The Best Second Residencies in Central and South America
Since I originally wrote this article in 2013, quite a bit has changed in terms of second residencies, immigration, and citizenship in Central and South America.
So, naturally, I’ve decided that it’s time to update this article with some of the latest developments in this region, and my research team, including my research and development associate Jovana Vojinović, and I have spent the past few months thoroughly researching all residence options in Central and South America.
The first thing that my team and I have decided to do is not limit ourselves to just five options. Countries in Central and South America are often some of the easiest places to immigrate to, but unlike Asia (which can also be quite easy), it’s a bit easier to be accepted into the culture and gain citizenship in Central and South America.
These countries also generally allow dual citizenship, and if you plan on having children, many Central and South American countries offer citizenship by birth.
From a cultural perspective, it’s also simply easier to fit into Latin America than in other parts of the world. While you’ll likely be accepted as Brazilian eventually, you’ll never be accepted as Malaysian or Cambodian.
The language barrier also isn’t too difficult to overcome since most Latin American countries speak Spanish. If you’re from the US, then you probably have some experience with Spanish, but if you don’t know the language, it’s an easy and useful language to learn.
That being said, Latin America isn’t perfect. It can be hierarchical, and if you’re a woman, it can be somewhat patriarchal.
Countries in Latin America are also typically highly bureaucratic. While expats tend to enjoy the relaxed pace of life here, it also applies to government processes, which can become frustrating at times.
That’s why my team and I created this guide to the best second residencies in Central and South America. From our research on the ground, we’ve learned the ins and outs.
What Makes Immigrating to Central and South America Difficult?
Despite having some of the easiest second residency programs in the world, immigrating to Latin America can be difficult at times – mostly thanks to good, old fashioned bureaucracy.
As we were researching these residency programs, we spent a lot of time tracking down lawyers and government officials to guide us through the process and clarify the laws. Unlike in most countries, bureaucrats in Central and South America tend to apply laws flexibly since regulations there change frequently.
For this reason, