We give a lot of virtual ink to Latin America. That’s because it’s nearby to North America, from where most of our readers hail…
And it can be sun-drenched and cheap. Those are two things most would-be expats and retirees prioritize.
Trouble is, Latin America’s a big place. Where, specifically, might you think about chasing fun and profit?
Here are my seven top picks in this part of the world…
#1: Panama—Top retirement and business haven with the best infrastructure in Central America. If you’re looking to start a business or invest in a market ripe for profit, Panama should be high on your list.
Panama has been one of the world’s most important crossroads since the days when pirates ruled these waters. You name it, it passes through Panama in some way at some time going somewhere.
Largely as a result of its crossroads positioning but also thanks to its reputation worldwide as a top retirement, tax, and business haven, Panama is the fastest-growing market in the region and one of the fastest-growing countries in the world.
Panama’s benefits are many, including First World health care at Third World prices and the world’s gold standard program of special benefits for retirees (plus 14 resident visa options for the non-retiree).
It’s also one of the world’s few remaining tax havens (meaning you can operate an online business here tax-free), and a U.S. dollar-based economy (meaning zero currency risk for dollar holders).
When the United States handed over operations of the Panama Canal to the Panamanians, and the 10,000 U.S. military and their families departed the Canal Zone in 1999, the country fell into recession.
A lot of disposable income disappeared overnight. Panama worked quickly to find ways to replace the lost economic activity. One focus since has been attracting the foreign-retiree market.
In addition, the country has developed its tourism, banking, and financial-services industries and has invested in the expansion of its canal, which generates more than US$4 billion annually. That’s a lot of cash flow for a country of about 4.3 million people.
Panama is a small country but offers many lifestyle and investment options, some better than others. Panama City is no longer a top lifestyle choice but, thanks to all the foreign business and investment activity, it is the best place in the country to buy for reliable cash flow and value appreciation long-term.
Certainly you should be able to resell it easily when you’re ready; this is about as liquid a market as you’ll find.
The best buy outside the capital is Pacific beachfront. The farther from Panama City, the better the price.
The best place to retire in Panama today is Chitré, on the eastern coast of this country’s Azuero Peninsula.
#2: Mexico—Hands down the easiest place for a North American to transition to expat life. Not only can you drive here, but you’ll find lots of your favorite brands.
You’ll feel very at home in this country that boasts both Pacific and Caribbean beaches, along with 16th-century Spanish-colonial towns.
Mexico is a big place with a bad reputation. The reputation isn’t altogether undeserved, as drug cartels do control parts of this country but not all of it, and some of the most appealing regions for both living and investing sit outside the war zones.
Mexico offers two long coasts, mountain towns, and colonial cities, plus Mayan ruins, jungle, rain forest, rivers, and lakes. It’s also the most accessible “overseas” haven from the United States. You could drive back and forth if you wanted.
For all these reasons, Mexico is home to the biggest established population of American expats in the world, making it a great choice if you seek adventure with the comforts of home.
Mexico is no longer a supercheap option, but it is where you’ll find my top pick for enjoying a luxury coastal lifestyle on an average budget: Puerto Vallarta.
Puerto Vallarta is more expensive than other places where you might consider living or retiring overseas, but in Puerto Vallarta that’s not the point. This isn’t developing-world living. This stretch of Mexico’s Pacific coastline has already been developed to a high level. Life here can be not only comfortable but also easy and fully appointed.
In Puerto Vallarta, you aren’t buying for someday, as you can be in many coastal destinations in Central America.
More importantly, in Puerto Vallarta, you can buy a world-class lifestyle in a region with world-class beaches and ocean views that is supported, right now, by world-class golf courses, marinas, restaurants, and shopping.
This is a lifestyle that is available only on a limited basis worldwide, a lifestyle that is truly (not metaphorically) comparable to the best you could enjoy in southern California if you could afford it. Here you can afford it even on an average budget.
