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Panama visa

Dennis Kruyt

The tourist visa is by far the easiest Panama visa to obtain.  Why?  Because it’s free, and for citizens of most countries (including the U.S. and Canada), it’s automatically granted when you enter the country.

The tourist visa is good for 180 days, but many expats in Panama are finding that it’s all they ever really need.  With virtually no requirements, other than the renewal, it’s entirely possible to live in Panama for a long time as a permanent tourist!

Not only is the tourist visa easy to obtain, it’s fairly simple to renew as well.  Since it’s automatically granted to those who enter Panama from approved countries, essentially the only thing you have to do to renew it is…you guessed it:

Leave and come back!

Every six months or so, expats in Panama load up their families and take the Pan American highway west to the border the country shares with Costa Rica.  (Driving east is not an option, since the road literally ends at the Darien Gap, leaving no viable way to reach Colombia.)  Once there, they stand in a total of four lines to 1.) exit Panama, 2.) enter Costa Rica, 3.) exit Costa Rica, and 4.) re-enter Panama.

And it’s all perfectly legal!

While many simply choose to leave and return and be done within a few short hours, others opt to spend a few hours shopping in the tax free zones on both sides of the border.  If you have even more time, you can even use your “visa run” as an opportunity to take a little vacation.  Rather than driving to the nearest border, you can take a short flight to another nearby Central or South American country, or even return to your native country for a visit.

Even though the process of obtaining and renewing a tourist visa is definitely among the easiest immigration procedures in Panama, keep in mind that you’re still dealing with the governmental operations of a developing country.  That being said, here are a few important things to remember about renewing your Panama visa as a tourist:

1.)  There’s “what the law says,” and then there’s “what’s commonly practiced.”  It’s a common occurrence in Panama for immigration officials, or any governmental entity for that matter, to just sort of make things up as they go.  The law may say one thing, but if they’re operating under a completely different standard…just go with it.  For example, the law says that when you renew your tourist visa, you have to show proof of solvency so they know you won’t be working while you’re in the country. Sometimes they ask for it, sometimes they don’t. (Editor’s Note: It’s best to be prepared, check for changes in Panama’s migration laws prior to making your trip.)

On the flip side, nowhere in the law does it say how long you have to be out of the country before you can re-enter.  However, some officers will tell you to wait 72 hours.  If you run into this, don’t try to refute it.  Just smile and nod and maybe try again when another employee steps up to the window. I will note that we have been specifically told, in 2013, that 72 hours is no longer a requirement.

2.)  Officials can switch at any time, without warning, from abiding by the law or by common practice.  Just because you’ve renewed your visa 5 times without ever being asked for anything other than your passport, that may not always be the case.  Our best advice is to be prepared every time with all the documents you could possibly be asked to show.

For instance, the law states that you are to show proof of a planned departure date within 180 days from your entry into Panama (i.e. a bus or plane ticket). They may or may not ask to see one.  A good solution is to buy a bus ticket that’s good for 6 months.  Even if you don’t end up using it, at least it isn’t a huge investment, especially on Air Panama who currently charges $11 to refund a ticket.

3.)  Exit and re-entry is a bit tougher if you bring a car.  Those leaving and returning with a vehicle must stand in a separate line and provide a bit more paperwork than those doing so on foot.  So, if you drive yourself to the border, you can park your car and walk the short distance between immigration stations.  If you plan to do some traveling in Costa Rica, there are buses and taxis available just inside the border.

4.)  Even though the immigration department will let you stay in the country for 180 days, they only trust you to drive for the first 90.  That’s right.  True to typical bureaucratic asininity, tourists are only allowed to drive for 3 months after entering the country.  So although the length of stay has been extended to 6 months, permission to drive did not follow suit.

One option for overcoming this is to renew every 3 months instead of 6.  You can also, like many expats, just keep on driving and be prepared to pay the fine, which can be as much as $500 if you’re caught.  You should also know that you can forfeit your auto insurance if you are involved in an accident while driving without a license.

