World’s Best Places To Live—
The Year In Review…
And Looking Ahead To 2018
By the Editors of Live and Invest Overseas
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
16 Overseas Living Letter
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.
Overseas Living Letter 15
24 Overseas Living Letter
 Latin America
In 2017 And 2018
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.
Overseas Living Letter 26
 Argentina In 2017 And 2018
Argentina 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 in
summer), 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 Mauricio
Macri 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, ticket
machines fail... (Show up at the famous Colon Theatre, ticket in hand for a scheduled ballet or symphony, and find the
theater 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 by
expediting the registration process for companies.
Instead of being burdened with bureaucratic dealings,
companies can now become registered online in 24
hours or less. Previously, it took up to a year.
2. Create opportunities for financing and a
tracking system for venture capital activity.
A percentage of public funds will go toward
spurring startup development under the Fiduciary
Fund for the Development of Venture Capital
(FONDCE), and a registry for fund managers and
private investors will be created as a platform for
information-sharing.
3. Incentivize private investors with tax breaks to
provide additional financing opportunities. Up to
85% deductions on an SAS company investment will
be possible under certain circumstances, opening up
the private sector for startup financing.
4. Provide governmental support through the
creation of accelerator programs. A total of 13
programs will be developed, benefiting technological,
social, and science-based ventures, providing
technical and financial guidance. Additionally,
companies will be able to crowdfund and sell equity
to 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. and
internet travel agent Despegar.com Corp. However,
things took a turn for the worse with former President
Cristina Fernández. Currency controls and nationalized
energy 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 2018
Belize 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 your
personal 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 in
the 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 the
Belize 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 file
annual 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. To
some, 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 its
neighboring countries. Most expats choose to seek care in Mexico or the United States. If you need a high level of
medical 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’t
find much to do here, but there’s a vibrant community nonetheless—people here just know how to entertain
themselves. The exception is Ambergris Caye, where you’ll find a number of good restaurants, wine bars, and live
bands 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.

chain hotel in the country, as well as being one of the

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
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 2018
For 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, and
Medellín 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 destination
for cosmetic surgery, Medellín is now established as a destination for complex procedures and advanced
technology, including transplant surgery. Medical insurance and out-of-pocket medical expenses are less than
one-third the cost of those of the United States. Doctors in Colombia provide their personal cell phone numbers
to 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 away
with 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 a
wide range of entertainment options. With modern movie theaters, shopping, orchestra, theater, and countless
events 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 in
Medellín 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 recommending
Colombia, specifically Medellín, for investment for nine years. The Medellín market has seen good appreciation
over 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, and
large cities with good domestic access. In certain cities, Medellín, for example, the public transportation system is
highly developed (with metro and Metrocable, a funicular service that runs up and down mountains; bus routes
are extensive, and vehicles run on natural gas; taxis here are metered and easy to hail), so you can get by without
a car. Roads in and around the city are good, and most of the city is built on a grid system, making it relatively easy
to navigate.
 • Colombia offers excellent, easy, and quick foreign residency options, including one for pensioners (with an
income requirement under US$1000 a month) and another for investors. Colombia also offers residency with
the least amount of red tape. Expats report that it’s possible to apply and get the permanent residency visa
issued in just one hour. You qualify instantly for permanent residency as a property owner, shaving five years
off 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 culture
need more. English-speakers can usually be found at restaurants and hotels, but for day-to-day life, you really
need 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.)

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.
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 The prices of new construction and existing
construction have been rising steadily across the
Our Colombia Insiders report hearing much more country since 2002.
English as they go about their day-to-day lives in
Medellín, especially in El Pobaldo, one of our favorite Between 2005 and 2016, prices of high-end housing in
neighborhoods in Colombia’s culture capital. Medellín and Cali have risen by close to 10% annually,
while prices in Bogotá have risen by 11% annually.
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

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 the
dollar’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%) applicable
to 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 living
indices in the world. Colombia has the second
highest biodiversity in the world (behind Brazil).
For nature lovers, a wealth of experiences and
opportunities awaits.
• Colombians are some of the happiest and friendliest
in the world, anecdotally making it easy for expats to
build themselves a positive, helpful network of local
friends and acquaintances. By all recent reporting,
Colombia has consistently been ranked as one of the
happiest countries in the world (consistently in the
top three).
• Diversity of lifestyles, with four metropolitan cities
offering a variety and appealing array of living
locally, 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.
 The Dominican Republic In 2017 And 2018
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 infrastructural
developments 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 the
opportunity 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 from
brick-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 meter
in 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 the
country.

