By Patrick Connelly

Many people have been asking about property ownership in Brazil, and specifically about purchasing real estate through a foreign (non-Brazilian) company.  The short answer is yes, you can buy real estate this way, as opposed to using your personal name.  However, the process is lengthy and complicated.  That’s why we are here.

LatinWorld.com’s in-house Brazil expert, Diego Simon, is a native brasileiro with years of experience in the real estate market there.  Here´s what he had to say about the subject:

“The whole process may take from a few weeks to a few months (editor’s note: what in Brazil doesn’t take a few weeks or months?).  The first requirement for the process of real estate acquisition in Brazil by a foreign company is a previous authorization of the CDN (Conselho de Defesa Nacional). To acquire real estate, the foreign company needs to register at the “Secretaria da Receita Federal”, obtaining a tax number called CNPJ (Cadastro Nacional de Pessoa Jurídica).

‘The register of the company must be formalized with an inscription at the CADEMP (Cadastro de empresas da Área do DECEC), which is the Department of Exchange and Foreign Capitals (Departamento de Capitais Estrangeiros e Câmbio).  The request is made at the Central Bank of Brazil (Banco Central do Brasil).  To start the process, it’s necessary to have a photocopy of the company’s constitutive act, authenticated by the Brazilian Consulate at the company’s country of origin, and translated by an authorized translator in Brazil.

‘We strongly recommend the guidance of a specialized lawyer, with strong knowledge of Civil, Comercial, Tax, and International Laws in Brazil, to intermediate the buying process according to the Brazilian laws and, at the same time, preserve the interests of your company.

‘On the other hand, the acquisition of real estate under a personal name is much more straightforward.  It is recommended if possible, because the only requirement is the registration for a Brazilian CPF (Cadastro de Pessoa Física).”

Here is the official law on the subject, albeit in Portuguese.  “IN 568 de 08/09/2005, Art. 11 itens 5,9 e 10 da alínea “a”, combinado com os itens 1 a 6 da alínea “b” do inciso XIV do Art. 11 da Instrução Normativa do BACEN de n° 568 de 08/09/2005.”

Similarly, Cristina Adam from Kapital International had this to say:

“Your company will have to be registered as a tax payer. A property bought under a person’s name  registers with CPF, and companies register with CNPJ.  So the registered address can be the new property address and the documents required will be the social contract of your company and the passports of the owner(s) of the company.”

With such a complicated process, it is definitely in your best interest to find a top notch real estate attorney that understands the ins and outs of not only real estate ownership in Brazil, but also foreign company investment.  This will go a long way in making this process much smoother.

To browse Brazil real estate listings, visit VivaReal. They have a growing database of Fortaleza real estate, Florianopolis real estate as well as other cities.

Se o Português é a sua língua nativa, você pode visitar o portal VivaReal para buscar imóveis em São Paulo, como apartamentos em São Paulo e casas em São Paulo.

photo provided be luiz at http://www.flickr.com/photos/graduale/354513902/

By Patrick Connelly

It is, ultimately, the point where the process of living in Mexico diverges into two distinct paths.  The question of whether to rent or to buy – to purchase that clifftop villa on the Pacific or just rent a nice place in the nearby town – plagues many a prospective buyer in the U.S. and Canada.  The decision has more variables in it than a college calculus class, but here are a few things to take into consideration if you are having the same quandary.

1. Renting keeps your options open

If you are like me and have a total fear of commitment (relationships, locations, etc. etc.) then renting is perfect for you.  Well, that and if you are just not totally sure on living abroad for long periods of time or permanently, or don’t fancy investing money in a property in another country.  Renting can be a great option for the certain type of person, especially those new to Mexico.  Buying or building a house ties you down to that property.  Renting does not.  Simple as that.  If you find out that you hate Mexico and want nothing more than to stay in the U.S., it is much easier to cancel or see out a lease than it is to sell a home.  And if you want to travel around Mexico or Latin America for an extended period of time, it is usually easy to sublet your rented property to recoup some of the losses.

