world's best places to live
TRANSCRIPT
16 Overseas Living Letter
In our Overseas Living Letter calendar every year we do our best to bring you a balanced sampler of the destinations that represent the best opportunities for living overseas, each month introducing you to another thin-sliced top choice for living overseas.
We cast as wide a net as possible and work hard to highlight new choices as often as we can.
However, because we’re working with only 12 issues per year, this creates a conflict. We want to be introducing you always to your top emerging options, but we also want to keep you up-to-date on the old classics.
Each December, therefore, we revisit our favorite destinations, our long-time recommendations, to remind you why we love them, the downfalls of each, and to update you on what may have changed or is set to change imminently that could affect you as an expat.
On our radar at any time are 15 or so world’s top overseas havens. We can’t report on all of them all the time and still provide you with new recommendations… so a few years ago we began publishing this issue: The World’s Top Overseas Havens
Updates. In it, we alert you to any relevant news from the 15 countries we think continue to offer the best overseas opportunities for living, investing, working, and everything in between.
Chock full of at-a-glance comparisons of pros and cons for each place, and packed with important—sometimes critical—news updates that affect expats and investors in these jurisdictions, this issue is a one-stop shop for assessing the world’s most popular overseas havens as they stand right now.
These are places you know and that we’ve been reporting on and recommending for years… in some cases, for decades. This issue, though, is our chance to remind you why these places are the best of the best and why we continue to include them on our short list of the world’s best places for overseas fun and profit.
We put out a call to our correspondents and contributors worldwide and they eagerly obliged us. They’ve detailed for us what’s new, what’s changed, and what’s best about your countries of focus—be it good news or bad. Their collective from-the-scenes feedback is featured in this annual end-of-year roundup issue.
World’s Best Places To Live—The Year In Review…
And Looking Ahead To 2018By the Editors of Live and Invest Overseas
24 Overseas Living Letter
More Flights South Of The Border
Low-cost Mexican airline Volaris will launched a new route to El Salvador from Nicaragua and Guatemala and another between Mexico and Guatemala in June this year.
The airline now boasts 10 routes to 7 destinations, including San José, Managua, San Salvador, Guatemala City, Cancún, Guadalajara, and Mexico City, The costs per route typically range from US$60 to US$90.
Southwest Airlines also launched a new route from Ft. Lauderdale, Florida, to Belize City in June.
Budget Scandinavian airline Norwegian has Latin America in its sights, having announced plans for a US$4.3 billion expansion in Argentina over the next 10 years and opening up several new direct routes to Buenos Aires from North America and Europe.
Latin America’s Second-Largest Airline Poised To Announce New Strategic 10-Year Joint Venture
In one of the biggest deals in the airline industry this year, Avianca Holdings, Latin America’s second-biggest airline, announced an alliance with United Continental Holdings Inc. (parent company of United Airlines).
Avianca Holdings was in the midst of an economic crisis and desperately needed to raise capital to stay afloat. United offered Avianca a US$500 million loan and to potentially become one of its investors.
Gaining access to Avianca’s network considerably boosts the footprint of United, which, at present, lacks substantial entry into the Latin American market—expected to be the largest growth market for travel in and out of the United States over the next two decades, according to a report by the Federal Aviation Administration.
Odebrecht Pleads Guilty In Worldwide Bribery Scandal
In the fallout of what amounts to the largest foreign bribery case in history, the Brazilian conglomerate Odebrecht has pled guilty in the U.S. Department of Justice investigation, agreeing to pay at least US$3.5 billion in global penalties.
According to U.S. Deputy Assistant Attorney General Sung-Hee Suh, Odebrecht and Braskem, a Brazilian petrochemical company also named in the probe, used a “hidden but fully functioning Odebrecht business unit—a ‘Department of Bribery,’ so to speak—that systematically paid hundreds of millions of dollars to corrupt government officials in countries on three continents.”
The settlement follows a two-year investigation that landed the company’s CEO and dozens of other high-level officials in prison. As part of the agreement, the Brazilian giant must submit to a compliance-monitoring program under the watchful eyes of Brazilian prosecutors.
As a result of being cut off from public contracts for the better part of two years, the company’s credit rating has plummeted, sending new shockwaves into Brazil’s frazzled economy, which has already been suffering its worst downturn in recent history.
The scandal, of course, has consequences that reach farther than Brazil, as bribes were paid by the company for more than 100 projects in 11 other countries: Angola, Argentina, Colombia, the Dominican Republic, Ecuador, Guatemala, Mexico, Mozambique, Panama, Peru, and Venezuela.
As the investigation continues, the company says it will continue cooperating with authorities. Odebrecht’s 2025 notes traded at an all-time low of 25.5 cents on the U.S. dollar in May.
Latin America In 2017 And 2018
Overseas Living Letter 26
Argentina In 2017 And 2018Argentina is a captivating country that is both Latin American and European in culture and lifestyle, where the new and the old worlds blend harmoniously.
A destination that has welcomed immigrants and expats since the mid-1800s, much of the population in Argentina claims Italian or Spanish heritage or both. The connections are clear when you walk the streets of Buenos Aires.
Everywhere are pasta and pizza shops, and Spanish is spoken with a noticeable Italian inflection.
However, to know Argentina’s economy is to know one of the world’s biggest dramas. The country is up and then it is down, with flashes of stability bridging the time between the last rise and next big tumble. In Late 2001, the Argentines removed the peg between their peso and the U.S. dollar, and the crisis situation opened a window
of opportunity during which savvy investors, led by our editors, bought primo Buenos Aires apartments for a fraction of the former value…
In terms of lifestyle options, Argentina includes a world-class city, Buenos Aires, of 14 million people. In the interior, expats enjoy life among the vines in the Mendoza region, colonial Cordoba and the surrounding mountains, Salta, and other provinces.
Argentina Pros At-A-Glance:
• Four distinct seasons in Buenos Aires (without snow in winter, with sweltering heat every now and again insummer), plus skiing in the mountains in winter and lovely beaches in summer.
• European lifestyle, especially in Buenos Aires, premier international city with vibrant arts and all-night nightlife.Enjoy amenities such as steak houses, empanadas, cheap-but-high-quality red wine and local bubbly.
• Argentina’s periodic upheavals offer crisis investing opportunities, ensuring that deals pop up from time to time.• High-quality health care (plus access to the free public health care system).• International schooling options in German, English, French, and more.• Easy entry rules. Stay three months without a visa, then pop over to Uruguay and get another three months
upon return. Or apply for a resident visa, which is also easy to obtain.
Argentina Cons At-A-Glance:
• Historically unstable political and economic systems.• Argentina is Latin America’s most expensive country, so the high cost of living can be prohibitive for those on a
budget. (The study that made the claim was published in early 2016, and prices have continued up since then.)• Buenos Aires suffers from high crime and corruption rates, with both street crime (pickpockets, mustard
squirters, phone snatchers) and serious crime (crooked police, drug gangs). Even current President MauricioMacri was kidnapped for ransom many years ago, by what turned out to be Federal police officers.
• Routine tasks here quickly become complicated, requiring tiring amounts of time and effort. ATMs run out of money,security alarms go off, locks break, protesters block roads, overseas banks deny credit card charges, fare cards fail, ticketmachines fail... (Show up at the famous Colon Theatre, ticket in hand for a scheduled ballet or symphony, and find thetheater dark, the entrance locked. You and others stand around wondering what happened.)
• Foreigners must normally be residents to open bank accounts.• Foreigners are subject to some limitations real estate; they must obtain approval from the tax authorities to sell
real estate and are banned from buying large tracts of land in the interior.
+
-
Currency Outlook
After a tumultuous year in 2016, with new, free-market president Mauricio Macri taking office and his abolition of the official exchange rate (an arbitrary fiction set by the government based on unknown, unfathomable criteria) coming into effect, the peso rate has begun to settle.
Fluctuating from about 13 to 17 pesos over the last two years under Macri, 2017 has seen the peso weaken slightly in the last half of the year, reaching a height of nearly 18 pesos to the dollar.
At the time of this writing, the Argentine peso is trading at 17.35 to the U.S. dollar.
Access
Budget Scandinavian airline Norwegian has announced major plans for Latin America—and Argentina is at the center of the announcements. The company has promised a US$4.3 billion expansion into the country over the next 10 years. As a product of the expansion, the airline has announced plans for direct routes from Buenos Aires to London, Los Angeles, New York, and Istanbul to begin in 2018, with the U.K. flight to begin in February.
The Economy
Emerging From The Mire?
Mauricio Macri took the presidential helm in late 2015 to widespread hope. People had great expectations of this business-minded capitalist. Macri was named one of the world’s 100 most influential people and the most powerful president in Latin America by Time in 2016.
Some economists project great things for Argentina the near term, claiming it currently presents the best opportunity for investment in 25 years. Others—insider expats with many years’ experience living in Argentina—think Argentina is too far gone to be able to bounce back with small-step reforms after decades of errors.
Let’s take a look at some of Argentina’s most recent economic moves…
Argentina has suffered from inflation issues for decades now, and on April 11, 2016, the Central Bank
unexpectedly raised its key interest rate by 1.5% (now 26.25%). Not only was the hike a surprise, so was the amount; interest rates had been steady or declining in recent years.
When prices on consumer goods spiked in March 2016 (by 2.4% after a 2.5% spike in February) and the core inflation rate stagnated, the Central Bank could hold back no longer, initiating a contractionary monetary policy. It hopes to decrease inflation by 12% to 17% in 2017—a pie-in-the-sky goal that has been unattainable.
The country’s secondary main problem, on the other hand, is low domestic consumption, stagnating economic growth.
But fiscal policy changes can typically only address one of these issues at a time. History shows that inflation rises with consumption. If the Central Bank chooses to put a handle on inflation by raising interest rates, loans become less attractive, spending is deterred, and the local economy stays where it was. It could also choose to do the opposite, of course, lowering rates to encourage spending.
“There’s no Plan B. We have to do both things at the same time,” Macri says, adding, “There’s no other way. With lower inflation you’re defending the salary value of the worker, and that’s my main commitment.”
And while he’s seen some success in decreasing the deficit and even recorded some economic growth in late 2016, he’s under fire. Argentineans have been protesting his policies, accusing them of contributing to an increased
income inequality. And thanks to the abolishment of a 35% computer import tax—which undoubtedly came as good news to consumers—the Bangho laptop factory in Buenos Aires was closed, costing the city 200 jobs. Citizens fear his economic reforms will have more of the same effects across the country.
Macri promised any negative trickle-down effects from his policies would be limited to 2016… an unrealistic promise to have made, for which he’s now reaping the damages.
His importation changes have also had unexpectedly negative impacts. Macri more than doubled the number of goods that require import licenses, resulting in massive delays at customs. Domestic manufacturers claim they can’t compete with the increased amounts of imported goods at their lowered prices and fear closing their doors. Protests on this front have been conducted by labor unions demanding higher wages to compensate for inflation.
It seems a classic problem with no right answer: Free trade can have negative domestic consequences. The economy can’t be opened up while still protecting its citizens’ livelihoods, and a decision must be made to endure the short-term pains for long-term gains… or to bend to popular opinion.
Meantime, Macri’s enjoying unprecedented levels of disapproval.
Entrepreneurs’ Law Opening Doors For Startups
Argentina’s economic past has been tumultuous to say the least. In the 1990s through the early 2000s, the country suffered from high inflation and severe currency devaluation, and, in 2001, was forced to default on its public debts.
This, combined with the absence of available capital, created a hostile environment for entrepreneurs. Furthermore, political instability and the lack of a legal framework for operations created widespread distrust of financial institutions, which is not conducive to doing business.
Despite this, startup culture in Argentina has been resilient, producing some of Latin America’s most successful business ventures over time. With the new
conditions created by the Entrepreneurs’ Law, passed March of this year, it is likely to flourish and propel Argentina’s return to the global market.
The Entrepreneurs’ Law seeks to:
1. Increase the ease of doing business byexpediting the registration process for companies.Instead of being burdened with bureaucratic dealings,companies can now become registered online in 24hours or less. Previously, it took up to a year.
2. Create opportunities for financing and atracking system for venture capital activity.A percentage of public funds will go towardspurring startup development under the FiduciaryFund for the Development of Venture Capital(FONDCE), and a registry for fund managers andprivate investors will be created as a platform forinformation-sharing.
3. Incentivize private investors with tax breaks toprovide additional financing opportunities. Up to85% deductions on an SAS company investment willbe possible under certain circumstances, opening upthe private sector for startup financing.
4. Provide governmental support through thecreation of accelerator programs. A total of 13programs will be developed, benefiting technological,social, and science-based ventures, providingtechnical and financial guidance. Additionally,companies will be able to crowdfund and sell equityto raise funding.
Finances And Banking
Argentina’s Banks And Policy Reform
Argentina’s three leading national banks—Banco Galicia, Banco Santander Rio, and Banco Macro—are seeing loan portfolio growth and increased trading and asset management activities as President Macri’s policy reforms come into play.
Banco Galicia is the largest bank in terms assets, with a wide range of products available to its 8 million consumers through various service centers. It is one of the most profitable banks, generating US3.6 billion in 2016 and net interest margins of 5.1%.
Banco Santander Rio, the second largest bank in terms of assets, services 2.5 million customers through 400 branches and in 2016 generated US$2.8 billion in revenues and net interest margins of 7.1%
Banco Macro is the largest bank in terms of the number branches but third largest by way of assets. However, its reach gives it an advantage over its peers and last year, it generated 12.9% net interest margins, the highest among the three mentioned here. It also generated US$2.5 billion in revenues.
Argentina’s banks are currently trading at discounts compared to their Latin American counterparts. Analysis groups such as Morgan Stanley are optimistic about them based on valuations and opportunities for consolidation.
All-Around Enthusiasm For Argentina’s Equity Market
Since pro-market Macri became president in 2015, Argentina’s business climate has been steadily improving in the eyes of multinational corporations (MNCs). This was further solidified when, after the national legislative elections on Oct. 22, Macri’s Cambiemos party gained control of the Chamber of Deputies. This allowed Macri to proceed with labor and tax changes, namely reducing capital controls and resolving the country’s longstanding battle with creditors.
The specifics of Macri’s policy reforms aside, the changes have been drawing the attention of many MNCs, creating an unprecedented wave of enthusiasm for Argentina’s equity market.
As Sebastian Loketek, head of Bank of America in Argentina, Uruguay, and Paraguay, stated, “I haven’t seen this level of enthusiasm for Argentina in a very long time. The appetite and investor base have increased substantially.” Whereas before the lack of leverage discouraged large deal making, Macri’s success means “long-only term equity players coming in larger size.”
Several of the country’s largest companies, such as cement-maker Loma Negra and agribusiness company Molino Canuelas Sacifia, are selling shares overseas and have raised US$3.5 billion in equity so far. This represents the greatest value in at least the
past 10 years (when four firms raised a total US$1.6 billion in 2007).
Many believe that this is just the beginning for Argentina as interest in its market gains momentum. According to head Itau Unibanco Holding S.A. Javier Grana, “We continue to see good companies coming to market and trading well, and that’s a self-fulfilling circle motivating those that are weighing opening or increasing their capital.” More international transactions are likely to occur as the economy grows and the potential of Argentina’s industries opens up.
Starting Up Argentina’s Start-Ups
Uala is a start-up company founded by Pierpaolo Barbieri in Buenos Aires a few years ago. At the tender age of 30, Barbieri has some huge backers—billionaire George Soros and Point72 Ventures LLC, as well as hedge fund magnate Steve Cohen.
Uala launched its app on Oct. 2 with the aim of changing how Argentines handle their money, and Argentina has repaid him handsomely by offering a start-up, fintech friendly environment; “Uala is the first Soros investment in the real economy in Argentina in 15 years, so that should tell you that timing matters,” said Barbieri.
Between 1999 and 2003, Argentina saw some of Latin America’s most successful start-ups, including U.S.-listed online marketplace Mercado Libre Inc. andinternet travel agent Despegar.com Corp. However,things took a turn for the worse with former PresidentCristina Fernández. Currency controls and nationalizedenergy firms put the wind up foreign investors.
Nonetheless, Argentina is striking back. Last year marvelled at a 214% jump in venture capital transactions, according to the Latin American Private Equity and Venture Capital Association (LAVCA). Undeniably, Macri is improving the business environment.
In the case of Uala, business does not come at a moral cost. Barbieri has claimed he wanted to bridge the gap between a thriving industry and one that lacked innovation. In a country where lower-class people are rejected for loans and haven’t bank accounts, Ualaa provides an alternative to banks or “immoral” payday lenders. A teenager once told the start-up that having
an Uala card to buy a Netflix subscription would make him feel like he had escaped poverty.
Government And Military
Consolidation Of Power
Macri won big in October’s mid-term congressional elections, consolidating his power. He’s a pragmatist, and has seized the opportunity to vow “many reforms,” pushing a free-market, pro-business, pro-growth agenda to overhaul the country’s economy. He has vaguely promised to reform tax, education, and labor.
A Resurrection?
Argentina’s former far-left leader, Cristina Fernández de Kirchner, who has announced an intention to run for the presidency in 2019, managed to win a senate seat in the recent congressional elections.
Awards And Titles
The Go List
Buenos Aires came in 14th out of 52 on Fodor’s 2018 “Go List.”
Belize In 2017 And 2018Belize is a tiny country, about the size of Massachusetts, with a population of just 350,000 people. The entire country is like a small town.
As the only English-speaking country in Central America, Belize has been attracting expats in the know from the U.K., Canada, and the United States for decades. Belize offers reef, ruins, rivers, and rain forest... plus easy residency and tax-free living.
The common denominator we can identify among everyone finding his (or her) way to Belize’s shores today—from scuba enthusiasts and eco-adventurers to missionaries and billionaire investors—is a desire for a simpler, freer, more private way of life. With everything going on in the world these days, Belize’s back-to-basics lifestyle is almost irresistibly appealing.
Belize Pros At-A-Glance:
• This is a 100% English-speaking country.• The Belize dollar is pegged to the U.S. dollar 2:1, meaning the currency is stable and simple for you to convert.• One of the world’s true tax havens—as a foreign resident, you can pay zero local tax, and you can operate your
business here tax free, too.• Quintessential Caribbean lifestyle: azure water, white sand, and swaying palm trees.• The cost of living is affordable. A couple could live in some parts of Belize on as little as US$1,215.• It’s easy for a foreign retiree to make Belize home through the Qualified Retired Persons visa program (that
you can apply for at just 45 years of age). Plus, the visa offers lots of discounts and benefits, you can you’re yourpersonal belongings and household goods into the country duty free, for example.
• It’s easy to purchase property in Belize… From beach condos on Ambergris Caye to emerging-market buys inthe Cayo district (where you can own in a private riverfront community, for example, for as little as US$20,000).
• Belize offers two structures specifically designed to help keep your assets safe: the Belize Trust and theBelize International Business Corporation (IBC, which is not subject to income, Social Security, capital gains,withholding, or stamp duty; gift, death, estate, dividend, distribution, or inheritance tax, nor is it required to fileannual returns)
Belize Cons At-A-Glance:
• Belize has very little infrastructure. There are but three main roads and six traffic lights in the entire country. Tosome, this is a refreshing return to an off-grid lifestyle… others need their reliable, high-speed Wi-Fi every day.
• Health care anywhere in Belize isn’t up to international standards and is behind the standard of even itsneighboring countries. Most expats choose to seek care in Mexico or the United States. If you need a high level ofmedical care or ongoing treatments and medical attention, Belize is not a good option for you.
• While Belize is a nature-lover’s playground, there isn’t anything here to appeal to a culture vulture. You won’tfind much to do here, but there’s a vibrant community nonetheless—people here just know how to entertainthemselves. The exception is Ambergris Caye, where you’ll find a number of good restaurants, wine bars, and livebands playing on a regular basis all over the caye, and there is a movie theater (a coup for this little town).
+
-
Path Of Progress
Belize Gets New Cruise Port: Harvest Caye
Since starting its operations in November 2016, Harvest Caye Cruise Ship Port in southern Belize is emerging as the best in class of privately built destinations in the Bahamas and Caribbean. The injection of US$50 million has resulted in a 78-acre island that is eco-friendly—thanks to the installation of 10,000 mangrove plants to help mitigate the environmental effects of construction.
Unlike the port in Belize City, where passengers ferry ashore in tender boats, Norwegian Cruise Line’s Harvest Caye has its own one-berth dock, big enough to accommodate a “mega-ship” like the 4,000-passenger Norwegian Getaway. The pier is long and completely shaded by a canopy.
Harvest Caye has a combination of standout features, including 11 beachfront villas available for daily rental (prices start at US$475 for up to six people); a tropical-themed, two-story LandShark Bar & Grill; a 15,000-square-foot pool with lifeguard supervision; two zip lines that can take up to 192 passengers a day; and 15 poolside cabanas.
In its commitment to conservation and eco-friendly tourism, Norwegian included a nature center with an enclosed butterfly garden on Harvest Caye. You can walk through it for free and check out boa constrictors, toucans, scarlet macaws, and iguanas.
When the cruise ship arrives at Harvest Caye, guests are welcomed by a drumming band, performing songs from the Afro-Caribbean Garifuna sub-culture in Belize. On the beach, 2,500 blue-cushioned sunbeds and shade umbrellas await.
Access
New Nonstop Route From Canada To Belize…
Airline WestJet launched a new seasonal flight from Canada to Belize. As a result of the successful, twice-weekly flight from Toronto, the discount carrier has added an additional flight from Calgary.
The direct flight has been flying the twice-weekly seasonal service since November and will run through April.
The success of the preliminary Toronto flight has helped both Canada and Belize in boosting the demand for Canadian travel to the unique destination. Today, Canada is a strong source market for tourism in Belize.
And From Florida…
Southwest Airlines launched a new route from Ft. Lauderdale, Florida, to Belize City also in June.
Social Changes
Improving Higher-Level Education
In June the University of Belize announced five new curricula across the country that were begun in August. Programs include business administration (concentrations in marketing, management, and finance), medical laboratory science; pharmacy; early childhood education; and agriculture.
The programs were designed to address key areas in Belize’s national economic development through the development of their human capital. The agricultural program in particular prepares students for self-employment. This also marks an important improvement in national education levels, being the first bachelor degrees in pharmacy or medical laboratory science offered at the national university.
The Real Estate Market
Property Market Continues Up In Belize
In the past two to three years, property prices, the number of developments, and the sales of existing houses have all increased and placed Belize’s property market on an upward trajectory. Prices in Ambergris Caye and Placencia are at all-time highs, while prices inland are lower but also on the rise.
Many factors account for these increases, but tourism specifically is having a major effect on the numbers. What continues to draw tourists to Belize is the ease of travel and its natural and historical attractions.
Furthermore, strategic incentives—namely the Qualified Retired Persons (QRP) program—for
international buyers, as well as economic factors, have also played major roles in shaping Belize’s current property market.
Rent Your Own Island In Belize
There are plenty of hotels and guest houses that allow you to dip your toes into the waters off this idyllic Caribbean country, but perhaps a room is too mundane for you.
No problem… simply upgrade to an island!
You and up to five friends can rent an entire island off Belize’s coast for just under US$500 per night. It comes with a thatched-roof bungalow, electricity, internet, and kitchen. Surrounded by shallow crystal waters, paddling with the children couldn’t be easier, and your snorkel gear will be put to good use.
Residency And Immigration
QRP Update
In June Belize announced some changes to the Qualified Retired Person (QRP) visa.
Under previous rules, QRPs could earn money in Belize—as a business owner or as a real estate investor, for example. Now, though: “No Qualified Retired Person or their dependents may partake of any form of gainful employment or business investment while in Belize.” QRPs can no longer own a home and rent it out or own a business of any kind that operates and earns money in the country.
This makes no difference to retirees who come to Belize to truly retire, only income-generating investors in the country. And you can still do internet-based work—as long as any earnings originate from outside Belize
No one will be grandfathered in under old rules, either, according to our local sources. QRP officers told our attorneys in Belize that any QRP found to be generating income in the country must turn in their residency cards.
The Economy
Tourism Is Booming
2016 experienced the highest number of tourist arrivals in Belize’s history. Increases in the number of flights arriving to Belize and the arrival of cruise ships is greatly affecting these numbers, which are up 13.2% from 2015. Hotel construction in Ambergris Caye, the Cayo District, and Placencia is at an all-time high, as developers scramble to accommodate the ever-increasing number of tourists.
This, in turn is affecting the property market. According to ReMax Island Real Estate, “The ease with which individuals can travel to Belize has increased tourism, which has subsequently improved the real estate market.” As more and more discover the potential of Belize for overseas living, property sales are likely to increase.
Ever-Improving
Belize’s economy is emerging from the 1% contraction of last year (due to Hurricane Earl’s effect on agricultural production). Imports decreased 4.9% from June of this year, while exports increased 5.2%. The IMF predicts a 3% economic expansion this year and a 2.3% for next. A rising real GDP growth rate of 2.1% makes the country more appealing to foreigners.
Government And Military
Tackling Corruption
The government continues to chip away at a corruption scandal in a nearly year-long senate inquiry into visa irregularities. The Passport, Visa, and Nationality Departments are all under fire for underhanded dealings that took place from 2011 to 2013.
10 Grams Or Less Fly In Belize
The government of Belize has been in talks of decriminalizing cannabis possession for many years. Cannabis culture is widespread in Belize, and its use is mostly tolerated.
However, before Oct. 20 of this year, possession of cannabis could have had legal ramifications, including fines or imprisonment. This applied to tourists as well, with some noteworthy arrestment cases taking place in recent years.
An amendment has to the Misuse of Drugs Act recently changed this, decriminalizing the possession of 10 grams (roughly a handful) or less in certain areas. Such areas include personal residences, residences of those who’ve given consent for its use, and private accommodations that permit regular smoking.
Possession is not permitted for persons under the age of 18, who, if caught with the drug, could face forced treatment programs at the expense of legal guardians. Special conditions apply to those who use cannabis for medical purposes (with a registered medical practioner’s recommendation), prescriptions, and use for scientific research purposes.
Full-fledged legalization of cannabis has not yet been considered, but strong voices within the Belize government purportedly support it, and only the National Evangelical Association of Belize opposed the bill.
Awards And Titles
Belize’s Pelican Beach Among Top 21 In The World
Top notch for snorkeling and diving excursions, Pelican Beach on Belize’s South Water Caye Marine Reserve has been recognized as one of the best 21 beaches in the world. National Geographic compiled a diverse list of the world’s most spectacular beaches, ranging from the relaxing through to the unusual and the ecologically important.
Pelican Beach was chosen for its conservation of the marine ecosystem. Its biodiversity, support of the oceanic mangrove system, and extensive seagrass meadows provide habitats with many commercial and non-commercial species.
The mangrove cayes on Pelican Beach also provide nesting sites for many important bird species, and the area is a nesting spot for marine turtles.
South Water Caye Marine Reserve is the second largest in Belize and one of the seven protected areas that form the Belize Barrier Reef Reserve System World Heritage Site designated by UNESCO. Guidebook author Lebawit Lily Girma says, “It’s the only place in Belize where you can swim safely to the reef within minutes and explore the South Water Caye Marine Reserve, full of colorful coral, angelfish, blue tang, sea turtles, all in less than 20 feet of water.”
Belize Named A Top Summer Vacation Cruise Destination For 2017
Belize was recognized by the Cruise Lines International Association (CLIA) as the 5th top summer vacation destination for this past year’s cruising season.
Singled out for its “beach beauty and ancient culture as well as some of the most famed diving spots in the world,” Belize made a splash when, late last year, Norwegian Cruise Lines unveiled its sprawling hub located on Harvest Caye, a 78-acre island about a mile off the mainland that has the feel of a big Caribbean beach resort.
Top Of The Trips
Ambergris Caye made #17 on TripAdvisor’s “Top 25 Destinations In The World.”
The Go List
Belize came in 10th out of 52 on Fodor’s 2018 “Go List.”
Belize Wins The 2017 Mesoamerican Ball Game In Mexico
Copyright: ambergristoday.com
The annual Mesoamerican Ball Game allows competitors to play the ancient, pre-Hispanic game of Ulama (Ullamaliztli). The games are an important opportunity to keep ancient traditions alive, educate people on Mayan history, and pass the culture on to younger generations.
The 3,000-year-old sport uses a rubber ball of about four and a half pounds, and the players in two teams of four must pass the ball using only their hips, the goal being to keep possession and keep it within the playing field.
This year, the games were held at Ulamaztli, Teotihuacán, in Mexico in April. Belize was represented by the Pok Ta Pok Maya team from Yo Creek Village at Orange Walk and claimed a proud victory.
You Better Belize It: Innovation & Creativity Award
The Latin American Travel Association, or LATA, has granted The Belize Tourism Board, or BTB, with the prestigious Innovation & Creativity Award. This award comes as a result of the Belize Virtual Expo, the first of its kind in the country, and, with such a positive response, hopefully a first of many.
The Virtual Expo was held at the Biltmore Plaza Hotel, where it gave local tourism service providers the rare and incredible chance to meet and mingle virtually with the key representatives of the international travel trade.
BTB received the award at the Experience Latin America (ELA) trade show, which took place in London, as organized by LATA. Upon acceptance, Karen Pike, BTB Director of Marketing and Industry Relations, took a moment to applaud Belize as a growing, must-see destination, noting that this award serves as a testament to the great innovation and creativity across the European market and beyond.
Congratulations Chaa Creek!
Recently, National Geographic announced the winners for its 2017 World Legacy Awards. Winning the award for in the Engaging Communities category, which describes an organization that is “Recognizing direct and tangible economic and social benefits
that improve local livelihoods, including training and capacity building, fair wages and benefits, community development, health care and education,” was the Lodge at Chaa Creek—a longtime LIOS favorite in Belize.
Chaa Creek is recognized as one of Belize’s first eco-tourism lodges. The property consists of 365 acres on a private nature reserve and boasts walking trails, a natural history center, a butterfly farm, stables, an organic farm, a spa, and swimming pools.
The resort was started by the now legendary character Mick Fleming, and his wife Lucy (old LIOS friends), who came to Belize in 1977 as travelers with little money in their pockets. Mick came upon the area of land that is now Chaa Creek and set out to become a farmer. As more and more tourists made their way out to their area, however, Mick and Lucy began hosting them, and eventually built a few thatched-roof cabins on their property. Today, Chaa Creek consists of various assortments of luxury villas, cottages, and suites.
The Flemings now employ more than 160 Belizeans and, on their property, grow their own fruits and vegetables, make their own furniture, and thatch their own roofs. This commitment to sustainability and consideration of local communities has led to recognition from not only National Geographic but other groups as well.
Chaa Creek offers its employees extensive training in a variety of strategic subjects such as hospitality, first aid, conservation, tour guiding, and so on, that encourage professional development and advancement not only within the Lodge, but externally as well. Employees may use their newly-acquired education and skills to start their own businesses or take them abroad.
The resort also supports the local community by donating 10% of all room revenue to environmental and social programs under the Chaa Creek Cares initiative. Contributions from tourist packages go toward ventures such as the Environmental Outreach Program, a summer camp for local kids, and internships for high school and college students.
According to National Geographic, “[Chaa Creek] demonstrates that putting people first benefits employees, local communities, its own bottom line, and the country’s tourism industry as a whole.” This fact is further corroborated by the Belize Tourism Board, who recently awarded Mick and Lucy Fleming with the Lifetime Achievement Award at the 15th National Tourism Gala Event.