As always, when dealing with the renewal of any Panama visa, our best advice is to be prepared and remain patient.  Have everything you think you might need and then some, and don’t get frustrated if the rules have changed since the last time you renewed…or since last week.  In the end it’s all worth it.

If the tourist visa sounds like too much of a hassle or uncertainty for you, find out if another Panama visa might be more appropriate for your situation.

La Prensa Panama

La Prensa Panama

Technology has done much to improve expats’ ability to stay informed in their new countries.  Today’s retirees can sit in a cafe and read a copy of La Prensa, Panama’s highest circulating newspaper, while they peruse expat news outlets online.  A few decades ago, they’d have been lucky to find a days-old copy of some slanted commentary propagated by the government.

For expats in Panama who want to stay on top of the goings-on, there are many options available.  There are national news outlets that report on the latest headlines affecting the nation.  There are also those specifically tailored for expats, which are often found online and can be either authored by local marketers who are reaching out to newcomers or by other expats who want to offer information that is relative to others in their community.

There are also television news outlets and radio stations.  With the exception of one government-owned TV channel and one radio station, all news outlets in Panama are privately owned.  Many, such as La Prensa, can also be translated online.

Most expatriates read, watch, and listen to some combination of the above.  And their selections often depend largely on their level of understanding of the native language, as well as the availability of internet, satellite, and radio in their area.  Many also use the internet to stay abreast of news and developments from “back home” as well.

What do we recommend for the expat who wants to be informed?

Read the local news too.

Here Are Some Reasons You Should Read the Local News

  1. It’s a great way to stay current with the concerns of the nation.  And, quite frankly, it’s a great way to know which areas to avoid when there’s a protest going on.  While you likely aren’t dying to get involved in the politics of a new country (especially if your political frustrations were part of the reason you left your old one), having at least a general understanding of the local and national issues is just a good idea.
  2. You can also stay informed on major infrastructure issues.  Things like road closings and airport expansions can affect your travel.  Plans for new construction projects can also have a bearing on decisions like where to buy property.  Since Panama continues to invest heavily in this area, it’d be smart to know more about how the proposed changes might affect you.
  3. Speaking of change, the laws tend to do it a lot.  From new visa requirements to tax incentives to driver’s licenses, it’s always something.  Whatever the process was the last time around, there’s no guarantee it’ll stay the same.  Be proactive and learn about any new requirements ahead of time, not after you’ve already spent half your day in line.
  4. Expat news, while helpful, might sometimes be better labeled as “expat gossip.”  Don’t be misinformed.  When new laws, changes, and projects are implemented, get your information directly from the source.  It’s a good way to avoid getting your hopes up unnecessarily or getting yourself in a lot of trouble if you’ve relied on inaccurate info.  Look to expat media outlets when you’re searching for a gringo poker night, not when it’s time to apply for a visa.
  5. Staying informed provides you with a much more integrated approach to living abroad.  If you’ve taken the adventure of a lifetime and relocated to Latin America, then you likely want to do everything you can to truly experience life in a new context.  You can’t do that if you only tune in to what’s going on with other people like you.
  6. Reading Panamanian news is a great way to acquire and hone language skills.  It’s one thing to be able to order arroz con pollo.  It takes a lot more skill to comprehend an article about the ins and outs of the Canal expansion.  While it may be difficult at first, you’ll eventually get the hang of it.

A Word of Caution

While Panama technically enjoys freedom of the press, the government tends to frown on any content that is critical of the government or threatens to expose any corruption.  Journalists can face criminal charges for libel or slander against high-ranking officials, so most tend to practice self-censorship.

The bottom line is that the government has an agenda; the newspapers have an agenda.  And most of the time, those aims don’t exactly align.  Read with that filter and the local papers will be beneficial.

La Prensa Panama

“La Prensa” which translates to “The Press,” is also the name of Panama’s largest newspaper.  Founded in 1980, La Prensa Panama was created to oppose Panama’s military dictatorship.  Since then its many ground-breaking reports have left quite a mark on the country’s political history.

Here is a list of some of the other most popular newspapers in Panama, along with their websites.