2. Buying a house is an investment

While the global recession has driven down home prices in Mexico in recent months, owning a home south of the border is still a great long term investment.  The Mexican economy hasn’t been hit as hard as the U.S. has and the situation north of the border will recover in time.  In fact, many real estate professionals are predicting a strong buyer’s market in the coming months in hotspots like Puerto Vallarta and Cancun.  With a bit of shrewd cunning great deals can be found these days and when the markets bounce back – and they will – owning a property in Mexico suddenly becomes a very, very valuable commodity.

3. There is far less of a financial investment when renting

Well, duh.  Financially speaking, it is definitely the “safer” of the two options.  While you certainly get more bang for your buck in Mexico than you do in the U.S., buying a home is still a major financial investment.

4. YOU own the house and deal with no one else

Anyone that has dealt with landlords knows it can be a real headache.  Its no different in Mexico.  The fact that you do not own your rental property and have to answer to a higher up may lead to squabbles over anything from redecorating to rent to leases.  Choosing a good rental management company can prevent conflict if you want to rent.

On the other hand, when you own a house, you decide what goes in it, what additions will be put on, etc. etc.  You are your landlord.

5. More choices when buying

Odds are, you will find a property for sale in Mexico that matches your desires before a rental.  There are just more options out there to choose from. Rentals are only ultra popular in certain areas frequented by vacationing tourists, while good homes for sale exist everywhere.

The choice ultimately comes down to you.  Owning a home in Mexico can be the experience of a lifetime, but it isn’t for everyone.  My advice would be to rent a house for a few months in your desired location….get to know the culture, climate, and lifestyle.  If you fall in love with it, jump in.  If you hate it, simply back out or try a different region of Mexico.  This is by far the smartest approach to take – many a gringo have made impulse buys after a two week vacation in Cancun or Cabos and ended up with a house they later realize they don’t want.

photo provided by Ze Eduardo at http://www.flickr.com/photos/97968921@N00/756377225/

By Patrick Connelly

In the United States, timekeeping and punctuality are extremely important. In Costa Rica, on time is thirty minutes late.

This single cultural difference is the cause of incalculable headaches, marital verbal jousts (usually in public), and the occasional complete gringo psychological meltdown. For the uninitiated, the manner in which life progresses in Costa Rica can be a quite a shock. Life is slower, catered to be savored.

Costa Rica is unique in that its culture has been carved and crafted by so many different nationalities. Geography is the culprit here. The country lies in a peculiar spot on the Central American isthmus that allows for cultural invasions to occur freely; most notably, because it lacks a major indigenous population. A whopping ninety-four percent of Ticos classify themselves as white or mestizo, while less than four percent are Afro-Caribbean or indigenous. Consequently, Costa Rica is an anomaly on the isthmus in that there is not the prevalent indigenous culture or the indigenous versus white dynamic as seen in Guatemala or Belize, nor the visible social ills that often accompany it.

To make up for the lack of indigenous civilizations, Costa Rica became a land of immigrants, much like the United States. Perhaps this is why people from the U.S. find the country so appealing; indeed, the idea of the American dream is alive and well here. Europeans and Chinese immigrants arrived en mass at the turn of the twentieth century, bringing with them their respective cultures; more recently, North Americans have added to the cultural dynamic. As far as Latin American countries go, it is a real melting pot.

Which is not to say that San Jose is like Rome or New York. This is, after all, a Latin American country, and with it comes the standard-bearers of Latin cultures. For instance, driving. The first time a highway built for two lanes becomes a makeshift four lane monster – with motorbikes weaving between cars and trucks – one realizes they are definitely not in Kansas anymore. As in much of the Latin world, the siesta has gone the way of the dodo, replaced by the need to improve the bottom line; however, in the more rural and mestizo parts of the country a post-lunch nap is still enjoyed. As with the first point on punctuality, make a mental note: businesses – sometimes all businesses in a town – may be closed for a few hours in the afternoon. Find a nice hammock, a good book, and relax.