“It’s always the people and your relationship with the people… That’s what breathes life, that’s the heart of anything that you do. And so, really, Chaa Creek would not be here without the communities who built it for a start, along with us, who helped us design it, who came up with ideas with us, who serve people, who make every single product that we offer people… It’s all made by our local community. So without the community we would not exist… Cha Creek would not exist.” Mick and Lucy Fleming truly demonstrate that valuing people before all else is beneficial for all.
Read more about Chaa Creek or book your stay at the Lodge here.
Miscellany
A Safe Haven In The Caribbean
In spite of the several hurricanes ripping through the Caribbean this year, Belize escaped pretty much unscathed. Complaining only of heavy rains and flooding in some areas, the country sustained no real damage.
Belize experiences landfall of less than 5% of the hurricanes that develop in the region. They all seem to break north to Florida and the northern Caribbean or south to rattle the southern Americas… some people think the country is in a sweet spot in that regard.
Belize gets black clouds, lightning, winds, and some big rain for a while, “but not enough to call the dog into the house from a well-sheltered outdoor spot,” according to one Belize expat.
Nonetheless, the National Emergency Management Organization (NEMO), is already looking ahead and planning for the 2018 season.
Bringing Sexy Back…
Sports Illustrated and six models landed on Ambergris Caye in November to shoot the famous Swimsuit Edition for 2018.
Mahogany Bay was chosen as one of the main sites, with Olivia Jordan, Allie Ayers, Haley Kalil, Camille Kostek, Iyonna Fairbanks, and Tabria Majores turning up the heat for photographer Yu Tsai. These mostly amateur models were the product of Sports Illustrated first open casting call, conducted in 2017 for the coming year’s issue.
But this isn’t Belize’s first time behind the camera—she was featured in sports steamy pages way back in 1972. Some beauty never fades…
High Culture
Belize’s 12th Annual International Film Festival in November was the best attended yet, impressing attendees with its organization and line up. Several films produced by Belizeans and in the country were presented and well-received.
Bringing The Zen
The OM Shanti yoga center is the nucleus of a budding yoga community in the country. The center’s owner has even put together a Belize International Yoga Festival—in its second year for 2017.
Hilton Comes To Belize
Belize’s first Hilton Hotel property has been opened on Ambergris Caye. Mahogany Bay Resort & Beach Club offers 205 cottage- and villa-style rooms spanning their 60-acre property. The resort also features 10 dining options, bay and beach clubs, meeting and event spaces, pools, bars, a spa (that serves you poolside), and on-site marina. The resort opened Dec. 6 and marks the first opening of a large
chain hotel in the country, as well as being one of the first real, luxury resort on Ambergris. The hotel is 2 miles south of San Pedro Town and offers golf carts and bikes for guests to get around.
Previously, only Radisson (with a rather crumbly edifice), Ramada (with ongoing maintenance problems), and Best Western (at the airport) were the only hotel operators in the country. This high-end Hilton fulfills a real market gap in the country.
Colombia In 2017 And 2018For us and Colombia, it was love at first sight. Over the near decade since we first laid eyes on this beautiful country, we’ve become only more enchanted.
Shortly after Colombia first came onto our radar, we made a bold prediction... Colombia, specifically Medellín, we reported, would soon take its place on the short list of world’s best places to live.
Back when we first made it, that prognostication created a stir.
How could we be recommending that expats and retirees think about taking up residence in the land of Pablo Escobar?
We weren’t bothered by the naysayers or their confusion. Big new ideas are often met with resistance.
Today we’re no longer alone in referencing Colombia as a world’s best destination. The New York Times, Travel + Leisure, Forbes, and others have made similar declarations.
As a result, Colombia as a top-tier choice for anyone considering launching a new life overseas isn’t news. Colombia is enjoying the attention she deserves in this context.
The U.S. dollar’s historic strength against the Colombian peso is creating remarkable bargains. And, more than ever before, Colombia, specifically Medellín, qualifies as one of the best places on earth today to establish your foothold overseas.
Colombia Pros At-A-Glance:
• According to the World Health Organization, Colombia has one of the world’s best health care systems, andMedellín specifically is home to 8 of the best hospitals in Latin America (and 22 of the top 43 in Latin America).In fact, it surpasses many developed countries, such as the United States, Canada, Switzerland, and Germany.Medellín also boasts some of the continent’s best and most highly skilled doctors. Long known as a destinationfor cosmetic surgery, Medellín is now established as a destination for complex procedures and advancedtechnology, including transplant surgery. Medical insurance and out-of-pocket medical expenses are less thanone-third the cost of those of the United States. Doctors in Colombia provide their personal cell phone numbersto patients and even make house calls if requested.
• Just about any city in Colombia is affordable. In the modern, culture-rich city of Medellín, you could get awaywith a budget of US$1,295 monthly, for a couple.
• This country has a strong, stable economy with a rapidly growing middle class.• Colombia is culture rich—Bogotá has more than 50 museums, 60 art galleries, 30 libraries, 40 theaters, and 150
national monuments. Colombia’s cultural capital, Medellín, is competitive with its better known peers, offering awide range of entertainment options. With modern movie theaters, shopping, orchestra, theater, and countlessevents and shows (including an annual symphony season), vibrant nightlife, impressive galleries, museums,venues for theater and music, plus soccer stadiums.
• Colombians support an upbeat gay social scene. Medellín, especially, is very LGBT-friendly; Parque Lleras inMedellín is famous for hosting one of the most entertaining and energetic gay scenes in South America.
• Purchasing real estate is affordable and property sees steady appreciation. We’ve been recommendingColombia, specifically Medellín, for investment for nine years. The Medellín market has seen good appreciationover the last nine-plus years (as much as 10% per year). Expect this to continue.
• Developed, reliable infrastructure—good, fast internet, minimal power shortages, pure drinking water, andlarge cities with good domestic access. In certain cities, Medellín, for example, the public transportation system ishighly developed (with metro and Metrocable, a funicular service that runs up and down mountains; bus routesare extensive, and vehicles run on natural gas; taxis here are metered and easy to hail), so you can get by withouta car. Roads in and around the city are good, and most of the city is built on a grid system, making it relatively easyto navigate.
+
Currency Outlook
Still In Your Favor
The tremendously favorable exchange rate has maintained, against all odds and predictions, throughout 2017.
At the time of this writing, the Colombian peso is trading at 2,999.93 to the U.S. dollar—a mere 18 or so pesos lower than it was trading when we published this issue this time last year.
Crude oil makes up over 55% of Colombia’s exports, and the value of the peso correlates strongly with the price of crude. Since global crude oil prices dropped to around US$50 in January 2015, the exchange rate has hovered around 3,000:1, with fluctuations tracking variations in global crude prices. The price of crude is predicted to rise to US$58 in 2018, but unless it breaks US$60 or drops below US$40, major fluctuations shouldn’t be expected.
It’s worth noting that at 3,000:1, the exchange rate sits well above its 2002 to 2014 average trading range of 1,800:1 to 2,000:1. If exchange rates return to their long-term averages, investors with Colombian market holdings could experience 30% to 40% gains solely from currency appreciation and conversion of pesos to dollars.
Access
Air Canada Rouge announced a new seasonal Toronto-Cartagena flight to begin in December and run through April. They’ll also increase the frequency of their seasonal Toronto-Bogotá routes from four to five flights a week this season.
Social Changes
Saving Colombia, Saving The Planet
Colombia is the second most diverse country in the world (home to the largest rodent and snake in the world), but its wildlife has suffered greatly from the long-running civil war between the country and its rebels.
• Colombia offers excellent, easy, and quick foreign residency options, including one for pensioners (with anincome requirement under US$1000 a month) and another for investors. Colombia also offers residency withthe least amount of red tape. Expats report that it’s possible to apply and get the permanent residency visaissued in just one hour. You qualify instantly for permanent residency as a property owner, shaving five yearsoff the time required for permanent residency and citizenship.
• It’s not too far. Medellín, for example, is only a three-hour flight from Miami and just over five hours to New York.
Colombia Cons At-A-Glance:
• You might get by with just a smattering of Spanish, but those who want to experience true Paisa cultureneed more. English-speakers can usually be found at restaurants and hotels, but for day-to-day life, you reallyneed Spanish here.
• Rainy season is from both September to December and March to May.• While it is growing each year, the expat community in Colombia is relatively small, overall.• Air pollution is a real problem in Medellín, though the city has implemented several initiatives to combat
the problem.• Living here, your tax burden could increase, depending on your nationality, where you hold legal residency,
and where your income comes from. The country even imposes a wealth tax after five years of residency.(Note, though, that moving to Colombia with only retirement income should be a tax-neutral event.Colombia, like most countries, doesn’t tax foreign retirement income.)
-
Ironically, the country’s protected reserves were hurt more than public lands. Nearly 70% of regional and national parks as well as nature reserves—amounting to over 60 million acres—were in conflict zones. These heavily forested areas made it impossible for the government to police them—making them ideal hideouts for illegal activities.
Luckily, peace now underway, conservationists can now protect the country in earnest.
The Colombian Amazon was ground zero for FARC-led illegal activities. Coca cultivation was their primary revenue source of the FARC, but unsustainable agricultural practices were used—clearing the land by forest fire, blocking river access for their own purposes, to say nothing of the toxic chemical spills from the next step: the manufacture of cocaine. The country’s natural resources were decimated by the FARC.
One of the many intricate compromises put forth by the peace treaty were in deference to the country itself… her flora and fauna. The treaty aims to formalize the management of Colombia’s natural resources and how those resources can themselves assist the peace process.
The Project Finance for Permanence (PFP) has been initiated as part of the treaty to permanently and fully fund protected lands. One of its offshoots, Heritage Colombia—led by National Parks of Colombia and World Wildlife Fund (WWF), along with other international conversation entities—aims to increase the area of protected lands and ensure their proper management both within the protected zones and in the areas surrounding. Included in its purview are the Amazon, the Andes, the Orinoco River basin, and the Pacific and Caribbean coasts.
Heritage Colombia is unique in that it takes the surrounding areas into consideration, not just the bordered zones. It also places a heavy importance on governance—who owns the land and how can it be used?
Director of WWF Colombia, Sandra Valenzuela, explains, “I like to think of Heritage Colombia as ‘parks for peace and peace for parks’… Not only will better management and governance of the parks help bring peace to the country, but peace in the country will also help ensure that our parks are healthy for generations to come.”
Thanks to the previously FARC controlled (non-protected) zones being opened up, natural gas and palm oil have blossomed as new industries, farms for both quickly expanding on land that was once too dangerous to leverage.
Taxis Versus Uber (And Cabify): Colombia Edition
In a now-familiar pattern, taxi unions are up in arms about the import of popular international ride-hailing services, including Uber and Cabify. Both companies are currently operating in Colombia… but without undergoing any legalization.
Countries across the globe have had to make decisions on ride-hailing services at the government level, as taxi unions protest, strike, and block legislation at every turn. Startlingly, there have been many cases of violence against Uber drivers in country’s whose taxi drivers claimed “unfair competition.” Many countries have found ways to work with the services, but some have denied a free-market in transportation and have ousted the app. Only the commuters suffer…
In Colombia, taxi unions are likewise protesting, and the government is considering the situation without any verdict yet for either party.
A Taste From Back Home…
Every year sees new North American franchises arrive in Colombia. You can now get your venti from Starbucks and a dozen Krispy Kremes on your way to work, just like you may have back home.
Coffee and donuts are only the most recent additions to the lineup, though. For a taste of back-home nostalgia in Colombia, you can also grab a bite at Johnny Rocket’s, Wingstop, the Hard Rock Café, Hooters, TGI Friday’s, Papa John’s, Burger King, Dunkin’ Donuts, McDonalds, Subway, KFC, Domino’s, Pizza Hut, Chili’s, P.F. Changs, and Taco Bell.
International shopping options are even more comprehensive… American Eagle, Calvin Klein, Coach, Forever 21, Levi’s, Office Depot, Nike, The North Face, Victoria’s Secret, among many others grace big-city malls. Bogotá is home to the most international brands, but Medellín also sees a good number of them.
More Expats, More English
Our Colombia Insiders report hearing much more English as they go about their day-to-day lives in Medellín, especially in El Pobaldo, one of our favorite neighborhoods in Colombia’s culture capital.
El Poblado could be called the Beverly Hills of Colombia… With lush, shady streets, tumbling mountain streams, and excellent residential options, it’s no wonder that El Poblado is Medellín’s most popular area for expats, travelers, and tourists.
Venezuelans Seek Safe Haven In Colombia
As Venezuela’s situation becomes increasingly dire every month, more and more of its citizens are flooding into Colombia. Many are middle- and upper-class people bringing money into the country, seeing the opportunity across the border.
Though neighbors, the two countries couldn’t be further apart economically, with 25,000 or more less fortunate Venezuelans crossing the Simón Bolívar bridge into Colombia every day seeking safety and a means to live—even just supplies of medicine or basic food items. Those who have the means are flying into major cities and infusing them with their own talents and capital.
The Real Estate Market
Property Values Still On The Rise
The prices of new construction and existing construction have been rising steadily across the country since 2002.
Between 2005 and 2016, prices of high-end housing in Medellín and Cali have risen by close to 10% annually, while prices in Bogotá have risen by 11% annually.
This is record growth in an unleveraged market. Colombia’s largest cities are posting double-digit annual growth in a market with an astonishingly low 3% mortgage penetration rate. This is indicative of a stable market, as leverage usually plays a significant role in the creation of housing bubbles. With little leverage available to inflate demand for housing, investors can rest assured that their Colombian assets are relatively bubble-proof for the foreseeable future. It also hints at the future growth potential. As mortgages become more widely available, demand for real estate will increase and holders of Colombian real estate should enjoy generous returns even greater than those shown historically for the past 15 years.
Despite Robust Price Growth, Value Remains
In Colombia’s nicest cosmopolitan centers, real estate can be found for US$80 to US$120 per square foot.
Medellín continues to be the least expensive cosmopolitan city worldwide on a cost per square meter basis (Quito, Ecuador, used to be, but with its U.S.-dollar based pricing, it hasn’t befitted from thedollar’s strength as Medellín has).
New Laws, Less Inventory
A new law passed in Medellín this year imposes standards making it harder to build smaller condos (around 75 square meters)—meaning their value could go up from here on out. This could be a good potential investment opportunity, but our market experts on the ground tell us the competition is still high for these size short-term units, and that larger units aimed at business travelers (especially on El Poblado’s Golden Mile) could be a better bet nonetheless.
The Verdict On Airbnb
The government is cracking down on unlicensed short-term rentals, which include Airbnb units.
Commercial real estate firm CBRE, which carried out research on behalf of the hotel industry, concluded that property managers are listing rather than individual homeowners, and proper taxes are not being remitted.
Airbnb in Colombia is now required by the Ministry of Commerce, Industry, and Tourism (MinComercio) to register with the National Tourism Register. On Aug. 7 of this year, Colombian Minister of Commerce María Lacouture announced, “Those who have properties on the platform have 100 days to formalize their situation. The registry will allow us to standardize processes with businessmen and create formal tourism guidelines and clear rules.” It will also keep their tax department better informed.
Under Colombian law, Airbnb hosts will be treated in the same way as hotels. They will be expected to clearly state prices, taxes, tariffs, and additional charges (as do hotels). In the face of unfair competition, Gustavo Toro (CEO of the Hotel and
Tourism Colombia Administration) happily responds, “This is excellent news for hotel managers because it shows government support for our industry after previous failings to regulate digital platforms. Those platforms announce hosting services in the country without complying with national regulations.”
Residency And Immigration
Changing For The Better
The Colombian government made some changes to their country’s immigration policy. The new law (Resolución 6045) was enacted on Aug. 2 and went into effect in early November with the goal of simplifying the classifications and essentially making it easier than ever to obtain residency in Colombia.
For those already living in Colombia, we can confirm that “The current visa conditions are valid, and visas under the current system will continue to be granted until [early November].”
There used to be 20 types of visas; those have been replaced by a mere three:
1) The “V” type—Visitor visa.
2) The “M” type—Migrant visa, previously temporary
visas (TP type), which includes pensioner’s rentistas,
work, and investment visas; now valid for three
years as opposed to one.
3) The “R” type—Resident visa.
Many of the former TP types have become V or M visas but the requirements have mainly stayed the same. Historically, the TP-7 was the most popular for expats; it’s now an M class visa. Requirements to qualify or apply have not changed.
The main change made to the former TP-7 has made it more attractive than ever. Where the TP-7 had to be renewed annually, the new M visa is only renewable every three years. Not only does this save time, but it also saves fees to the tune of US$300 to US$900 a year (amounting to US$3,000+ over five years to get to permanent residency). It also allows the applicant to apply for permanent residency upon the first renewal (as opposed to four, as in the past).
The visitor visa now includes two years for those on an intercultural exchange or working holiday but, apart from that, the usual 180 days apply like normal. Keep in mind that resident visa holders with a cédula de extranjero (ID card) should not be absent from Colombia for more than two consecutive years. Requirements to obtain the pension visa have not changed.
Student visas are now for the time of the course rather than a standard three years. (To prevent students continue living in Colombia after their studies have finished.)
Marriage visas now require the Colombian person in the relationship to provide a written and notarized letter giving their permission for the non-Colombian to seek the marriage visa.
Other changes regard interviews, bank verification, and small start-up businesses.
The new law states that interviews may be requested if Colombian immigration have a reason to be suspicious of an application or need further support before deciding whether to grant an application. Interviews are not new. It is merely that under the new law, they will become more common.
Regarding bank verification, the new law prevents applicants form declaring, “bank statements available upon request.” Instead it forces statements to be provided. Likewise, interviews and information provided regarding small start-ups will become more thorough under the new law in order to make sure that companies will actually operate. In other words, they will not be a phantom company and used merely to obtain a visa.
Timing is going to change. Processing times for straightforward visas are anticipated to stay the same or decrease. Processing times for more complicated applications will increase as checks will become more thorough. Additionally, E-visa applicants must obtain the physical visa stamp at a Colombian consulate within 30 days of the electronic issue. Resolución 6045 halves the current time frame of 60 days.
All in all, the changes do not amount to much for Americans or Canadians in their thirties or over.
You can read more about these changes on the government website (in Spanish).If you’d like to consult with an expert, contact our recommended attorney here.
The Economy
Colombia On The Up And Up
Recent events have many predicting an economic boom in Colombia for the near- and long-term…
The official disarmament of FARC in June of this year opened up many parts of the country that were previously inaccessible as well as the minds of foreigners who conceived of Colombia as dangerous.
More specifically, certain strategic zones such as Los Llanos and Caquetá are now available for agricultural production. This has led to expansion in this sector that is far greater than that experienced in any other sector of the economy at 7%. The benefits of this will be felt in the country’s total GDP, adding US$20 billion in exports.
This, as well as the boom in tourism, is also expected to have a positive impact on employment. It is reported that 4 million Colombians are employed by the tourism industry alone, and it is likely that this number will grow with the coming influx of tourists. New hotels and eco-tourism ventures are being readily developed, and this year alone, arrivals have increased by 21%.
Additionally, Colombia’s industrial sector is also on the rise, with production up 6.2% in the first half of this year. Oil is also beginning to recover from the price plunges experienced several years ago that badly hurt the country’s economy which was dependent on it.
All of these developments are making Colombia an enticing investment destination, and FDI is expected to reach US$36 million. In fact, tourism and agriculture alone could push the economy into a growth rate of 5.6%, making it one of the fastest growing in Latin America. Diversification means sustainability for Colombia’s growth, and all indicators are pointing up for its economy.
Finances And Banking
Tax Changes
Colombia made some significant and positive changes to their tax regime this year.
Most notably for expats, the taxation of pensions exclusion is still in there, and not by omission—it was expressly re-stated.
Here is a summary of notable changes:
• IVA (the value-added tax) went from 16% to 19%;• A special 5% IVA rate for sanitary napkins was
introduced to match the tampon tariff;• New jail terms of between 4 and 9 years for tax
evasion;• Now there are three tax tables:
• One for wages and pensions,• One for non-wage (rentista) income,• One for dividends (which is lower).
• A new top tax rate of 35% (up from 33%) applicableto non-wage, non-pension income.
The IVA affects everyone in the country, and the pension exclusion is a standing controversy resolved.
Our in-country lawyer added the following: “As per the investors’ side, the treatment became much more beneficial.
“If a non-fiscal-resident investor receives Colombian-source income (which has already been subject to a withholding by the originator of the income), the investor no longer has to file a tax declaration.
“Before, if an investor surpassed the mentioned threshold, he had to file and declare—even if he was not a fiscal resident.”
Government And Military
The Pen Is Mightier Than The Bullet
Here at Live and Invest Overseas, great pride comes with knowing we have been at the forefront of recommending Colombia as a world-class destination for nine years now…
Last year’s news regarding the end of 50 years of fighting couldn’t have been better received by us. Less than two months after Colombians rejected President Juan Manuel Santos’ first peace accord with FARC insurgents (50.2% to 49.8%), officials from both sides signed a new agreement in late November 2016.
Sitting before an audience of 800—and signing with a bullet that has been converted into a pen—President Santos and FARC leader Rodrigo Londoño ceremoniously signed the amended pact, Santos saying of it, “this new agreement is better than the one signed in Cartagena. It’s better because it encompasses the hopes and aspirations of the vast majority of Colombians.”
Londoño put his feelings in simpler terms saying, “only we can put forth a means to definitely end the war and take on any contradictions in a civil way.” He had proposed having a transitional government in order to ensure all measures in the peace agreement were realized.
The half-century struggle between the Colombian government and FARC has left more than 60,000 missing, 260,000 dead, and nearly 7 million inhabitants displaced.
One Year In, The Peace Holds
When we began paying attention to Colombia way back in 2008 the country was maligned, misunderstood, and mistrusted for two reasons—Pablo Escobar and the terrorist group known as FARC.Even back then, Pablo was long dead. However, Las Fuerzas Armadas Revolucionarias de Colombia (FARC), the Revolutionary Armed Guard of Colombia, carried on their terrorizing... as they had been doing for more than half a century.
As Colombia has worked for years to marginalize the FARC, its President Santos has engineered another, more direct approach to ridding his country of the terrorist cancer. Since taking office in 2010, Santos has worked to reach a peace accord with FARC rebels. For his efforts, he was a recipient of the Nobel Peace Prize in 2016, awarded just 10 days after signing the pact.
After long months at the negotiating table with FARC leaders in Havana, Cuba, Santos thought he’d achieved an agreement in October 2016. Then, in a vote that surprised the world, on Oct. 2, 2016, Colombian voters rejected Santos’ proposal in a national referendum.
In November, though, the deal finally went through. Colombia’s Congress has approved a revised peace deal with FARC. By pushing the new deal through Congress, Santos bypassed the need for another referendum.
For decades, Colombia was written off by foreign investors and the world’s tourists... for good reasons.
Now both of those reasons—both Pablo and his cocaine-trafficking goons and the terror-spreading FARC—are officially history.
2017 saw the implementation of the pact’s many promises on both sides, showing continued commitment from both parties.
…And Grows Stronger Every Day
On the heels of its great success, the government is now also negotiating peace with the second, much smaller guerrilla group, the National Liberation Army (ELN). We hope to be able to report strides on this front in next year’s issue…
Awards And Titles
All Indexes Point This Way
Hot on the heels of Live and Invest Overseas’ own 2017 Overseas Retirement Index, InterNations published Expat Insider, a survey listing the world’s top spots for expats. InterNations liaised with 12,500 respondents representing 166 nationalities and living in 188 countries or territories in order to compile their report. Rankings are based on quality of life, ease of settling in, working abroad, family life, and personal finance.
In the 2017 edition of the InterNations Expat Index Report, Colombia climbed 12 spots since 2016 and cracked the top 10 to claim the title of 8th Best Country for Expat Life. This was largely due to Colombia’s significant improvements in affordability and quality of life, but the country also ranked high for leisure options, personal happiness, health and wellbeing, and travel and transport.
Among reasons cited by expats for choosing Colombia:
• Colombia boasts one of the lowest cost of livingindices in the world. Colombia has the secondhighest biodiversity in the world (behind Brazil).
For nature lovers, a wealth of experiences and opportunities awaits.
• Colombians are some of the happiest and friendliestin the world, anecdotally making it easy for expats tobuild themselves a positive, helpful network of localfriends and acquaintances. By all recent reporting,Colombia has consistently been ranked as one of thehappiest countries in the world (consistently in thetop three).
• Diversity of lifestyles, with four metropolitan citiesoffering a variety and appealing array of livinglocally, as well as rural options for country mice.
Colombia’s Coffee Region One Of The “Best Places To Go In 2018”
Frommer’s has just recognized the coffee region of Colombia as two of the “Best Places to Go in 2018.”
The Eje Cafetero, the country’s Coffee Axis, or Triángulo del Café (Coffee Triangle), extends through the Caldas, Quindío, and Risaralda departments. The most visited cities famous for coffee are Manizales, Armenia, and Pereira, but our long-time favorite city, Medellín, is also in this region.
Producing coffee widely considered to be the best in the world, this region has seen an uptick in finca (plantation) openings in the last year, thanks to the peace treaty. It’s also seen a commensurate rise in coffee tourism.
Fitness First
The Association of International Marathons and Distance Races (AIMS), a running organization representing some of the world’s leading distance races, announced the Maratón de las Flores Medellín as the 2017 recipient of the AIMS Social Award, in recognition of their support for social causes.
En Camino A Rusia!
Colombia is proud to have secured a spot in the 2018 Soccer World Cup to be held in Moscow, Russia. The country will go up against Japan for the first round, to be played June 15, 2018.
Miscellany
Bullfighting Is Back In Bogotá… To Much Ballyhoo
Bogotá, Colombia, is turning back the culture clock, hosting its first bullfight in over five years in January.
The centuries-old traditional battle of bull and matador is a controversial topic these days. Originating in Spain, Colombia’s one-time colonial owner, bullfighting has faced some major upheavals in our modern era, even back in its fatherland.
While bullfighting may not be a Colombian sport by rights, it was imported over the centuries of Spanish rule and became popular. And, though it doesn’t enjoy the popularity it once did, it’s been making a comeback lately in both countries.
In 2016, over 100,000 citizens marched in favor of keeping the traditional sport in Valencia, Spain, while a few hours to the north, in Catalonia, a ban was imposed on it entirely in 2010, only to be reversed in 2016 in the wake of protests.
A polarizing activity, activists attended the Colombia event in masses, decrying the cruelty of the sport… peacefully at first but escalating to violence by the time the spectators began to arrive, hurling insults and objects at the spectators.
After the bullfight, the attendees were ushered back out and down the streets by riot police, who had cordoned off an area to keep the activists at bay. Things got ugly when the rioters broke the barrier, the police reacting with batons and rubber bullets, the event ending with six arrests.
The entire debacle perhaps owed more to political concerns than to animal rights. The bullfighting ring had been requisitioned by Bogotá’s former mayor as a cultural venue used for “activities for life, not death,” as he put it. Current mayor Peñalosa is in the hot seat for his reversal of the initiative (among other things).
In order to go back to its original use, the ring had to be renovated, taking much-needed funds from education and health care initiatives, to the dismay of city residents. While the ring may be a cultural icon for the city, Bogotá is also home to plenty of poverty and needs its social support systems.
Political concerns aside, seeing a bullfight is a bucket-list-worthy item for many folks and the Coliseo de Bogotá is a beautiful venue in which to experience one. For those who don’t have the scratch for a plane ticket to Spain for a fight, Bogotá provides a quicker and cheaper opportunity.
Welcome to the Caribbean as it once was, priced as it used to be. The Dominican Republic offers you a rich, relaxing, and truly diverse lifestyle (even on a pensioner’s budget). Plus, recent infrastructuraldevelopments mean it has never been safer or easier for foreign retirees and investors to stake their claims.
The final landing place in the New World for Christopher Columbus and his crew in 1493, today the Dominican Republic is a white-sand haven that is
surrounded by warm turquoise waters and enjoys year-round sunshine. This affordable island paradise boasts not just beaches—both remote and resort—but also virgin jungle and mountain hideaways.
The Dominican Republic is the Caribbean but so much more, a melting pot with an eclectic population and a diverse history informed by Afro-Antillean, European, North American, and Latin cultures. This not-so-little island has a lot to offer and a long history of welcoming foreigners.
The Dominican Republic Pros At-A-Glance:
• Establishing residency easy, and the country embraces—even rewards through incentives—foreign investors.• The DR is one of the most affordable spots in the whole of the Caribbean, a place where you could embrace a
white-sand retirement even if your retirement nest egg is nothing more than a monthly Social Security check.• Unlike other Caribbean islands, the DR offers residents a sophisticated lifestyle—one that is strongly European.
Santo Domingo, the oldest permanent settlement in the New World, boasts some impressive colonial architecture,along with modern shopping options, theaters, museums, and stadiums. It’s the best of island living with theopportunity to take in an opera, go to the game, get in a round of golf, or indulge in some retail therapy.
• Residents can and do work here. Many support themselves on the income they earn locally—whether frombrick-and-mortar business, online consulting, or offering their services locally.
• Real estate is a bargain and there are no restrictions posed on foreigners. The average cost per square meterin our favorite town in the DR, Las Terrenas, is about US$2,100
• Taxation in the DR is jurisdictional, meaning this is a tax haven, as you’ll only be taxed on income earned in thecountry.
The Dominican Republic Cons At-A-Glance:
• Because this is an island, some commodities come at a premium… electricity is expensive, as are any importedgoods—which comprises much of what there is to buy (think furniture, electronics, and familiar food brands).
• Infrastructure can be poor on some parts of the island, and even where it is good, it can be unreliable. Most areashave good electrical coverage, but it can be spotty in more rural areas, subject to outages and brownouts.
• Adequate medical facilities can be found in the bigger cities, especially at private hospitals and clinics. Outsidethe major cities, though, the quality of care varies. Once you leave the capital, even emergency services can rangefrom extremely limited to nonexistent. While basic medical needs can be attended to nearly on the island, foranything major or specialized, you’ll want to seek health care elsewhere.
+
-
The Dominican Republic In 2017 And 2018
Currency Outlook
The rate of the U.S. dollar to the peso remained steady throughout the year, starting at 46.69 Dominican pesos to US$1 and seeing a slight rise to 48.07 by mid-November. This has led to some inflation and the government continues to increase the taxation of tobacco products and alcohol.
Path Of Progress
Expanding Southwest
The southwest of the country, west of Santo Domingo, is beginning to develop at last.
Said to be the most beautiful part of the country, this is where the mountains descend into the sea and has been the heart of ecotourism in the Dominican Republic.
Although the government has been promising to develop the infrastructure in this area for years, it was only recently that President Danilo Medina took major hotel owners to Bahia de las Aguilas near Pedernales—said to be one of the most beautiful beaches in the world—and the announcement has been made that a new airport will also be built in the area, along with shops, a harbor, and new roads.
Ocoa Bay Vineyard, a stunning, breathtaking area about two hours west of Santo Domingo, is the first developed vineyard in the Caribbean. Although oenology isn’t typical of the Caribbean, the tropical conditions make it a great place to grow grapes. (Aside from the scenery, the wine is delicious.) The vineyard property has plans to develop luxury accommodations for guests, with a boutique hotel and several villas.
…And In The North
U.S. investors plan to dedicate US$1 million in the Playa Grande project in Rio San Juan in the north of the country after meeting with President Medina, who lent them great support and confidence in the endeavor.
Lead investor Michael Meldman, president of Discovery Corporation at the Orlando Martinez Hall of the National Palace claimed after his meeting with Medina that this project “excites us… more than any other in the world.”