La Prensa www.prensa.com

Panama America www.panamaamerica.com.pa

Critica www.critica.com.pa

El Siglo www.elsiglo.com

La Estrella www.laestrella.com.pa

Mi Diario www.midiario.com

Dia a Dia www.diaadia.com.pa

Metro Libre www.metrolibre.com

Pick up a copy or read online.  Promote freedom while you read about the latest in sports and weather!

 

Traffic Laws

Al H.

Did you know that in Minnesota it’s illegal to cross the state line with a duck on your head?  Or that a law in Galveston, Texas, states that bicycles must be operated at a “reasonable speed”?  Or how about the Alabama law that says it’s illegal for a driver to be blindfolded while operating a vehicle?

Those states’ traffic laws may seem outlandish, but they’ve got nothing on their Latin American neighbors.

Developing countries often face challenges such as poorly paved roads, narrow city streets, insufficient signage, and not enough police to patrol populated areas.  Pedestrians are often unaware of the dangers at hand.  And local taxi and bus drivers barrel through busy thoroughfares like bats out of hell.

With motorist and pedestrian fatalities a serious problem in Latin American countries, it goes without saying that laws are needed, as is their stringent enforcement.  However, no matter how well-meaning their intentions, traffic laws and regulations in Mexico and Central and South America can often range from the excessive to the outright bizzare.

Here are the stupidest laws we’ve found during our time here:

#3.  Cyclists in Mexico must keep both feet on the pedals.

Coming in third is one from Mexico.  After a cyclist was killed in an 1895 hit-and-run incident, a number of laws were put into place to protect bicycle riders from future injuries.  Consequently, in order to prevent them from losing control of their bike, cyclists “may not remove either foot from the pedals.”  While clearly outdated, and likely unenforced, this crazy law remains on the books for now.

#2.  A speeding ticket in Costa Rica will run you over $600.  Minimum.

In second place on our countdown is a hefty fine in Costa Rica.  Over 450 traffic cameras in 150 different locations in Costa Rica were installed in 2011.  The government claims their purpose is to reduce traffic deaths, which is a big problem in the country.  However residents think the excessive fines, which start at $616, are unfair–although the Roadway Safety Council allows for quite a generous cushion, only ticketing drivers who are going at least 20 km over the speed limit.  The first 16 cameras, all located in the Central Valley, racked up fines of over $9 million in just the first two weeks of being installed.

#1.  Speeding in Cuenca, Ecuador, can land you up to 3 days in jail.

Coming in first place is a new development in Ecuador.  Because speeding is the largest contributor to roadway deaths in Cuenca, law enforcement decided to amp up the penalty for those charged with the offense.  As a result, having just the slightest bit of a heavy foot can cost you $292 and 3 days in jail.  The sentence can be charged to those going as little as 10 km over the posted (or unposted, as is often the case in Ecuador) limit.

Within a few short days after the law was enacted, 139 drivers had been arrested and 18 of those actually spent time behind bars.  Vehicle speeds in Cuenca are monitored by radar detectors and computerized photographic devices, none of whose locations are known.

If your upcoming travels include a drive through any of these Latin America countries, might we suggest making it a leisurely one.  You’re putting yourself in enough danger just by being on the road with most of the other crazy drivers.

If you do insist on putting the pedal to the metal, be prepared to fork over a substantial fine or even spend some time in the slammer.  Laws down here can be asinine, and the cops can be brutal.

Consider yourself warned.

Ecuador Facts

Hola America

If your knowledge of Ecuador is limited to its strategic positioning along the Equator and a sticker on your banana, these Ecuador facts will help you become better acquainted with this South American country.

Ecuador Facts

The country itself is just slightly smaller than the state of Nevada and is situated on the northwest coast of South America.  While much of the country is coastal, it also contains two parallel chains of the Andes Mountains.

Ecuador is bordered by the Pacific Ocean to the west, Colombia to the north, and Peru to the east and south.  While the Equator does divide the country, it isn’t equally.  Most of the country is actually in the Southern Hemisphere.

Ecuador History

Ecuador was originally part of the Incan Empire, until it was taken in 1533 by the Spanish Conquistador Francisco Pizzaro.  Known as “Quito,” which is today the name of its capital city, it became a seat of Spanish colonial government.