Real estate options in Puerto Vallarta vary from modest to jet set, in terms of both products available and price points. You could buy a small apartment outside Puerto Vallarta town for less than US$100,000, or you could buy big and fancy for
US$1 million-plus. Whatever you buy, you could rent it out when you’re not using it.
The Puerto Vallarta region, including the emerging Riviera Nayarit that runs north from it along the coast, is a tourist rental market with a proven track record.
The other spot in Mexico worth highlighting is Ajijic and Lake Chapala, in the mountains, one of the largest and most established expatriate communities in the world.
Ajijic, less than an hour from Guadalajara, has been attracting retirees for decades thanks to its lake (despite the lake’s on-and-off environmental problems) and cool weather. Again, you could buy here, small and modest, for less than US$100,000.
I am not a fan of this country’s Caribbean coast, where environmental and safety concerns are a current reality.
#3: Brazil—The fifth largest country in the world, Brazil is vast.
It’s home to over 4,500 miles of coastline and many of the world’s best and most pristine beaches and offers a rich and diverse culture, UNESCO World Heritage Sites, exotic music and cuisine, and welcoming locals. Plus, some of the best beachfront real estate opportunities to be found anywhere in the world today…
“Discovered” by the Portuguese in 1500, Brazil remained a colony of Portugal for 300 years until claiming independence in 1822.
Since then, Brazil has had a bumpy road to democracy, enduring civil wars, military dictatorships, and severe economic recessions.
Today, Brazil is a global powerhouse boasting one of the biggest, strongest, and most diversified economies in the world. It’s largely self-sufficient making it better insulated from the shock of world crises than nearly any other major economy. Savvy investor money is pouring into Brazil. And it’s easy to see why…
In times of turmoil investors seek safe havens for their money, and in global terms, Brazil is as safe as it gets while still offering opportunities for profit.
And, for those simply seeking a healthy, relaxed lifestyle, with lots of sun, fresh sea air, exercise, and healthy food—all at desirable prices—Brazil is hard to beat.
#4: Belize—This English-speaking Caribbean paradise is less than 3 hours from the United States. A country that feels like one small town, it’s a top option for escaping the troubles of the world and embracing the simple pleasures of life.
Warm, welcoming, independent, and private—those four seemingly contradictory adjectives best describe both Belizeans and their country.
Belize is also one of the safest countries in the world, despite what you may read about it. In some neighborhoods of Belize City, gang members and drug dealers do the things that gang members and drug dealers do, but those are small, contained areas. Outside Belize City, crime is nearly nonexistent, and this country’s Cayo District could be one of the safest places in the world.
Belize was a colony of Britain until 1981, meaning the people here speak English. They also value their freedom, as it’s relatively new.
In the more than 30 years that I have been spending time in this country, it’s often joked that “the good news from Belize is no news from Belize.” This is a sleepy Caribbean nation with but 400,000 people and just a handful of highways.
On the other hand, little Belize offers a whole lot of what many retirees and investors are looking for—a chance to start over on sandy, sunny shores.
Prices for a bit of sand on Ambergris, the most developed of Belize’s islands, are not cheap but can be cheaper than elsewhere in the Caribbean. Other areas to shop in this country for the beach life are Placencia, on the southern mainland coast, and Corozal, on the northern mainland coast, where you’re most likely to find a seaside bargain.
We favor the interior Cayo region with its Mayan ruins, caves, rivers, waterfalls, and rain forest, a frontier where self-sufficient communities are emerging and attracting like-minded folks interested in being “independent together,” as a friend living in this part of the world describes it.
Belize is a small country with a small population. You’ll enjoy it here if you like wide-open spaces and small-town living where everyone knows everyone. You
won’t like it here if you crave regular doses of culture or First World–style amenities and services.
With the exception of Ambergris Caye, where the country’s biggest expat community is centered and where, as a result, services to cater to foreign retirees and investors have developed, life in Belize is best described as back-to-basics. There’s not a single fast-food franchise or chain store in the entire country.