Bringing in over US$150 million in capital, Meldman projects the development will boost the local economy, bringing upwards of US$1 billion in total and generating 2,000 jobs.
The construction of a golf course on the premises has been the most ambitious aspect yet. The foundations were laid by former owners, but Meldman has invested US$10 million more and allocated US$7 million more in the hopes to create the largest course in the world here. “We think that this golf course could be the driving force behind this project, as it promises to be the most extraordinary golf course on the planet,” he comments.
The first phase, to be launched in January, will include 100 new properties. “The goal we set ourselves is to make Playa Grande the most valuable and important resort in the Caribbean.”
Access
Southwest launched a new route from Ft. Lauderdale, Florida, to Punta Cana this year.
Social Changes
Emergency Services Expansion
The new 911 system for citizen safety is now being expanded throughout the country for medical emergencies, car accidents, etc.
Having begun in Santo Domingo, the service has now moved west to San Cristobal and east as far as Boca Chica. It is also now available in Santiago, the second biggest city and Puerto Plata on the north coast.
Eventually, the system intends to cover the whole country.
The Real Estate Market
Though Prices Go Up, Value Remains
There are still great deals to be had on real estate throughout the country, but especially in the areas targeted by most expats, such as Las Terrenas in the northeast and Punta Cana Bavaro in the east.
The best deals can be had from expats having to sell quickly, needing to return to their home countries for
some urgent reason (often for medical care or after their partner has died). These can often be owner-financed at a great rate of interest.
West of Santo Domingo, in the peninsula that runs from Barahona to Pedernales, real estate is still highly affordable—one of the best deals in the country on a pure square meterage basis.
Residency And Immigration
Change Is In The Air…
The country made some changes to their residency rules this year. None of the amendments impact the requirements for qualification, but the procedure for application is a little different now…
It is no longer possible to apply for residency from within the Dominican Republic, the process must be started in your home country. Along with the standard documentation required (passport copy; photographs; certificates of birth, marriage, etc.; bank records; medical and police reports) justification for the granting of the visa is now requested—for example, a work contract in the DR, marriage to a Dominican, intention to invest in the country, or intention to retire in the country on a rental income or a pension.
The residency visa, when granted, is good for only one entry into the Dominican Republic for an initial period of 60 days.
If the visa is approved, your application file will be forwarded to the immigration department for processing, and within 30 days of arriving, you must go to the immigration office with your passport to sign application forms, register fingerprints, and undergo the required medical tests.
The visa lasts for a year and must be renewed annually for five years when permanent residency is issued (though some scenarios allow for immediate permanent residency). All renewal applications must now be done online; they cannot be completed in person.
And Marrying Your Way In Just Got Harder
Previously, a foreigner married to a Dominican could gain citizenship after six months of marriage without
any prior formalization of residency. Now, though, all would-be citizens must obtain residency first. In addition, there are considerably more documents to be provided than under the old law, including a police report from the home country, police reports from the Dominican Republic, proof of income, proof of domicile, and bank records.
It used to be easy for the foreign spouse of a Dominican to live in the country without bothering with residency, but that is no longer the case—and foreigners who are working without having residency are being deported.
The Economy
Historically Strong And Optimistically Steady
Reigning the region as the most rapidly expanding economy in the Americas and the Caribbean over the last quarter of a century, the DR’s powerhouse economy is finally seeing some competition.
With an average annual GDP growth of 7.1% from 2014 to 2016 and 5.2% on record for Q1 of 2017, this little island has boasted a stable if not booming economy over the last several years. Foreign investment is cited as one of the top factors in this growth, a well as increased tourism.
2017 is the first year that the country is expected to be overtaken in annual GDP growth (by Panama, with a projected growth of 5.8%).
Despite the destruction inflicted by Hurricanes Irma and Maria on key tourism hubs in September, GDP growth is still expected to bounce back in the second half of the year.
The DR remains the second-largest tourism market in Latin America in revenues and has recently surpassed Argentina in numbers of visitors, according to a new analysis from the World Tourism organization. Only Mexico has higher receipts in Latin America than the Dominican Republic.
The Dominican Republic also remains the Latin American champion in receipts as a percent of its overall economy. Last year its receipts-GDP ratio was 9.4%, the highest in Latin America and five times the regional average of 1.8%.
Government And Military
Fighting Corruption
Corruption involving many government officials, several of whom are awaiting trial on cases involving scandals and bribery, dominates the local news. This has led to a new movement called Marcha Verde, organizing marches around the country most weekends in which thousands of people wearing green march together, calling for an end to impunity.
Awards And Titles
Best In Show
Los Haitises National Park came in 10th in Lonely Planet’s 2018 “Best in Travel” top regions list.
Miscellany
Damage Control
The country was hit with two major hurricanes this year, Hurricane Irma which skirted the north coast as a category five and a week later Maria, which although only a category three moved more slowly taking the same path as Irma and caused more damage due to rain lasting for days. The Dominican Republic was lucky to escape with only minor damage, although several crops were lost.
Environmental Issues Beginning To Take Center Stage
This past year has seen the country put more emphasis on the environment, adding new national parks where
intensive farming and human intervention is not allowed. A major reforestation program has begun across the country, and there is a new emphasis on protecting the country’s main sources of water in the mountains.
Las Terrenas In The Limelight
For the 10th episode of the 8th season of their series “Caribbean Life,” Home and Garden Television (HGTV) showcased one of our longtime favorite Dominican Republic destinations: Las Terrenas.
The spot, entitled “Peace in Las Terrenas,” was released in April (the full episode can be seen from iTunes). It focused on Mauray, a busy Californian mother of two dedicated to flipping homes for a living.
Mauray explores the DR to find the ideal home “with enough space to practice yoga.” Mauray falls for the serenity of the natural setting and the diversity of cultures she finds in Las Terrenas.
What “really made her feel like home” was Los Cocos Residences, a master-planned residential development comprising six buildings at Playa Bonita, one of the most picturesque settings along the DR’s northern coast in the Samaná Peninsula, where, as a happy owner, Mauray enjoys access to an exclusive clubhouse, private pool, grilling area, and a host of other First World amenities.
For more information on Playa Bonita residences, click here.LINK PLAYA BONITA LP.
Ecuador In 2017 And 2018For those looking to retire abroad, Ecuador is not only aesthetically appealing but also a logically sound decision. If you want to talk about an affordableretirement lifestyle, you want to talk about Ecuador. Life may be simpler here than, say, the fast pace of the United States, but that does not mean you must give up certain
comforts and amenities of home—quite the contrary.
Welcome to a place where your retirement will not be spent penny-pinching. Instead, you can enjoy a maid and gardener at your beautiful (and modestly priced) new home for as little as US$18 per day.
Ecuador Pros At-A-Glance:
• Ecuador uses the U.S. dollar, meaning you never have to worry about changing your money at the border orfiguring out exchange rates when shopping.
• This country offers one of the world’s best retiree visa programs, the 9-1 pensionado. With it comes a bevyof discounts and benefits, including ability to ship in used goods duty free, a discount on vehicle import tax, aspecial discount on property tax, vehicle tax, and judicial fees, plus refunds on sales tax. Plus, once you qualify, younever have to requalify or re-substantiate your income.
• Low cost of living. Whether you spend US$750 per couple per month in the country or US$1,250 in Cuenca’shistoric center, it’s hard to find a place that offers you so much lifestyle for the money.
• The colonial charm makes it a cultural gem.• Established expat communities help to make the move turnkey. You’ve got a built-in support system that has
paved the way for you in advance.• As a tax haven, you won’t be taxed heavily here as a resident—you won’t be liable for income tax, capital gains
tax, estate tax, or foreign-earned income tax.• Ecuador offers a great package of senior benefits, including 50% off all public transportation; 50% off national
and international airfare; 50% off all cultural, sports, artistic, and recreational events; and 50% off electricity, water,and telephone service.
• Excellent, affordable medical care. Many come to Ecuador just to take advantage of their excellent physiciansand facilities at unheard-of costs.
• Due to the high altitude of this mountainous country, the springlike climate is generally thought of as beingideal… Ecuador’s perennial springlike climate in the mountains means no heating or air conditioning is requiredhere. There’s little fluctuation throughout the year, and temperatures would rarely rise above 75°F. Humidity is acomfortable 75% or less in most places (year-round), annual rainfall is low (at about 32 inches per year), snow israre and light when it does occur (in Cuenca, for example). Of course, things heat up at sea-level around the coast.
Ecuador Cons At-A-Glance:
• Ecuador uses the U.S. dollar, meaning investments here are not currency-diversified. You also aren’t going torealize any discounts because of a favorable exchange rate (as you can in so many other countries right now).
• The high altitude is hard to adjust to and may be unsuitable for people with certain health conditions.• The infrastructure is of developing-world standard—that is to say, it can be poor.• The lack of regulation throughout Ecuador can be frustrating and make getting things done very difficult.• There is an element of dishonesty in the culture. It’s not uncommon to be scammed in small ways in daily
interactions… some of this is the typical “gringo pricing” you should expect anywhere in Latin America, but someis a little more malicious. Always be sure to count your change at the register, getting short-changed is a frequentoccurrence. Costs are often stated as all-inclusive when you’re really paying extra for the extras. Being suddenlycharged for something that you didn’t expect to pay for is common.
+
-
Residency And ImmigrationMajor Changes To Ecuador’s Visa Process
Ecuador’s immigration law has undergone a major overhaul, effective Feb. 6, 2017.
Some changes are still unclear or undefined, we’re working on getting a comprehensive write up, meantime, the process is still fairly simple with low thresholds for qualification, but there are several new aspects to be aware of…
Here are the most important points we’ve been able to confirm so far:
Temporary Resident Visa: This new category allows you to stay in Ecuador for up to two years, and it can be renewed one time. Ecuador offers 13 types of Temporary Resident Visas. The ones most commonly used by expats are for pensioners, investors, and those with non-pension income from abroad. On a Temporary Resident Visa, you may only be absent from Ecuador for a cumulative 90 days per year.
Revised Permanent Resident Visa: This visa now requires that you have held a Temporary Resident Visa for at least 21 months. Additionally, you may not be absent from Ecuador for more than 180 days per year for each of the first two years. After the first two years, you may be absent for up to five years without losing your status.
You need not hold the Temporary Resident Visa in order to qualify for the Permanent Resident Visa if you are married or in a civil union with an Ecuadorian citizen; you’re a disabled person dependent on a citizen or permanent resident; or you’re closely related to a citizen or permanent resident (second degree).
New minimum income requirements: The minimum income requirements for the pensioner and rentista visas are no longer set; the amount needed is simply not specified in the law. US$800 used to get you in the door… and it might still… or it might not. As soon as we get some anecdotal evidence of what seems to be acceptable, we’ll report on it.
Investment capital change: The minimum capital requirements for investor visas are no longer static amounts, but based on multiples of the minimum wage of the country. The multiples vary according to how and in what you’re investing. (It used to simply be US$25,000.)
Health insurance requirement: Both temporary and permanent residents must obtain private health insurance, or they must opt in to Ecuador’s social security system (ISSS), which gives you access to the health care system.
Residents may vote: Anyone who has resided in Ecuador for more than five years will have the right to vote and may also hold public office.
New process for importing vehicles: The murky process for importing vehicles has been changed and clarified.
Government And MilitaryChanging Of The Guards
For the first time since 2007, Rafael Correa lost the Ecuadorian presidential election of April 2017, heralding a new era with Lenin Moreno at the helm.
Correa made constitutional changes to extend the number of terms a president could sit—it had previously just been one. Correa served a total of three, four-year terms before being democratically ousted.
Moreno won with a 51.17% majority. He had been vice presidency from 2007 to 2013 under Correa, and was a handpicked choice by Correa, along with his vice president, Jorge Glas.
While the body in the seat may be different, the party has not changed and, again, he was supported strongly by Correa, meaning it’s likely very little will actually change politically. Really, Moreno’s victory was a Correa victory—he has secured an influential hold over the country for another four years.
Running rival Guillermo Lasso from another party has already brought the election under fire, questioning its legitimacy, and his supporters have protested in Quito and Guayaquil. The election results have been officially recognized, though, by the Organization of American States’ (OAS) electoral commission, the United States, and several other Latin American countries.
Awards And TitlesThe Go List
Quito came in 25th out of 52 on Fodor’s 2018 “Go List.”
Mexico offers lots of options and opportunity for the expat. This is a big, extraordinarily diverse country that offers two long coasts, mountains, and colonial cities… not to mention Mayan ruins, jungle, rain forest, rivers, and lakes.
Mexico is the most accessible country in the region from the United States and Canada. Being in North America, this country is home to many American franchises, from McDonald’s to Pet Depot and Walmart to Starbucks. Almost anything you buy in the States is also available in Mexico.
Mexico is the #1 overseas destination for North Americans, with more than a million expats calling it home. Mexico is
home to the biggest established population of American expats in the world. Ajijic and Chapala are two of the world’s biggest established communities of North American retirees overseas (though these aren’t our top recommendations in the country).
And all these expats are enjoying a low cost of living at today’s exchange rates, while new arrivals are getting some good property bargains.
Because of its close relationship and proximity to the United States, Mexico is, perhaps, your best choice if you seek an adventure overseas with all the comforts of home.
Mexico Pros At-A-Glance:
• Mexican residency is the easiest and fastest to obtain in our experience. One of our contributors says he wasable to get Mexican residency recently in about 20 minutes, without translations, apostilles, or notarizations… afeat you won’t match anywhere else.
• Health care is high quality, and Mexico is home to the largest hospitals in Latin America. English-speakingdoctors who trained in the United States are easy to find, and costs are at least half of what they would be in theStates, including for prescriptions.
• English is spoken widely throughout the country thanks to its neighbor to the north.• Extraordinarily easy access to United States by land, sea, or air. Mexico is the most accessible country in Latin
America from the United States and Canada. As Mexico is one of the top 10 most visited countries in the world,access to elsewhere is easy, too, and the Mexico City Airport is the largest in Latin America.
• Because of the close proximity to the States, there are lots of familiar brands and franchises to avail ofthroughout Mexico, including Walmart, Starbucks, Home Depot, Auto Zone, Sam’s Club, Pet Depot, and more.Almost anything you buy in the States is also available in Mexico.
• Mexico is home to the biggest established population of American expats in the world (at Ajijic and Chapala)and these populations help to make for an easy transition.
• This is a massive country, the geographic and cultural diversity is great.
Mexico Cons At-A-Glance:
• The typical mañana attitude is pervasive throughout Mexican culture. Things don’t happen quickly here.• The standard of infrastructure varies throughout the country.• Natural hazards are a part of the landscape. Earthquakes and hurricanes do happen here and can be damaging.• Public transportation in parts of the country are old and in need of replacement.
+
-
Mexico In 2017 And 2018
Currency Outlook
The U.S. dollar has maintained its strength against the Mexican peso throughout 2017.
At the time of this writing, the Mexican peso is trading at 18.77 to the U.S. dollar—less than 2 pesos lower than it was trading when we published this issue this time last year.
Since 2014, the Mexican peso has depreciated roughly 50% against the U.S. dollar.
Path Of Progress
Highway To Heaven
The Mexican government recently completed a new highway between Durango and Mazatlán. The trip used to take between six and eight hours, and now it takes just three. One of Mexico’s largest infrastructure projects, the 143-mile (230-km) highway includes an amazing 115 bridges and 60 tunnels.
The three- to five-hour reduction in drive time is critically important in this case, because (for people in Durango and beyond) it allows Mazatlán to be a weekend destination instead of an annual vacation destination. This has increased the number of visitors to Mazatlán noticeably.
And, this year, it looks like those visitors are starting to buy.
Mazatlán’s Facelift
Mazatlán—which came in 3rd out of 30 on LIOS’ own 2017 Overseas Retirement Index—recently renovated its historic center and is undergoing another major upgrade, as are other coastal sectors.
Here are some of the projects just finishing up:
• Lights have been embedded in sidewalks to wash overthe fronts of historic buildings at night.
• The sidewalks were widened and renovated for a muchbetter walking experience.
• The paved streets were ripped up and replaced withcobblestones.
• Thousands of palm trees were planted along the
streets, creating more shade and better visual appeal.• Antique-style lights were installed throughout and
connected to the city water system, so they canautomatically water the hanging plants that aresuspended from them.
• Flowering plants, small palms, and bougainvillea havebeen added to the sidewalk borders.
In addition, many less romantic upgrades have been completed. Underground electric service was installed in the historic center to many of the homes that still had wires strung down the street, and the downtown also received new sewers, internet cable conduits, and underground high-tension electrical service.
Old curbs have been replaced with new planters, and streets have been repaved with cobblestone.
Outside of the historic center, there’s even more going on...
The Mazatlán boardwalk—claimed to be the world’s longest at five miles (eight kms)—has been widened and renovated. In many sections, bike lanes have been added along with new exercise areas and beachfront locations for assembly... for small concerts, expos, etc.
The world’s longest boardwalk is now wider, repaved, and with new lighting
This massive upgrade was brought on by Mazatlán’s selection as the host of the 2018 Tianguis international tourism convention, which brings thousands of tourism professionals from around the world.
Mazatlán was selected as the venue in February 2017, and they subsequently received a huge grant for these
infrastructure upgrades. Prior to that time, no one saw this windfall on the horizon.
Access
Several new direct routes opened up to Mexico this year, including from San Jose, California, to Mexico City and Guadalajara by Aeromexico; San Jose, California, to Cabo San Lucas by Southwest; Ft. Lauderdale and Orlando to Mexico City by JetBlue; Seattle to Mexico City by Delta and Aeromexico; Tokyo to Mexico City by ANA; Miami to Guadalajara and Mexico City by Volaris; and Columbus, Ohio, to Cancún and Mexico City by Vacation Express.
Social Changes
Problemas Con Agua In Mexico City
Mexico City’s ongoing water woes have become a public health hazard and environmental disaster. Regular water shortages in the city have led to drilling more, and drilling deeper, weakening the ancient clay lake beds on which the Aztecs first built much of the city. According to recent reports, this is causing it to crumble even further.
Through the rainy season, regular flooding is one symptom of the city’s failing water infrastructure. As the population explodes past 20 million, and agriculture and industries grow, water demand is surpassing the supply.
Many poor communities in the city lack adequate access to any supply of potable water. The city continues to drill, but it is unsustainable.
The Real Estate Market
Ripple Effects
In September, Central Mexico suffered natural disasters causing much misery and heartache. In the following months, the ripple effects have been felt across the legal world and the property market.
It has been estimated that approximately 1,800 properties were damaged or destroyed. Mexico is now looking for ways to improve the structures of new buildings. Unfortunately, planning law is normally updated as the result of a disaster; in other words, in accordance to what the disaster has taught.
Seldom are laws introduced before a disaster occurs. “Back in 1985, the [planning] code book was about 80 pages long. Now, it’s a massive brick—like 600 pages long,” said Sergio López, who inspects Mexico City’s buildings. The code was changed after the 1985 earthquake, and new stipulations include the mandatory employment of steel-reinforced concrete, the provision of escape routes, and updated weight-bearing regulations.
The structures that could not cope were either built prior to 1985, were built illegally (i.e., not in accordance to all planning regulations), or were poorly erected home extensions (again, not entirely compliant with the law). Authorities have confirmed that the code will be updated in 2018 and promise it to be one of the world’s toughest.
However, more than anything, the code desperately needs proper enforcement; for example, a recently built school should not have been prey to the September earthquake.
Journalists report that the area affected by the earthquake was home to 33 million residents (27% of Mexico’s population). Additionally, the area is said to have generated more than 30% of the country’s national GDP.
As a result, CBRE (one of the leading players in the real estate market) has indicated a demand for temporary, turnkey office space. Many of the office buildings that fell victim to the earthquake were Classes B and C. Consequently, the Class A market is currently awash with tenants. It is anticipated that 920,190 square meters (9.8 million square feet) of Class A, move-in-ready property is needed to satisfy the demand.
Additionally, the disaster had a particular impact on street-level retail property in mixed-use buildings. This has given rise to three consequences. First, the property market for retail space will boom. Second, the products that the shops sell will need to be replaced. For example, retail itself is expected to see increased sales, especially in home-improvements and groceries. Third, as a result of the previous two factors, the real estate market for warehouse space is particularly strong. Building materials, shops’ stock, and aid supplies all need to be stored in warehouses. The least affected real estate is the hotel sector, with only 5% affected.
Although for sad reasons, Mexico City’s real estate market currently has heavy demand.
Get Into Mazatlán’s Market Now—While You Still Can
Although it’s too early to get good 2017 statistics, empirically, the inventory has really cleared out in Mazatlán. Mazatlán expat and Overseas Property Alert Editor Lee Harrison says, “I notice this everywhere, from the missing sale signs on buildings to the reduced listings on real estate websites.
“For a couple of years, I was able to use some of the same property examples over and over in different articles about Mazatlán. They not only remained for sale but, in some cases, their prices were actually going down as time went by. In the past six months, however, these old favorites have been sold.
“To pick another example, the new oceanfront project Torre eMe is at the south end of Mazatlán’s longest beach and walkable to the historic center. The beach and the area are most popular with Mexican buyers. They had nine ocean-facing units for sale at the end of September. But, when I stopped by on Nov. 28, they were gone.
“So today, those large, luxury apartments for under US$200,000 on the beach are almost all sold (although I found one today) and the remaining historic properties in Centro have jumped in price.
“Even the fixer-uppers in the historic center are rapidly disappearing.
“Over the past few years, the market here in Mazatlán has been recovering. According to my personal observation, by 2015 the market had stopped its decline, which was induced by its perception of drug violence. In 2016, there was a noticeable increase in the number of buyers. Now in 2017, the buyers really mean business.
“No one saw the local infrastructure windfall coming. And, to be honest, with 20/20 hindsight, the best time to buy was probably a year ago. But the second-best time to buy is now.”
A Giant Lands In Mazatlán
Keller Williams, the largest U.S. real estate agency, has come to Mazatlán (which came in 3rd out of 30 in our 2017 Overseas Retirement Index).
The franchise was bought by a long-time LIOS contact, Shaun Klynstra (pictured at the head of the “V” in
the photo), coming as a major vote of confidence in Mazatlán’s 2018 market.
Residency And Immigration
A Two-Way Street
More Americans applied for residency in Mexico than Mexicans applied for U.S. residency this past year.
Government And Military
Trashy Trends
On Aug. 5, Playa del Carmen’s municipal government introduced a trash separation program.
Cardboard, paper, plastics, aluminum, and tin is collected Tuesdays and Thursdays; glass bottles, organic and inorganic waste is collected Mondays, Wednesdays, and Saturdays. Trucks will circulate from 7 a.m. to 5 p.m. Mondays and Fridays, and from 7 a.m. to 1 p.m. on Saturdays.
Awards And Titles
Top City Of 2017: San Miguel De Allende
Travel + Leisure Magazine has touted San Miguel de Allende, Mexico, as this year’s primo destination, and it is much closer than you think. In fact, it is just south of the border.
With loads of history to explore and greenery for miles, it’s no wonder that this city has been dubbed the best to wander in the magazine’s annual list. The magazine, though, is not singlehandedly responsible for saying so. The readers are.
A survey was sent out for readers to rate various cities based on the landmarks and sightseeing, culture and food, friendliness, shopping, and overall value.
With cobblestone streets, eclectic corner stores, leafy green courtyards, historic churches, and kaleidoscopic food markets, San Miguel is a sight to behold. If it is not on your bucket list yet, you may want to bump it to the top of your list, and quick! American retirees are taking to making their stays permanent more and more.
The best time to visit San Miguel is during the dry season, November to April. With minimal rain, you will have the maximum time to stroll at your leisure along the swirling streets of cobblestone in awe of the brightly colored palette of the town. Flying into Del Bajío Airport is said to be best, followed by the 90-minute shuttle ride into the heart of the city.
Mexico has a few more destinations making headlines across travel press lately. The New York Times listed Tijuana and Puerto Escondido as top places to visit this year, as well.
All Indexes Point This Way
Hot on the heels of Live and Invest Overseas’ own 2017 Overseas Retirement Index, InterNations published Expat Insider, a survey listing the world’s top spots for expats. InterNations liaised with 12,500 respondents representing 166 nationalities and living in 188 countries or territories in order to compile their report.
Mazatlán in particular won top marks in our Index, coming in 3rd out of 30.
Mexico as a country came in 3rd in InterNation’s survey, too, thanks to its great weather, friendly people, and low living costs, despite overall low safety and health care rankings. Consistently in the top 5 each year, expats cite ease of settling in, positive personal finance, and reasonable cost of living. One respondent added, “the climate is almost perfect, the people are friendly, and the food is to die for.”
Top Of The Trips
Playa del Carmen made #20 on TripAdvisor’s “Top 25 Destinations In The World.”
Best In Show
Guanajuato came in 9th in Lonely Planet’s 2018 “Best in Travel” top cities list.
Miscellany
Safety First
We’ve always gotten queries about the crime rate in Mexico, this year more than ever… but sensational headlines tend to gloss over the comparative figures.
For example, there was a spike in crime in the historically safe Yucatán Peninsula this year, but the crime rate in the region is still only on par with that of Wyoming, to compare to U.S. statistics. Quintana Roo, the province we talk most about, home to Cancún, Playa del Carmen, Tulum, and Chetumal, is just as dangerous as Alaska.
Mexico’s First PGA Tour Held At Playa Del Carmen
The OHL Classic at Mayakoba, Mexico’s first PGA tour event, was held in early November, bringing 132 professional golfers from around the world to Playa del Carmen. The event was held at PDC’s El Camaleón Golf Club, designed by Greg Norman.
The prize, a whopping US$7,100,000, is the biggest purse of any golf tournament in Latin America, and this event is the only professional event in Latin America to offer its champion an invitation to the Masters.
The event made golf history when it became the first PGA tour event to be held outside of the United States and Canada in 2007. It’s now regarded as one of the finest on the PGA tour by both the pros and the spectators.
Thematic Fun
In September, it was announced that plans are in place to build a 300-acre, US$840-million theme park, Amikoo (named after the Mayan pronunciation of amigo), just
outside of Playa del Carmen. It’ll be Mexico’s equivalent to Orlando’s Disney World—they’ll be competing for the same visitors, too. It’s slated to be complete by 2020.
Beauty Over Function
Some of Mazatlán’s major renovations have been performed at the expense of street parking. In Centro, the sidewalks are much wider, with elegant lamp posts and plenty of room to walk. But, as a result, some of the streets are narrower... there’s plenty of room for cars to pass, but in many places, less room for parking.
In the malecón district (to the north), the center-of-street parking has been eliminated on the oceanfront road in order to widen the boardwalk, leaving many beachfront businesses with no convenient parking.
So if you plan to own a car here, this puts an even greater premium on properties that have a garage. And, if you’re planning to open a business here, it puts a premium on a location that still has on-street parking nearby. (In many locations you won’t need a car... and, if you do, you can take Uber across the downtown for about US$1.50.)
Nicaragua’s story has been anything but dull these past 40+ years. Political unrest, civil war, economic disaster... then a renaissance. The Sandinistas werepushed aside, and the free market was given a chance.
During those sunny days, the tourists came, followed by the speculators, the property investors, and the retirees. Speculation turned to frenzy, and beachfront property prices were pushed up and up and up with seemingly no end in sight. Then came 2008. Nicaragua, like many markets worldwide, fell hard in its aftermath.
Now, this country is reemerging to retake her place among the most appealing bargain lifestyle and retirement choices in the world.
Not only tourists, but property buyers, retirees, and foreign investors are beginning to find their way back to this
country, as well. Times were tough for Nicaragua 2008 through 2011, but times are changing. Our colleagues on the ground report that 2013 was a turnaround year. 2014 was even more active, and growth has continued at a healthy rate. The numbers support these boots-on-the-ground observations. In 2013, foreign direct investment (FDI) in this country increased 17% from 2012 and continues to expand.
This is the time to be looking at Nicaragua again. The dog days are history, tourists are pouring in at an all-time record rate, but prices remain low, both for living and for buying real estate.
Regardless your agenda—be it to live, to retire, to invest, or some combination thereof—Nicaragua is offering a great deal of opportunity that you should be paying attention to right now.
Nicaragua Pros At-A-Glance:• Nicaragua quietly launched the most affordable retiree residency program in the world, requiring an income
of only US$600 a month. It comes with the added benefits of no sales taxes on materials used to build a home(saves an estimated 15%), duty-free import of personal and used household goods, and the ability to purchase anew automobile (locally) duty-free every four years. Plus, you won’t be liable for tax on foreign-earned income.
• The cost of enjoying all this diverse and beautiful country has to offer is about as bargain-basement as itgets. Nicaragua is one of the most affordable places in the world to enjoy a comfortable, full, and richretirement. A couple could retire here on a budget of as little as US$1,040 per month.
• U.S. dollars are widely accepted throughout the country, acting as an alternate currency to the córdoba.• The medical care is both inexpensive and excellent. The Hospital Metropolitano Vivian Pellas in Managua,
opened in May 2004, is considered the best private hospital in all Central America. It provides first-class full-service care 24 hours a day.
• This is a land of lakes, beaches, national parks, exotic islands, and charming colonial towns, including the oldestcity in the Americas… there is lifestyle here to suit anyone—you just have to choose which one is right for you.
• A report from the United Nations Development Program (UNDP) names Nicaragua the safest country inCentral America.
• It’s highly accessible from the United States. Getting back home to visit family is easy.
Nicaragua Cons At-A-Glance:• Secondary roads throughout the country are in poor condition.• Traffic congestion in cities is bad, as is the accompanying air pollution.• Litter throughout populated areas is a problem.• Power outages are not uncommon.• Construction here is not to North American standards and you should be on the lookout for corners being cut.
Hot water, for example, is not a given—even if a tap has two faucets, they may both be plumbed for cold water.• Service standards can be inconsistent. You may have good service on occasion, but, generally, good and
attentive customer service is not common.
+
-
Nicaragua In 2017 And 2018
Currency Outlook
At the time of this writing, the Nicaraguan córdoba is trading at 30.80 to the U.S. dollar—almost exactly where it was trading when we published this issue this time last year.
The dollar has gained strength against the Nicaraguan cordoba, steadily rising over more than a decade now.
Path Of Progress
Roads To Change
Part of the funding for a major highway project in capital city Managua has been secured. Estimated to run to US$256 million, it will go a long way to easing congestion in this busy city.
Coastal roads are being improved leading out from the capital, with a main Pacific highway directly west of Managua in the final stages of improvement (good news for local development Gran Pacifica, whose residents are glad to reap the benefits).
A new coastal highway from Managua to Rivas in the south is underway. The 131-km road will improve connections between eight towns on the coast.
The Economy
Steady As She Goes
The country’s economy grew 4.7% in 2016, with 4.8% growth projected for 2017’s final numbers. The steady rate is thanks to the country’s strong export performance, and growth of 4.7% is projected for 2018.
Geothermal Generation
Nicaragua could be a key Latin American developer of geothermal energy in coming years, the country pushing heavily for investment in this sector—to the tune of US$15 million.
Currently, 52% of the country’s electricity comes from renewable sources, but if this project proceeds, the goal will be to generate 95% by 2030.
Exotic Export Success Skyrockets In Nicaragua
From pineapples to scrap metal, typically unconventional exports for Nicaragua are seeing a significant increase compared to 2016. Other vastly nonlinear items on this list include confectionery and pharmaceutical products, fresh oranges, timber, cocoa, and leather goods.