The nation withdrew in 1830 and changed its name to “Republic of the Equator.”  Since that time, the country has seen great instability and many tumultuous years of border wars.  The most recent, with Peru, was ended with a peace treaty in 1999.

Ecuador Regions

Ecuador is divided into four distinct regions, which are occupied by peoples of varying ethnicity.  The Costa, or coastal plain, has a tropical climate that produces enough bananas to earn the country top billing as the world’s largest banana exporter.

The Sierra, or Andean uplands, has a much cooler climate, which makes it suitable for farmland.  The jungles to the east of the Andes, or the Oriente, are a source of oil, which contributes greatly to the country’s economy.

The Galapagos Islands, of Darwinian fame, are also part of Ecuador.  These volcanic islands, located 605 miles off the coast, attract hoards of tourists with their unusual species of birds, plants, and reptiles.

Ecuador People

Ecuador’s population is equally as diverse as its landscape.  The majority (71.9%) are mestizo, of both European and American Indian (“Amerindian” to Ecuadorians) descent.  Montubios (7.4%) and Afroecuadorians (7.2%) make up the next largest segments of the population, followed by Amerindian (7%) and white (6.1%).

Spanish is the official language of Ecuador.  Quechua and Shuar (indigenous languages) are also spoken.  Approximately 95% of the population identifies with the Roman Catholic Church.

Ecuador’s cultural diversity is easily recognized between its various regions.  Those of European descent (though representative of a small percentage of the population) often own land in Quito and the Andean uplands, which is populated by most of the country’s indigenous people who work as subsistence farmers.  Consequently, land-tenure reform is an ongoing battle.

Guayaquil, the country’s largest city and most important business center, is located on the coastal plain and populated mainly by mestizos.  This region represents the richest area of the country.  Yet arguments exist that tax revenues are disproportionately spent in the capital city of Quito.  These and other issues contribute to the country’s constant political instability.

Ecuador Government

Ecuador’s government is a republic, and its capital is Quito.  Plagued by years of turmoil, the country saw 48 presidents during its first 131 years as a republic.  The nation was under military rule in the 1970s, and the past 30 years haven’t been much more effective.  This is largely due to a weak executive branch, combined with a cantankerous congress.

The executive branch consists of a president and vice-president, elected (on the same ticket) to a four-year term and eligible for a consecutive term.  The legislative branch is made up of a unicameral National Assembly of 137 members, who also serve four-year terms and are elected through a party-list proportional representation system.  The National Court of Justice, containing elected judges, and the Constitutional Court, whose justices are appointed by the other government branches, round out Ecuador’s judicial system.

Three of the country’s last 4 elected presidents have been ousted before their terms expired.  Current president Rafael Correa was re-elected in the February 2013 general election.  Ecuador also ratified a new constitution in 2008, the nation’s 20th governing document since gaining its independence.

Ecuador Economy

The U.S. dollar has been the official currency of Ecuador since 2000, when Congress approved its adoption to help stabilize the country’s economy which was reeling from a banking crisis.  This move worked, as the economy has improved, due also in part to high oil prices as the country is heavily dependent on its petroleum industry.  It accounts for more than half the country’s exports and roughly 40% of public sector revenues.

The current administration’s default on some bonds and its termination of investment treaties (including one with the U.S.) contributed to growing uncertainty and a decline in private investment, which led to a few years of economic downturn.  However, the economy has been growing steadily in recent years, up as high as 8% in 2011 and with a slight slowdown to 4% growth in 2012.

Ecuador’s GDP (official exchange rate) was $73.23 billion as of 2012.  By sector, this breaks down into agriculture 6.4%, industry 36.1%, and services 57.5%.

In addition to petroleum, Ecuador’s other large industries include food processing, textiles, and chemicals.  Its largest agricultural outputs are bananas, coffee, cocoa, rice, balsa wood, fish, and livestock.

