Ex-Pat Likes Panama and Uruguay
November 15, 2011
Voyage of a Canadian Ex-Pat (Part 2) (Part 1 here) Every foreigner here thinks exactly as I do. They all fear for the future and have chosen Uruguay as it is peaceful and geographically isolated from potential war zones.
by Kevin Thomas
(henrymakow.com)
In 2004 I moved to Panama. Why? At that time the OECD and the US Government were on a witch hunt against offshore tax havens. At that time conditions were not favorable for offshore banking, a mainstay of the Cayman economy.
Although I could afford life in Cayman I became annoyed at the high cost of things. At times, I felt ripped off paying $11 for a watermelon.
I moved on to Panama, remarried and settled in the coffee growing region close to the border with Costa Rica. Many foreigners are retired here, and it is a thriving community in the mountains where it is temperate all year round.
Matter of fact there are no palms, only pine forests. It is eternal spring. It is quiet, peaceful and I believe that I enjoyed more freedom than in Canada. Again the laws protect the local population and apart from this there is no concept of first and second class citizens.
To get residency in Panama, you need to demonstrate that you have a qualifying pension or sufficient assets. A passport is possible but these are infrequently issued. The citizenship test is grueling.
Although not everything is readily available from a Home Depot, or Walmart as it is in Canada or Cayman, you can find almost everything you want. Again, many Canadians live here as life is relatively inexpensive and peaceful.
There are weekly meetings for ex-pats in our community with topics of general interest and a community market offering lots of organic and freshly baked products. There are ample opportunities to enjoy the local culture as well as participate in the vibrant expat community. I love Panama for it's beauty, people and climate.
There are no income taxes on income earned outside the country and if you build a home, you have a 20 year exoneration from real estate taxes. What is there not to like. Health insurance is inexpensive and many doctors are foreign trained. People are friendly and very tolerant towards others.
URUGUAY
More recently , I have grown much more concerned about the geopolitical situation. I have been seeking another rabbit hole in the event that a major war breaks out. Somewhere far removed from the clouds of radiation that will encircle the planet which could result from a nuclear exchange.
Fukushima has been a wake-up call as the trade winds circling the globe from west to east have dispersed radiation throughout the N. Hemisphere. For this reason I have been living in Uruguay for the past 6 months seeking residency.
Uruguay is a tougher nut to crack. There has been a
big demand for residency here so the requirements have tightened up
considerably. Because of the heavy influx of applicants, the
process can take more than a year. The applicant has to demonstrate a monthly income of over $500 and also take up residence in Uruguay during this process. The government conducts spot checks to ensure that people are actually living here. For these reasons many people are critical of the Immigration process in Uruguay. If you are granted residency, there are no income taxes on foreign income.
EXPENSIVE
Uruguay is an expensive country in which to live. It is more socialist than Canada. Uruguayans prefer a paycheck to opening a business. It is a small country of three million surrounded by much larger countries like Argentina and Brazil. All utilities are state owned and as is typical, they over-employ.
As a result, prices for gas and electricity are extraordinarily high. For example I use a laptop, have a couple of hot water tanks and a TV and a couple of lights and my power bill is over $100/mo.
What Uruguay offers is a more peaceful lifestyle than in neighboring countries like Argentina or Paraguay. The people are wonderful and almost all speak excellent English. Education levels are higher than in Panama and the city of Montevideo is very cosmopolitan. There is a winter season which I don't particularly like but it is much milder than Canada. The palm trees that line the waterfront are a testament to the severity of the winter.
In Panama, there are many retired Americans and ex-military. If I speak to them about my "conspiracy" theories, I am labeled a candidate for an institution. I have found almost nobody who agrees with me.
In Uruguay the thinking is quite different. Every foreigner here thinks exactly as I do. They all fear for the future and have chosen Uruguay as it is peaceful and geographically isolated from potential war zones. We have met several Canadians here who, like I, are seeking residency.
Salaries in Uruguay are much lower than in Canada as would be expected. For example, a well paid professional would earn $1000-1500 US/mo. On the other hand 1500 sq ft condo in Montevideo could cost as much as $250-300k US.
A lot of hot money has moved from Brazil and Argentina and invested in the property market, pushing prices beyond the reach of most Uruguayans. This surprised me when I arrived. The economy here is very robust and has not even begun to feel a slowdown.
I am told that there are a lot of multigenerational families living together here. They feel the pinch of high costs. For example, in Panama I purchased a car that sells for $us 24,000. Here in Ugy, it starts at $ US 46k. On the other hand if you live in a city like Montevideo a car is not necessary as there is an excellent transportation system.
In spite of these financial burdens, people remain upbeat and happy. Again laws favor the citizens and there is no influx of refugees as we see in Canada due to the economic barriers to entry.
In short, the laws are rational and reasonable. If you desire to live in Uruguay you must demonstrate financial independence.
I am renting a 850 sq ft. apt with beat up furniture for $950 US per month plus utilities, in the capital city.
THE PEOPLE
In spite of my weak Spanish and cultural difference, Uruguayans are very tolerant and accepting. They want foreigners to like their country. We have been made to feel very welcome here.
In spite of it's size, Montevideo is a friendly city where people, sensing that you are confused at times, freely volunteer to assist you.
I am tracked only entering and leaving the country. I do not have to provide social security numbers when I rent an apt or conduct other business activity. I have rights and apart from infringing on employment opportunities for local people, I can do pretty much as I wish.
I am
treated as an equal. Uruguay is a happy and peaceful country and am
pleased that they have accepted me. As one friend told me; show me
another country that has a happy, smiling face on it's flag.I feel blessed that I can explore other cultures and contribute to their societies, even if it is mainly economic. It has opened me up as a human being and expanded my horizons. I have no regrets as to the way my life has evolved and now feel totally in control.
I was so fortunate that my subconscious dislodged me from my rut many years ago. Although we are living in dark times with an uncertain future, my life seems to get richer each and every day. Just give me a place to live, where I can feel freedom without restraint and interference from a "well meaning" government; a place where everyone can feel equal and free to develop into the people we were meant to be.
Cayman, Panama and Uruguay offered this to me.
SDQ said (November 17, 2011):
I read your blog regularly but the above article has serious inaccuracies under URUGUAY, as follows:
a) "almost all speak excellent English". This is total rubbish. Very, very few speak English and those few speak it at a very elementary level.
b) "If you are granted residency, there are no income taxes on foreign income." Totally untrue. Foreign residents in Uruguay are taxed on their world-wide income.