Pineapple exports have actually shown an increase of over 4,000%, which is directly related to international demand, mainly from the United States.
Leather exports have seen 220% growth compared to the analysis in 2016. This is greatly related to the demand of markets such as that of Europe. Leather manufacturers have been in need of leather for linings of luxury vehicles, footwear, protective sleeves and bibs, book covers, bottle holders, sashes, belts, folders, wallets, handbags, and makeup cases.
Nicaragua will add guacamole and virgin avocado oil to the list as they launch a new agricultural enterprise that manufactures and exports both to the United States.
With the decline in coffee exports due to the decay of production in Carazo, many producers turned to the avocado as an alternative to work their land. The Avocado Producers Association of Nicaragua declared that their healthy abundance of the fruit has penetrated both the departmental and national markets.
Marthan Arevalo, the president of the Association, is also the owner of the Mirazul del Llano farm with more than 1,500 adult avocado trees and a thousand more that are still in the nursery. One avocado tree yields its first harvest of around 500 avocados just four years after being planted. The second harvest yields over 1,000 fruits. Nicaragua also exports sweet potatoes for Don Limón,
who aims to export 1,000 containers annually by 2020—a considerable jump from the current 200 to 240. Major buyers include the U.K., Canada, and Europe.
Nicaragua Showing Strong Tourism Growth
Not only are tourists staying longer in Nicaragua, but they are spending more, too.
In a March 2017 report published by the Central Bank of Nicaragua, the average stay of tourists was 9.5 days, reflecting an increase of 9.2% compared to 2015; and the average daily per capita spending of these visitors was US$44.80, up 8% compared to 2015. In all, 2016 showed a 10% increase in tourism revenue.
Behind Haiti, Nicaragua is the second-poorest country in the hemisphere. Despite this fact, the trend of strong tourism growth, which dates back to 2013, means tourists are coming and enjoying what they are finding.
Tourism Review noted that a high percentage of tourists place a large amount of importance on commitment to the environment and the local community. And ,according to their report, the government understands this is making “sure that the population takes part in the development of the country’s booming tourism industry and also gives priority to small and medium businesses instead of big, multinational corporations, thus actually developing the local instead of just the national economy.”
With the government giving full support towards improving on the experience of tourists coming to Nicaragua, look for this strong tourism growth to have continued in 2017 and to stay strong throughout 2018.
Nicaragua: More Construction, More Hardware Stores
As the construction sector continues to grow and evolve to meet competitive demands, hardware stores in Nicaragua are thriving—signaling opportunities for independent hardware-store operators to flourish.
In 2016, the union of hardware stores reported a 12% increase in sales, despite stiff competition from foreign franchises and the opening of new branches. The increase was mostly due to maintenance in businesses and homes.
The hardware sector had anticipated 20% sales growth in 2016, but a slowdown in new construction from mid-year caused a setback.
According to Edgar Lugo, president of the Association of Hardware Dealers in Nicaragua (Afenic), the opening of several branches and entry of international franchises into the hardware sector represents significant competition for traditional hardware stores. “This, however, has not affected traditional hardware stores since they are different segments from those that large hardware stores target.”
In the last year, because of the price fluctuations on products that depend on commodities, importers only purchased what was necessary, not knowing how the market would change.
Continued growth in this sector will fuel the overall increase in Nicaragua’s economy.
Awards And Titles
Nicaragua One Of The “Best Places To Go In 2018”
Frommer’s has just recognized Nicaragua as two of the “Best Places to Go in 2018,” beating out more known and mainstream destinations in Central America, such as Costa Rica.
Overseas Living Letter 72
We’ve been making the case for Panama for nearly 20 years now, and we’re more bullish on the opportunities and upsides on offer in the Hub of the Americas than ever before.
Panama could arguably be called the world’s best offshore haven. There is no doubt that Panama has serious pluses for those looking for a country with a cheaper standard of living than the United States and Europe. Panama is blessed with beautiful islands, ample coastline beaches, mountain retreats, and colonial towns.
The people here are friendly, and, outside of Panama City, the atmosphere is generally quite laid back and easygoing. With a population of only 4 million, the country does not feel overly crowded.
If you are in the market right now for a place to live, retire, invest, or do business overseas, you’re doing yourself a big disservice if you aren’t looking closely at this little country.
Panama Pros At-A-Glance:
• A U.S.-dollar jurisdiction—that is to say, Panama has been using the U.S. dollar as its currency for about 100years, meaning stability and simplicity in your financial transactions.
• It’s the best place in the world to base your business and an entrepreneur’s playground.• One of the world’s true tax havens—as a foreign resident, you can pay zero local tax and you can operate your
business here tax free, too.• The biggest international banking center in the region, where, yes, it is still possible to open an offshore
account, even as an American.• It’s the easiest and most advantaged place in the world to establish residency thanks to the groundbreaking
Friendly Nations visa (that can even provide a work permit). The pensionado program offers retirees specialbenefits and discounts—it’s the current Gold Standard in retiree visas. Retired in this country, you can saveas much as 50% on everything from restaurant meals to in-country airfares, from prescription medicines toclosing costs on your new beach house.
• The cost of living is affordable. Outside Panama City, it remains downright cheap. A couple could livecomfortably in the interior of the country (including in many of the less developed beach towns) on as little asUS$1,000 a month, perhaps less.
• Blessed with two long coasts and myriad sand-fringed islands, plus some of the best deep-sea fishing, surfing,snorkeling, and scuba diving anywhere.
• An established medical tourism destination and home to the Johns Hopkins-affiliated Punta PacíficaHospital in Panama City.
• The infrastructure is of a high standard. This is a place where things generally work—the internet, cable TV,phone service, etc., are all nearly as reliable as anywhere in the States. The roadways and highway systems arebeing constantly expanded and improved.
• Home to more than two dozen international schools.• Offers some of the smartest beach, river, and mountain property buys anywhere on the planet today.• One of the few Latin markets where it’s possible for you, as a foreigner, to borrow locally to buy real estate.• One place in the world that’s enjoying continued growth and prosperity and that is positioned for a whole lot
more of the same over the coming decade.
+
Panama In 2017 And 2018
Panama Cons At-A-Glance:
• A U.S.-dollar jurisdiction—meaning investments here are not currency-diversified. You also aren’t going to realizeany discounts because of a favorable exchange rate (as you can in so many other countries right now).• The cost of living in Panama City has increased and is now no longer a “cheap” option (but once outside of thecity, costs plummet).• The tropical heat and humidity can be sticky and unappealing to some (of course, Panama also offers coolmountain towns that are temperate and breezy).• Pollution is a problem here.• The mañana attitude is pervasive in Latin cultures, including in Panama. Things here don’t happen quickly orefficiently, and you have to be prepared for that.• While the economy is booming and prosperity is on the rise—especially in the city—there’s no avoiding the factthat Panama is the Third World and there are high levels of poverty throughout the country.• General education levels in Panama are poor, even according to regional standards.• Service standards in Panama City are poor—attentive customer service is hard to come by.• While traffic in the city has improved significantly in the past year or two, it can still be bad in some parts.
-
Major Construction Projects On Panama’s Horizon
Three major construction projects have been presented, and environmental impact studies have been submitted, including:
1. An expansion of El Alto Hydroelectric PowerPlant. Hidro Caisan, S.A. proposes a US$75 millioninvestment to expand capacity of this power plantfrom 63 megawatts to 73.2. The plant is in Caizán,Chiriquí.
2. An urban development in Juan Díaz. InmobiliariaMar del Sur, S.A. proposes a US$55 million urbandevelopment in Juan Díaz that would include 50lots for residences, 10 for green spaces, and 40 forcommunity zones.
3. A roadworks project by the Ministry of PublicWorks. A US$30 million project to connect PuntaPeña, Bocas del Toro, with various towns in the Ngäbe-Buglé Comarca, including Buri, Man Creek, Samboa,and Gariviara, has been proposed.
First Commercial Flight From Colón Airport
On Nov. 24, the first commercial flight from Enrique A. Jiménez Airport in Colón took off for San Andrés,
Colombia, transporting five tons of cacao under the Caribbean Air Transport Company (TAECA).
Previously, it has served as an airfield for the U.S. Army. It later came under civilian control as the Colón Airport of the U.S. Canal Zone, serving Boeing 307 Stratoliners and Pan Am.
Upon the return of the Canal Zone to Panama in 1979, it was renamed Enrique Adolfo Jiménez Airport after the former president. Ricardo Martinelli reopened it in 2013, adding a new runway and terminal for US$58.
Solar Project On Canal Has Panama Looking Greener
Following the example of China, which recently inaugurated the largest floating solar park in the world with 166,000 panels, Panama has developed a small solar project on the Canal.
It currently consists of 96 panels floating on Gatún Lake that generate 22 kilowatts of energy and supply a workshop along the canal. However, a more large-scale project is in the works that would connect to the energy grid of the canal itself.
According to Urho Gonzal, one of the project developers and Energy Efficiency administrator of the canal, “Our
goal is that the future park will be able to supply 50% of the energy needed by the canal to maintain its operations during the peak hours of the sun.”
Solar projects are more effective when placed on water, as excess energy is not absorbed by water as it is with land and there is no need to clear land for their implementation. Currently, nothing similar has been attempted in Latin America, making Panama a regional pioneer.
Infrastructure Updates On The Horizon
A fourth bridge and third Metro line over the canal, an expansion of Tocumen Airport, a railway to Davíd, and a port for cruise ships in Panama City are just a few of the major infrastructure updates on Panama’s horizon.
Four international bidders are currently in contention for the right to build the fourth bridge over the canal. The billion-dollar project will take 3.5 years to complete. It will be one kilometer in length and have eight lanes, including two for the third metro line. Starting at Albrook station, it will connect to the Pan-American Highway.
Once completed, these improvements will greatly alleviate congestion currently experienced on the Centenario Bridge and the Bridge of the Americas as thousands commute from Panama Oeste daily. This is predicted to have positive economic impacts on both real estate and business, not to mention improve the standard of living for people from those neighborhoods across the canal west of the city.
Tocumen Airport also has its eyes on an upgrade: Plans for an expansion to create two new terminals and a third runway are currently in the works as Panama strives to accommodate more and more travelers. By 2022, they hope to increase capacity from 5.8 to 18 million passengers a year.
Meantime, Isabel Saint Malo, Panama’s Foreign Minister, and Wang Yi, Chinese Chancellor, recently announced plans to build a railway from Panama City to David. Not only will this boost tourism revenues, it will also reduce traffic on the Pan-American Highway (currently the only terrestrial form of access to David).
In addition to all of this, plans have also been announced for a cruise ship terminal to be built along the Amador Causeway on the Pacific side of the canal.
The consortium behind the project consists of the China Harbour Engineering Company (Chec) and Jan de Nul, a Belgian company. They have a budget of US$165 million and a proposed year and a half to complete the project.
President Varela was at the groundbreaking ceremony to turn the first shovel. He maintains that the 600,000 people who annually pass through the canal on cruise ships have been missing out on the opportunity to make a stop in Panama City. The completion of the port will rectify this, and hopefully increase the country’s tourism numbers.
All of these projects represent not only major developments in Panama’s infrastructure—possibly the biggest since the canal expansion—but also milestones in the country’s diplomatic relations. The majority of the projects will be carried out by or in tandem with international corporations.
Access
A direct service from Denver to Panama by Copa began in December this year, and Air China has announced a route from Beijing to Panama to begin in March 2018.
The Real Estate Market
Panama Property Values Rising Strongly 8 Years After Global Crisis
Backed by strong foreign property demand—particularly from the United States, Canada, Venezuela, and Colombia—the Panama housing market is today on the rise, with strong growth showing in the country’s most sought-after areas, according to local property experts.
After having fallen by about 25% during the global crisis, present-day property values are expected to remain strong in the medium-term due to factors such as the inauguration of the expanded Panama Canal and continued influx of foreign investors into the country.
According to CBRE Panama, a global real estate services company with a substantial local portfolio, during the first half of 2016 in Panama City, the average selling price of residential properties in Class-A projects rose by 8.8% year-over-year to US$3,100 per square meter (US$288 per square foot), reflecting the continued increase in demand for high-quality residential properties in the capital and surrounding areas.
For example, in Punta Pacífica—an enclave of exclusive, waterfront skyscrapers—high-end apartment prices are rising by 6% to 12%, with the average price in the neighborhood standing at around US$2,500 per square meter (US$232.50 per square foot), up from about US$2,200 per square meter (US$204.60 per square foot) the previous year.
In the Trump Ocean Club, easily the area’s most iconic tower, apartment prices are now almost US$3,300 per square meter (US$306.90 per square foot).
Along Avenida Balboa, another of Panama City’s upscale residential areas, property values increased 8% during the year to June 2016 to an average of around US$2,500 per square meter (US$232.50 per square foot). One property in the exclusive neighborhood, Grand Bay Tower, reported property prices up 35% over the same period.
Factoring a steady reduction of inventory, property prices should continue to appreciate at a moderate pace over 2017, with agents predicting short-term corrections if sellers begin to see fewer buyers. At current transaction rates, inventory lists in buildings such as the luxury residential development YOO on Avenida Balboa should be depleted by the first part of the year.
With Panama’s economy exhibiting robust growth since 2010, and tourist arrivals increasing year after year, demand for housing is expected to keep climbing. House sales for 2016 are estimated at about 10,503 units, up 27.6% from the previous year, with the total value of sales transactions projected to increase 23.6% to US$1.11 billion.
Outside of the capital, growing demand for apartments from both local and foreign buyers is still taking place along Panama’s Pacific Beaches areas, localized around the popular towns of Coronado, Río Mar, Punta Chame, Farallón, El Palmar, Santa Clara, and Playa Blanca. Over the next three years, supply of beachfront apartments is projected to increase from 400 units to over 1,600 units. Apartments in this area are currently valued between US$200,000 and US$1 million.
Outside of Panama City and the Pacific Beaches, Boquete, in Panama’s mountain highlands, remains a popular choice for expats whose options here include buying land to build a home upon or choosing from a growing catalogue of completed homes on offer,
with property prices averaging between US$90,000 to US$179,000.
Office Space
In Panama City, the market for offices rose by 2.9% in the first quarter of this year. It stood at 21% at the end of April 2017. The beginning of the year saw the city’s office space increase from 1,629,504 square meters to 1,669,189 square meters.
The second quarter of this year was up on the second quarter of 2016. Office space rose from 18% to 21%. CBRE forecasts that Panama City’s market will see six new projects by the end of this year, adding 104,870 square meters more office space. However, these projects currently have 71.3% availability (pre-construction).
CAPAC (Panama’s chamber of commerce) reported an average price of US$2,050 per square meter for Panama City. This is a US$350 increase from the prices stated in their close of 2015 report. However, that is the city’s average. Costa del Este, Panama’s mini-Battery Park City or London Docklands, has the second highest price per square meter, losing out only to Avenida Balboa. CAPAC states that by June 2017, prices in Costa del Este reached a high of approximately US$3,000 per square meter. Regarding rentals, the close of the second quarter this year saw Costa del Este hitting US$4,550 per square meter.
MLS Comes To Panama?
Panama does not yet have an “organized real estate culture” but it does have an instinct to make money. Being a developing country whose economy has only really gotten going over the past 20 years, it’s no surprise that an MLS has just come about.
In the United States, an MLS brings two benefits, one legal and one commercial. Legally, it serves as a contractual obligation. The commission rate that is offered by the listing broker is published within the MLS to other cooperating brokers and in turn becomes legal duty. Commercially, it serves as a great platform for property buyers to obtain various property listings rather than going through the website of each real estate agency one by one.
However, Panama’s new MLS acts merely in a commercial way and is not legally binding. In Central America, only
Costa Rica has an MLS resembling that of the United States, governed by the Costa Rica Chamber of Real Estate Brokers Board (CCCBR).
The Economy
Panama Takes The Lead
Taking the lead over other Latin American countries as the fastest growing economy, the US$5.3 billion canal expansion project is proving to pay off. Levies on the Panama Canal by the Panamanian government are projected to surge to US$1.6 billion this year, a 50% increase from 2016.
An expected 5.8% growth in 2017 will allow Panama to surpass the Dominican Republic for the top spot in accelerated growth for the region.
The expansion project of the canal has doubled the cargo capacity of the waterway with the creation of a third lane of traffic and construction of a new set of locks on both the Atlantic and Pacific sides. Shippers, retailers, manufacturers, and consumers of the world are now presented with greater shipping options and improved maritime service. Since its commercial operations resumed in June 2016, Panama’s economy has begun to reap the fruits of the laborious undertaking.
The capital raised from the new tolls are allotted for the completion of a new metro line costing US$1.86 billion and another expansion project at Tocumen International Airport costing US$800 million.
Business Is Booming In Panama
Panama continues to prove its place in business as 34,000 new companies opened operations in 2016. With a major influx in areas of retail and tourism, locations for fresh restaurants, bars, beauty salons, and supermarkets are popping up like daisies across the different provinces.
With a GDP of US$52 billion as of December 2016, Panama is number 59 on Forbes’ list of best countries for business. Major contributors to the growing economy include the Panama canal, the Colón Free Trade Zone, insurance, logistics, banking, container ports, flagship registry, and tourism.
Transportation and logistics, as well as infrastructure development projects, have also had a hand in the economy boost. Between the Canal expansion and the first metro system in Central America, Panama leads the region in logistics on large and small scales.
While strong economic performance is a plus, prosperity falls short of getting spread out evenly, as Panama has the second worst income distribution in Latin America. With one-fourth of the population living in poverty, Panama is seeing steady improvement as poverty reduced by 10% from 2006 to 2012.
Panamanian economists and analysts already envision further improvements for 2017 with new projections for global growth of international organizations. The International Monetary Fund (IMF) estimated a global growth of 3.4% for 2017, with an economic growth of 5.8% in 2017 and 6% in 2021.
United States Minds Its Business In Panama
Panama’s Ministry of Commerce recorded 34,000 new companies starting operations in the country during 2016. Investing US$2.451 billion toward new businesses, entrepreneurs from the United States are credited for the surge in economic activity. Ambitious gringos in Panama have led to an 8% growth over 2015.
Latest statistics reveal that, while not moving at the same pace as last year, U.S. citizens continue to invest in Panama in 2017. The first quarter of 2016 reflected 8,923 new businesses generating US$826 million, and nearly 8,300 new businesses have been recorded in the first quarter of 2017—including one capital investment of US$459 million. Abdul Guerra, director-general of the Ministry of Commerce and Industry (MICI), notes business catered to tourism represents the strongest sector.
Notice of operations indicate the sector with the highest rate of increase is the retail and tourist service industry. U.S. investments are diversifying Panama’s economy primarily in Panama City center but in other provinces, too, with foreign and expat-focused businesses—including restaurants, bars, beauty salons, car washes, supermarkets, and tourist services.
Heading To Panama For Headquarters
The benefits of an act passed in 2007 are being reaped as multinational corporations continue to be drawn to Panama as a hub for business.
The Multinational Companies Headquarters Act (SEM) defines a SEM Corporation as “That multinational company that operates from Panama offering the services described in this Act to its headquarters, subsidiaries, affiliates, or associated companies, or sets its headquarters in Panama, hereinafter Business Group. The Headquarter will always be part of a multinational company with international, regional, or important operations in their origin country” (Act No. 41).
In other words, it offers special licensing to companies willing to operate and do business from Panama, not to mention tax exemptions, visa and permits for personnel, and other incentives.
Since the act was passed, 143 licenses have been issued to date, including 12 this year. Among the most recent are Visa, McKinsey & Co., and CRRC Corp., which, along with the others, are estimated to create at least 75 jobs and infuse more than US$3 million into Panama’s economy. Bolstered by the favorable conditions and confidence the act inspires, it is likely that companies will continue to take advantage of the incentives and that more SEM licenses will be issued by the end of the year.
Panama Gaining Debt
June 2014, Panama faced a foreign debt of US$17.67 billion. March 2017, the foreign debt sat at US$21.97 billion and has grown by the day.
The public debt in Panama is separated into two parts, external and internal debt. The external debt is racked up by foreign relationships with individuals, governments, suppliers, international banks, and multilateral entities abroad. Every time Panama acquires goods and services or receives prepayments, they increase their external debt.
The internal debt is racked up with creditors residing within Panamanian borders. Since the Juan Carlos Varela administration, external debt has grown 29.3% to US$3.87 billion, and the internal debt has increased 10.3% to US$452.30 million.
Potential Of Medical Tourism In Panama Unreached
Panama has been reporting sluggish tourism numbers, especially in the most recent season. The Comptroller General of the Republic’s recent report on tourism spending in Panama shows a decrease when compared
to last year. The 2017/2016 season, however, experienced an increase of only 2.7% compared to 11.7% last year. Additionally, from January to September of this year, arrivals of North Americans dropped by 12%, whereas arrivals of European’s dropped by 7.7%.
Tourism and hotel operators as well as the municipality of Panama are developing plans to combat this and to incentivize tourists transiting through Tocumen to venture out of the airport and explore the city. Ideas for attractions include religious tourism, a focus on Panama’s famous athletes, and thematic shows that demonstrate the progression of Panamanian history.
However, many would argue that promoting Panamaas a destination for medical tourism—with a strategic government policy in place—could be a solution. The country already has the conditions in place to do so. According to Luis Santamaría, the general director of Panasalud S.A., “The only disadvantage Panama has as a destination for medical tourism is that this sector has not been recognized by the state as a tourist product or a real feature of its organizational infrastructure.”
Panama ranked 20th on an index by Fetscherin and Stephano in 2016 ranking the globe’s top destinations for medical tourism. Despite this, the potential for growth in this sector remains optimistic.
Finances And Banking
Tax Bill Making Progress
A proposed 5% tax on remittances sent abroad is making its way through Panama’s National Assembly. Presented by Rubén De León, the proposal stipulates that for remittances sent abroad, the same methodology used for Tax on the Transfer of Property and Services (ITBMS) will be applied. Post offices, telegraphs, and banks will be exempt from this tax, as will the free zones.
Property Tax Reform
One of the most attractive aspects of buying property in Panama was the 20-year property tax exception that the purchase allowed. However, laws dated back to the 1950s. Consequently, Panamanian lawmakers have recently come to a final agreement regarding a change of tax threshold, tax rates, and tax exemption periods for annual property tax.
The law will honor properties under the current (and soon-to-be-former) 20-year exemption period if they meet regulatory requirements.
However, as of Jan. 1, 2019, amendments to Ley 509 will come into effect. Principal dwelling homes (i.e., first or only homes) that do not fall under the 20-year exemption period and are valued up to US$100,000 will yield a 15-year tax exemption period. Principal dwelling homes that are not under the 20-year exemption period and whose value falls in the US$100,000 to US$250,000 bracket will have a 10-year exemption period. Lastly, principal dwelling homes that do not fall under the 20-year exemption period and whose value is above US250,000 will enjoy a five-year exemption period.
In addition to new exemption periods, there will also be new tax rates.
Regarding principal dwelling homes, 0.5% tax will apply on values from US$120,000 to US$700,000. However, this does raise one ambiguity. Will the 15-year tax exemption period for the above-mentioned properties valued at US$100,000 continue indefinitely if they do not exceed US$120,000?
A 0.7% tax will apply to principal dwelling homes valued over US$700,000.
“Value” refers to the value of the land plus the value that the property enjoys as a result of improvements. Improvements can come in two forms: 1) improvements owing to registered construction improvements; 2) improvements in the local housing market. In other words, the average property price 15 years ago in Brisas del Golf was US$62,000. These properties now fetch approximately US$200,000 thanks to a strong upwardly mobile market. The difference (US$138,000) will be subjected to 0.5% tax. An official assessment-value document will be requested as proof of value.
Further out, in areas such as Arraiján, La Chorrera, Tocumen, and Las Mañanitas, properties were priced in the US$25,000 to US$40,000 bracket 15 years ago but now cost between US$60,000 and US$120,000. However, the new threshold stipulates that properties under US$120,000 will be tax-exempt (as explained above). Consequently, the new tax will mainly target the middle to upper classes in places such as Brisas del Golf. Also of interest, it has been concluded that the new tax will target every home, regardless of whether one person or an entire family dwell there.
Additionally, second homes (despite whether the first home is in Panama or abroad) will also be taxed. Second homes will see a tax rate of 0.6% on a property’s value between US$30,000 and US$250,000. After that, a marginally higher rate of 0.8% will be payable on values from US$250,000 to US$500,000. A 1% tax will be levied on second homes with value in excess of US$500,000.
Of interest on an international level, these second-home tax rates will also be applied to commercial real estate and industrial buildings.
How will this change play in Panama’s real estate market? It is likely that the new regulations will not have a major impact on the market because the rates will be a lot lower than the current ones. Although the exemption time will be shorter, the lower rates should compensate and thus stop developers shying away from the market.
Additionally, a market’s attraction depends upon how unattractive competing markets are. In this case, Panama should not feel too ugly. Neighboring Costa Rica levies 0.25% on a property’s registered value. Taxes in Mexico range from 0.05% to 1.2%; in Peru 0.2% to 1%; in Ecuador 0.02% to 0.5%. Consequently, Panama’s 0.6% to 1% range for commercial and industrial real estate is not entirely out of place. Although rates may be low in some U.S. cities (Boston averages 0.67%, meaning it is lower in some cases), properties are more expensive, so it is a low percentage of a higher price.
Panama being a major service provider, the low tax rates for commercial property should not hinder the country’s economy or slow her GDP. Lastly, as a second-home destination for expats, the low percentage of what is already a reasonably priced property in comparison to North American real estate trends should not hit gringo pockets too hard.
Tackling A Tarnished Image, Panama Adopts Recommendations Of Panama Papers Commission
In the wake of last year’s Panama Papers debacle, Panama has recently enacted the recommendations of the controversial independent committee that was hastily formed for what appeared to be mainly public-image damage control. How these reforms will unfold, or even be implemented, remains to be seen.
The new guidelines include requiring all corporate Registered Agents be licensed, identified, and subject to
supervision and regulation. The Registered Agents must also “maintain available accounting records… similar to how the shareholder information [is kept], and establish the obligation of annual private reports, which will be required and kept in strict confidentiality except in cases of flows suspected of being illegal, in which case they will be raised to the respective authority.”
The committee issuing the guidelines was mired in controversy from its inception. Shortly after Panama President Juan Carlos Varela convened the seven-member panel, which included five Panamanians along with economist and Nobel-laureate Joseph Stiglitz and Swiss anti-corruption expert Mark Pieth, the latter two resigned citing concerns that the committee tasked with investigating the lack of transparency in Panama’s financial system would itself lack transparency.
The recommendations adopted by Panama are those from the remaining five members of the original committee, several of whom had ties linking them to Mossack-Fonseca, the law firm at the heart of the Panama Papers scandal.
Finances And Banking
EU Blacklist
Panama makes the first-ever EU tax haven blacklist, announced Dec. 5. It’s the only country in South or Central America to make the list, though several Caribbean nations are also named (Barbados, Grenada, Saint Lucia, Trinidad and Tobago).
Despite ongoing talks between Panama and the EU since early in the year aimed at keeping the country off the list—plus sending a minister to represent the country in Brussels and signing several commitments to reform—Panama couldn’t convince the EU.
Panama was one of the first countries to reply in outrage, President Varela saying, “This is a regrettable decision. We feel this is an unfair measure.” Economy and finance minister Dulcidio De La Guardia said, “I reject the arbitrary and discriminatory inclusion of Panama on the European Union tax havens list.”
Between the Panama Papers scandal, the far-reaching Odebrecht money-laundering scandal, and the fact that the country’s former president had been on the run for years for corruption charges before finally
being imprisoned in August this year… “arbitrary” and “discriminatory” might be exaggerations. The list will be updated annually, so Panama has a chance to clean up its act before the next is released.
Government And Military
Death Of A Dictator
Panama closed the chapter on its dictatorial in May, when Manuel Noriega, the infamous dictator ousted in the 1989 U.S. invasion, died in Panama City. He was 83 years old.
The former strongman had been in a delicate state of health for years, languishing in a cell in Panama’s El Renacer prison since Dec. 2011, after spending 21 years behind bars in the United States and France.
Little of Noriega’s condition had been circulated in the media until the evening of May 29 when news of his death was tweeted by President Juan Carlos Varela, who said, “Manuel A. Noriega’s death closes a chapter of our history; his daughters and family deserve a peaceful funeral.”
Though Noriega was serving time in Panama for ordering the deaths of Hugo Spadafora, Moisés Giroldi, and others involved in the Albrook Massacre, at the time of his death he was also awaiting trial for additional homicide cases.
In what amounted to his last televised interview, which took place June 2015 on Panamanian TV station Telemetro, Noriega, who looked feeble but well, claimed to have discovered God, asking “for forgiveness to all those who felt offended by my actions.”
In death as in life, Noriega promises to remain a polarizing figure with vocal supporters and detractors, though all would agree he left an indelible mark on the nation.
Rubén Blades: Decisiones About Presidency
On Nov. 16, the 18th edition of the Latin Grammy Awards took place. Panama-born Rubén Blades added to his already impressive collection of Grammies, with his latest production, “Salsa Big Band,” wining Album of the Year and Best Salsa Album. These awards serve as testaments to the Panama City native’s outstanding reputation in the international music industry and make him one of the most prolific artists in the country’s history.The accolades come amidst rumblings that Blades will a run for presidency in 2019. It would not be the first time he’s dabbled in politics—he made his first attempt at the presidency in 1994, under the “Papa Egoró” (Mother Earth) movement, but was unsuccessful.
In a local television interview, Blades said, “If I‘m healthy and I have a plan put together, I will run as an independent… I’m not running with a party because their structures tie you down.”
Despite lack of affiliation, he describes himself as left-leaning. In terms of credentials, Blades served as tourism minister from 2004–2009 and is a lawyer with a master’s degree from Harvard. Fans of his music can rest assured that in the case of a Blades presidency, his singing career would only temporarily be put on hold.
Awards And Titles
Panama Considered One Of The “Best Places To Go In 2017” By Frommer’s
Frommer’s has just recognized the Hub of the Americas as two of the “Best Places to Go in 2017.”
Meanwhile, Panama made headlines in 2016 for its successful expansion of the canal, an astonishing marvel of engineering skill and forethought. The recent expansion of the locks only stands to add an additional level of intrigue to this attraction in spite of all of the financial and logistical setbacks leading to the final phases of construction. Canal administrator Jorge Luis Quijano is optimistic that the Corozal area port will generate 2,300 new jobs and annual revenue of US$25 million.
All Indexes Point This Way
Hot on the heels of Live and Invest Overseas’ own 2017 Overseas Retirement Index, InterNations published Expat Insider, a survey listing the world’s top spots for expats. InterNations liaised with 12,500 respondents representing 166 nationalities and living in 188 countries or territories in order to compile their report.
For us, Panama (specifically El Valle) came in 22nd place (out of 30), based on 13 criteria we cover in every Index. InterNations community ranked the country 36th.
Miscellany
Panama Shows The World It Is “Slothy” But Not Slothful
On Oct. 22, the world celebrated International Sloth day, but nowhere paid it the attention that Panama did…
Panama City, sitting in the middle of one of the world’s many rain forests, celebrated the landmark day by hosting an ecology fair in the Gamboa Rainforest Resort.
Featured in the event were 15 informational booths, lectures, contests, prizes, and exhibitions of other
species. Family activities included a bouncy castle, quizzes with prizes for correct answers, and handouts with informational drawings to color. The theme of the day was conservation, and various games encouraged children to commit to recycling-related goals.