Ecuador’s exports, naturally, include petroleum, bananas, shrimp, coffee, and cut flowers.  An overwhelming majority of Ecuador’s exports are shipped to the U.S. (37.8%), followed by Panama (9.9%), Peru (6.2%), Venezuela (5.2%), Chile (4.9%) and Russia $4.6%).

The country imports mainly industrial materials, fuels and lubricants, and non durable consumer goods from places like the U.S. (27.6%), China (10.1%), Colombia (9%), Panama (4.6%), Peru (4.5%), Brazil (4.3%), and South Korea (4%).

Ecuador Stats

Just in case we failed to mention any specific Ecuador facts you were looking for, here are a few more stats you might find helpful.

  • Population 15,439,429

  • Unemployment 4.1%

  • GDP (ppp) $134.7 billion

  • GDP (per capita) $8,800

  • Population below poverty line 27.3%

  • Investment (gross fixed) 24.6% of GDP

  • Taxes and other revenues 21.7% of GDP

  • Budget Revenues $15.9 billion

  • Budget Expenditures $20.1 billion

  • Budget Deficit -5.7% of GDP

  • Public Debt 23.3% of GDP

  • Current Account Balance -$1.387 billion

  • External debt $20.03 billion

  • Exports $23.77 billion

  • Imports $24.67 billion

  • Inflation 5.3%

  • Commercial Bank Prime Lending Rate 8.7%

  • Industrial Production Growth Rate 10.1% (excludes oil refining)

  • Reserves of foreign exchange and gold $2.482 billion

 

 

panama-economy

Martha de Jong

If you’ve done much reading about the state of the Panama economy, you probably already know that it’s “stable” and “growing” and “pro-business” and maybe even “foreigner-friendly.”

But what’s the basis for these types of claims?  What is it that really drives Panama’s economy, and how is it performing during some globally tough economic times?

Panama Economy Overview

Panama has a dollar-based economy that is heavily dependent on the services sector.  Namely logistics, banking, tourism, and of course the Panama Canal.  In fact, services account for over ¾ of the nation’s Gross Domestic Product (GDP).

With an estimated GDP of $30.68 Billion as of the end of 2012, Panama’s economy is the third largest in Central America and the fastest growing, racking up a whopping 10.7% increase last year (its second consecutive double-digit growth rate).  GDP per capita is around $9,444 and has more than doubled over the past decade.

The general composition of Panama’s GDP is 79.1% services, 16.6% industry, and 4.3% agriculture.  Transport and communications make up the biggest chunk of the service arena, followed by property and services, commerce, and financial services.  Here’s a breakdown of all areas and the percentage of GDP they represent:

Private Education    .7%

Social Services/Private Healthcare    .8%

Fishing  1.1%

Mining/Quarrying  1.4%

Utilities  2.8%

Farming, cattle ranching, hunting, and forestry  3.2%

Real estate, corporate, and rental activities  5.2%

Manufacturing  5.6%

Construction  5.8%

Financial intermediation  8.2%

Banking  8.6%

Wholesale and retail 14.6%

Transport, storing, and telecommunications 26.4%

The Panama Canal

It’s interesting to note that the Panama Canal itself accounts for only 4% of the nation’s GDP.  However, due to the multiplier effect, its impact is much farther-reaching.  Take into consideration, for example, expenditures by canal employees.  Their income in turn fuels businesses such as grocery stores, restaurants, schools, and other businesses.  As a result it’s estimated that the existence of the canal generates approximately 30% of the country’s GDP.

The Canal is currently undergoing a $5.5 billion expansion that will more than double its capacity.  Begun in 2009, this expansion has already contributed greatly to the nation’s economic growth.  Transport, storage, and communications increased by 15.3% in 2010.  Port operations during that same time frame also rose by 25.2% due to the increased movement of 20-foot containers.

With the completion of the expansion scheduled for 2014, additional growth is anticipated.  Some estimate that 40% of the $5.5 investment will be recouped in the next 5 years.

panama-economy

Tom Geibel

Imports/Exports

Approximately 65.2% of Panama’s GDP is exported, in the form of both goods and services.  The $12.52 billion that is exported annually is made up of bananas, shrimp, sugar, coffee, and clothing which ship mainly to the U.S. (13.1%).  Other recipients of these goods include South Korea (12.5%), Honduras (10.2%), Japan (9.3%), India (7%), Canada (4.4%), and Mexico (4.2%).

Panama imports roughly $15.18 billion each year, which includes fuel products, medicines, vehicles, iron and steel rods, and cellular phones.  These come from Japan (23.5%), China (23%), Singapore (18.1%), the U.S. (13%), and South Korea (6%).  Because it imports more than it exports, Panama has a negative trade balance, or trade deficit, of -12.7%.

Debt

Panama’s ratio of public debt as a percentage of GDP is a relatively low 39.2%.  This number is down drastically from 66.2% in 2005, due to fiscal consolidations by the current administration.  Panama’s Standard & Poor’s bond rating is BBB.  It also received a Moody’s credit rating of Baa2 with an outlook of Stable.  This positions Panama among the highest ranking emerging markets, alongside Mexico, Brazil, and Peru.

Inflation

Panama’s inflation rate, which has been as high as 6.82% several months ago, was down to 4.1% as of March 2013.  This rate fluctuates greatly in Panama’s dollarized economy, since the country lacks the ability to implement policy or adjust exchange rates to counteract rising consumer prices.  Panama’s inflation rate has generally averaged around 5.24% for the past 5 years.

Unemployment

Panama’s unemployment situation is a unique one.  Although generally low (it’s hovered around 4.2% for the past 3 years), it’s also unbalanced.  While Panama experiences a surplus of unskilled labor, it also has a shortage of skilled labor.

Efforts are currently underway to address this problem.  Millions are being invested into education to build a strong, skilled labor pool.  In the interim, the country is welcoming business professionals from other “friendly” countries to come to work or start a business in Panama.  This is quite a shift, since Panama has historically taken great care to prevent foreigners from taking jobs away from Panamanians.

Business Climate

Panama continues to rank higher and higher on surveys citing the best places to do business.  It recently appeared at #57 on Forbes’ list of Best Countries for Business.  Panama also ranked 40th (out of 144 countries) for Global Competitiveness per the World Economic Forum.

World Bank and the International Finance Corporation ranked it #72 (out of 183 countries) on a list of Best Countries for Doing Business.  The same survey scored it as #11 for Trading across the Border, #23 for Starting a Business, and #32 for Getting Credit.  However, it fell to #113 in the same survey for Registering Property and #119 for Enforcing Contracts.

Panama was also given a rank of #71 by the Wall Street Journal and the Heritage Foundation on its Index of Economic Freedom.  It scored a 62.5 on the index, where 100 = totally free and 0 = totally repressed.  This survey measured freedom in a variety of areas.  Panama’s lowest scores were the result of governmental corruption and political interference in the judicial system.

Economic Challenges

Like any developing nation, Panama has and will continue to face a myriad of economic challenges.  Many are merely the flip side of the same coin that has led to its economic growth.  For instance, Panama’s economy is extremely open.  As a result, it is highly susceptible to external factors.  Fluctuations such as a decreased demand for exports to the U.S. or a smaller flow of capital into Panamanian banks could have huge implications for the nation’s economy.

Panama is also plagued by high poverty and inequality of income distribution (the second worst in Central America), so it has a tremendous need for sustained growth that is socially inclusive.  As previously mentioned, the country has begun to address the issue and is currently investing heavily in its educational and vocational programs.

This brings us to the issue of government spending.  As it grows, Panama will continue to struggle with the need to strike a balance between investing in more and better improvements while also maintaining good fiscal management and eliminating corruption from the projects it undertakes.  While these enhancements are warranted if Panama expects to keep up with other major players in the areas of tourism and banking, the nation will have to be prepared to take measures to sustain its economy, such as raising taxes.

Outlook

In terms of its economic outlook, Panama has a lot of good things going.  Its recent $15 billion investment into infrastructure has and will continue to fuel many investment opportunities.  Airport expansions will bring more visitors to the country.  Better roads and methods of transportation will ease companies’ ability to do business within the country.  Additional utilities, such as water, power, and phone service, will add value to real estate.