Where To Retire In Belize?
Legal residency is easy to obtain in Belize, and foreign residents pay no tax in Belize on non-Belize income.
We would not recommend Belize if you have a serious health concern or existing medical condition. Health care facilities and standards are improving but limited.
#5 Retire In Latin America: Colombia—An extremely affordable place for the incredible lifestyle on offer. North Americans are quickly catching on to the charms of this progressive country.
Years ago, I sat around a table in a just-opened restaurant in a little-known mountain town in Panama called Boquete with a group of investors and businesspeople, in the country, as we were, to scout opportunity. “I believe that the potential in this place for retirees is enormous,” one of the gentlemen in the group (the one who had just invested in opening the restaurant where we were having dinner) theorized.
“Right now, the opportunity here is for the investor and the speculator. Property prices are so undervalued. Apartments in Panama City are a screaming bargain on a global scale. Pacific beachfront, Caribbean, farmland, riverfront, this country has it all, and it’s all cheap.
“Panama is still misunderstood, suffering from a lingering case of bad press,” the host for the evening continued. “When you say ‘Panama’ to an American today, he thinks: Noriega … drug cartels … CIA intrigue. It won’t be too many years before those perceptions are flipped on their head. I predict that, five, seven years from now, when you say ‘Panama’ to the average American, he’ll think: Retirement. Because that’s what this country is gearing up to offer—a very appealing retirement option.”
That was 1999. In August 2010, the AARP named Boquete, Panama, one of the top five places in the world to retire.
In 2011, I sat around a table in a just-opened restaurant in a little-known mountain town in Colombia called Medellín with a group of investors and businesspeople, in the country, as we were, to explore current opportunity.
“Property values in this city are so undervalued,” one of the gentlemen having dinner with us remarked. “I believe that apartment costs here are the lowest for any cosmopolitan city in the world on a per-square-meter basis. This is because Colombia, including Medellín, is still misunderstood. When you say ‘Medellín’ to the average American, he thinks: Drugs … gangs … Pablo Escobar. It’s such a misperception. The current reality of this city is so far removed from all that.”
My host for the evening had just toured us around central Medellín, taking us to see apartment buildings he was rehabbing, converting into rentals, including one in a neighborhood we’d not visited before. “Manhattan retro chic” might be the best way to describe it.
Running off a carefully maintained, beautifully landscaped park, these few side streets are lined with small colonial structures housing sushi restaurants, funky bars, contemporary art galleries, and vintage clothing and furniture shops. The last thing we felt was unsafe.
Prices have appreciated steadily in Medellín since that 2011 visit. At the same time, the U.S. dollar has gained steadily on the Colombian peso meaning that it’s still possible to find good buys in dollar terms, and this city of springtime, flowers, and innovative urban planning remains one of my personal favorite places to be.
Like Brazil, Colombia imposes exchange controls, which should not put you off buying here, but they need to be understood and respected. Also, taxes are high.
#6: Dominican Republic—Affordable Caribbean island living with a strong European flavor… and home to the oldest city in the New World. This country also boasts one of the world’s most user-friendly residency and citizenship programs.
The Dominican Republic is an internationally popular all-inclusive resort destination that sees big volumes of tourists every year, thanks to its miles of sandy beaches and balmy temperatures. Indeed, 20% of all tourists to the Caribbean are headed to these shores specifically.
The Dominican Republic is also a top Caribbean choice for the would-be foreign-property investor and retiree. All that tourist infrastructure amounts to an extensive network of businesses and services that you can easily plug into, and, as a property owner or retiree on this island, you have more choices for the kinds of amenities you might be looking for than you’ll typically find elsewhere in this part of the world.
Expats have been coming to the Dominican Republic, starting businesses and launching services geared toward their fellow foreign residents, for four decades. In the Samana Peninsula, for example, on the Dominican Republic’s northeast coast, French and Italian food brands line the shelves of the expat-run specialty grocery stores, and signs for businesses are in English, French, Italian, and Spanish. Foreigners do not get curious looks, because there are so many of them.