In addition to family activities, the US$5 entrance fee included a tour of the brand-new sloth rescue and information center and a glimpse of three recently rescued baby sloths, only days-old and requiring round-the-clock supervision.
Attracting an international audience, Gamboa Rainforest Resort hosted both Canadian and Italian diplomats, who were attending the international event on behalf of their countries. Indeed, one of the key presenters, a Panamanian-Italian who used to be a lawyer but took a career change to dedicate his life to conservation projects, gave private tours for the VIP attendees. Other presenters and animal handlers came from the United States, Canada, Colombia, and even a couple of European accents were heard. Additionally, Florida’s Palm Beach Zoo & Conservation Society were in attendance to both educate and encourage conservationism.
This day also marked the launch of a new application created by the organizers of the event and the Ministry of Environment. Sloths, which are common in Panama, are increasingly found injured on the side of the road after being hit by cars or attacked by dogs. Many attempt to rescue them, but as unique creatures that require special care and handling, well-intended people end up doing more damage by interfering than good.
The app is meant to mitigate this risk by allowing people to report injured animals they may encounter to the proper environmental authorities via their cell phones, rather than handling them themselves.
End Of The Line For Odebrecht In Panama
Speaking at a recent press conference in Boquete, Chiriquí province, President Varela made known that Brazilian construction giant Odebrecht is now barred from taking part in any new infrastructure projects in the country.
Odebrecht is “disqualified” from taking part in the bid for tender of several major projects including the Fourth Bridge over the Panama Canal, Metro Line 3, and the Chan 2 hydroelectric dam.
While underscoring that Panama must “advance justice, and let the truth be known,” Varela recognized that “the country’s economy must be protected,” a reference to the works in which Odebrecht is presently involved.
“If we don’t protect it [the economy], innocent people will pay for something they didn’t do. We can do both, fortifying justice while protecting the Panamanian people and their patrimony,” he said.
Presently in Panama, 17 individuals are under investigation as part of the worldwide bribery scandal. Odebrecht recently plead guilty in a U.S. Department of Justice probe that revealed high-level members of the Panamanian government and others received payoffs in exchange for infrastructure contracts from 2009 to 2014. More recently, Panama’s Public Ministry began official inquiries into several Brazilian business executives working at Odebrecht and Petrobas who are suspected of money laundering activities related to this case.
Swiss bank officials have frozen accounts used to transfer these funds, which for Panama represents US$59 million in bribes. Among the 17 people under investigation are former president Ricardo Martinelli’s brother Mario, sons Luis Enrique and Ricardo Alberto, as well as the former public works minister, ex-director of Social Security, and the former head of the country’s Financial Analysis Unit.
Money Laundering At Trump Ocean Club
Global Witness published a report on money laundering and criminal connections to one of Donald Trump’s most lucrative brand-licensing deals to date—The Trump Ocean Club International Hotel and Tower in Panama City.
The Trump Ocean Club was built between 2006 and 2011—a time in which Panama was a notorious money-laundering haven. Developing luxury properties was quickly becoming the preferred method to launder criminal cash thanks to lax real estate regulations. Around the same period, in the early 2000s, Trump was seeking to gain credit after a series of bankruptcies and began selling his brand to major real estate projects.
As Global Witness details, licensing his brand in the case of the Trump Ocean Club project aligned him with and made him the beneficiary of “crooks looking to launder ill-gotten gains,” such as narcotics traffickers associated
with the Colombian cartels. Whether Trump actually set out to achieve this is debatable, but, at the same time, his lack of action to prevent it speaks volumes.
This is problematic for a variety of reasons: It raises questions about the legitimacy of his other business dealings and also about the status of crime and corruption in the United States with Trump as president. “…in the nine months since his inauguration he has actually taken steps that could worsen corruption in the U.S. and internationally. Indeed, one of his administration’s few legislative successes to date has been to overturn the implementing regulation of a groundbreaking anti-corruption law,” the report stated.
This refers to the Dodd-Frank Act, which sought “to promote financial stability in the United States by improving accountability and transparency in the financial system,” and was signed into effect by Barack Obama in 2010. Reports show that financial stability and consumer protection improved under this act. Despite this, the Financial CHOICE Act was passed in July of this year under Trump, which promised to undo many of Dodd-Frank’s major tenets.
Trump has been vocal about his distaste for certain anticorruption acts, recently referring to the Foreign Corrupt Practices Act as “horrible.” In lieu of revelations about the Trump Ocean Tower in Panama by Global Witness, his comments are all the more telling.
Uprising To Toss Trump’s Name
After changes in ownership that took place in August of this year, the leadership of the Trump Ocean Club International Hotel and Tower is now trying to rid itself of the name they previously paid US$32 million for.
Ithaca Capital Partners, now the leading shareholder, paid for Newland Investment Properties to acquire the restaurants, conference center, and 202 of the 369 units in the building. This gave them a majority of the hotel owners’ votes. However, a notice of default was sent to Trump in October, making moves to ending his relationship to the property.
The building has been struggling with low occupancy and many have complained about Trump’s management of it. Those who own in the building, such as Al Monstavicius, are on board with the move, stating “it
can’t get any worse” as investments are not shaping up to what many believed they would be.
The Trump organization responded to the efforts to remove his name citing a breach in contract and threatening the Associated Press with a lawsuit for their coverage of the claims. No steps have yet to be taken to follow through with this, nor have errors in AP’s coverage been identified.
The breaking of Trump’s relationship with the Trump Ocean Tower would be yet another setback for the brand, which suffered a similar fate with the SoHo Hotel in New York, previously under his name, in November of this year.
Panama’s Pearl: Puttin’ On The Ritz
In the Las Perlas Archipelago, construction is underway for the newest luxury hotel in Panama. The Ritz-Carlton is being developed as the newest accommodation for tourists to the Pearl Islands after an investment of over US$80 million.
The Ritz-Carlton project supports the case of Panama’s dependency on the tourism industry to sustain economic growth. The construction was originally announced several years ago but had been postponed due to various circumstances. The islanders of Pedro González are eager to apply for the more than 300 jobs created directly by the project. Upon completion, a projected 275 locals will be afforded employment opportunity.
The Ritz-Carlton Reserve resort on Playa Don Bernardo and Playa Maguey will feature 80 hotel keys and 120 branded residences covering 50 hectares. The resort will include a main lodge, beach club, spa, kid’s club, dive and fishing center, tennis, retail, and leisure facilities.
Working toward completion in 2019, the president of the Ritz-Carlton, Herve Humler, says, “with an abundant forest environment and beautiful private beaches, the Pearl Islands are a perfect place for the reserve experience.”
A Euro Rebound
In 2016, many predicted that the euro would weaken to parity with the dollar—and we were hoping for it! Unfortunately, instead of weakening, the euro has strengthened about 10% since last year.
In other words, Europe has become more expensive for U.S. dollar holders.
At the time of this writing, one euro is worth US$1.18, a whopping 12 cents higher than this time last year (US$1 buys you a mere 85 euro cents).
Visa Vexations
After a visa-waiver ruckus in the beginning of the year in which EU parliament passed a motion to temporarily introduce new visa requirements for U.S. nationals, it was finally decided in May that the EU will not force U.S. travelers to obtain a visa before entering the European Union.
The possibility was floated because the United States has refused to grant visa-free entry to five EU-member countries: Bulgaria, Croatia, Cyprus, Poland, and Romania, even though Americans are not required to seek a visa to enter the EU.
In spite of the continued imbalance, Americans will not need to seek EU entry visas… for the time being.
A Win For The LGBT Community On The Continent
Confetti filled the chamber as gay couples kissed to celebrate German MPs voting in favor of legalizing same-sex marriage.
The joyous, unusual scenes will go down in history for parliament as Green Party politicians tossed
glittery confetti across the chamber full of longtime lovers embracing at the notion of their newfound right to marry.
The vote, 393 to 226, followed 40 minutes of high emotions and heated debate, which reflected the decades-long argument over marriage equality. German chancellor, Angela Merkel, stood firm as she voted against the move, despite her undeniable place in paving the way for the law’s passage, as she invited MPs to vote in accordance to their conscience.
While Merkel had announced that she considered the values lived out in a same-sex relationship as equal to those in that of a heterosexual one, she still voted no, explaining that she still saw marriage as being between a man and a woman.
Since 2001, same-sex couples could enter into civil unions in Germany, but they could not marry. With this new law, married, same-sex couples will also be able to adopt children together. Love won this one in Germany.
Slovenia Reaps Melania’s Fame
New LIOS favorite Slovenia has seen some fame thanks to the U.S. First Lady. Tourism in Slovenia has increased by 15% since the election of Donald Trump.
Slovenia’s Tourism Board states that 1,939,000 U.S. tourists visited the country in the first half of 2017. To put that into perspective, Slovenia’s population is approximately 2 million.
Born in Sevnica, Slovenia, Melania Trump left home in her 20s to pursue an international modeling career. She is reported to have returned home in 2002, when she introduced her now husband but then fiancé to her parents. The grand presentation took place in the fairy-tale lake town of Bled.
EuropeIn 2017 And 2018
Tours such as “In the Footsteps of Melania Trump” and greetings such as “Welcome to the Homeland of the New First Lady of the United States” are found throughout the stunning European country.
But is Melania the only reason to visit Slovenia? Most certainly not. After all, capital city Ljubljana was featured in Live and Invest Overseas’ 2016 Overseas Retirement Index, and the resort town of Bled earned high marks in the just-released 2017 edition. Why...?
Enough to give Walt Disney a run for his money is Bled Castle. However, castles are a given in central Europe… The real pull is the lower cost of living and excellent infrastructure. Slovenia boasts one of the highest per capita GDPs in central Europe, is part of the Schengen Area, and has a particularly low property tax (starting at 0.01%). Low crime rates and clean, pollution-free air are also on the list of reasons to take a closer look at Slovenia.
“Slovenia is a country with a high diversity of natural environment gathered in a small area,” the Slovenian ministry of the environment said in a statement. “Preserved nature is our core national treasure and our identity.”
And they most definitely preserve nature.
When calculating their annual prosperity index, London-based Legatum Institute includes governments’ efforts to reduce pollution, preserve biodiversity, and limit the exploitation of natural resources.
Last year’s Legatum Index confirmed that “Slovenia is the country best at using nature to improve the well-being of its citizens.”
France is a country of superlatives. World’s best quality of life… best health care… best food… best art and fashion… most beautiful, most romantic city…
For many, la vie française is the good life defined… but most still don’t realize that life in France can be affordable, more so than you might imagine.
In Paris, the sweetest pleasures of life are right there for the taking—much of it free. Picnics in the Luxembourg Gardens, long walks along the Seine, afternoons lost among the cobblestones of the Latin Quarter... Ah, Paris.
But, of course, Paris is only the beginning of France. The charms and appeals of French Country Life are likewise unrivalled. Sure, Provence and other well-known towns in the South of France are pricey, but there’s a lot more to Southern France. Choose life in “the other South of France,” in the Aquitaine or Occitanie départements, for example. Not only are these regions affordable, this “other South of France” is colorful, eclectic, always changing, and very open to retirees.
Not everyone is cut out for life in the Tropics or the developing world. If you are more interested in Old World living, you could find that France offers just what you’re looking for.
France Pros At-A-Glance:
• World’s best overall quality of life—great infrastructure, great health care, never-ending feast of high culture,seasonal climate, Old World politesse…
• WHO has ranked France as having the world’s best health care every year since 2000. Prescriptions areinexpensive, as are over-the-counter drugs. English-speaking doctors are easy to come by in cities and most largetowns, and holistic and alternative health practitioners are common. Health insurance is obligatory.
• France has consistently excellent infrastructure throughout the country. The extensive domestic road network isin great condition, plus, well-maintained highways connect France to its neighboring countries (often toll roads).Not to mentioned the quality train services that operate both domestically and throughout Europe.
• The sizable expat community throughout the country means you can join conversation groups, English-language churches, discussion groups, book clubs, and cooking classes… often at a low cost or free.
• Top-notch entertainment. Running the gamut from gallery openings, special performances, and museum exhibitionsto seasonal celebrations and recreation (think beaches and skiing), much of it available at a low cost or free.
• The geographically diverse country offers many lifestyle choices, from sophisticated urban centers to quaintrural villages, from beachfront to Alpine mountain.
• Top-quality food and wine… it’s hard to talk about France without mentioning the delicious local foods—fromcoq au vin to fresh, steaming baguette—nor can we undersell the French wine industry. Here, you can easily buyan excellent bottle for less than 5 euros… add to that an 80 cent baguette and a 2 euro hunk of cheese and you’vegot yourself a gourmet meal for less than 10 euros.
+
France Cons At-A-Glance:
• Learning the local language is a must throughout the country. While you can get by in Paris and other high-density tourist zones in English, especially when dealing with the service industry, you won’t endear yourself tolocals unless you make a sincere effort to learn some French.
• Bureaucracy by any other name would still be French… they coined the word for a reason—the French love their red tape!• Not business friendly for entrepreneurs or business owners. Non-negotiable in business, even from the consumer
perspective.
-
France In 2017 And 2018
Currency Outlook
Many predicted that the euro would weaken to parity with the dollar—and we were hoping for it! Unfortunately, instead of weakening, the euro has strengthened about 10% since last year.
In other words, Europe has become more expensive for U.S. dollar holders.
At the time of this writing, one euro is worth US$1.18, a whopping 12 cents higher than this time last year (US$1 buys you a mere 85 euro cents).
Path Of Progress
Direct Service
New sections of the high-speed train line from Paris to Montpellier are set to open in December, bringing Montpellier and the rest of our much-loved Occitanie (formerly Languedoc) easier than ever to reach. The route will now take less than three hours from Paris.
Access
Air France Is Away To Taipei… And More
Air France announced a resumption of their Paris-Taipei route in April 2018.
Thanks to a cooperation agreement between Jet Airways (based in India) and Air France-KLM, new direct routes from Paris to India will be launched, including direct to Mumbai and Delhi, opening a total of 44 cities in India (via connections). The agreement is hoped to increase travel between Europe and India.
A New Airline… For Millennials?
France’s newest airline, Joon (under the Air France umbrella), took its maiden flight this month.
Joon, said to be “semi-low-cost,” travels from Charles de Gaulle in Paris to Barcelona, Lisbon, Porto, and Berlin, with tickets starting at 49 euros. 2018 will see longer routes opening to Fortaleza, Brazil, and the Seychelles, and Joon has applied to land in the States, but approval is still pending. Future routes are said to include Rome, Naples, Oslo, Istanbul, Cairo, Tehran, and Cape Town.
The airline has been designed for and marketed to millennials, even the name a riff on the target demo (Joon is close to jeune, meaning young). Flight attendants are billed as being tech-savvy and fashion-forward, serving such trendy nibbles as organic quinoa salad with a baobab juice to wash it down.
Passengers can stream media from the air on their own devices, and all seats will come with USB ports. Free Wi-Fi will be supplied starting in 2018. For an extra fee, try out a show from Viceland or RedBullTV channels using Joon’s VR headsets.
Leaving Paris On The Cheap Just Got Easier
Beginning in December, France’s budget train (TGV) service, Ouigo, will operate directly from Gare Montparnasse in the heart of Paris. This convenience comes in lieu of needing to leave the city to take the Ouigo from Massy or Charles de Gaulle stations as travelers previously had to.
This added proximity comes at a premium, though, tickets leaving from Montparnasse are running 3 to 6 euros more than the outer-city counterparts.
As with all Ouigo trains, there’s only a second class, no café car, and you’ll have to pay for any baggage brought.
Flying Around Paris
As of this summer, Parisians and tourists to the most-visited city in the world can avail of a new form of transport: SeaBubbles. Simply use your phone to order
• Onerous tax regime• Public schooling is rigid, many expats take issue with the very particular way the French educate their children.
While the education is second-to-none, it may not be palatable for kids or parents used to more liberal teachingmethods. State-run universities are overcrowded, but they are affordable and the education good.
one of these flying water taxis and sail down the Seine. Think Uber... but on water.
Designed by Alain Thébault and Anders Bringdal, the environmentally conscious, battery-propelled hovering crafts emit very little pollution. One secret to the design is that each SeaBubble has wings underneath the water (these are what allow them to look as if they’re flying), which also mitigate any waves created by the crafts. SeaBubbles seem to just glide silently along the surface of the water as if by no engine at all.
They are also endearingly cute, with pleasant little faces, and go up to 20 miles per hour to get you to your destination (within the operating range of 50 to 62 miles).
Pricing will work much like the systems used by Uber or Lyft, so this is a viable means of public transport for the general public.
Paris mayor Anne Hidalgo advocates the little guys, saying, “I really believe in the development of river transport. Most of the world’s big cities were built on riverbanks, an advantage we have to use to reduce our reliance on polluting cars.”
Social Changes
Pay First, Health Later
It was hoped that as of December, there would no longer be any up-front fee to visit a doctor in France, but that change has not come to fruition.
Macron’s government has decided to postpone this anticipated change, though pregnant women and those with long-term illnesses may be seen without an initial payment.
March is now the new anticipated deadline for the government to decide on a new plan of action for health payments.
The Real Estate Market
Bonne Année, France!
In the first quarter of this year, the number of existing apartments sold in Paris rose by 23%. Specifically, in
the Petite Couronne area existing apartments sold rose by 32%, in Grande Couronne existing apartments surged by 36%, and in Île-de-France sales went up 32%. Additionally, the second quarter saw a rise in new build, albeit not reaching its 2012 level.
In 2014 France passed a bill that is fondly known as LoiDuflo (improving access to housing and updating town planning). The law put a rent cap on long-term rentals—rents should not be higher than 20% above the median rent set by the Prefect in the urban areas. It also requires property owners to grant exclusivity to one letting agent. Moreover, it scraped tenants needing to provide guarantors or deposits as the government agreed to underwrite any non-payment of rent. Deposits don’t just cover unpaid rent, they cover damage too but nonetheless the government moved forward with the idea.
Last year 57.8% of France’s housing stock belonged to owner-occupiers, which means that almost half of France’s population were renting. This trend continues and the market is rental focused. Although capping rent may work against the landlord and not make for a completely freely-moving market, it keeps the rentals attractive—a plus in any landlord’s book.
Also working in the landlord’s favor is how low mortgage rates currently are. Better still, they are not just low but they tend to be fixed, as is custom in France. This gives stability.
Lastly, on an annual basis, GDP rose by 1.8% during the second quarter of this year, the country’s strongest performance since late 2011. Teaming the strong economy up with Brexit (companies relocating to Paris), good mortgages, and a strong rental market, real estate in Paris is definitely très bon.
Airbnb France
France is cracking down on Airbnb, but is it enough to deter wrongdoers?
As of Dec. 1, all properties rented out on Airbnb (or any online rental platform), must be registered with the housing authorities or risk penalties. Registrations began Oct. 1, and fines will ensue from here on out for non-compliant owners. Over 10,000 properties have already been registered.
Fines run from 450 to 50,000 euros, and in Paris alone the number of fines for illegal rentals rose three times in the first half of 2017 compared to all of 2016. By June this year, they had reached a joint value of 615,000 euros.
The first half of 2017 saw 128 apartments investigated. The whole of 2016 saw only 42 investigated.
Paris is Airbnb’s fastest growing city. Over the past year, listings have shot up from 40,000 (already a substantial amount considering Paris’ population of about 2.2 million) to a hefty 60,000.
Almost 20% of people living in Paris live in social housing for those on limited income, which are allocated to be size-appropriate for the tenant (families have bigger homes than singles, for example). Social housing leases stipulate that the property cannot be sublet in any way and that the people living in the property are those stated in the lease. Breach of contract should but does not always result in the contract being void.
Recently, a case of a tenant renting her social housing property on Airbnb was ruled in the tenant’s favor—the income generated was so little, the court ruled that renting her apartment through Airbnb was not “engaging in business.” Nevertheless, the tenant immediately withdrew her advertisement when notified by the authorities to do so.
Social housing aside, in Paris people must have a permit to rent their house for longer than four months or rent out a residential property they do not live in. Not having a permit can result in a fine of up to 25,000 euros
Locals believe that although the number of fines is rising, authorities are not dishing out enough penalties to give Airbnb hosts second thoughts. At the moment, it is worth running the risk, as the financial gain is just too good.
Tenants Wanted On Brittany Island
Described as “an act of glorious folly,” living on this island is the ultimate relocation dream… and this dream is up for grabs right now, as France’s Coastal Protection Agency (Conservatoire du Littoral) has advertised for new tenants to call the Brittany island of Quéménès home.
The current occupiers, the Cuisnier family, say that deciding to live on the island “turned into the most
wonderful adventure. We developed the farm into a successful business. We raised a family.”
And what better place to raise a family than Quéménès! It is a mile long and forms part of the Molène archipelago, just off France’s Breton coast. It is home to a few skeletons, the occasional salt-fog, a harem of seals, a colony of rabbits, and flocks of seabirds and black Ushant sheep. The rabbits used to be 2,000 strong and had the unfortunate habit of the eating crops, but thanks to a bout of myxomatosis, their numbers dropped to approximately 100 and the crops are flourishing far better.
On English maps, the island is known as Ushant. It has a long history of battles between the Royal Navy and the French Atlantic fleet, not to mention other wrecks such as the British passenger ship that went down in 1896, dragging with it 350 lives.
How has the French State come to own an island that sounds like is has come right out of a children’s storybook?
Thousands of years’ worth of private ownership (including pirates) ended in 1992 when the owners left and the Conservatoire exercised their prerogative to buy the land. Upon purchase, they wanted to keep the land as a working farm and looked for a tenant, stipulating in the lease that the occupiers would have to earn their own livelihood.
With such a clause, the land has loaned itself to potato farming, the ocean to seaweed cultivation, and the farmhouse to bed and breakfast. Wind turbines and solar panels generate electricity, water is from the island’s well, toilets are organic, and WiFi keeps everybody in touch with the mainland.
The Cuisniers say, “We live in modern times. From the farm we can see the mainland and the other inhabited islands. We have the internet, we have constant visitors. Never once have we felt alone!” Their daughter Soizic once “cut the end of her finger off,” they reported, but “the amazing thing then was how quickly the helicopter ambulance came. In 20 minutes she was being seen to by a doctor, which is quicker than she would have had on the mainland!”
Clearly not in the hub yet obviously not isolated, this island is the perfect balance. The WiFi also helps the
online potato sales to keep flowing! Nonetheless, the family are now ready to leave in order to be closer to their children’s school.
They hold Quéménès close in their heart, describing their life on the island as “unforgettable.”
The Economy
Shared Office Spaces Gain Popularity In Paris
Working from home in Paris? Why not try shared work spaces, a recent import to France.
It’s never been easier for entrepreneurs, digital nomads, start-up companies, and small enterprises to operate from anywhere in our digital age. A recent study shows that shared office spaces have risen from 530 to roughly 2,500 worldwide, with a collective membership of 1,180,000, since 2011.
In Paris, shared office space is no longer just renting desk space. Here, you can now lease space to work with like-minded people, establish connections, build lasting relationships, grow businesses, and pursue creative projects in beautiful spaces. Paris’11th arrondisement, a cultural hotspot easily accessible through public transport and the main railway station, is now known for its shared office spaces.
La Permanence offers competitive prices for office spaces for both students and entrepreneurs, complete with high-speed internet connection, printing facilities, meeting rooms, and relaxation amenities. The greenhouse space this particular company offers covers 210 square meters on Rue du Fer-à-Moulin, 5th arrondissement. The building is open to everyone and costs just one euro per hour—plus, it’s open 24 hours, every day. Enjoy unlimited access for a flat rate of 80 euros a month. The work environment is tranquil and serene, and you won’t go broke working here…
Finances And Banking
France’s New Tax Rules For 2017
France has made a series of changes in their tax laws for 2017. Here’s a look at the highlights…
• 2017 will mark the end of the one-year lag on incometax. Previously, income tax was paid based on the prioryear. In other words, income tax paid in 2016 is basedon income received in 2015. As of Jan. 1, 2018, thereis no lag, and, instead, income tax will be deductedfrom your salary on a monthly basis by the employer,pension fund, or other administration.
• Those making 18,500 euros annually (37,000 eurosfor couples, add another 3,700 euros per householddependent) will receive an income tax reduction of 20%.
• Capital gains tax is now 19%, with a “taper relief system” that decreases your obligation according to the lengthof time the asset has been owned before selling (6%from 6 to 21 years holding; 4% for 22 years; 0% forassets owned for more than 22 years).
• Corporate tax rates will gradually decrease overthe next three years from 33.3% to 28% by 2020.The new rate can be applied this year to small andmedium businesses that earn between 38,120 and75,000 euros annually.
• 2017 brings changes to the tax system known as the“Pinel.”This rental investment tax benefit allowedreal estate owners to deduct the tax portion of thepurchase price of the unit, provided it’s used as a rental.While it was originally planned for cancellation inDec. 31, 2016, the Finance Act of 2017 extended it untilDec. 31, 2017.
Government And Military
Macron On The Move
In April, France elected a new centrist president, Emmanuel Macron, who assumed office in May, succeeding François Hollande, who held office for one term.
Awards And Titles
All Indexes Point This Way
Hot on the heels of Live and Invest Overseas’ own 2017 Overseas Retirement Index, InterNations published Expat Insider, a survey listing the world’s top spots for expats. InterNations liaised with 12,500 respondents representing 166 nationalities and living in 188 countries or territories in order to compile their report.
Small-town Saint-Chinian in the south came in at 5th out of 30 in our Index, Paris 20th. The country, a consistent expat favorite, won top marks for family life in the InterNations survey, coming in 38th place overall.
Top Of The Trips
Paris made #3 on TripAdvisor’s “Top 25 Destinations In The World.”
Best In Show
The Occitanie region (formerly Languedoc) came in 4th in Lonely Planet’s 2018 “Best in Travel” top regions list.
Paris Named One Of The “Best Places To Go In 2017”
Frommer’s recognized the City of Light as one of the “Best Places to Go in 2017.”
Year after year, Paris, France, is one of the most visited cities in the world, with tourist numbers topping 32 million in 2013. Due to terror attacks, French authorities are beginning to fear a decline in visitors. According to 2016 stats from the Paris Tourism Office, the number of foreign visitors to Paris is down 15%. Not even Disneyland Paris has been spared the decline in tourists, reporting an 11% decline in visitors between April and June of last year.
Frommer’s inclusion of the most romantic city in the world is a bid to “support the French” as their country
bounces back “just as New York City and Washington, D.C. bounced back after 9/11.” These days, a palpablepolice presence throughout the city has increasedfeelings of security throughout.
Miscellany
Crit’Air Takes Effect In Annecy and Toulouse
As of December, folks driving in the towns of Annecy and Toulouse must display Crit’Air stickers in their cars.
The stickers, which are already compulsory in Paris, are numbered from 1 to 6, with another coveted sticker for electric cars. Each number correlates to how polluting or green your vehicle is.
Fences Make Good Neighbors…
In January 2017, the French government approved an investment of 20 million euros to beef up security around the most visited fee-paying monument in the world—the Eiffel Tower. By the end of the year, the city is set to construct an 8.2-foot-high bulletproof glass wall at the base of the Eiffel tower in an effort to keep the monument secure while maintaining its aesthetic appeal.
Since the Euro 2016 soccer championships, the city has depended on metal fences around the base of its “Iron Lady.” Jean-François Martins, the deputy mayor in charge of tourism who described the existing fences as
“disgraceful,” claims that the new glass wall will provide Parisians and tourists with unobstructed views of the monument from Champ de Mars park and the Iena Bridge—both popular photo spots.
The permanent glass walls will replace the metal barriers on the north and south of the monument. The security plans will also include better elevators, refurbished lights, and an improved visitor entrance.
Opening Hour
Renowned (and knighted) British architect, Sir Norman Foster, is taking over the Occitanie (formerly Languedoc) region again.
The world-famous architect created the Carré d’Art 20 years ago, Nîmes’ contemporary art museum, and the amazing Millau Viaduct, a 2,460-meter cable-stayed bridge, in 1994—the tallest bridge in the world, with one pillar reaching 343 meters. Foster is now the architect of Narbonne’s new museum dedicated to the city’s Roman history, currently under construction.
Closing Time
Paris’ free Carnavalet Museum (one of our favorites), which covers the tumultuous history of Paris, is closed for 2017 and beyond as it receives an overhaul.
Famous In France
Upon publication of Live and Invest Overseas’ 2017 Retire Overseas Index release, in which Saint-Chinian in Southern France’s Occitanie region was featured, local papers picked up the story and ran with it.
Demand Pricing
According to French consumer group UFC Que-Choisir, the price of games regularly spikes the closer we get to Christmas. In fact, trends show that prices actually drop in October and November but shoot up in December and continue up all the way to the 25th—so get shopping now if you’re in France!
If you’re looking for quintessential Old World lifestyle, Italy deserves your attention. The old towns are charming, and the countryside between is pleasant. Even excluding the big cities like Rome, there is enough here to keep your interest and to support a fully appointed life on the Continent. What’s more, life here can be much more affordable than back home.
Stitching together seascapes with lush mountain valleys, Abruzzo is one of Italy’s secret treasures—and you’ll love it.
No over-crowding, no heavy industry. Hiding away down its curvy roads are castles, vineyards, and villages made of stone and memory.
Life in the Abruzzo hasn’t changed that much over the years, and it’s like wandering into a gentler, kinder yesterday…a yesterday with little or no crime and neighbors who watch out for each other.
Italy Pros At-A-Glance:
• Overall quality of life—slow-paced living, traditional values, beautiful cities, never-ending feasts of culture,amazing food… And its varied climate and diverse landscapes give rise to just about every outdoor activity youmight want to practice.
• Quintessential Old World lifestyle at a real bargain. Live like it’s 1953 again… especially in small towns likeAbruzzo. Traditional and historical aren’t limited to just architecture here, they are imbued in every part of slow-paced Italian life. And it all comes at a surprisingly affordable price, especially if you settled outside of a major city.
• Despite Old World living, big cities are easily accessed and offer boundless entertainment options, fromgallery openings, performances, and museum exhibitions, to seasonal celebrations and recreation.
• Italy enjoys easy access to the rest of Europe, and makes a great launching pad for exploration of theMediterranean and the Continent.
• It’s hard to talk about Italy without mentioning the delicious local foods and wines—Italian recipes are a cutabove the rest of the world anywhere, but Italian recipes cooked by Italian chefs using fresh Italian ingredientssimply cannot be beat. Paired with a glass of local wine (for just a few euros) and you’ve got the perfect meal.
• Art and culture… Florence, Rome, Venice… these cities are museums unto themselves and are home to some ofthe world’s best and most famous art works. And those are only the major hotspots—you’ll find works by someof history’s most accomplished artists are scattered around the country, to be found even in the most modestcorners.
• Italy’s property market is wide open to foreigners, and the market in some regions (like Abruzzo) are floodedwith romantic, stone country homes for a steal.
• You could easily live self-sufficiently in the countryside of Abruzzo. It’s easy to own a piece of land, and the earthhere is super-fertile. One expat couple lives on 2 acres and is 100% self-sufficient.
• An open and accessible investment climate. Italy is a major exporter, sending world-renowned products toglobal markets, and as an EU member, investors in Italy have access to the 500 million-strong base of consumers.
• The sizable expat community. From big cities to countryside villages, Italy’s expat network is well-establishedand will welcome you among their ranks.