While the Central American staple of beans and rice – comida típica ­- is ubiquitous throughout the country, Costa Rican food is as diverse as its people. As a result of the large immigrant population, tourism, and the McWorld which we now live in, everything from fast food to filet mignon can be found quite readily, even in remote locales. One will definitely not go hungry in Costa Rica, nor will one end up eating fried ants and monkey stew.

Like people from the U.S., Ticos have forged their own culture and identity from their unique geographic position and diverse racial makeup. They are incredibly proud of their country’s achievements, particularly the fact that Costa Rica has not collapsed into civil war or ethnic slaughter like so many of its neighbors. “More teachers than soldiers” is a popular claim to fame. A certain mean between the extremes is the goal of most Ticos; in other words, proud but humble.

While they may be humble, machismo still exists among Costa Ricans, albeit not to the extent of other Latin countries. In the Meseta Central and along the coasts machismo has been replaced with modern day liberalism, and the old vestiges seemingly only exists within the taxi and bus driver community. However, in more rural areas with large mestizo populations women may occasionally receive inappropriate catcalls (dubbed piropos); ninety-nine times out of a hundred these are innocent, merely males asserting their masculinity to their nearby amigos. Ignoring the calls and whistles usually does the trick.

Back to the first point. We estadounidenses often forget that our culture is one of the most work-driven and fast moving in the world. Not always being punctual does not mean that Ticos are lazy or inefficient; in fact, they are very industrious…when its deemed necessary. A business meeting at five thirty starts at five thirty; similarly, a bank will open its doors promptly at the same time every morning. To exemplify the achievements of their country, Costa Ricans will go out of their way to make foreigners feel at ease, trying their best to impress. Additionally, altitude defines attitude. In the urban mountain ranges things are generally a bit more punctual, a bit more scheduled, a bit more…U.S.. Along the coasts and in the rainforests life moves slower; manaña is said to be the national answer to everything. But this is part of Costa Rica’s charm, the ability to live life at the perfect pace. It is truly pura vida.

Picture provided by barnabywasson on flickr

1. Legal guidance – Buyers should use a real estate company or their own attorney to guide them through the legal process. Costa Rica’s legal system varies from most countries. Buyers must contract a trusted attorney to do the due diligence necessary. Make sure there is no impending tax burdens on the property, zoning, among other things that could affect title or future construction.

2. Get familiar with Costa Rica – Don’t get swallowed up by the beauty. Often times tourists fall in love with the incredible scenery and charming people, but forget that real life is not a permanent vacation. Don’t forget about bills, work, cultural differences. It is a good idea to live in an area before you make a purchase, even if it is for a couple weeks or a month.

3. Research the area thoroughly – Think about your needs. Do you want modern conveniences like Internet, cable TV and air conditioning? Or would you prefer to live in the middle of rain forest with wild animals looking in your window? Costa Rica has a wide variety of climates, from the more dry “pampas” of Guanacaste to the alpine forests of Heredia. Don’t forget about the tropical Caribbean coast. Once you decide the type of climate you like make sure you can find a place that has what’s important to you. Do you like to surf or shop in large malls? Is there a grocery store nearby? What about a bank? If you are looking to go into full immersion, maybe living in a place with very few foreigners is a good idea?

4. Compare and contrast – Once you’ve seen numerous properties, make a check list of the pros and cons of each one. Carefully consider all factors like the quality of the construction and surrounding neighborhoods.Make a list of must have things and other things that you desire, but can live without.

5. Once you’ve made a purchase, get involved with the culture – One of the most important aspects of living in another country is immersing yourself in the culture. Costa Ricans are generally very welcoming and like to teach others about their local culture and expressions. Spend time learning Spanish. It will help you a great deal. Live like a Tico!

Click on the link to view thousands of properties in Costa Rica

Ok, I’m glad I got your attention. I had the pleasure of chatting with Ben Vaughn, real estate professional and author of Guys in the Zone, a very insightful Costa Rica real estate blog.