- The Dominican Republic Cons At-A-Glance:

• Because this is an island, some commodities come at a premium… electricity is expensive, as are any imported
goods—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 areas
have 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. Outside
the major cities, though, the quality of care varies. Once you leave the capital, even emergency services can range
from extremely limited to nonexistent. While basic medical needs can be attended to nearly on the island, for
anything major or specialized, you’ll want to seek health care elsewhere.
 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 2018
For those looking to retire abroad, Ecuador is not
only aesthetically appealing but also a logically
sound decision. If you want to talk about an affordable
retirement 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 or
figuring 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 bevy
of discounts and benefits, including ability to ship in used goods duty free, a discount on vehicle import tax, a
special discount on property tax, vehicle tax, and judicial fees, plus refunds on sales tax. Plus, once you qualify, you
never 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’s
historic 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 physicians
and facilities at unheard-of costs.
• Due to the high altitude of this mountainous country, the springlike climate is generally thought of as being
ideal… Ecuador’s perennial springlike climate in the mountains means no heating or air conditioning is required
here. There’s little fluctuation throughout the year, and temperatures would rarely rise above 75°F. Humidity is a
comfortable 75% or less in most places (year-round), annual rainfall is low (at about 32 inches per year), snow is
rare 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 to
realize 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 some
is a little more malicious. Always be sure to count your change at the register, getting short-changed is a frequent
occurrence. Costs are often stated as all-inclusive when you’re really paying extra for the extras. Being suddenly
charged for something that you didn’t expect to pay for is common.
 Residency And Immigration
Major 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 Military
Changing 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 Titles
The Go List
Quito came in 25th out of 52 on Fodor’s 2018
“Go List.”
 Mexico In 2017 And 2018
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.
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).

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
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 was
able to get Mexican residency recently in about 20 minutes, without translations, apostilles, or notarizations… a
feat you won’t match anywhere else.
• Health care is high quality, and Mexico is home to the largest hospitals in Latin America. English-speaking
doctors who trained in the United States are easy to find, and costs are at least half of what they would be in the
States, 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 of
throughout 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.
 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 over
the fronts of historic buildings at night.
• The sidewalks were widened and renovated for a much
better walking experience.
• The paved streets were ripped up and replaced with
cobblestones.
• 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 can
automatically water the hanging plants that are
suspended from them.
• Flowering plants, small palms, and bougainvillea have
been 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 the photo), coming as a major vote of confidence in
Mazatlán’s 2018 market.
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.
Residency And Immigration
A Two-Way Street
More Americans applied for residency in Mexico than
Mexicans applied for U.S. residency this past year.

“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
Government And Military
Trashy Trends
On Aug. 5, Playa del Carmen’s municipal government
introduced a trash separation program.

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
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 All Indexes Point This Way

Top City Of 2017: San Miguel De Allende
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
Travel + Leisure Magazine has touted San Miguel de Allende,
reasonable cost of living. One respondent added, “the
Mexico, as this year’s primo destination, and it is much
climate is almost perfect, the people are friendly, and the
closer than you think. In fact, it is just south of the border.
food is to die for.”
With loads of history to explore and greenery for miles,
it’s no wonder that this city has been dubbed the best
Top Of The Trips
to wander in the magazine’s annual list. The magazine,
Playa del Carmen made #20 on TripAdvisor’s “Top 25
though, is not singlehandedly responsible for saying so.
Destinations In The World.”
The readers are.
Best In Show
A survey was sent out for readers to rate various cities
based on the landmarks and sightseeing, culture and
Guanajuato came in 9th in Lonely Planet’s 2018 “Best in
food, friendliness, shopping, and overall value.
Travel” top cities list.

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 Miscellany
into the heart of the city.
Safety First
Mexico has a few more destinations making headlines
across travel press lately. The New York Times listed We’ve always gotten queries about the crime rate in
Tijuana and Puerto Escondido as top places to visit this Mexico, this year more than ever… but sensational
year, as well. 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 In 2017 And 2018
Nicaragua’s story has been anything but dull these
past 40+ years. Political unrest, civil war, economic
disaster... then a renaissance. The Sandinistas were
pushed 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 a
new 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 it
gets. Nicaragua is one of the most affordable places in the world to enjoy a comfortable, full, and rich
retirement. 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 oldest
city 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 in
Central 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.
 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— The hardware sector had anticipated 20% sales growth
a considerable jump from the current 200 to 240. Major in 2016, but a slowdown in new construction from mid-
buyers include the U.K., Canada, and Europe. year caused a setback.