+
Italy Cons At-A-Glance:
• If you want to live here, you’ll need to learn Italian. You could get by with English in major tourist zones, but most aren’tlikely to settle permanently in the heart of Venice or Florence. To really feel comfortable and enjoy life, you’ll need tospeak a passable amount of the language. And in some areas, it’s a must—English isn’t commonly spoken to any extentthroughout Abruzzo, for example.
-
Italy In 2017 And 2018
Currency Outlook
In 2016, many predicted that the euro would weaken to parity with the dollar—and we were hoping for it! Unfortunately, instead of weakening, the euro has strengthened about 10% since last year.
In other words, Europe has become more expensive for U.S. dollar holders.
At the time of this writing, one euro is worth US$1.18, a whopping 12 cents higher than this time last year (US$1 buys you a mere 85 euro cents).
Path Of Progress
Old Tracks, New Paths
In 2018, a new hiking and biking path will be opened in Abruzzo, having been constructed on an old abandoned railway that connected the cities of the Abruzzo Coast.
The 42-km Via Verde, or Greenway, can be traveled on foot, by bike, or on horseback, crossing Punta Aderci, a preserved park, and nine cities of Abruzzo. Enjoy double views along the route: the Appenini Mountains on one side, the Adriatic Sea on the other.
This part of the coast is called “Costa dei Trabocchi,” so named for the trabocchi all along it. These traditional stilt houses were formerly fishermen’s houses, built in wood directly over the sea, and have now been converted into restaurants.
AccessRyanair Brings Italy Closer
Ryanair launched no fewer than 44 new routes to Italy this year. New routes include from Verona to Sardinia and Madrid; Bari to London and Liverpool; Bologna to Lisbon and Eindhoven; Treviso to Krakow; Pescara to London, Copenhagen, Krakow, and increased frequency to Frankfurt; Dublin to Naples.
Domestic Double Up
Blue Air has started a new set of domestic routes from Alghero to Milan and Rome.
Roman Holiday
Alitalia, Italy’s national line, began a route from Rome to New Delhi.
Norwegian Airlines added flights from Rome to New York and Los Angeles.
Touring Turin
EasyJet now flies directly from Bristol to Turin.
The Real Estate MarketInvesting In Abruzzo
For global property investors looking for turnkey, hassle-free real estate investments, one thing’s for sure… Italy’s Abruzzo region is not for you—for now, at least.
• There’s a lot of bureaucracy in Italy and things move slowly. Simple tasks can seem overly complicated andtake more time than you’d like.
• It’s far from North America.• The real estate market is depressed, which is great for purchasing, but there’s little indication of significant
appreciation in real estate anytime soon in most parts of the country. But if you’re shopping for a secondhome (not to flip or as a yield investment), you can pick up some great bargains, especially in rural areas andin many beautiful Medieval towns.
• Quality health care is not available everywhere. Standards vary not only by region but also by status—whether they are private or public.
• Public transport can be unreliable, and road infrastructure can be poor. It doesn’t help that driver’s here tendto disregard road rules and drive quite fast.
• Italy upholds traditional and conservative values… it isn’t necessarily open to the LGBT community. This is ageneralization, of course, not every Italian person will adhere to it, but it holds pretty true generally.
This is a market for a contrarian-type of investor who’s willing to get creative, think outside the box, and take a more hands-on approach. It’s for that individual looking for a new challenge, a unique experience along with the opportunity to make money over the long haul… an adventure investor, if you will.
Buying properties in need of renovation in small towns in Italy can cost so little that you could put them on your credit card. In some cases, the renovation costs might fit on your credit card as well.
You can pick up a property starting at as little as 5,000 euros in some parts of Abruzzo. The renovation is going to run you multiples of the purchase price, but the potential for profit and having some fun is huge.
Depending on where and what you buy, the prices for properties in need of significant renovation or restoration could start at as low as 100 euros (US$107) per square meter.
The cost per square meter for renovation projects would start at 600 euros (US$642) and go up to as much 1,000 euros (US$1,070). You should expect to spend around 1,000 to 1,500 euros (US$1,070 to US$1,605) per square meter to build a new home from the ground up. The cost per square will depend on the quality of finishes that you want to use.
On average, move-in ready units start at 800 euros (US$856) per square meter and go up to as much 5,000 euros (US$5,350) a square meter for newer construction located along the coast.
Agricultural land will start at around 2,000 euros (US$2,140) per hectare.
Real estate doesn’t have to be just about the unabashed turnkey returns. Sometimes, it can be about making money while having some fun.
Leasing History
The State Property Agency and Ministry of Cultural Heritage in Italy launched a program called Cammini e Percosi (Paths and Tracks), which rents out historical sites to regular folks. This year, 103 historic sites were leased to interested parties: castles, follies, monasteries, old farmhouses, and more.
In return, the tenants pledge to restore the abandoned buildings and transform them into appealing sites for tourists. The leases are for nine years with renewal options. All buildings in the program are situated on historic walking routes ranging from the Via Appia (a Roman road that is referred to as “the queen of the long roads”) to the Ciclopista del Sole (Sun Cycle Route), in the EuroVelo7 region.
“The project will promote and support the development of the slow tourism sector,” explained Roberto Reggi, a spokesperson for the State Property Agency. “The goal is for private and public buildings which are no longer used to be transformed into facilities for pilgrims, hikers, tourists, and cyclists.”
Over the next two years, another 200 properties will be added to the list and up for grabs. This combined with a strong U.S. dollar makes for an “historic” investment.
Government And Military
Italy’s Separatist Movement Grows
Whether it be due to Venetian nationalism, the Movement for the Independence of Sicily, Sardinian nationalism, or any of the other 30-odd separatists movements that are active in Italy at the moment, hearing an Italian cry for independence is not new news.
“Autonomy from Rome” and “Italy out of Europe” are old chants that have been sung forever. When Scotland piped up in 2014, Italy immediately started rumbling. When the U.K. voted Brexit, Italy rumbled some more. With Catalonia taking steps for independence, it is rumbling now again.
In fact, separatism in Italy has been rumbling for almost as long as its volcanos. Italy used to be made up of many kingdoms, some richer than others, and in turn the country has a very regional way of thinking in comparison to other European countries. Their first sense of unified culture in modern history came only very recently, with the dictator Mussolini.
Although not binding, a poll last month showed that 95% of those who voted in Lombardy did so in favor of greater autonomy from Rome. The Venice vote was even higher at 98%. These are also the richest regions of the country, and locals reportedly want a health system and education
system to match. They want better management of the local economy in order to get the social services they feel they deserve. They are responsible for a majority of Rome’s revenue through taxes and they do not want to carry the poor south any longer.
Leaders of these regions are far-right, and even soccer gets a political slant in this part of the world. The ruling Democratic party has urged its supporters of separatism to abstain. Alessandro Alfieri, a Democratic regional councilor for Lombardy, claimed the referendum to be waste of money. However, the country is due elections next year so the boat must not be rocked... Rome and the current ruling party must handle Italy’s northern regions very carefully.
Awards And Titles
Top Of The Trips
Rome made #4 on TripAdvisor’s “Top 25 Destinations In The World.”
Miscellany
Vatican Opens Papal Summer Residence To The Public
Almost all pontiffs have spent their vacations in the 55-hectare Castel Gandolfo estate nestled in the AlbanHills just south of Rome and overlooking Lake Albano.We say almost all, as Pope Francis has declined to usethe palazzo, preferring to stay in his residence insidethe Vatican.
Now, though, he has opened 20 of the residence’s rooms to the public, including a private chapel, a study, a library, and, perhaps most interestingly, the room where Popes Pius XII and Paul VI died and where John Paul II recovered from an assassination attempt in 1981.
The gardens have been open to the public since 2014, but now visitors can take the weekly train service to see both the Vatican and the residence. The train makes the 25-km ride by a 100-year-old locomotive.
The residence has received visitors before. In January 1944, during World War II, as many as 12,000 people were taken in by Pius XII, until Rome was liberated on June 4, 1944.
Castel Gandolfo is also where Pope Emeritus Benedict XVI closed out his papacy in 2013. He still lives there, and the farm from which most of the produce for the residence is grown and houses cows, free-range hens, cockerels, and bees, is commonly referred to as “Pope Benedict’s organic farm.”
While the decision to make the residence available to tourists is not necessarily permanent, it would be up to future pontiffs to make them private again.
Tours can be booked via the Vatican Museums website.Tickets are 10 euros per adult.
Art On The Go
There’s no escaping ancient history when you are in Italy, not even when you are slogging the daily grind.
As is often the case in Europe, when excavating and laying foundations for any construction project, you inevitably come across antiquities… ancient Roman artefacts or Viking treasures, for example. Rome’s new metro station was no exception, and the historical finds have been incorporated into the design of the building. They are now on display for all to view, for free, as today’s Romans go about their daily routine.
There are giant amphorae, bronze fish hooks from an ancient Roman fish farm, the remains of a first century BC woven basket and even a collection of 2,000 year old peach stones, from when the area was a rich farming estate providing food for the imperial elite. “It’s a sort of time machine—the further down you go in the station,
the further you reach back into the history of Rome,” said Francesco Prosperetti, the superintendent of the city’s archaeological department. As you descend each level of the station, you go back a “level” in history.
Rossella Rea, the archaeologist who was in charge of the project, said, “The whole history of Rome is here.” For much of the Roman era, the area was a rich agricultural zone where a sophisticated irrigation system allowed the cultivation of fruit, vegetables and flowers. “They were luxury goods for the wealthy people of the city,” explained the archaeologist.
More than 40,000 artefacts were found during the decade-long construction project so now while you travel to work, you can also travel back in time.
2nd Annual Light Show In Pescara
2016 marked the first year Pescara, Abruzzo’s main city, put on a light show for Christmas. Luci d’Artista offers viewers light shows and installations along all the city’s streets and public squares, creating a magical wintery atmosphere and attracting thousands of visitors.
Pescara is the third city in Italy to host the official Luci d’Artista event, along with Salerno and Turin, and it’s a great boost to annual tourism.
The event turns Pescara into a winter-land fantasy of cascading of lights, enchanted gardens, giant figures of animals, fairy tale characters, and more.
See it for yourself until Jan. 21; installations turn on each evening at sunset and stay on late into the night.
Tie The Knot On The Boot
A new initiative in Abruzzo aims to make itself the wedding destination of Europe.
The face of the campaign is Ronn Moss, perhaps better known as Ridge Forrester, long-time face on “The Bold and the Beautiful.”
Miscellany
Spanish Steps Reopen… Please Tread Lightly
The Spanish Steps, the 18th century Roman stairway immortalized by Gregory Peck and Audrey Hepburn in the film “Roman Holiday,” reopened to the public in 2017, following a year-long, 1.5 million-euro restoration.
The restoration work, which was funded by Bulgari, the Italian luxury jewelry brand, focused on stain removal, levelling the steps, repairing cracked paving stones, and restoring the original lamps that illuminate them.
While the results have been met with praise, the project has not come without controversy, one surrounding how to best protect the stairs from the hordes of tourists who visit Rome by the millions each year, leaving damage, both deliberate and accidental, in their wake. “Now that it’s been restored, we cannot allow it to revert to being an open-air sewer,” Mr. Paolo Bulgari, the chairman of the eponymous jewelry company that bears his name, told Italian newspaper, La Repubblica.
We rate the Algarve region of Portugal as the World’s Best Retirement Haven.
That’s a distinction we don’t bestow lightly or easily.
But our editorial team has a lot of experience at this. We’ve been rating and ranking the world’s best places to spend time in retirement for 30 years.
And, we can tell you from firsthand experience, Portugal (specifically the Algarve region in the south) really nails it.
Until recently, Portugal had not been a well-known destination and attracted very few foreign visitors. Portugal remained largely undiscovered until the mid-1990s, when Europeans began immigrating en masse. Expats to Portugal enjoy its beautiful landscapes, historical architecture, stunning beaches, and welcoming residency programs. Nowadays, Portugal is home to hundreds
of thousands of (mostly European) expats, and North Americans are just picking up on the trend.
Despite its small size (225 kms wide and 612 kms long) Portugal rewards the visitor at every step, offering a mild climate and hospitable locals. You’ll enjoy beautiful white-sand beaches throughout the country… almond trees in the African-looking Algarve region… fields of golden wheat in Alentejo, ranches in Ribatejo… ox-driven carts across Minho… and vineyards in Douro.
The country is rich with artistic and cultural treasures, tasty cuisine, and a unique architectural style (called Manueline). As a bonus, Portugal ranks as the 17th safest country in the world.
If you’ve never considered Portugal as a place to spend your time, we urge you to think again and learn more about Portugal as a place to live like a king (or queen)...
Portugal Pros At-A-Glance:
• Our #1 retirement pick for 2017 (for the fourth year running).• A lifestyle that merely feels expensive... you could live more than comfortably on as little as US$1,500 a month,
with affordable, trendsetting lifestyle options.• Portugal’s sizzling real estate bargains for living or investing make this the best place to shop for a pied-à-terre
in the Old World in 2017…• Top quality, low-cost health care with an abundance of English-speaking doctors in cities and resorts regions.
Health insurance is obligatory and many pharmaceutical prescriptions are subsidized.• Thanks to open arms—and hearts—to expats, Portugal has been a haven for foreigners for decades, and
English is widely spoken throughout the country.• With its various residency visas, it’s easy to become a resident. Portugal grants residency to foreigners who can
prove they can take care of themselves; you can do this by showing monthly income of as little as US$1,000. Plus,the country offers great residency programs in the Non-Habitual Resident (NHR) and Golden Visa. Residency inPortugal can lead to a second passport and dual citizenship in this country, to boot.
• An eye-candy explosion across more than 200 kms of ocean shoreline, fruit orchards, and world-class golfcourses...
• Portugal has some of the best weather in the world, with one of the most stable climates in the world and3,300 hours of sunshine per year, meaning more sunny days than almost anywhere else in Europe—and noclimate control.
• It’s easy to access the rest of Europe, low-cost carriers offer numerous flights around Europe, and even directflights Stateside.
+
Portugal In 2017 And 2018
Portugal Cons At-A-Glance:
• As with many European nations, Portugal likes its bureaucracy—no matter what you want to do here, there’llbe lots of red tape.
• The economy is still recovering from recession.• Highway tolls can be expensive.• For those looking to integrate and learn the local language, Portuguese can be more challenging than
French or Spanish.
-
Currency Outlook
In 2016, many predicted that the euro would weaken to parity with the dollar—and we were hoping for it! Unfortunately, instead of weakening, the euro has strengthened about 10% since last year.
In other words, Europe has become more expensive for U.S. dollar holders.
At the time of this writing, one euro is worth US$1.18, a whopping 12 cents higher than this time last year (US$1 buys you a mere 85 euro cents).
The Real Estate Market
Portugal Property Prices Continuing Up
The average price of property in Portugal is projected to rise by around 5% over the next five years, after increasing more than 7% in 2016. The latest housing market index data from the Royal Institution of Chartered Surveyors (RISC) and Confidencial Imobiliário confirms that last year was the fourth consecutive year in which there was an increase in property sales, with the value and number of deals up by 18% compared to the same period in 2015.
In February 2017, Portugal’s real estate agents reported strong increased demand by local and foreign buyers across the country, especially in Lisbon, Porto, and Algarve, the most significant increase since September 2016.
New sales continued to increase for the second consecutive period, although the increase was outpaced by that of the demand, which continues to put upward pressure on house prices.
Lisbon reported the highest increase, but respondents to the RICS survey also highlighted Algarve as prime target for significant price growth in the near future.
In the rental market, tenant demand increased at a strong pace once more, while there was a decrease of new landlords. Rents slightly increased, with expectations for this trend to continue over the next three months.
Where To Buy?
Portugal’s market is hot. LIOS’ own international real estate investment guru, Lief Simon, director of our Global Property Advisor, recently took a look. Here’s what he has to say on the current situation:
“I’ve been focusing time and attention on this country for the past two-and-a-half years. My first visit, I bought a small apartment as a rental investment that is proving to have been one of the best property investment purchases of my career (and that’s more than 40 buys across two-dozen countries).
“The timing was right for buying at the time of my first trip. It was the ideal moment to get into this market. Contacts I trusted assured me Portugal had turned the corner from its post-2008 recession and that property values would begin rising and continue steadily up for the foreseeable future... so I pulled the trigger.
“Indeed, property prices have increased nicely over the last 30 months, as expected. That said, it’s not too late to find decent deals. The screaming bargains (of the kind that I was able to find in 2015) are no more, but you still can get a great deal on a solid investment.
“If you’re in the market to diversify your property portfolio into the eurozone, I recommend you take a
close look at what Portugal has to offer. Today I’d suggest focusing on key neighborhoods on the renaissance path in Lisbon.”
New Rental Tax?
A tax increase was proposed for property owners who rent their properties, and, while this change didn’t come about in the 2017 budget, it’s still a possibility for 2018.
Politicians in the Algarve are fighting the proposal, as it would be the hardest hit area, the majority of tourism occurring here. They predict an increase in the “gray” economy, as law-abiding entrepreneurs will bear the brunt of the burden and/or an increase in prices, making Portugal less competitive. They argue that property rentals have played a large part in Portugal’s economic recovery.
Portugal Blows Average Rental Yields In The EU Out Of The Water
Portugal ranks third out of all countries in the EU for revenues earned from rental yields, earning an average of 6.43%, according to the survey.
Wealth Tax Imposed For High-Value Properties
The 2017 budget included a new form of wealth tax, to be included within the current IMI system as an additional tax for higher-value properties. Known as “Adicional Imposto Municipal Sobre Imóveis” (AIMI), it will be charged annually and based on the “Valor Patrimonial Tributário” (VPT) value of the property.
If a single person owns a property (or a share in a property) that is valued at over 600,000 euros, you’ll
trigger the AIMI; for couples owning, this amount doubles to 1.2 million euros.
Rates: • 0.4% for properties held by companies/corporate
structures;• 0.7% for properties held personally or by un-
administered estates up to 1,000,000 euros;• 1% on the value of the holding in excess of 1,000,000
euros.
Real estate used in tourism or for commercial, industrial, or agricultural purposes is exempt.
Residency And Immigration
Portugal Rated Top For Citizenship And Residency Through Investment Programs
On Nov. 7 Henley & Partners released their report and on Nov. 14 –16 they held their 11th Global Residence and Citizenship Conference.
The report addresses eight citizenship programs from 20 countries, each program evaluated according to 10 criteria: reputation, quality of life, visa-free access, processing time and quality of processing, compliance, financial requirements, residence requirements, relocation flexibility, physical visit requirements, and transparency. Each indicator had an equal weighting of 10, thus offering a possible score of 100 for each country. The Global Residence and Citizenship Programs 2017–2018 Report describes itself as being the yardstick for assessing investment migration programs throughout the world.
How did the competitors fair? Malta won the citizenship-by-investment category by a long shot (81). Battling it out in the residency-by-investment category, Portugal won with 79 but Austria was hot on its heels with 78.
Portugal has won for three consecutive years thanks to its Golden Residence Permit Program.
Investment Visas Soaring In Portugal
Portugal has received 103 million euros in Golden Visa investments in just three months, half of which has come from China. Investors spend on average 24% more than the minimum investment requirement. In total, the
investment program has raised a total of 3.3 billion euros, 90% of which are from real estate purchases.
The Economy
Bouncing Back Post-Recession
In November 2015, Portugal’s Prime Minister António Costa took office and has since managed to cut the budget deficit to 2.1%, the lowest since Portugal’s democracy was declared in 1974, while increasing pensions and wages. Third quarter unemployment for 2017 is 8.5%—the lowest in nine years.
Analysts hope this is just one indicator of the country finally emerging once and for all from the effects of the recession.
Portugal’s continued growth in the real estate sector is being attributed to the sustained recovery of the country’s labor market. Portugal’s employment has increased by nearly 2.5%, and broader improvement across the economy appears to be providing crucial support for continued growth in the real estate market.
Tourism Booming
According to Reuters, Portugal is on its way to achieving yet another record year for tourism, with 7.1 million visitors coming from January to July of this year.
The tourist industry has become a key economic driver in the country, with revenues for hotel stays alone reaching 1.8 billion euros (until July of this year). In fact, it is largely because of the boom in tourism that the country was able to pull itself out of debt after the 2011–2014 crisis.
Finances And Banking
NHRs To Be Taxed?
Our sources on the ground were hearing rumors all summer that the government wanted to apply a 5% to 10% tax on the currently tax-free Non-Habitual Resident (NHR) program.
The final budget for 2018 was released in late October, with no changes to foreign pension tax policies.
Expats can still take advantage of the NHR scheme in 2018 and not be taxed for 10 years in Portugal, however, several countries (especially Finland) are pressuring the country to change this law, so no one can be sure how long it might last.
If you’re thinking residency in Portugal might be of interest to you, act now before it’s too late to take advantage of 10 tax-free years.
Government And Military
Damage Control
The government has created a new state-owned forest management company in response to this year’s record-breaking forest fires.
The company’s main objective will be to buy or rent land that might be otherwise abandoned by the previous owners in order to protect and manage the forest land on it. The areas need to be stabilized, renewed, and protected from contributing to the spread of fires in the future.
Part of the problem in the past was that land was not properly maintained in cooperation with current fire break laws, thus contributing to fires spreading out of control.
Socialists And Communists Bring Balance To Portugal
A peculiar alliance is locally referred to as geringonça, or “the contraption,” to recognize the action taken by the Socialist administration and Communist party to address Portugal’s deficit. Portugal’s Socialist Prime Minister António Costa prioritized stability within the government body before approaching the daunting task of achieving economic stability.
Since taking office November 2015, Costa’s critics have called his approach voodoo economics. Costa has inherited responsibility for a country that left an international bailout program in 2014 to face the burden of sorting out its financial woes on its own. In an agreement that yielded support from the Communists, the government raised the monthly minimum wage from US$536 to US$563 and will continue to make increases until it reaches US$637 by 2019.
Increases in pensions and state-sector salaries have also been implemented while still managing to lower the deficit. The government has cut more than half the budget deficit to just under 2.1%—its lowest since 1974. Unemployment dropped to 10.5% in the final quarter of 2016—from a high of 17.5% in 2013. However, after defying all odds with voodoo economics, Costa’s government is still facing a public debt of 131% of GDP.
Awards And Titles
Safer Than Ever
Always touted as a safe haven, Portugal has been named as the 5th safest country in the world on the Global Peace Index in recent years, but this year got a boost up to 3rd.Statistics show that crime in the already-safe Algarve is falling steadily, and this can be attributed to a number of factors, including an increase in police during the busy summer months.
A UN Win
Portuguese António Guterres was appointed to UN Secretary General, showing just how much the country punches above its weight.
Awards And Titles
All Indexes Point This Way
Hot on the heels of Live and Invest Overseas’ 2017 Index, InterNations published Expat Insider, a survey listing the world’s top spots for expats. InterNations liaised with 12,500 respondents representing 166 nationalities and living in 188 countries or territories in order to compile their report.
Portugal jumped 23 points from 28th to #5, with expats feeling very welcomed by the friendly locals
once they arrived (it came first in this category). Expats in Portugal boast of the high quality of life they enjoy as well how easy it is to settle in. Some respondents also cited the improved political situation in 2018 adding to their sense of security. One expat said, “kind people, nice weather and food, as well as beautiful places to visit,” are among the top reasons they love their new home.
The Go List
Porto just made the cut, coming in 52st out of 52 on Fodor’s 2018 “Go List.”
Best In Show
Portugal came in 3rd in Lonely Planet’s 2018 “Best in Travel” top countries list.
Miscellany
The Queen Of Pop Hits Portugal
Europe’s best kept secret is getting out… and we couldn’t be happier for this formerly overlooked European haven.
Over the past summer, Madonna semi-moved to Portugal with her 11-year-old adopted son, David Banda, after he joined the Benfica Youth Academy, a soccer training program for under 18s.
The star is now splitting time between Lisbon, London, and New York. According to reports, she enrolled her three school-aged kids to the local Lycée Français in Lisbon.
“I used to be a basket case but now I live in Lisbon,” Madonna posted on Instagram.
She has reportedly already dropped 7.5 million euros (around US$8.9 million) on a 1,500-square-meter (16,146 square feet) mansion in Sintra, just north of Lisbon. The historic Moorish home has four bedrooms, seven bathrooms, plus guesthouse and caretaker’s cottage. Called a mini-palace, the 5.5-acre estate dates to the 18th century.
Amazing property in Portugal isn’t only for celebrities and the rich, though you can still easily pick up your own home in Portugal at an affordable price.
Wine At Your Fingertips
There is a new app for “Wines of the Algarve,” which allows people to find out where the nearest winery is located or what restaurant or store carries their favorite local wine.
As tourism has grown in southern Portugal, the local businesses want to showcase their products in easy ways for potential customers to find them.
Shopping Just Got Easier
Amazon has just announced free shipping to Portugal via Amazon.es (Spain), for purchases over 29 euros or book purchases over 19 euros.
This is especially great news for residents living in the Algarve, as discount stores are in short supply (no Walmart, Target, or Costco here!) and shopping online is
limited, as many vendors don’t ship to Portugal or charge exorbitant rates for deivery.
Lisbon As A World Stage
This month (November), in it’s second year, Lisbon held what is being touted as the world’s largest tech conference, attracting over 59,000 people from 170 countries. Speakers included the CEO of the company that provided data analysis services to Donald Trump’s 2016 presidential campaign.
Canada Loves Portugal!
Canada recently passed a law celebrating their Portuguese-born residents, declaring June as Portugal Heritage Month and June 10 as Portugal Day in Canada. Over half a million Portuguese are believed to live in Canada (and a surprising many Canadians live in Portugal).
If you are looking for a more cultured way of life, look to Spain. History, architecture, literature, art, and music are part of daily life all over this rich country. Even thoselooking for a more active retirement can enjoy Spain—the Spanish coast is considered a golfer’s paradise.
Spain has long been a haven for European expats and has a destination to suit all types—from a single retiree to a couple with children. The key to a happy life in Spain is finding the area that suits you. If you’re a culture vulture,
you may appreciate Barcelona, Seville, or Madrid. If it’s sun, sand, and sea you’re after, take a look at the Costas. If you’re looking for a green and seasonal area, the northern Atlantic coast is your answer.
In terms of services, infrastructure, culture, communication, and cost of living, Spain makes a lot of sense as a retirement destination. The country was hit hard during the financial crisis but has been fighting its way back up in the last few years, still representing good value for money.
Spain Pros At-A-Glance:
• Spain has First World infrastructure with reasonably priced internet, Wi-Fi available almost anywhere, and a reliable powersystem (outages are uncommon). Most cities have reliable transportation systems making it easy to get around, and thecountry is littered with airports, making it easy to fly internationally and especially within Europe.
• Barcelona is a very LGBT-friendly city with an upbeat, prevalent gay scene, as is Madrid (recognized as the gay capital ofEurope) and Catalunya. Surrounding islands, such as Ibiza and Gran Canaria, are also popular among gay travelers, retirees,and expats.
• You enjoy an excellent standard of health care on par with (or better than) what you have access to now. Spain has bothpublic and private health care systems with care ranked seventh in the world. Barcelona has an enviable reputation for healthcare. There are well-trained doctors galore, many of them English-speaking. Consultants in every specialty can be foundthroughout the city, but the Sarrià area close to the University of Barcelona has a particularly high number of practitioners.
• Theater, fashion, food, live music, and much more… Entertainment is easy to find almost anywhere in Spain. Barcelona,in particular, has earned its reputation as one of the most exciting cities in Europe. There’s also a thriving international expatcommunity and plenty of opportunity to meet fascinating new people.
• Buying real estate in Spain is easy. There are no restrictions whatsoever imposed on foreigners. You can buy here justas a citizen would buy. Spain also has a property market in crisis providing international investors exciting investmentopportunities.
• Spain has a diverse climate with three different types of climate zones across the country. If you like to stick with a changingfour seasons, you can. In Barcelona, for example, summer is sunny and warm and the winter isn’t extreme, it does get cold,but it rarely snows.
• Spain has a rich culture full of exciting history, architecture, literature, art, and music. The Spanish embrace their culture ineveryday life, and you will too.
Spain Cons At-A-Glance:
• Spain’s economy is recovering from recession, resulting in a high unemployment rate.• The cities in Spain can get very noisy and populated.• Crimes like pickpocketing and bag-snatching are depressingly common in very touristy areas. Keep your valuables close;
don’t hang your purse over the back of a chair when you eat out (even under the table is risky, best to keep it in your lap).
+
-
Spain In 2017 And 2018
Currency Outlook
Many predicted that the euro would weaken to parity with the dollar—and we were hoping for it! Unfortunately, instead of weakening, the euro has strengthened about 10% since last year.
In other words, Europe has become more expensive for U.S. dollar holders.
At the time of this writing, one euro is worth US$1.18, a whopping 12 cents higher than this time last year (US$1 buys you a mere 85 euro cents).
Access
Norwegian Redistributes
Norwegian Airlines opened a new direct-U.S. flight this year, with routes to Barcelona from Fort Lauderdale, Los Angeles, New York, and Oakland.
On the other side of the pond, they decided to suspend all routes from Birmingham, England, to Spain. Previously, it offered routes to Málaga, Tenerife, and Barcelona. The change only affects flights to Birmingham, though, with many direct U.K.-Spain options still available from Norwegian and others.
Many More Flights From U.K.
This year EasyJet has launched flights to Murcia from London, to Granada from Manchester, and to Menorca from Stanstead.
Iberia Express started a route to Madrid from Cardiff.
Ryanair began routes from Edinburgh to Barcelona, Ibiza, and Vigo; from Glasgow to Valencia, as well as increased frequency to Málaga and Alicante from Glasgow; from Birmingham to Alicante, Barcelona, and Málaga. Ryanair now runs 99 weekly flights to Spain.
Jet2.com offers new seasonal summer flights from Birmingham to 15 Spanish destinations, including Alicante, Gran Canaria, Ibiza, Lanzarote, Majorca, Málaga, and Menorca. Also from London to 21 destinations, including Lanzarote, Málaga, Alicante, Ibiza, Menorca, and Majorca.
Finnair now runs to Alicante, Ibiza, and Menorca.
Flybe has new summer flights from London to Reus in Catalonia on the Costa Dorada.
British Airways opened seven new summer routes from Manchester to Alicante, Málaga, Ibiza, and Palma.
Starting in May, British Airways (BA) will offer direct fares to Alicante, Málaga, Ibiza, and Palma in Spain. There will also be an increased frequency to Ibiza and Palma.
The Real Estate Market
Iberian Giant Reaching Even Greater Heights In 2017
Following the global crash in 2008, Spain experienced one of the severest property meltdowns in the world.
Spain’s property values continued to move up in 2016… and, from all indications, 2017 looks to build on that success.
Real estate saw 14% year-on-year growth in sales from 2015 to 2016 and a 7% monthly gain in sales between the two years, with over 362,000 home sales recorded in 2016—giving Spain its second consecutive year of double-digit growth. Barcelona registered a 24% growth rate and was one of the main drivers of the rebound.
This is prompting optimism from market experts…
“There is a real and sustained recovery in home sales,” said Mark Stucklin of Spanish Property Insight. “Small investors are moving out of cash and deposits and into property, and this trend will probably continue in 2017,” he added.
With unemployment continuing to fall for the third consecutive year, and foreign investment flooding in, Spain’s property sector is showing all the fundamentals needed for sustained momentum.
Spain’s Rents Are All Over The Place…
Residential rental costs are on the uptick in popular Iberian markets, with Barcelona, Madrid, and Palma de Mallorca leading the charge… simultaneously, though, rents are slipping in lesser touristed regions.