Panama recently signed Free Trade Agreements with the U.S., Canada, and the European Union.  Proposed mining projects will also give the economy a boost.  Not to mention the Canal, which will more than double its capacity with the current improvements.

If Panama continues to post 10%+ growth, it could soon be poised to earn its slot as the largest economy in Central America.  If you’re considering investing or starting a business in Central America, find out more about Panama and the options it offers.

More Numbers

Just in case there’s some other piece of information you’d like to know, that we haven’t already covered, here are a few more statistics on Panama’s economic profile (as of 2012):

Gross Domestic Product (Purchasing Power Parity) $55.8 billion

GDP per capita (PPP) $15,300

Population 3,571,185

Population below poverty line 29%

Investment 30.1% of GDP

Taxes and other revenues 26.5% of GDP

Budget Deficit or Surplus -2.9% of GDP

Commercial bank prime lending rate 6.6%

Market value of publicly traded shares $10.68 billion

Industrial production growth rate 10.9%

Current account balance -$4.191 billion

Reserves of foreign exchange and gold $3.314 billion

External debt $13.13 billion

 

If you’re considering moving abroad, the recommendations of the U.S. government are likely the last thing on your mind.  Nevertheless, Big Brother has a virtual guide for those who are planning on moving, or even just traveling overseas.

Travel Advice for moving Abroad

Photo Credit: Highway Agency

While a lot of the suggestions may seem like just another way for the government to keep tabs on you while you’re out of the country, some of the tips may actually prove helpful.

Advice about Marriage

For those who wish to get married abroad, the laws can vary greatly from one country to the next.  There may be various documentation and residency requirements, so research the process well before you plan to tie the knot.

Some of the necessary steps might include blood tests, affidavits, or certified copies of documents such as divorce decrees or death certificates, if one party was in a previous marriage.  Contact the country’s embassy or tourist information bureau for more information.

Ceremonies are usually performed by a local civil or religious official.  Once you are married, the U.S. consular can authenticate the marriage documents issued by the country where the marriage is performed.  However, you’ll need to verify with your state of residence whether they will recognize the marriage if you plan on returning to the U.S.

Birth

The child of a U.S. citizen born abroad automatically acquires citizenship at birth.  All you’ll likely need to do is contact the U.S. Embassy or Consulate to obtain a Consular Report of Birth Abroad of a Citizen of the United States of America (Form FS-240).  This form will be needed once the child needs to obtain a passport or enroll in school, and it’s better to obtain it immediately than to wait until you need it.

Advice about Divorce

As with marriage, the validity of a divorce obtained overseas will depend largely on your state of residence.

Death

When a U.S. citizen dies overseas, the Bureau of Consular Affairs provides a number of services to the person’s family.  They first notify the next-of-kin and explain the options for local burial or transport of the body to the U.S. >While they also assist with information on how the family can transfer funds for such services, they do not provide any monetary assistance to the family of the deceased.  They also inventory and return any personal effects to the deceased’s family.

Federal Benefits

If you are receiving any kind of federally-provided benefits, you’ll need to notify the appropriate federal agency (i.e. Social Security, Veteran’s Affairs, etc.) to advise them of your new address.  Allow at least 60 days to make sure you don’t miss any checks.

If that seems like a lot of notice, just think back on your last trip to the DMV.

You should notify the agency of your new address even if your payments are being sent to a bank.  If you find a bank in your new country of residence that will accept a direct deposit, you can contact the agency to arrange for this change as well.

You should also note that, while being out of the country has no effect on your eligibility for many benefits (such as Social Security), you will not be able to receive benefits from Medicare or Medicaid outside the United States.

Documentation and Identification

When traveling to most countries, you will need to have a valid passport.  Many also require that your passport’s expiration date be well past the date of your planned return to the U.S.  If your passport is lost or stolen, report the issue immediately to the local authorities and the U.S. Embassy or Consulate.  The consul can issue you a replacement, often within 24 hours.

If you plan to drive, find out the requirements for licensing in your destination country.  While many require a license and insurance, some do accept an international driver’s permit.  However, most do not recognize a U.S. driver’s license.

Voting

Don’t let your absence prevent you from exercising your civic duty.  Receiving an absentee ballot is easier than ever, as many jurisdictions have the capability to fax or even email the forms.

You can visit FVAP.gov to complete a Federal Post Card Application (FPCA).  However you will need to complete this process every year, preferably in January.  While you should receive your ballot 45 days prior to general and mid-term elections (30 days before special, primary, and run-off elections), make sure to be proactive.  Follow up if you don’t receive it on time, and submit it as early as possible to make sure your vote is counted.

Taxes

We covered death overseas.  Might as well mention taxes.  Once again it’s inevitable.  All the usual reporting requirements and deadlines still apply for those living abroad.  Consult your tax professional with questions about any income earned overseas.  If you do have any, you’ll need to make sure all amounts are converted and reported in U.S. dollars.

Health

The government recommends that you familiarize yourself with any conditions in your destination country that could have an impact on your health.  Some examples are altitude, allergies, the availability of medical facilities, required immunizations, etc.  The Centers for Disease Control website is a good resource for more information on your country of residence.

It is also recommended to bring along a letter from your physician describing any medical conditions you may have and to explain the necessity of any medications you’re carrying.  When traveling, you should always carry drugs, eyeglasses, and other medical items in your carry-on.  Consider a medical alert bracelet if you suffer from any life-threatening conditions.

When medical treatment is needed, the U.S. Embassy or Consulate can provide a list of physicians and facilities.  However, they’d like you to note that the providers are listed alphabetically; their order is not a ranking of the quality of care they provide.  Furthermore, “the inclusion of a specific physician or medical facility does not constitute a recommendation and the Department of State assumes no responsibility or liability for the professional ability or reputation of, or the quality of services provided by, the medical professionals, medical facilities, or air ambulance services whose names appear on such lists.”

Whew!  That was a long sentence.  Oh, also, the list cannot be reproduced in any form without the express written consent of major league baseball.

The cost of medical procedures overseas can vary greatly, and most U.S. health insurance isn’t accepted.  Short term travel policies that cover you when traveling abroad are available from many insurers.

Customs and Import Restrictions

Before bringing any items into or out of a country, make sure you know what’s legal.  Items such as food, medications, and even pets can be restricted in some countries.  Also prohibited are items associated with endangered wildlife, such as ivory, furs, feathers, leather, and coral products.  Consult your country’s U.S. embassy to find out more about any restrictions.

Mail

You thought you were escaping the ever-mounting pile of junk mail, but the U.S. government recommends that you make arrangements to receive your mail if you’ll be gone for an extended period of time.  A few international banks and credit card companies may provide mail services for their customers.  Some foreign post offices will also hold mail for travelers.

General Precautions

On its travel website, the U.S. government lists a number of other precautions.  While some are really just common sense, like not traveling with valuables, a few are worth mentioning.  For instance, you should always make sure friends or relatives back home have copies of your itinerary.  Also leave home with additional copies of your travel documents, and pack an extra copy in your bags, separate from the originals.

Always plan for the unexpected, taking extra cash or credit cards for emergencies.  There are a lot of scams out there, so stay away from any deal that seems questionable.  And, if anyone asks you to carry a small, unmarked package in your luggage in exchange for a sum of money…for goodness sake, don’t do it.

Remember that when you’re out of the country, you’re subject to different laws.  And if you do something illegal, you’re on your own.

Smart Traveler Enrollment Program (STEP)

In an effort to protect its citizens abroad, or maybe just to perpetually monitor your whereabouts, the government is proud to offer the Smart Traveler Enrollment Program (STEP).  By registering your travel plans, you can receive updates about the country where you’ll be traveling, as well as travel warnings and alerts.

Reportedly the program also enables the government to better assist you in the event of a minor (e.g. lost passport) or major (e.g. earthquake) emergency.

Regardless of the destination or duration of your trip, the Department of State and Bureau of Consular Affairs is an excellent resource for many of your needs while overseas.

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