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.
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.

Tourism Review noted that a high percentage of

Awards And Titles
tourists place a large amount of importance on
Nicaragua One Of The “Best Places To Go In 2018”
commitment to the environment and the local
community. And ,according to their report, the Frommer’s has just recognized Nicaragua as two of the
government understands this is making “sure that “Best Places to Go in 2018,” beating out more known
the population takes part in the development of the and mainstream destinations in Central America, such
country’s booming tourism industry and also gives as Costa Rica.
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.
Overseas Living Letter 72
 Panama In 2017 And 2018
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.
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.

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.
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 100
years, 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 special
benefits and discounts—it’s the current Gold Standard in retiree visas. Retired in this country, you can save
as much as 50% on everything from restaurant meals to in-country airfares, from prescription medicines to
closing costs on your new beach house.
• The cost of living is affordable. Outside Panama City, it remains downright cheap. A couple could live
comfortably in the interior of the country (including in many of the less developed beach towns) on as little as
US$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 Pacífica
Hospital 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 are
being 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 Cons At-A-Glance:
• A U.S.-dollar jurisdiction—meaning investments here are not currency-diversified. You also aren’t going to realize
any 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 the
city, costs plummet).
• The tropical heat and humidity can be sticky and unappealing to some (of course, Panama also offers cool
mountain 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 or
efficiently, 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 fact
that 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 Power
Plant. Hidro Caisan, S.A. proposes a US$75 million
investment to expand capacity of this power plant
from 63 megawatts to 73.2. The plant is in Caizán,
Chiriquí.
2. An urban development in Juan Díaz. Inmobiliaria
Mar del Sur, S.A. proposes a US$55 million urban
development in Juan Díaz that would include 50
lots for residences, 10 for green spaces, and 40 for
community zones.
3. A roadworks project by the Ministry of Public
Works. A US$30 million project to connect Punta
Peña, 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
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.

On Nov. 24, the first commercial flight from Enrique According to Urho Gonzal, one of the project developers
A. Jiménez Airport in Colón took off for San Andrés, 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.”
 Europe
In 2017 And 2018
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.

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 In 2017 And 2018
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.
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.

In Paris, the sweetest pleasures of life are right there for Not everyone is cut out for life in the Tropics or the
the taking—much of it free. Picnics in the Luxembourg developing world. If you are more interested in Old World
Gardens, long walks along the Seine, afternoons lost living, you could find that France offers just what you’re
among the cobblestones of the Latin Quarter... Ah, Paris. 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 are
inexpensive, as are over-the-counter drugs. English-speaking doctors are easy to come by in cities and most large
towns, 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 is
in 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 exhibitions
to 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 quaint
rural villages, from beachfront to Alpine mountain.
• Top-quality food and wine… it’s hard to talk about France without mentioning the delicious local foods—from
coq au vin to fresh, steaming baguette—nor can we undersell the French wine industry. Here, you can easily buy
an excellent bottle for less than 5 euros… add to that an 80 cent baguette and a 2 euro hunk of cheese and you’ve
got 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 to
locals unless you make a sincere effort to learn some French.
•B ureaucracy 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.
 • Onerous tax regime
•P  ublic 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 teaching
methods. State-run universities are overcrowded, but they are affordable and the education good.
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
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 income
tax. Previously, income tax was paid based on the prior
year. In other words, income tax paid in 2016 is based
on income received in 2015. As of Jan. 1, 2018, there
is no lag, and, instead, income tax will be deducted
from your salary on a monthly basis by the employer,
pension fund, or other administration.
• Those making 18,500 euros annually (37,000 euros
for couples, add another 3,700 euros per household
dependent) 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 length
of time the asset has been owned before selling (6%
from 6 to 21 years holding; 4% for 22 years; 0% for
assets owned for more than 22 years).
• Corporate tax rates will gradually decrease over
the next three years from 33.3% to 28% by 2020.
The new rate can be applied this year to small and
medium businesses that earn between 38,120 and
75,000 euros annually.
• 2017 brings changes to the tax system known as the
“Pinel.”This rental investment tax benefit allowed
real estate owners to deduct the tax portion of the
purchase price of the unit, provided it’s used as a rental.
While it was originally planned for cancellation in
Dec. 31, 2016, the Finance Act of 2017 extended it until
Dec. 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 bounces back “just as New York City and Washington,
D.C. bounced back after 9/11.” These days, a palpable
police presence throughout the city has increased
All Indexes Point This Way feelings of security throughout.
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 Miscellany

Paris made #3 on TripAdvisor’s “Top 25 Destinations In
Crit’Air Takes Effect In Annecy and Toulouse
The World.”