In Santander, for example, rents have dropped by about 3% over the last five years, now sitting at an average of about 650 euros a month.
In the markets where rental price are decreasing, the cause is reduced local demand. Barcelona, Madrid and Palma have been able to maintain or increase rental prices because owners have switched from local to tourist rentals decreasing the available inventory for long-term rentals.
Rental yields have also been up lately, indicating that rents are rising faster than purchases costs. Some analysts are projecting 10% rental rate increases forMadrid and 5% in Barcelona for 2017.
Residency And Immigration
Investment Visas Soaring In Spain
Spain has seen 2.16 billion euros in the Golden Visa program’s first three years, most investors coming from China and Russia. The program states that investors either buy property over 500,000 euros or invest in deposits, stocks, or business projects that contribute to scientific or technological innovation or create jobs. However, two-thirds of the money generated comes from real estate investments.
The Economy
Barcelona Tries To Put A Limit On Tourists
A record 75.3 million tourists visited Spain in 2016, making it the third-most-visited country in the world. Sick of the crowds, Barcelonés have had enough, saying it’s becoming difficult to just go about their daily lives. To try to combat the issue, the city passed a law to curb the annual onslaught.
As of Jan. 27, the number of beds, hotels, and short-term rentals in the city was limited. However, critics of the law (mainly hoteliers) argue that of 32 million visitors in 2016, only 9 million stayed overnight, the rest were day-trippers.
Either way, city residents are happy that the issue is at least being addressed.
Barcelona experiences some daunting crowds, especially during the summer, but, of course, there are plenty of other cities in Spain that offer a more secluded environment...
Valencia is another of our favorite cities in Spain, and is a lesser-known but serious contender for retirement or investment, offering a wonderful climate, vibrant and culturally rich lifestyle, and great location and communications to the rest of Europe at an affordable price.
Finances And Banking
Andalucians Get Relief From Inheritance Tax Burden
Inheritance tax (Impuesto de Sucesiones y Donaciones) in Spain is a regionally controlled duty that has been highest in Andalucía. This prevents a lot of people choosing to live in the region. However, 2018 will put a stop to that and hopefully see Andalucía’s population, and consequently economy, grow.
As of next year, parents, spouses, children, and grandchildren of the deceased will not pay any inheritance tax on the first 1 million euros, and even non-tax residents based in the European Union can benefit from this law. An estate will be able to pass almost tax free (no matter how large) if it is distributed among close family.
Why the sudden change of heart? The upcoming political party Ciudadanos demanded that the socialist government in Andalucía allow children and spouses to inherit tax free. They used their eight members of parliament in Andalucía to successfully persuade the ruling Socialist party to make the proposed tax change a reality. The socialist government needs the Ciudadanos’ votes in order to pass its budget next year, so the new tax law has worked out nicely for all involved.
Taking effect Jan. 1, 2017, this substantial inheritance tax relief breaks down to the following:
• Direct family inheritors can now receive up toUS$260,000 tax free, up from the previous US$184,000.This applies to tax residents in Andalucía and/or the EU.
• For inheritances ranging between US$260,000 andUS$369,000, there is a minimum exemption amount ofUS$211,000. For example, if someone receives US$311,000in inheritance, they would only be subject to taxes onUS$100,000—not the whole amount as they would haveprior to the changes. (Inheritances over US$369,000 payinheritance tax in correlation with the asset increasingtable published by the Junta de Andalucía.)
• If children, spouses, grandparents, or siblings (over theage of 65) have lived with the deceased for two yearsprior to the deceased’s death, and the house was themain residence of the deceased and also of the heir,then taxation is based on the main residence as follows:
• Up to US$130,000: 100%• US$130,000 to US$160,000: 99%• US$161,000.01 to US$192,000: 98%• US$192,000.01 to US$223,000: 97%• US$223,000.01 to US$253,000: 96%• More than US$255,000: 95%
• Under the same conditions, if the heir has received themain residence, they can now re-sell the asset after aminimum period of 3 years (down from 10).
Government And Military
Catalonia Conundrum
In the wake of global secessionist movements, the long-independent-minded Catalonia is the next to demand its freedom from a larger body: Spain. The country has been in political turmoil for months.
In October, a referendum was held to determine whether Catalonia would secede from Spain and form an independent country. The referendum was deemed illegal by the national government (which sits in Madrid), leading to large-scale protests and demonstrations. Law enforcement officers were dispatched to control the indignant masses… and also attempt to prevent the referendum vote from being successful.
You may have seen media coverage in October that seemed to show a heavy-handed approach by the Madrid government in its effort to disrupt what it perceived to be an unconstitutional overreach by the local Catalonian authorities.
For various reasons, a light turnout of 40% of the electorate participated in the vote, but, of that number, roughly 90% voted “Yes” to secession from. (Various polls prior to the vote had shown that a majority of the eligible voters favored remaining part of Spain.)After the vote was “certified” by the Catalan authorities, Catalonian lawmakers voted Oct. 28 to declare independence from Spain.
The country’s Prime Minister Mariano Rajoy responded by firing the entire Catalan government, dissolving the regional parliament in Barcelona, and calling local elections for Dec. 21 in a bid to restore control of the semi-autonomous region. When threatened with arrest, four of the leaders of the secessionist movement departed to Belgium to continue the fight remotely.
As we go to press, early voting has begun for the election of the new government of Catalonia (the region of Spain that contains Barcelona).
This tug-of-war between Madrid and Barcelona has gone on for at least five centuries. The battle goes back to the creation of the modern Spanish state, born when the kingdoms of Aragon and Castille were brought together by a marriage. Federal power has been centralized in Madrid, but the regions maintain semi-autonomous authority, and the competition and tension between the two largest cities in Spain has been a constant. Passage of a 1978 constitution that created the post-Franco (Dictator Francisco Franco who ruled from 1936 to 1975) Spanish democracy was agreed to by Catalonia, but the issue of how much autonomy for Catalonia was never far from the surface.
Recent polling (since the first vote in October and its aftermath) shows that the percentage of Catalans who favor secession has risen from the mid-30s to just over 40%... so it is not at all unlikely that voters will decide to go with candidates who support remaining within Spain.
The issue of secession is driven by money and control. Catalonia believes that they are contributing more financially to Madrid than they are receiving in benefits—despite a 2006 agreement that increased autonomy for the region. Unlike the Basque region of Spain, they did not receive authority to raise taxes under the 2006 law, and in 2010 courts reversed some of the powers granted in 2006.
A lasting solution is still elusive at this time.
So what are the implications (both current and future) for an investment in Valencia, Spain, if Catalonia secedes?
All business entities hate uncertainty… and they have spoken volumes with their feet. The Monday after Catalonia declared independence in October, Banco Sabadell announced that they were moving their headquarters to Alicante (in the Valencian Community). The same day, Caixa Bank made public its intention to relocate its main office to Valencia.
Depending on the source, roughly 700 to 1,000 businesses have already moved from Catalonia to other regions within Spain, and at least another 1,000 businesses are contemplating a move.
Valencia has several unique assets unavailable in other regions of Spain: proximity to Barcelona (188 miles), the presence of a port with significant improvements (completed for the America’s Cup races held in Valencia in 2007), and a strong preference for the Spanish federation of semi-autonomous states.
Tourism is flourishing throughout Spain, especially in Valencia. As reported by the INE (Instituto Nacional de Estadística) in September 2017, the number of tourist arrivals in Valencia increased almost 25% over the same period in 2016.
Valencia is well positioned to benefit no matter how the Catalonian dispute is resolved.
Awards And Titles
Top Of The Trips
Barcelona made #7 on TripAdvisor’s “Top 25 Destinations In The World.”
Best In Show
Lanzarote on the Canary Islands came in 2nd in Lonely Planet’s 2018 “Best in Travel” best value list.
The New Silk Road
In April, the first direct freight train between the U.K. and China set off from Essex on its 7,500-mile track back to China.
Copyright: dailymail.co.uk
Importing and exporting goods to and from each country, this event marks the renaissance of the 2,000 year old pathway between the two countries—what was previously known as the Silk Road. The revival of this important route was announced in 2013 by Chinese President Xi Jinping, projected to be a multibillion-dollar investment.
In 68 20-foot containers, Britain is exporting whisky, soft drinks, vitamins, pharmaceuticals, and baby products. Goods from China include clothing and household goods.
Passing through the Chunnel then through France, Belgium, Germany, Poland, Belarus, Russia, and Kazahkstan, the freighter will arrive in Yiwu, China, 18 days after departing the U.K. To transport the goods via sea would have taken twice as long and by air would have cost significantly more, making this an important economical initiative for both countries.
London is now the 15th country to be linked by rail to China, and another 20 are expected to open in the future.
New Low-Cost Flight Routes From Asia To United States
Long-haul airline AirAsia X has received clearance from the FAA to develop routes to destinations in the United States—great news for those living in or looking to move to Asia, but who fear the high costs of trips back home. The FAA has allowed for the operation of five Airbuses to land Stateside through the carrier.
“This is a major milestone for AirAsia X,” said CEO Datuk Kamarudin Meranun.
“The airline is the first Asian low-cost carrier to secure approval to operate scheduled passenger flights to the US,” AirAsia X proclaimed.
The carrier plans to begin their expansion with routes from their base in Japan to Hawaii, Los Angeles, Las Vegas, and San Francisco. An ultra-long-haul route from Malaysia to the United States is also in consideration.
Beyond the savings offered to a new client base, stockholders have also been made happy, as the value of their shares responded with a slight bump due to the news.
Pacific Flight Routes Affected By Missile Tests
In July, Singapore Airlines has changed the trajectory of their Asa-U.S. flight after pilots from several airline reported seeing what might have been the flash of a North Korean missile re-entering Earth’s atmosphere. Specifically, routes from Hong Kong and Seoul to San Francisco and Los Angeles were tweaked to stay well out of missile paths.
Other airlines whose pilots may have seen missile movement are Cathay Pacific and Korean Air. Singapore Airlines decided to change its routes after hearing that
AsiaIn 2017 And 2018
an Air France flight passed just east of the splashdown site mere minutes after a missile hit water. This infamous test was condemned by international sources, with U.S. Defense Department spokesman Jeff Davis stating that the missile “flew through busy airspace used by commercial airliners.”
North Korea takes its pre-missile warning responsibility lightly, with advisories regularly skipped before sending weapons into airspace. Still, CNN aviation safety analyst David Soucie claims that the odds of a civilian aircraft being struck by a missile are, “bullions to one.” Better safe than sorry in Singapore’s opinion!
Japan Uses Cute Signs To Break Down Language Barriers
Morioka City, in the Iwate Prefecture in Japan, has come up with quirky, cute signs to breakdown language barriers with foreigners.
The city and business owners have acknowledged that many foreign tourists visit Hokkaido, Tokyo, and Kyoto but only about 500,000 visit the Tohoku region yearly.
This initiative hopes to help visitors who don’t speak Japanese feel more welcome.
Author and consultant Ryusuke Murao, who worked with the city on the campaign “10 Ways to Make Travelers Happy” (his students are responsible for some of the designs), says, “Its goal is to strengthen foreign ties and comes in the wake of an earthquake and tsunami that caused wreckage to the Tohoku region in 2011.”
There are 26 images to download… one shows a jovial pig in a bowl to advise diners that the meal has pork. Another shows a man with flaming hot fire from his mouth to inform the diners that the dish is spicy.
As tourist numbers continue to grow in Japan, other high-tech approaches to dealing with language barriers are now available in other cities. Last year, an app that translates rail announcements into visitor’s own language was launched, and some regions offer 24-hour multilingual hotline advice on anything including police and doctors.
ALL IMAGES: Copyright: Fodor Travel
First Vertical Forests In China
China is set to construct two “vertical forest” towers in Nanjing, the first of their kind in Asia. Taking up a 65,000-square-foot area, the towers will be covered with 1,100 trees—from 23 local species—and 2,500 cascading shrubs and plants. Designed to help decrease the levels of carbon dioxide, this biodiversity project is expected to absorb 25 tons of carbon dioxide and produce 132 pounds of oxygen per day.
The highest tower, 600 feet, will house offices, a museum, a green architecture school, and a private club on the rooftop. The second tower, 355 feet high, will host a Hyatt hotel with 247 rooms and a rooftop swimming pool.
The towers are designed by Italian architect Stefano Boeri and are expected to be completed in December 2018. He designed the first vertical forest tower in Milan, completed in 2014.
Malaysia is a regional and a global hub—for trade, for business, and for cultures.
The diversity of its people, who comprise an assortment of Malay, Chinese, and Indian ethnicities, creates a unique culture. As a result, foreigners invariably find Malaysia to be an extraordinary place to partake in a diversity of traditions, foods, and festivals.
As a country, Malaysia is split by the South China Sea into two similarly sized regions, Peninsular Malaysia and East
Malaysia, is known for its beaches, rainforests, and the diversity of its population.
Malaysia actively welcomes foreigners, offering incentives like the Malaysia My Second Home visa program, granting 10-year long-stay visas. And foreigners are eager to be accepted. Malaysians are friendly and gracious, the cost of living is some of the cheapest in the world, the health care is world-class (and affordable), and, to boot, Malaysia is a world-renowned foodie haven. In 2014 George Town was ranked the top food destination in the world by Lonely Planet.
Malaysia Pros At-A-Glance:
• Malaysia consistently comes out near the top of our list of most affordable destinations, translating to a betterquality of life for less money.
• The Malaysia My Second Home Program (MM2H) allows foreigners to apply for a Social Visit Pass valid for up to10 years and can be extended, making residency here super-easy.
• Malaysia’s health care system is among the best in the world. Many doctors have been trained in Westerncountries, and doctors and nursing staff usually speak English. Most prescription medications can be easilyobtained at pharmacies without a doctor’s prescription.
• George Town alone boasts an estimated 40,000 expats from all over the world. Because this is a former Britishcolony, there are plenty of Brits living here, but there is a healthy North American, European, Australian, and Asianpopulation, as well.
• Famed for street food, Malaysia’s George Town is also home to a vibrant restaurant and market scene… therange of fresh and fascinating food is endless and cheap to boot.
+
Malaysia Cons At-A-Glance:
• Malaysia has become a center for credit card fraud, and some U.S. banks refuse ATM withdrawals in the country.Check with your bank and give them a travel alert before you go. Once in Malaysia, use ATMs inside banks, wherethieves might be less likely to install their illegal card readers. Check your transactions online, or better yet, setyour account to send an email whenever a transaction goes through it.
• Like most of the region, Malaysia is hot and humid most of the year and deforestation in neighboring Sumatraand Borneo can cause serious haze, particularly around December and January.
• Traffic congestion in the cities can be bad.
-
Malaysia In 2017 And 2018
Currency Outlook
The ringgit gained some on the dollar over the course of the year. At the time of this writing, the ringgit is trading at 4.08 to US$1, 34 cents lower than it was when we published this last year.
Still, over the last four years, the ringgit is down more than 25% versus the U.S. dollar. That cheap ringgit means that, for U.S. dollar-based expats and tourists, Malaysia is on sale. Figure dollar prices some 15% or 20% lower than normal, due to the better exchange rate.
Residency And Immigration
Foreign Investors Losing Confidence In Malaysian Property Market
Although real estate values in Malaysia continue to rise, property price rises have subdued and are increasing at a slower pace than the country has seen over the past few years. With the economy stagnating and the Malaysian ringgit being devalued, property sales and new construction has also stalled.
In the third quarter of 2016, Malaysia’s national house price rose by 5.36% year-on-year, slightly lower than the 7.35% year-on-year price increase during the same period last year. According to Valuation and Property Services Department (JPPH), this was the lowest increase since 2009. In Q3 2016, the average home in Malaysia was valued at 334,736 ringgits (about US$75,391).
Kuala Lumpur is the most expensive region for real estate, with an average cost of 772,126 ringgits (US$173,902). Perlis remains the cheapest market, with an average home price of 153,472 ringgits (US$34,566).
Investors are second guessing investing in the country based on governmental instability, economic slowdown, small rental market, construction
slowdowns, fewer property transactions, and strict foreign investing regulations.
Although some year-to-year numbers are still increasing, they are at a much slower rate, and this trend will likely continue.
The Economy
Malaysia Wins By Miles
The World Bank reports that investors make decisions about where they invest based upon four elements:
• Natural-resource-seeking—access to a natural resourcenot available in the company’s home market.
• Market-seeking—access new customers, clients, andexport markets.
• Efficiency-seeking—reduce production costs byaccessing new technologies or competitively pricedinputs and labor.
• Strategic-asset-seeking—encountering strategic assetsin a local economy (brands, new technologies, ordistribution channels).
The 2017 Best Countries report by BAV Consulting and the Wharton School of the University of Pennsylvania addressed more than 21,000 survey participants from four regions that covered 80 countries. It focused on the World Bank’s four elements and Malaysia was a winner, scoring 30 points more than any other country. This is not surprising when you consider it is one of the top recipients of foreign direct investment, and its pro-business government offers a wide range of incentives to investors.
Additionally, US News ranked Malaysia 35 out of 80—Entrepreneurship, Movers, and Open For Business being the categories that the country scored most highly in.
Malaysia is a member of several international organizations, including the United Nations, the Asian Development Bank and the Association of Southeast Asian Nations.
Ubering Around Malaysia
It began when the Land Public Transport Act 2010 was amended and the Commercial Vehicles Licensing Board Act 1987 were passed by the Dewan Rakyat. Now Kuala
Lumpur can better enjoy Uber and other e-hailing cab services such as Grab.
The amendments make way for three major changes:
1) operators will be required to own an intermediationbusiness licence issued by a regulatory body,
2) the licences are renewable, but operators will not beallowed to transfer or reassign them, and
3) it will be an offense to assault, hinder, or obstructthose involved in e-hailing services.
This new approach is a game changer for Uber. In 2014, twenty of fifty vehicles under eight companies that used the Uber mobile application did not have the necessary permits. The Land Public Transport Commission (SPAD) commented, “Although the use of the Uber app is not against the law, the use of the vehicles with appropriate licences is required,” However, drivers were breaking the law, not paying fines, and not facing any severe punishment.
2017 is clamping down on Uber. Regulating the service will make it more enjoyable and thus popular.
Finances And Banking
Major Merger
The second largest Islamic lender will be created thanks to Malaysia Building Society Berhad merging with Asian Financial Bank (AFB). Upon competition, the union will leave the building society a fully-fledged bank, with an asset base of $10.5 billion, and 46 branches in operation.
It is reported that in the first quarter of 2018, “Malaysia Building society will buy the stake held by foreign shareholders—Qatar Islamic Bank, Financial Assets Bahrain, RUSD Investment Bank and Tadhamon International Islamic Bank—for US$153 million. The company recently stated that it would pay US$94 million in cash and the remaining US$59 million through the issuance of 225.5 million shares.”
The merger will give the building society much needed access to cheaper funding, which in turn will lower its funding costs and consequently widen its margins.
Government And Military
Prime Bribes?
Prime Minister Najib Razak—who has been embroiled in embezzlement scandal and under investigation since 2015—and his party, United Malays National Organisation, are up for election once again.
In power since the 1940s, the 2018 parliamentary elections are looking to turn out no differently for the ruling party. Some are suggesting the forgiving attitude of the Malay people might be due to the sweetheart budget proposal Razak has put forth for 2018, which includes what amount to handouts for the masses. Offering income tax cuts, toll abolishment on major roads, and sales tax exemptions, as well as promising infrastructure improvements, he’s made a pretty tempting overture.
Awards And Titles
All Indexes Point This Way
Hot on the heels of Live and Invest Overseas’ own 2017 Retire Overseas Index, InterNations published Expat Insider, a survey listing the world’s top spots for expats. InterNations liaised with 12,500 respondents representing 166 nationalities and living in 188 countries or territories in order to compile their report.
Malaysia was heavily represented in our 2017 Index, with four havens cited for retirement excellence. Kuala Lumpur came in 6th out of 30 in our Index, George Town 10th, Kota Kinabalu on Borneo 18th, and Kundasang in the mountains also on Borneo 26th.
In the InterNations index, Malaysia leaped from 38th to 15th this year, with expats citing the ease of settling in and that the culture is easy to get used to. In their report, Malaysia took the biggest leap in the section called “Ease Of Settling In,” climbing from 18th place in 2016 to 5th in 2017. Malaysia also scored high for making friends, and one survey respondent from South Africa commented on “the easy-going temperaments and friendliness of the local people, the weather, and the good travel options.”
The Philippine islands are rich in natural beauty. Lying about 500 miles off the southeast coast of China and to the northeast of Borneo, the Philippines is made up of over 7,000 islands created from volcanic activity. Yet thetotal land mass is about the size of Arizona. Only about 7% of the islands are larger than one square mile, and only one third of them have names. They form three main groups: Luzon, Visayas, and Mindanao.
Colonized by the Spanish in 1521, their influence can be seen all over the Philippines, from the Spanish churches and religious observation to Hispanic last names and foods. The Spanish language was the official language of the country
for over three centuries and was the lingua franca up until the 21st century. The country was then also colonized by the United States from 1898 to 1946, and it continues to have the closest cultural ties to the States of any Asian country.
Unfortunately, we have taken the Philippines off our top recommendation list for 2017 and the foreseeable future due to its current political situation. We include it in this issue because it has historically always been one of our top recommendations—both in Asia and in the world. But, based on developments in 2016, we have removed it from our top picks list and aren’t currently recommending the Philippines to expats.
Philippines Pros At-A-Glance:
• The Philippines is one of the most affordable places to retire in the world. A couple can live very well on aboutUS$1,000 a month outside of Manila or the Visayan Islands.
• English is an official language and is widely spoken. It is the second most spoken language in the country afterthe national language, Tagalog (Filipino).
• This country offers one of the best retirement programs for foreigners in Southeast Asia, allowing foreignresidents to work or start a business.
• The country provides the easiest path to permanent residency in Southeast Asia. The Philippines retirementprogram allows foreign residents to work or start a business (unlike neighboring countries). Once you have beengranted permanent residency, you can stay in the country for as long as you want, and your visa never expires.
• With a large and largely English-speaking expat community, it’s an easy environment to make friends andsettle in.
+
Philippines Cons At-A-Glance:
• President Duterte has made the Philippines a seemingly erratic and potentially dangerous place to spend timethese days. With allegations of mass murder against him, plus his threats to withdraw the country from the UNand his denigrations of women and women’s rights… the current political state of the country is more unstablethan you might like in your new home.
• The Philippines has its fair share of crime. Street crimes, like jewelry- or bag-snatching, happen, as do moresignificant things like burglaries. Most expats choose to live in gated communities with 24-hour security.
• Infrastructure continues to be a major problem for the country. Manila has generally stable infrastructure, butthe provinces are often plagued by power failures, chronic water shortages, antiquated telecommunicationssystems, deteriorating roads and bridges, and a subpar airport.
• Traffic congestion in cities is an issue. Roads are often poor and road rules are often ignored. Over the last coupleof years, Manila and Jakarta have been trading places at the top of the list of world cities with the worst traffic.
• Located along the Ring of Fire, or typhoon belt—a large Pacific Ocean region where many of Earth’s volcaniceruptions and earthquakes occur, typhoons, tsunamis, and volcanic eruptions are a fact of life in the Philippines.Between June and December each year, 20 to 25 typhoons hit the islands.
-
Philippines In 2017 And 2018
Currency OutlookAt the time of this writing, the Philippine peso is trading at 50.43 to US$1, less than a peso lower than where it was trading when we published this last year.
The Philippine peso has declined about 9% against the U.S. dollar over the last year, which makes now a good time to be living here if you’re holding U.S. dollars.
Path Of Progress
Media For The Masses
The country has partnered up with Facebook to improve their internet infrastructure, hoping to deliver affordable high-speed connections throughout the country that would rival those of major providers.
The Luzon Bypass Infrastructure “landing party agreement” has been signed, but this plan is still far from realization. Initial projections have the project going online in 2019.
Access
PAL Pushes Forward
Philippine Airlines (PAL) has made big pushes in 2017, opening up several new routes within the country and also between multiple continents.
Domestically, several routes from Clark (north of Manila) and Cebu opened including: Clark-Cebu; Clark-Davao; Clark-Puerto Princesa; Clark- Coron; Cebu-Puerto Princesa; Cebu-General Santos; Cebu-Surigao; Cebu-Coron. These direct flights all eliminate a stop in Manila, which travelers previously had to make. The airline hopes to ease congestion in the hub with these additional direct routes. A new route from Mindanao to Davao also opened.
A route from Manila to Kuala Lumpur began in June.
Internationally, a direct service from Auckland, New Zealand, to Manila began in December, eliminating the connection in Australia that was previously needed.
In May, a Tagbilaran City to Seoul flight was introduced; in December a route from Cebu to Bangkok, Thailand launched; and in November a route from Cebu to Beijing.
A route from Manila to New York is set to begin in August 2018, and the airline has plans to open more trans-Pacific flights in 2018 and 2019, including to Toronto, Los Angeles, San Francisco, and Vancouver.
China Connections
China Eastern Airlines accounted additional routes from China to the Philippines, including from Shanghai to Clark and Cebu; Cebu to Canton and Guangzhou; and Manila to Kunming.
PAL’s Weekend Deals
Philippine Airlines launched their weekend deals offer for January, February, and March 2018, offering domestic tickets from US$20 and international flights from US$160. Destinations include Manila, Davao, Kalibo, Tacloban, Cebu, Hong Kong, Puerto Princesa, Iloilo, Tagbilaran and 21 more.
Government And Military
Duterte In 2017
President Rodrigo Duterte took office in May 2016 and immediately began making dramatic changes to the country’s management.
Duterte was elected on a platform calling for mass murder, claiming he would kill 100,000 criminals in order to scour the country of crime (within six months of taking office, no less) and then grant himself a presidential pardon for mass murder at the end of his term.
Looking to get a handle on the illegal drug situation and corruption in government, Duterte has been ruthless in his initiatives. He has been a vocal advocate for extrajudicial killing (of drug users and criminals) and was
implicated in the alleged death squad in Davao while mayor of the city.
Human rights groups have record of over 1,400 killings—mainly of drug users, petty criminals, and street children—in Davao between 1998 and May 2016, said to have been carried out by vigilante groups. Duterte has denied any involvement in these death squads, but the international community is reluctant to believe him…
The Philippines’ own government reports tally the deaths of about 4,000 “drug personalities” who were killed in anti-drug operations between July 2016 and November 2017. A further 2,300 or so were murdered in drug-related crimes, while thousands of other deaths remain unsolved. These are just the legally sanctioned deaths, handed out by police; it doesn’t take into account the thousands of unofficial deaths and collateral damage that other bodies have alleged.
Personally, he has admitted to murdering, claiming his first kill came at age 16, and most recently bragging about stabbing someone to death, coming at the end of a long list of comments from him about his personal kill list (which is long and its methods of murder varied).
He’s also been outspoken against women’s rights, taking an alarmingly lighthearted approach to rape and sexual assault on a number of occasions, going so far as to even lament not being part of a famous gang rape in Davao in 1989.
He claimed before being elected that he would abolish the Philippine Congress if elected and introduce a federal parliamentary government, though that has not materialized since he has taken office.
Duterte claims that his actions will lead to greater safety and efficiency in the long-term, but there have been numerous reports of increased petty crime as the drug community seeks other ways to make money.
After the United Nations criticized his presidency, claiming the number of extrajudicial murders spiked since his election, he threatened to pull the Philippines from the UN and to form a new organization with China and African nations. He has also said that he would pursue “independent foreign policy” that would ignore any foreign intervention.
Most recently (in October), after being warned that he could incite allegations of crimes against
humanity, he threatened to deport all European ambassadors in his country with 24 hours’ notice. “Just like that you tell us: ‘You will be excluded in the UN’. Son of a whore go ahead,” Duterte told reporters, continuing, “You give us money then you start to orchestrate what things should be done and which should not happen in our country. You bullshit. We are past the colonization stage. Don’t fuck with us.” Continuing to say all ambassadors had 24 hours to get out of his country.
However, there’s a disconnect there… The EU has not made any public comments about wanting to oust the Philippines from the UN. No one seems to understand why Duterte thinks the EU ambassadors have anything to do with UN ultimatums.
A September poll showed the first drop in his popularity among Filipinos, nonetheless, the people support his crackdown.
Duterte has taken a strongly patriotic stance, alienating himself from the United States, Japan, and the European Union since taking office, as well as the UN, all of which may have negative long-term effects on foreign retirees and expats living in the Philippines.
This year, however, President Trump made big gestures towards the Philippines, an American colony from 1898 to 1946, and Duterte in particular. The two have been likened to one another for their brash demeanors and disregard for public opinion, with Duterte regularly called the “Donald Trump of Asia.”
Trump’s been vocal about his “great relationship” with Duterte, with the two reportedly bonding over a shared hatred of the Obama administration. He has praised Duterte and the anti-drug initiative, saying Duterte is doing an “unbelievable job on the drug problem.”
Where the Philippines go from here seems less assured than it was last year, when there seemed to be an international consensus on his actions.
Miscellany
Better Sing Like You Mean It In The Philippines, Or You’ll Be Jailed
Citizens of the Philippines will need to practice their most heartful singing voices, as the country’s House of Representatives approved a bill this year that requires
the public to sing the country’s national anthem enthusiastically… or else.
Or else what, you ask?
Jail time.
Individuals who are convicted of violating the newly proposed law, i.e., not singing energetically enough,
could face public censure, fines of US$1,000 to US$2,000, and as long as a full year in prison.
The bill includes a few other requisites, namely: • All students are required to memorize the full anthem,
regardless of whether they are in public or privateschools;
• The anthem will be played in accordance with itsoriginal composition, a 2/4 time signature when playedinstrumentally and a 4/4 time signature when sang;
• The tempo should be played between 100 and 120beats per minute;
• All people are required to stand and face the flag, facethe band, or face the conductor if there is no flag.
Any notion of casting contempt, dishonor, or ridicule upon the national anthem is considered a violation of the law.
The bill still has to be approved by the Philippines Senate and President in order to become a law.
Singapore—whose name roughly translates from Malay into “lion temple”—is a tiny island city-state located in the heart of Southeast Asia. With theIndonesian archipelago to its west, south, and east, and Malaysia, Thailand, Cambodia, and Vietnam to its north, it has become an epicenter of cultural exchange.
Today, Singapore has one of the world’s most developed economies. It’s a country full of financial giants and mighty multinational corporations operating in towering skyscrapers overlooking a prosperous, safe, and clean city.
Besides having one of the busiest seaports in the world, Singapore is a global offshore banking powerhouse, managing about 5% of the world’s total private wealth. It’s now considered a prime destination for private wealth management.
The country is a worldwide leader in innovation and a proactive business environment. Both factors have been critical in turning Singapore—a city-state void of natural resources—into a competitive and globally respected economy. By transforming the city into a hub for everything from medicine to finance, its leaders have created the right conditions to attract both money and talent, recently spurring a vibrant start-up scene.
This English-speaking country offers a safe environment, a relaxing tropical climate, and all the amenities that well-to-do Westerners like. Although this is not a destination for everyone, those with a sizable nest egg and investable assets will be warmly welcomed by this Asian lion.