This was a really fun interview. The sound quality is not the best, but I enjoyed speaking with him. We covered a lot…from the most common misconceptions people have about buying Costa Rica real estate to how the real estate market there is being affected by the economic slow down around the world. Listen to the interview and find out why you should be yodeling naked on the pacific coast of Costa Rica! (the answer is about 5 minutes in)

picture provided by jeepeenyc on on flickr    http://www.flickr.com/photos/jeepeenyc/974730475/

By Patrick Connelly

The Costa Rican government recently proposed several new measures in regards to immigration that could severely change the retiree and expat situation. Their aim, in theory, is to dually combat the large influx of mainly Nicaraguan migrant workers as well as the increasing stream of North American moving to the country. With the proposed increase in monetary qualifications for both prospective rentistas and pensioners, many would-be North American expats may be turned off by such a move, particularly in the current financial environment.

The Costa Rican immigration authority, Migracíon, has recently been quoted as saying that the immigration situation in the country is “out of control” and that stricter requirements are desperately needed. In response, the government has proposed to increase immigration requirements for pensioners from $600 a month to $2000 a month, while rentistas face an increase from $1000/month to $5000/month. Basically, to qualify for Costa Rican residency you will have be able to prove that your pension or monthly income equals or exceeds the amount for whichever category you fall into, rentista or pensioner.

In light of these astronomical increases, it is clearly evident that potential retirees and expats could get hosed on this one. According to the U.S. Social Security Administration, the average pensioner in the U.S. receives around $1100 a month, far below the prescribed requirement. And, as the U.S. has one of the highest pension averages in the world, these requirements would have a worldwide effect; for example, Canada – a major contributor to the Costa Rican expat and retiree scene – has an average of around $700 a month.

The government in San Jose continues to claim that these requirements are “easily attainable”, which, from their point of view, is understandable. Milk the cow. If a steady cash flow continues to arrive via North America, it is not surprising that a government would try to keep pressing to see what the ceiling is; that is merely good business. However, in this case it would appear as if the proposed requirements far and away exceed any rationality.

And therein lies the silver lining in this possible four car pileup of increased immigration requirements. This is not an isolated incident; in fact, as recently as 2004 a similar bill was introduced. Met with immediate uproar from the expat community, it failed to pass into law. Recently, when informed that the average U.S. pensioner receives $900 less than the desired requirement, a Costa Rican assembly member was unaware of these figures. Now, this could be a simple mistake on part of the Costa Rican government or an attempt to slide one past the North American community; either way, it poses potentially serious problems for would-be expats in Costa Rica. However, the government recognizes the importance of the expat and retiree communities and the income it brings in, and will certainly proceed with caution as to not disrupt such a vital part of the economy. Certainly a situation worth monitoring in the coming months.

Click on the link to read more analysis on how expats are affected by Costa Rican immigration laws

Have additional input or information on this topic? Feel free to contribute on our board below

The FM2 is the Inmigrant Visa for those having the intention of living in Mexico for a long period of time or for those who intend to seek permanent residency in beautiful Mexico. After you are granted an FM2 you are authorized to only undertake specific activities.

Those interested in investing in Mexico´s industries or services can receive an immigration permit as long as the invested amount equals a minimum of 26,000 times the minimum daily wage.

Professional certificates can be validated by the Mexican Consulate allowing you to apply for an immigration visa to live in Mexico and seek permanent residence.

If you are moving to Mexico after your retirement, say 50 years of age, and want to engage in non-remunerative activities and you are receiving funds from abroad, for instance a pension or another kind of income  at least to the value of 400 times the daily minimum daily wage per month and a further 200 times daily minimum wage per month for each dependent you can apply for a Retiree Immigration Permit.

Bear in mind that you must hold a FM2 for a five-year period (consecutive) before you can actually apply for the Mexican Citizenship. Following this period, you may apply for full resident status. After your citizenship is granted you are entitled to full rights and responsibilities as any other Mexican Citizen, with the exception of the right to vote. Foreigners are not allowed to involve themselves in Mexican affairs like politics and they may not be post-holders of any public office.

Under Mexican law, you don´t need to surrender your national passport so you can use it when you return to your homeland.

Article written by Jisel Perilla

Contributing writer to Latinworld.com

What Kind of Residency Visa do I Qualify for?

This is one of the first things you’ll have to find out if you’re thinking about making a permanent move to Panama. The good news is that it’s pretty easy to obtain permanent residency in Panama, so long as you’re a retiree with a formal monthly pension or you’ve got at least $160,000 to invest. If you’re low on funds or looking for work on your own, you may be out of luck – at least technically. The Panamanian government does everything possible to make sure that jobs in Panama go to Panamanians, so unless you have a very special skill or are sponsored by a large multinational, you may have to go a less official route. Keep in mind that immigration and visa laws have a tendency to change quickly, so it’s best to seek legal counsel as soon as you start thinking about relocating to Panama.

The following are the most common visas sought by foreigners relocating in Panama:

If you’re retired…

The Turista Pensionado Visa is available to those receiving at least a $1,000 (up from $500) monthly pension from a verifiable source. There’s no expiration date on this visa, but you’ll have to check in with the Immigration Department once a year to demonstrate that you’re still receiving a pension. If you received your pension in a lump sum and aren’t receiving monthly payments, you can obtain a Rentista Retirado Visa. You’ll just have to deposit your funds, in a 5-year CD at the Banco Nacional de Panama and be earning returns of at least $2,000 monthly (up from $750) In order to retain residency status, the CD must be renewed every five years.

If you’re an investor…

Panama provides a very friendly environment for those looking to go into business. The provisional two year Inversionista Visa requires an initial investment of at least $160,000 and the hiring of at least five full-time Panamanian employees. The visa must be renewed at least three times every two years before it becomes permanent and provides a path for obtaining Panamanian nationality. The Inversionista de Pequeña Empresa Visa (Small Business Investor Visa) was recently eliminated.

If you’re not retired, not an investor but independently wealthy…

You may qualify for the Solvencia Económica Propia (Person of Means) Visa. You must deposit at least $300,000 to be left in a bank for three years. You can also apply $300,000 toward the purchase of mortgage-free property or do a combination of both. This visa can become permanent after an initial renewal, so long as your economic situation remains unchanged. The Solvenica Económica Propia also provides a path to Panamanian nationality.

If you don’t meet any of the above categories…

Relocating to Panama and obtaining permanent residency will be a bit more difficult if not impossible, unless you marry a Panamanian. As an American, Canadian or European man, you’ll find this is pretty easy to do in Panama!

If marriage doesn’t interest you, however, there is an unofficial way to move to Panama. American, Canadian, and most European citizens are legally entitled to stay in Panama for up to 90 days without a visa, so many expatriates simply cross over into Costa Rica or explore Central America every three months. You’ll have to remain abroad for at least 72 hours before reentering Panama. This is an at-your-risk “permanent tourist” option, but I’ve heard of many people who have lived like for months and even years. As far as I can tell, the government doesn’t seem to mind as long as you’re not trying to take jobs from Panamanians.

Another option is to teach English. Private schools are always looking for ESL teachers, and they seem to prefer American and Canadian candidates. Likely, you’ll be required to provide evidence of a Bachelor’s degree, TEFL certification and teaching experience. If you wish to remain in Panama for more than a year, you may be able to renegotiate your contract with your employer. Keep in mind however, that teachers in Panama usually only make between $600-$1,000 a month, so you won’t be living large by any means.

In order to apply for a visa and residency status you’ll have to talk to a Panamanian lawyer. If a law office’s rates seem too good to be true, they probably are. Ask around for a reputable firm before you get the process started. I haven’t found the Panamanian embassy to be particularly helpful, but they do have a bit of investor and retirement information on line. My Panama Lawyer is an informative, unofficial relocation blog and is a good place to keep up with Panama’s frequently changing visa and residency requirements. You can also find a few other visa/residency options here.