Best In Show As of December, folks driving in the towns of Annecy and

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”
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.

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
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 Famous In France
Parisians and tourists with unobstructed views of the
monument from Champ de Mars park and the Iena Upon publication of Live and Invest Overseas’ 2017
Bridge—both popular photo spots. Retire Overseas Index release, in which Saint-Chinian in
Southern France’s Occitanie region was featured, local
The permanent glass walls will replace the metal barriers papers picked up the story and ran with it.
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 Demand Pricing
pillar reaching 343 meters. Foster is now the architect of
Narbonne’s new museum dedicated to the city’s Roman According to French consumer group UFC Que-Choisir,
history, currently under construction. the price of games regularly spikes the closer we get to
Christmas. In fact, trends show that prices actually drop
Closing Time in October and November but shoot up in December
and continue up all the way to the 25th—so get
Paris’ free Carnavalet Museum (one of our favorites), shopping now if you’re in France!
which covers the tumultuous history of Paris, is closed for
2017 and beyond as it receives an overhaul.
 Italy In 2017 And 2018
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 you
might want to practice.
•Q uintessential Old World lifestyle at a real bargain. Live like it’s 1953 again… especially in small towns like
Abruzzo. 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, from
gallery 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 the
Mediterranean and the Continent.
• It’s hard to talk about Italy without mentioning the delicious local foods and wines—Italian recipes are a cut
above the rest of the world anywhere, but Italian recipes cooked by Italian chefs using fresh Italian ingredients
simply 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 of
the world’s best and most famous art works. And those are only the major hotspots—you’ll find works by some
of history’s most accomplished artists are scattered around the country, to be found even in the most modest
corners.
• Italy’s property market is wide open to foreigners, and the market in some regions (like Abruzzo) are flooded
with 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 earth
here 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 to
global 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-established
and 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’t
likely to settle permanently in the heart of Venice or Florence. To really feel comfortable and enjoy life, you’ll need to
speak a passable amount of the language. And in some areas, it’s a must—English isn’t commonly spoken to any extent
throughout Abruzzo, for example.
 • There’s a lot of bureaucracy in Italy and things move slowly. Simple tasks can seem overly complicated and
take 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 second
home (not to flip or as a yield investment), you can pick up some great bargains, especially in rural areas and
in 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 tend
to disregard road rules and drive quite fast.
• Italy upholds traditional and conservative values… it isn’t necessarily open to the LGBT community. This is a
generalization, of course, not every Italian person will adhere to it, but it holds pretty true generally.

Currency Outlook Access

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.
Ryanair 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.

At the time of this writing, one euro is worth US$1.18, a Domestic Double Up
whopping 12 cents higher than this time last year (US$1
buys you a mere 85 euro cents). Blue Air has started a new set of domestic routes from
Alghero to Milan and Rome.
Path Of Progress
Roman Holiday
Old Tracks, New Paths
Alitalia, Italy’s national line, began a route from Rome to
In 2018, a new hiking and biking path will be opened in New Delhi.
Abruzzo, having been constructed on an old abandoned
Norwegian Airlines added flights from Rome to New York
railway that connected the cities of the Abruzzo Coast.
and Los Angeles.
The 42-km Via Verde, or Greenway, can be traveled on Touring Turin
foot, by bike, or on horseback, crossing Punta Aderci, a
preserved park, and nine cities of Abruzzo. Enjoy double EasyJet now flies directly from Bristol to Turin.
views along the route: the Appenini Mountains on one
side, the Adriatic Sea on the other. The Real Estate Market
This part of the coast is called “Costa dei Trabocchi,” so named Investing In Abruzzo
for the trabocchi all along it. These traditional stilt houses were
For global property investors looking for turnkey, hassle-
formerly fishermen’s houses, built in wood directly over the
free real estate investments, one thing’s for sure… Italy’s
sea, and have now been converted into restaurants.
Abruzzo region is not for you—for now, at least.
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 Alban
Hills just south of Rome and overlooking Lake Albano.
We say almost all, as Pope Francis has declined to use
the palazzo, preferring to stay in his residence inside
the 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.
 Portugal In 2017 And 2018
We rate the Algarve region of Portugal as the World’s of thousands of (mostly European) expats, and North
Best Retirement Haven. Americans are just picking up on the trend.