Singapore Pros At-A-Glance:
• English is an official language and the language of business, government, and education.• Singapore enjoys the world’s highest standard of living. From its minimum wage, safety, and infrastructure to its
governmental and economic stability, the overall quality of life here cannot be beat.• Singapore is super modern and extremely clean—it’s notorious for being the only country in the world that
bans chewing gum, and its pristine sidewalks and parks are a testament to that.• Health care here is as advanced and affordable. The World Health Organization ranked Singapore’s system sixth
best in the world.• It’s the land of opportunity—Singapore is a hub of global commerce, finance, and transportation. Its foreign
exchange market is one of the biggest in the world, as are is financial and trading centers. It’s famously one of theeasiest countries in the world to do business, with one of the lowest rates of corruption.
• It offers a safe and exciting plethora of investment opportunities that you can partake of regardless ofresidency status.
• The small but dense country enjoys First World infrastructure that rivals any global metropolis: Changi airport isconsidered one of the world’s best, and the islets are well connected via buses, taxis, and a MRT train system.
• Singapore is known to have some of the safest, most solvent banks in the world. In its history as an independentnation, Singapore has never had a bank failure.
• Almost half of Singapore’s population is foreign-born amounting to an eclectic mix of cultures. Get the best ofmultiple worlds in terms of shopping and cuisine options.
+
Singapore Cons At-A-Glance:
• Singapore is not a budget destination. With a cost of living higher than that of New York City, Singapore is,unfortunately, not in everyone’s price range.
• Housing is the single biggest expense. Couples with a budget of less than US$5,000 per month will likely haveto live in a shared apartment.
-
Singapore In 2017 And 2018
Currency OutlookAt the time of this writing, the Singapore dollar is trading at 1.35 to the U.S. dollar. The rate between the two has remained pretty steady over the last two years, ranging from S$1.34 to S$1.44 to the U.S. dollar.
Access
Low-Cost Connections
Budget Singapore airline Scoot announced in June plans to launch a series of five new routes in the following 12 months. The only long-haul flight on the docket is an 11-and-a-half-hour direct from Singapore to Athens—the carrier’s first EU destination. Scoot also plans for aflight to Honolulu and Osaka.
Singapore Airlines Improves Its Offerings
Singapore Airlines will increase frequency of their service to Auckland, New Zealand; Dusseldorf, Germany; and will expand on their Africa routes.
The airline is famous for its luxury first-class cabins, and many of their fleet were given makeovers this year, making their indulgent flight options better than ever.
They also expanded their partnership with JetBlue, adding 11 routes via New York, including one to Mexico.
The Real Estate Market
Singapore Loosening Its Controls On Property Market
The Singaporean government is easing some property-bubble-prevention controls implemented over the past seven years.
The stamp duty (paid by the seller) has been lowered to 4% for properties sold in the third year (down from 8%);
8% for those sold in the second year (down from 12%). The maximum possible stamp duty would be 12% for real estate sold within one year (down from 16%).
The Singaporean government imposed these measures in 2009 to control the real estate market. As a result, property prices dropped for 13 quarters in a row. Last year prices fell by 3%.
Despite the challenges the government remains adamant that the property curbs are necessary to promote a sustainable residential property market and financial caution among buyers.
Residency And Immigration
Easier Visas For Startups
In August, Singapore loosened their EntrePass (visa) requirements in hopes of attracting more foreign start-up talent to the country.
The new rules make work visas easier to obtain by broadening evaluation criteria for start-up founders, removing the S$50,000 paid-up capital requirement, and extending the visa lengths from one to two years after the first renewal.
Minister of State Dr Koh Poh Koon told the press, “Start-ups are an important driver of innovation and are becoming increasingly important as Singapore transforms to become an innovative and value-creating economy.”
Awards And Titles
All Indexes Point This Way
Hot on the heels of Live and Invest Overseas’ 2017 Index, InterNations published Expat Insider, a survey listing the world’s top spots for expats. InterNations liaised with
• Permanent residency—through investment or employment—is difficult to attain: The minimum earningthreshold to qualify is very high and permanent residency comes with National Service obligation of twoyears.
• Tourist visas can only go so far… They require regular extensions (including a fee each time an applicationis submitted), visa runs, and other hassles.
• No more gum… and other personal restrictions. Singaporean society is highly regulated, outlawingmany activities considered harmless in others. Corporal and capital punishments (caning, hanging, etc.) areenforced for serious offences.
12,500 respondents representing 166 nationalities and living in 188 countries or territories in order to compile their report.
Singapore came in 9th place overall, ranking high on the quality of life, topping the list for ease of travel and transport and coming in 3rd for safety and security.
Best For Startups
In March, the country beat Silicon Valley in the 2017 “Global Startup Ecosystem Report and Ranking” by the U.S.-based Startup Genome project, being named thebest place in the world for start-up talent.
The Go List
Singapore came in 21st out of 52 on Fodor’s 2018 “Go List.”
Miscellany
When In Singapore: Head To The Vending Machine For A Fancy New Car
One of the world’s largest vending machines now lives in Singapore, and what it carries may rev your
engine. The machine is being dubbed the “world’s largest luxury car vending machine.” If you’re thinking Lamborghinis, Bentleys, and Ferraris, you’re right. Autobahn Motors opened the 15-story showroom in December of last year. Customers can choose a car to view from the touchscreen on the ground. Vehicles are on display across 60 slots, from which they arrive in approximately two minutes via a process of being vended.
During this retrieval time, the cars are not dropped to the ground in normal vending machine fashion, as would be a bag of chips or a candy bar. Instead, the advanced method is called a “fish-bone type lift system,” with which the cars are safely transported to the ground for potential buyers to take a look up close and personal.The vending machine is currently stocked with everything from classic cars to modern, luxury sports cars. Be forewarned, prices aren’t exactly relative to that which you normally stick into a traditional vending machine, however. You might need more than a few spare coins to get the item you desire this time.
There’s a lot to like in Thailand: breathtaking beaches, friendly locals, and well-established expat communities are just what’s on the surface. Beyondthese attractions, Thailand boasts excellent health care (sometimes one-fifth the cost of U.S. health care) and easy retirement visa options.
Thousands of foreigners have settled in Thailand, in world-renowned resorts such as Koh Samui, Koh Lanta, and Phuket, in cities including Bangkok, Pattaya, Chiang Mai, and Chiang Rai, and in the smaller towns of Hua Hin, Cha-am, and Pai. It’s rare to find a town in Thailand that doesn’t have at least a few foreign residents.
Do you prefer beautiful, white sand beaches or cool mountain retreats? In Thailand you can find both, which is just one of the reasons it’s high on our list as a retirement destination.
A would-be retiree would have no trouble enjoying life here… there is a large and established expat community, plenty of golf courses, excellent medical and dental care, and all the services and amenities that an expat could want. Plus, the geography offers everything from misty mountains to pristine beaches.
The real kicker though, is the price. Thailand is arguably the cheapest place on Earth to live well. While affordable luxury is available, you can live on a very modest budget, thanks to US$1 pad thai lunches and US$11-a-night hotels (including breakfast and free Wi-Fi).
This is a great place to lay down some roots, especially if you are planning to invest in real estate in your new home. Even renting, the country is one of the most affordable in the region.
Thailand Pros At-A-Glance:
• Real estate in Thailand is a real bargain.• The country has an excellent health care system. Many of their hospitals are internationally accredited, with
plenty of English-speaking staff.• The cost of living is very affordable; a couple can live comfortably here on US$1,200 a month.• The expat community is well established and has, in some places, become a vital part of the local scene.
Hua Hin, a seaside resort on the Gulf of Thailand, takes expat engagement to another level. Town meetings areorganized with the police and residents to discuss the state of the town and what changes might be needed andforeigners are invited to participate.
Thailand Cons At-A-Glance:
• In Thailand foreigners cannot own land. Freehold title to construction, specifically to condominium units, isallowed, but foreign ownership of the total number of units in the building cannot exceed 49%.
• Although in the southern part of the country it is less of a problem, in the north, the local farmers use the slash-and-burn method to clear fields, causing serious air pollution.
• Sex tourism is prevalent in several cities, with child prostitution and human trafficking being a major issue.
+
-
Thailand In 2017 And 2018
Currency Outlook
At the time of this writing, the baht is trading at 32.60 to US$1, about 3 baht less than when we went to press with this issue last year.
The baht strengthened a bit over the last couple years, while the country saw some inflation. Combine the two, and cost of living for dollar-based expats and tourists increased slightly.
Access
Thai Air Expansions
Thai Air launched new flights from Bangkok to:• Siem Reap, Cambodia;• Kota Kinabalu, Malaysia;• Tiruchirappalli and Jaipur, India;• Taipei;• Vienna, Austria;• Da Nang, Vietnam;• Chittagong, Bangladesh;• the Maldives;• Auckland, New Zealand;• Colombo, Sri Lanka
A route from Bangkok to Denpasar on Bali was resumed in December after being suspended due to volcano activity.
Frequency was increased on flights from Phnom Penh, Cambodia; Penang, Malaysia; Milan, Italy; Mandalay, Myanmar; and Dhaka, Bangladesh. Flights decreased to Beijing, China.
In 2018, new routes will run from Phuket to Kunming and Bangkok to Chengdu.
Social Changes
Tourism For All In Thailand
The Tourism Authority of Thailand (TAT) launched “Tourism for All,” to encourage disabled tourism, in 2016. The program already exists in Portugal, the U.K., and some other EU countries, but this is the first program of its kind in Asia.
Tourism for All in Thailand has published a 116-page Thai-language guidebook, with braille letters and a
DVD, to help raise awareness and extend the range of universally accessible attractions around the country. Pick one up at TAT offices in the nine pilot provinces. It’s also supposed to be available from the website, but the website doesn’t appear to be up yet.
Nine new flight routes are planned to popular provinces to help promote accessibility. Each of the targeted destinations was picked for its universal accessibility and for catering well to disabilities.
They are: “Stylish Capital: Bangkok, Exotic Lanna: Chiang Mai, Nature & Art: Ratchaburi, Wonderful Town: Pattaya, Remaining Memories: Kanchanaburi, Andaman Pearl: Phuket, Northeast Spicy Isan: Khon Kaen, Precious Treasure: Ayutthaya, and Fertile Land: Nakhon Ratchasima,” according to the TAT press release.
Residency And Immigration
Residency For The Elite
Thailand has revived an “elite residency program” created 15-odd years ago in hopes of capitalizing on current world volatility, advertising the benefits of second or third residencies to potential expats. The “elite,” defined as wealthy foreign citizens and retirees, according to the Thailand Privilege Card Company Limited, are invited again to apply for residency under this high-cost, concierge program, for which many extra benefits are offered.
With increased border control measures and immigration regulations worldwide, the Thai government suggests back-up residencies will give families more control of their future—something we at LIOS have been recommending to our readers for years.
The state-sponsored concierge program is the primary bait for potential expats; it will handle international applications on their behalf, helping to see their applications accepted (by a department famous for rejecting). President of the Thailand Elite program, Pruet Boobphakam, highlights the VIP access to government agencies for immigration, work permits, and driver licenses for elite members.
The Thai government also offers elite residents complimentary return airport transfers, physical health exams at private facilities, spa treatments, and annual
golfing trips. Seven distinct packages are available based on budget and expiration. Boobphakam expects 1,000 expats (mainly retirees) to apply, but gave no timeframe for his projection.
The Elite Ultimate Privilege is the most expensive package offered. In addition to US$600 annually to cover the membership fee, it costs US$60,000 for 20 years of residency. A 10-year membership opportunity is available for US$30,000, which includes family member discounts. The Elite Easy Access package avoids the annual fee and includes five years of residency for US$15,000.
When the program was first launched in the early 2000s, it was aimed at wealthy Asians who paid dearly for the promised benefits but were often disappointed as the government reneged on their offers. Successive governments have tried to revive the program periodically, but it’s never gotten many sign-ups.
Our man on the ground in Thailand tells us that the program from the start has been unreliable and “riddled with a bureaucracy determined not to give anything away, especially not to Westerners.” It’s probably wise to hold off on this opportunity until we’re able to see some results from fellow Western applications.
Time will tell if this new offer will be better suited to Westerners or have any long-lasting success… The head of Southeast Asia for Henley and Partners, Dominic Volek, is optimistic about the effects the elite program will have on Thailand’s economy.
Four-Year Visas For Investors
A multiple-entry visa for British, Canadian and U.S. citizens (among other nationalities) aged 50 and over will be available as of January 2018, offering four-year visas to highly skilled professionals, and entrepreneurs.
Investors eligible for the new visa will include applicants who invest in 10 pre-determined, high-tech industries approved by the Board of Investment (BOI). The pre-determined industries cover the automotive field, high-income tourism and medical tourism, smart electronics, efficient agriculture and biotechnology, food innovation, robotics, aerospace, bio-energy and biochemical, digital, as well as medical and health care. Start-up investors will also be eligible for visas ranging from two to four
years depending on the technologies in which they invest. Additionally, medical personnel, researchers, and aviation engineers who apply to work in Eastern Economic Corridor projects (EEC) will also be eligible for a four-year visa.
Furthermore, the visa is set to allow its holders, their spouses and children to reside in Thailand without applying for a work permit. Moreover, they will only need to present themselves to the Immigration Bureau annually.
The Economy
Visas Lend A Helping Hand To Thailand’s Economy
Why is Thailand making these visa changes? They’re hoping to attract some new revenue from Foreign Direct Investment.
The country has grown from a low-income country to an upper-income country in less than a generation. It is estimated that tourism will finish the year having generated 1.78 trillion baht (around US$50 billion). Last year, Thailand accounted for 10% of Asia’s tourism.
However, although tourism numbers are impressive, the country’s economy is based on more than that. Looking at the bigger picture, the World Bank states, “after average [economic] growth slowed to 3.5% over 2005–2015, with a dip to 2.3 % in 2014–2016, Thailand is now on the path to recovery. Growth is projected to reach 3.5% in 2017 and expand further to 3.6% in 2018.” The government presented its long-term economic goals (covering 2017–2036) in its 20-Year National Strategy and boldly stated that it is striving to attain “developed country status through broad reforms.”
At the moment, tourism is Thailand’s biggest economic factor. This is not due to change any time soon as the country is so vast and diverse it offers a wide variety of tourist activities and all at very affordable prices. However, the government realizes that they cannot afford to put all their eggs in one basket. The Thai people are expecting state services to improve and want to see public investment. In 2014 the military took control of the country, vowing to kick-start the economy. Not improving the economy through diversification will result in the military losing essential support from the middle class and business community.
Gundy Cahyadi, an economist at DBS Asian Insights, explains “The private sector is three times as big as the public sector, but their contribution to GDP growth in the past five years has been pretty much equal.” A dwindling car industry and other suffering exports have hindered the private sector. Additionally, having one of the biggest manufacturing countries in the world as your next door neighbor (China) arguably puts a damper on things.
Tourism helps maintain a stable currency, but Thailand’s GDP requires strong manufacturing. This in turn requires cutting-edge thinking in smart-electronics, robotics, aerospace, and digital industries, to name but a few. Are Thai immigration changes underway in order to attract more experts in these fields?
The new immigration policy attracts the very people Thailand needs if it wants to diversify and thus better secure its economy and the military’s power.
Government And Military
Farewell To A King
The former, beloved King of Thailand died in October 2016 and was cremated this past October. He was the world’s longest-reigning monarch, and his death was mourned for a year, as per custom.
He has been succeeded by his son, King Maha Vajiralongkorn, who has been named King but still awaits formal coronation. The King recently made headlines by boarding the plane to his father’s cremation ceremony in a crop top and attending it with both his wife and mistress.
Election Season
Meantime, it’s the military government that has real control in the country, and it has announced elections for late 2018. Election dates have slipped in the past, though, so it’s possible they’ll be postponed.
Awards And Titles
All Indexes Point This Way
Hot on the heels of Live and Invest Overseas’ own 2017 Overseas Retirement Index, InterNations published Expat Insider, a survey listing the world’s top spots for expats. InterNations liaised with 12,500 respondents
representing 166 nationalities and living in 188 countries or territories in order to compile their report.
Chiang Mai and Hua Hin came in 13th and 19th out of 30 in our Index, respectively. The country overall scored 18th on the InterNations Index.
Top Of The Trips
Phuket made #10 on TripAdvisor’s “Top 25 Destinations In The World.”
Miscellany
Michelin Motors In
World-famous fine-dining bible, the Michelin guide, has just arrived in Thailand. The Thai edition allows you to discover the 17 best restaurants in Bangkok—the first-ever Michelin ratings list for the city.
With tourism a major earner for the Kingdom, visitors are reputedly spending 20% of their travel budget on food, and the foodie professionals decided to cash in on the trend.
Featured restaurants saw an immediate spike in reservations after the book was launched in early December, with one restaurant citing more than 60% of them were from out of country.
One local hotelier commented: “The followers of the guide cannot be underestimated. It is the Oscars for chefs.”
Vietnam is arguably the cheapest place on earth to live well. This is a land of beautiful, world-class beaches, cool mountain retreats, and cities seething with vitality. ManyWesterners head to Vietnam and love it. Others complain about the hustle, the noise, and the lack of Western influence, particularly in the northern part of the country (Hanoi).
Vietnam is an emerging market that has only recently moved beyond the dark transition following the war. The population is youthful and an energy permeates everything. The Vietnam that existed in the 1960s and early 1970s exists only in memories. The country has moved on toward a much brighter future. Today, the atmosphere in the country is energetic and optimistic and the infrastructure is developing rapidly.
Vietnam is an extremely foreigner-friendly country. The government sincerely wants Vietnam to attract more tourists, and it has taken measures to see that foreigners who come here want to return again and again.
Residing in a communist state has its challenges, but modern Vietnam is more capitalist in practice. After spending about one minute in Hanoi, anybody can see that this city is first and foremost the epitome of capitalism on steroids. The majority of Vietnamese are self-employed entrepreneurs. They usually own and operate hotels and restaurants, sell vegetables and fish at the markets, fix motorbikes and appliances, promote their tour companies, shine shoes, and create a never-ending assortment of soups and noodles and rice dishes to sell in their tiny shops or at their pop-up sidewalk restaurants.
Vietnam Pros At-A-Glance:
• Super cheap! Your retirement dollar goes farther here than in any other destination we recommend.• According to the Global Peace Index, Vietnam is the 45th most peaceful country in the world (as a point of
reference, the United States ranks in the 101st position).• According to HSBC Holdings, Vietnam is among the most optimistic countries in the world in terms of
business expectations. The country is emerging from the grips of war and economic depression and is eager tojoin the global community.
• Take a cruise in Ha Long Bay, play a round of golf on a Greg Norman designed course, take a mountain hike orlounge on a sandy beach. There are lots of leisure options here.
• Vietnam is an extremely foreigner-friendly country.
+
Vietnam Cons At-A-Glance:
• Hospitals here might not be as clean as you expect, and trained technicians may be in short supply. This beingsaid, most health problems can be treated locally. Physicians will likely be well-educated and will make accuratediagnoses and treatment plans.
• Vietnam is a poor country, so it’s not surprising that bag-snatching, pickpocketing, foreigner pricing, and otherscams are common in Hanoi and Ho Chi Minh City, the two largest urban areas. Even so, tourists (and increasinglyexpats) are considered vital to the economy, and locals are keen on keeping you safe and secure.
• Vietnam is not a place for those who prefer a dry climate. The humidity is evident everywhere, not just in thewarmer regions. (Though mountainous areas such as Dalat offer a pleasant year-round climate, and the north hasa cooler winter season.)
• Some visitors complain about the hustle, the noise, and the lack of Western influence, particularly in the northernpart of the country (Hanoi).
• While living in a communist state is not exactly like living in a capitalistic one, in practice, Vietnam does notresemble what most people would likely think of then they think of a communist country. Rather, the Vietnameseare very switched-on, eager to please, energetic, and efficient.
-
Vietnam In 2017 And 2018
Currency Outlook
At the time of this writing, the Vietnamese dong is trading at 22,660.32 to US$1, about a 150 dongs less than when we published this last year.
The dong has depreciated about 9% against the U.S. dollar in the past couple years, which is good news for U.S. dollar holders.
The dong is frequently devalued against the dollar, which means Vietnam gets a little bit cheaper every year for Americans due to the frequent devaluations (and it’s already one of the least expensive countries in the world for those of us with U.S. dollars).
Path Of Progress
Vietnam Improving Its Infrastructure
Vietnam has big plans for improvement, including 1,800 kms of new highway between Hanoi and Ho Chi Minh City; the construction of Long Thanh International Airport in the south; high-speed railways, metro-area transit systems and power stations.
Much of the country’s infrastructure up to now has been funded by the government itself, funded through foreign loans... meaning the country has been accruing debt that’s becoming prohibitive. They even had to cancel a couple of projects in late 2016 due to economic troubles.
Significantly, Vietnam now looks to put in place public-private partnership (PPP) structures to get its initiatives funded through private companies. Current legislation, however, makes this a risky proposition—authorities now have broad discretion and regulations are too vague. The success of PPPs will rely on a hefty clarification of rules… or bribery may be the biggest result.
The country is looking for foreign investment to the tune of US$400 billion to reach their lofty goals and is courting Japanese companies for partnerships.
Access
London To Vietnam
A seasonal flight from London to Phu Quoc, Vietnam, began this year, offered by Thomsons Travel.
Vietnam Airlines Moves Forward
Vietnam Airlines signed a joint venture deal with Air France this year, with an aim to increase services between Europe and Vietnam. The deal will mean that Vietnam Airline passengers will be able to fly to 70 European destinations up from 14. Air France passengers will be able to get to 20 Vietnam destinations, up from 3.
They’ve also increased routes to Moscow this year, and expanded their China routes.
Partners For Progress
Low-cost airline Vietjet and Qatar Airways signed an interline partnership, opening up Qatar’s gateways to more passengers.
The Real Estate Market
Vietnam’s Sizzling Housing Market: Values For New Apartments, Villas, And Houses On The Rise
Recovered from the bust of 2009 to 2013 and inundated with new construction, Vietnam’s housing market is on fire right now.
Backed by a booming economy, real estate prices are rapidly on the rise, undergirded by a revised housing law that has revitalized the property market and sent a broader message that Vietnam is open for business. The new housing law, issued July 2015, allows foreigners and overseas Vietnamese to legally own, sell, and transfer properties.
Looking at specific cities, Q3 2016 figures released by Savills World Research show total dwelling sales in Ho Chi Minh City surged by 49% from the previous quarter, and by 193% from the same quarter last year, with
the majority of sales coming from townhouses, which accounted for 71% of the total transactions.
Ho Chi Minh City’s primary market apartment prices rose by 7.4% during this period, according to Jones Lang LaSalle (JLL), a financial and professional services firm specializing in commercial real estate services and investment management. Secondary market apartment prices rose 7.5% year over year.
In the country’s capital, Hanoi, apartment prices also saw robust year-over-year growth in Q3 2016, with primary market apartment prices rising by 8% and secondary market apartment prices rising 5.3%, according to JLL. The highest price growth was sustained by the premium condo segment, at 3.6% for the period.
The average asking price of apartments in Hanoi’s primary market reached US$1,500 per square meter (US$139.50 per square foot). On the low end, apartments were selling for US$1,000 per square meter (US$93 per square foot). Mid-end apartments sold at US$1,500 per square meter (US$139.50 per square foot), premium apartments cost more than US$2,000 per square meter (US$186 per square foot), and luxury apartments exceeded US$4,000 per square meter (US$372 per square foot).
The new Law on Housing (No. 65/2014/QH13) that became effective in 2015 has had enormous impact, permitting foreigners who have been granted a Vietnamese visa the right to purchase residential property. The same holds true for foreign investment funds, banks, and the Vietnamese branches and representative offices of overseas companies. This means foreigners can now sublet, inherit, or collateralize all types of properties, such as landed property like villas, townhouses, and condominiums.
The new rules also permit overseas Vietnamese who have maintained their Vietnamese citizenship (around 2,800,000 individuals) to own unlimited property in their own names. Until now, overseas Vietnamese and foreigners could only buy one apartment in Vietnam each.
For foreign individuals, home ownership is limited to a period of 30 years, but it can now be extended in a form of perpetual leasing. The new law also limits foreigners from owning more than 30% of a single apartment building, or more than 350 houses and apartments in a ward.
Freehold land does not exist in Vietnam, in theory, as land can only be leased, even by Vietnamese. In reality, many leases appear to be for indefinite terms. “Buying” land is technically a transfer of leasing rights. The establishment of a perpetually renewable lease translates into Vietnam having one of the most open property markets in the region.
This is a huge upturn for the Vietnamese housing market, which went through a prolonged crisis in recent years due to the impact of the 2008 global crisis, which caused property prices to plunge by the double digits.
The Economy
Divesting In Vietnam
Vietnam will have divested 406 state-owned enterprises (SOEs) by 2020. Indeed, 135 were scheduled for this year alone. “Changes in foreign ownership limits, a growing economy, and a strong performing stock market” have been named as reasons why foreign investors are paying attention to the country.
Most companies in the agriculture and forestry sector have not been earmarked for divestment as of now. However, the aviation industry, Ministry of Defence and the Ministry of Public Security, Giao Thong Hospital, and media companies are up for divestment. The biggest companies that will feel the change are Petrolimex, VinaPharm, Viglacera Corporation, Hanoi Plastics JSC, Vietnam Steel Corporation, Vietnam Plastics Corporation, and Thong Nhat Electromechanical JSC. Some of these companies are looking at 20% or 47% divestment but others will see 80%.
Prior to divesting its stakes in SOEs, the Vietnamese state first transfers ownership of key enterprises from ministries to committees. The committees then deal with the sale of shares to private investors and, quite simply, this takes ages...
Vietnam’s economy is strong and upwardly moving so interest is there but the wheels are grinding too slowly and many sales are lost.
Vietnam Soon To Become A Veteran
Vietnam has flexed its muscles in the World Bank Ease-Of-Doing-Business 2018 Report.
The report ranks countries from 1–190. A high ease of doing business ranking means the regulatory environment is more conducive to the starting and operation of a local firm. Factors include how easy it is the get a construction permit, registering a property, hooking up electricity, getting credit, insolvency handling, paying taxes, to name but a few.
In its 2018 report, Vietnam climbed 14 places to 68th. It ranked fifth out of all the ASEAN countries participating in the report. In the tax category, recent reforms didn’t go unnoticed. The abolishment of the mandatory 12-month carry forward period for VAT credit and the introduction of an online platform for filing social security contribution both boosted Vietnam’s rankings. In fact, taxes saw the highest growth amongst all the indicators considered. Out of the 190 economies, Vietnam ranked 86th for tax—a significant jump of 81 places from its previous year’s ranking of 167.
Enforcing contracts were made easier with the adoption of a new code of civil procedure and a new law on voluntary mediation, both speeding up the legal process. This helped shoot Vietnam up a few places from last year. However, almost contradictory, it rated the lowest for insolvency issues.
Dealing with construction permits and registering property had nothing to do with Vietnam’s overall success, as they scored poorly, but protecting minority investors saw the country jump a few places from last year.
Experts say “Going forward, the focus should be on improving the public infrastructure, increasing support for the development of the domestic private sector, and reducing
the regulatory and administrative burden on enterprises.”
Modernization
Vietnam has seen its biggest initial public offering (IPO). Vincom Retail listed its shares on the Ho Chin Minh Stock Exchange under the ticker VRE and closed its first day 0.1% down. The mall operator offered 1.9 billion shares at a price 40,600 Vietnamese dong per share. After five days it started to see an improvement and shares of the company gained by nearly 10%.
Last year, the real-estate company had revenues of US$277 million (6.3 trillion dong) and net profits of US$105 million (2.4 trillion dong). It started in 2013 with just three malls in Vietnam but it now has 41 across 22 cities.
Analysists have commented that despite the IPO’s vapid start, “the success of this IPO will pave the way for other Vietnamese firms to seek listings and the government to pursue its privatization targets.”
Finances And Banking
Cash Your Check And Grab A Latte At Vietnam’s First Neobank
Long lines and wasted time are a thing of the past
with Vietnam’s new approach to banking. With Timo, a customer-first approach presents a better way to bank than the traditional, outdated way.
This neobank is a coffee shop and bank that offers the best of both worlds. Grab your latte as you cash a check, and if you want to take a seat and do some work on your laptop, you can do that, too. In fact, Timo does not refer to locations as banks at all, rather, as hangouts.
Newcomers can open an account in just 10 minutes with the help of a Timo Customer Representative. No minimum deposit is required to open a checkingor savings account, which they call CASA accounts—their primary focus in Vietnam. Once you have your account with Timo, nearly everything can be taken care of with the mobile app, from paying bills to transferring money. Certain rules apply for opening secured credit cards and other advanced products.
With their headquarters in Ho Chi Minh City, Timo also has hangouts in Hanoi and Can Tho, with a fourth branch newly open in Da Nang on June 15. Their next agenda is to open locations in the Philippines, Thailand, and Myanmar. Each location will present a market that is most relevant and beneficial to the customers there. For example, microloans may be a popular incentive for the Philippines. Timo understands that a one-size-fits-all approach is how many competitors have failed in the past.
Banking shouldn’t be a burden, and by presenting this alternative to the traditional bank experience, Timo’s main focus is on creating an efficient lifestyle change
for their customers. Where banking was once a painful waiting game, with Timo, it can be your new go-to for that afternoon joe.
Awards And Titles
Top Of The Trips
Hoi An made #13 on TripAdvisor’s “Top 25 Destinations In The World.”
All Indexes Point This Way
Hot on the heels of Live and Invest Overseas’ own 2017 Overseas Retirement Index, InterNations published Expat Insider, a survey listing the world’s top spots for expats. InterNations liaised with 12,500 respondents representing 166 nationalities and living in 188 countries or territories in order to compile their report.
Hoi An and Da Nang came in at 29th and 30th out of 30 in our Index. In the InterNations survey, the country came in 12th place overall.
Overseas Living Letter 123
During 12 Day Of Christmas Event Only:Subscribe To Overseas Living Letter For Only $2.33 Per Issue
This Special Report was first seen by Overseas Living Letter subscribers.
This subscription service is the most complete, comprehensive, and useful tool available anywhere for anyone interested in knowing more about the world’s top overseas havens.
Every month, subscribers to Overseas Living Letter receive an honest, current, and complete introduction to one of the places we’ve identified as offering tremendous advantages for the would-be retiree abroad. These are the locations that should be on your radar, either for your immediate retirement or as places to invest today as part of a longer term plan. Each of these comprehensive reports addresses not only the pros, but also the cons of each destination featured. This is critical if you want to make a smart, informed choice.
Overseas Living Letter has correspondents all over the world who are living the life you’ve been dreaming about, right now! This extensive network of contributors will provide you with all the tips, tricks, and firsthand insider intelligence you need to follow in their footsteps...
• Where to look to find the kind of life that suits you—at the beach, in the mountains, among the vines, in the big city...• Insights into what the community is like, who your neighbors would be (locals, expats, or both), and how they live...• What it would cost you to live there, including detailed monthly budgets...• Whether it’s better to rent or to buy, given the local market right now...• What to take with you, what to ship, and what to leave behind...• Which visa options would make most sense for you and how you qualify...• Who to contact for legal help, health insurance, banking, shipping, residency, taxes...
In short, we’re offering you a bridge to the retirement of your dreams...
But, as they say, there is more… During the 12 Days Of Christmas Event, we’re making it possible for you to join the Overseas Living Letter community at an incredibly low price.
Right now you can subscribe for only US$2.33 per issue.
Plus, when you subscribe to Overseas Living Letter—risk-free—today, we’ll send you 4 Special Reports for immediate download (a US$106 value), including our Annual Overseas Retirement Index.
Special Offer