The locals have enjoyed friendly relations with these settlers for a long time.
We’d say Las Terrenas, on the Samaná Peninsula, offers the best lifestyle in the country. What sets Las Terrenas apart in the DR—and from any other beach town in the region—is its sophisticated lifestyle. The French settled Las Terrenas generations ago, and their mark is clear. People greet each other with kisses on both cheeks, signs are in French, and baguette is de rigueur.
Harder to explain are the local property prices—figures that would be unheard of in most other parts of the Caribbean. You can buy a condo close to one of Las Terrenas’ most beautiful beaches for as little as US$100,000.
The Dominican Republic is easily accessible, especially from the East Coast of the United States, and offers competitive residency options.
On the other hand, despite the established expat communities and the products and services they provide, this is a Third World country with Third World hassles and frustrations. It’s also a Caribbean island in the hurricane zone.
#7: Retirement In Latin America: Argentina—Luxury living on a budget. Argentina offers the opportunity for great adventure in wide open spaces, plus award-winning wine.
Late 2001, the Argentines removed the peg between their peso and the U.S. dollar, devaluing the Argentine currency, which fell, at its lowest point, to 4:1 against the greenback. This crisis situation opened a window of opportunity that I took advantage of to buy, in 2002, with friends, two classic-style apartments in Recoleta, one of the best addresses in the center of Buenos Aires, for half what the place would have been valued at prior to the devaluation debacle.
I rented out the apartment for six years, used it occasionally with my family, and then sold it, in 2008, to double my investment.
Prices had returned to where they had been just before the previous collapse. I sold, coincidentally, near a top.
When speaking of Argentina, it’s safer to refer to “a” top, rather than “the” top, as there have been many and will be many more. Bottoms, too, and we are, now, in fact, on the doorstep of another collapse.
Argentina is a diverse country with lots of natural resources. It could be—should be—an economic success story, and, now and then, it is. It’s also a case study in economic mismanagement on a colossal scale.
The ongoing problem is politics, which keep this country in a perpetual cycle of crisis that make living in Argentina anything but dull.
Porteños (the folks living in Buenos Aires) are uncommonly likely to seek regular psychotherapy, to undergo cosmetic surgery, and (alas) to commit suicide. Argentines are a kooky bunch. They enjoy the drama of their country, and, frankly, so do I. Like the people who live there, Buenos Aires is vibrant and full of personality.
Visit this city and you will remember it always, and Buenos Aires is only the beginning of what Argentina has to offer.
Argentina makes about one-half of all the wine produced annually in South America. About half of this comes from Argentina’s Mendoza region, where the
landscapes of red earth and purple grapes appear eternal. Argentina’s is a café culture, meaning the people value good wine, good coffee, and good conversation.
The art of conversation, so alive here, could be part of the explanation for how the extremely varied Argentine population has managed to live harmoniously throughout history, despite the near constant influx and influence of immigrants, starting with the Spanish, who came in the quest for silver (argentums is Latin for silver).
Argentina was a Spanish colony until 1816. Then came the Swiss, the Italians, and the French, who arrived with their grapes.
The British arrived about this time, too, and administered the building of the country’s infrastructure, including its national banking and large railway systems. In fact, trains still travel on the left-hand side of track, a last stand of British influence.
Argentina can be an ideal option for part-year living, as Argentina enjoys reverse seasons of those in the United States. The expat community is not overwhelming. You can tap into it if you’d like, for friends and support, or you can make your own way among the Argentines, who are friendly, polite, and respectful.
Family is a priority, and Argentines like to socialize.
In Buenos Aires you have access to tango halls, live theater, antique fairs, art galleries, opera, ballet, symphony, and independent film festivals.
Elsewhere in this enormous country is some of the best skiing and hiking in the world.
Until next time,
Kathleen Peddicord
Founding Publisher, Overseas Opportunity Letter
