An even bigger surprise comes when trying to find companies that will ship to your destination and how much it will cost. Factor in the time it may take to actually receive your belongings (and the costs that you may incur if you need to buy essentials to use while waiting) and the cost may stagger those who weren’t expecting it.
Real Estate Can Mean Real Costs
While many countries have very favorable laws governing land ownership by foreigners, the expenses involved in a purchase can go well beyond the purchase price. Retaining an attorney, paying for title searches, having documents translated, registration at the correct authority, transfer taxes (if applicable), and, of course, commissions, should all be considered as related costs.
Trying to actually learn what the purchase price of a parcel of land or a home is can be another money trap. Latin American countries do not have an MLS system and, as a result, properties can be advertised by multiple agents, at different prices, at the same time. It is not uncommon to find the higher prices listed on “gringo friendly” websites than on those favored by local residents.
Paying for utilities can also have unexpected financial consequences. Utility companies in paradise will often charge for service calls even if it turns out that the service can’t be installed or repaired. Simply put, expecting the same type of relationships with providers of electricity, water, cable, and internet that you would find in the U.S. (and at the same prices) is just not realistic.
Shopping Can Be a Challenge
Even the simple tasks of food or clothes shopping may eat unexpected holes in the budget. North Americans are often perceived as having endlessly deep pockets, so it is not uncommon for expats to be charged higher prices than the locals pay; this is sometimes referred to as the “gringo price.” This is especially true in the smaller markets where no prices are posted.
Some of the larger stores do carry items that cater to the expat community who want to purchase the same kinds of things they would find in their home country. The trade-off: prices for those imported items are often double or even triple what they would cost in the States.
For example, a simple 8 oz. bag of potato chips that might only cost $0.99 in the U.S., can cost $3.79 in your tropical destination. Trying to live like a gringo, while trying to be an expat, can be an expensive proposition.
For larger bulk items, such as building materials, there could be an even greater element of surprise. Barter is not uncommon throughout Central America and, for locals, this can also be a medium of exchange (i.e., lumber in exchange for working on the land, etc.).
Unfortunately, this kind of arrangement is usually not discovered by expats and, as a result, having to pay for supplies can drive up construction costs. Also, once supplies are purchased, it is often up to the buyer to figure out how to get them to the desired location.
Everjean
How to Give Yourself a New Person Tax Break
The transition to expat status can seem almost overwhelming at times. However, there are some simple steps you can take to minimize the financial impact of being the “new person.”
Do Your Homework
There are many online resources that expats can use to learn about the real costs of moving to a desired destination. Make a list of questions that you would like answers to (remember, there are no stupid questions) and research the answers. The truth is out there, you can find it.
What Kind of Lifestyle Will You Have
It’s important to decide what kind of expat life you want to lead in your Latin American home. Are you planning on obtaining residency? Will you become a “permanent tourist” (travelling back and forth to the U.S. or elsewhere)? Rent, buy, or build? Each choice carries its own unique set of potential expenses; deciding how you are going to live makes it much easier to understand the potential budget concerns up front.
Connect with Others
With the number of expats growing by leaps and bounds, finding those who have successfully (or not) made the journey may be simply a matter of using one of the many social networking sites. Just reading about others’ experiences can provide valuable information that can translate into actual savings when you are in country.
Become a Part of Your Community
Perhaps the best way of avoiding the “gringo price” trap is to build relationships with the locals. Having friendly associations can provide you with help in finding the best places to shop, learning a new language (if you don’t speak Spanish), and generally providing a way to truly immerse yourself as part of the country, instead of being an outsider.
A Final Hint
There is always an element of the unknown in any new adventure. The old saying is true: You can’t guard against the arbitrary.
Becoming an expat may be one of the most profound experiences one can undertake in a lifetime. Embrace it, keep your expectations realistic, and remember that learning is growth. Visit those places that call to you and see if the time is right to take that first big leap of faith.