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
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 in
Portugal 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 golf
courses...
• Portugal has some of the best weather in the world, with one of the most stable climates in the world and
3,300 hours of sunshine per year, meaning more sunny days than almost anywhere else in Europe—and no
climate control.
• It’s easy to access the rest of Europe, low-cost carriers offer numerous flights around Europe, and even direct
flights Stateside.
- Portugal Cons At-A-Glance:
• As with many European nations, Portugal likes its bureaucracy—no matter what you want to do here, there’ll
be 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).
 Spain In 2017 And 2018
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 those
looking 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:

• S pain has First World infrastructure with reasonably priced internet, Wi-Fi available almost anywhere, and a reliable power
system (outages are uncommon). Most cities have reliable transportation systems making it easy to get around, and the
country 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 of
Europe) 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 both
public and private health care systems with care ranked seventh in the world. Barcelona has an enviable reputation for health
care. There are well-trained doctors galore, many of them English-speaking. Consultants in every specialty can be found
throughout 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 expat
community 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 just
as a citizen would buy. Spain also has a property market in crisis providing international investors exciting investment
opportunities.
• Spain has a diverse climate with three different types of climate zones across the country. If you like to stick with a changing
four 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 in
everyday 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).
 Currency Outlook Flybe has new summer flights from London to Reus in
Catalonia on the Costa Dorada.
Many predicted that the euro would weaken to
British Airways opened seven new summer routes from
parity with the dollar—and we were hoping for it!
Manchester to Alicante, Málaga, Ibiza, and Palma.
Unfortunately, instead of weakening, the euro has
strengthened about 10% since last year.
Starting in May, British Airways (BA) will offer direct fares
to Alicante, Málaga, Ibiza, and Palma in Spain. There will
In other words, Europe has become more expensive for
also be an increased frequency to Ibiza and Palma.
U.S. dollar holders.

At the time of this writing, one euro is worth US$1.18, a

The Real Estate Market
whopping 12 cents higher than this time last year (US$1
Iberian Giant Reaching Even Greater Heights In 2017
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 Following the global crash in 2008, Spain experienced one
Norwegian and others. of the severest property meltdowns in the world.

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.
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 for
Madrid 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 to
US$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 and
US$369,000, there is a minimum exemption amount of
US$211,000. For example, if someone receives US$311,000
in inheritance, they would only be subject to taxes on
US$100,000—not the whole amount as they would have
prior to the changes. (Inheritances over US$369,000 pay
inheritance tax in correlation with the asset increasing
table published by the Junta de Andalucía.)
• If children, spouses, grandparents, or siblings (over the
age of 65) have lived with the deceased for two years
prior to the deceased’s death, and the house was the
main 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 the
main residence, they can now re-sell the asset after a
minimum 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.
 Asia
In 2017 And 2018
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
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 In 2017 And 2018
Malaysia is a regional and a global hub—for trade, for Malaysia, is known for its beaches, rainforests, and the
business, and for cultures. diversity of its population.

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 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 better
quality of life for less money.
• The Malaysia My Second Home Program (MM2H) allows foreigners to apply for a Social Visit Pass valid for up to
10 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 Western
countries, and doctors and nursing staff usually speak English. Most prescription medications can be easily
obtained 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 British
colony, there are plenty of Brits living here, but there is a healthy North American, European, Australian, and Asian
population, as well.
• Famed for street food, Malaysia’s George Town is also home to a vibrant restaurant and market scene… the
range 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, where
thieves might be less likely to install their illegal card readers. Check your transactions online, or better yet, set
your 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 Sumatra
and Borneo can cause serious haze, particularly around December and January.
• Traffic congestion in the cities can be bad.
 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 resource
not available in the company’s home market.
• Market-seeking—access new customers, clients, and
export markets.
• Efficiency-seeking—reduce production costs by
accessing new technologies or competitively priced
inputs and labor.
• Strategic-asset-seeking—encountering strategic assets
in a local economy (brands, new technologies, or
distribution 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 intermediation
business licence issued by a regulatory body,
2) the licences are renewable, but operators will not be
allowed to transfer or reassign them, and
3) it will be an offense to assault, hinder, or obstruct
those 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.”
 Philippines In 2017 And 2018
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 the
total 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 about
US$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 after
the national language, Tagalog (Filipino).
• This country offers one of the best retirement programs for foreigners in Southeast Asia, allowing foreign
residents to work or start a business.
• The country provides the easiest path to permanent residency in Southeast Asia. The Philippines retirement
program allows foreign residents to work or start a business (unlike neighboring countries). Once you have been
granted 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 and
settle in.

- Philippines Cons At-A-Glance:

• President Duterte has made the Philippines a seemingly erratic and potentially dangerous place to spend time
these days. With allegations of mass murder against him, plus his threats to withdraw the country from the UN
and his denigrations of women and women’s rights… the current political state of the country is more unstable
than 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 more
significant 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, but
the provinces are often plagued by power failures, chronic water shortages, antiquated telecommunications
systems, 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 couple
of 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 volcanic
eruptions 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.
 Currency Outlook
At 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 could face public censure, fines of US$1,000 to US$2,000,
enthusiastically… or else. and as long as a full year in prison.

Or else what, you ask? The bill includes a few other requisites, namely:
• All students are required to memorize the full anthem,
Jail time. regardless of whether they are in public or private
schools;
• The anthem will be played in accordance with its
original composition, a 2/4 time signature when played
instrumentally and a 4/4 time signature when sang;
• The tempo should be played between 100 and 120
beats per minute;
• All people are required to stand and face the flag, face
the 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.

Individuals who are convicted of violating the newly The bill still has to be approved by the Philippines Senate
proposed law, i.e., not singing energetically enough, and President in order to become a law.
 Singapore In 2017 And 2018
Singapore—whose name roughly translates from
Malay into “lion temple”—is a tiny island city-state
located in the heart of Southeast Asia. With the
Indonesian 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 the
easiest 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 of
residency status.
• The small but dense country enjoys First World infrastructure that rivals any global metropolis: Changi airport is
considered 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 independent
nation, 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 of
multiple 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 have
to live in a shared apartment.
 • Permanent residency—through investment or employment—is difficult to attain: The minimum earning
threshold to qualify is very high and permanent residency comes with National Service obligation of two
years.
• Tourist visas can only go so far… They require regular extensions (including a fee each time an application
is submitted), visa runs, and other hassles.
• No more gum… and other personal restrictions. Singaporean society is highly regulated, outlawing
many activities considered harmless in others. Corporal and capital punishments (caning, hanging, etc.) are
enforced for serious offences.
Currency Outlook
At 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 a
flight 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
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 the
best 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.
 Thailand In 2017 And 2018
There’s a lot to like in Thailand: breathtaking
beaches, friendly locals, and well-established expat
communities are just what’s on the surface. Beyond
these attractions, Thailand boasts excellent health care
(sometimes one-fifth the cost of U.S. health care) and
easy retirement visa options.
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.

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.
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 are
organized with the police and residents to discuss the state of the town and what changes might be needed and
foreigners are invited to participate.

- Thailand Cons At-A-Glance:

• In Thailand foreigners cannot own land. Freehold title to construction, specifically to condominium units, is
allowed, 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.
 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.
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

Tourism helps maintain a stable currency, but Thailand’s Phuket made #10 on TripAdvisor’s “Top 25 Destinations
GDP requires strong manufacturing. This in turn requires In The World.”
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 Miscellany

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
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 In 2017 And 2018
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. Many
Westerners 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 to
join 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 or
lounge 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 being
said, most health problems can be treated locally. Physicians will likely be well-educated and will make accurate
diagnoses and treatment plans.
• Vietnam is a poor country, so it’s not surprising that bag-snatching, pickpocketing, foreigner pricing, and other
scams are common in Hanoi and Ho Chi Minh City, the two largest urban areas. Even so, tourists (and increasingly
expats) 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 the
warmer regions. (Though mountainous areas such as Dalat offer a pleasant year-round climate, and the north has
a cooler winter season.)
• Some visitors complain about the hustle, the noise, and the lack of Western influence, particularly in the northern
part of the country (Hanoi).
• While living in a communist state is not exactly like living in a capitalistic one, in practice, Vietnam does not
resemble what most people would likely think of then they think of a communist country. Rather, the Vietnamese
are very switched-on, eager to please, energetic, and efficient.
 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.
 Special Offer
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.

Overseas Living Letter 123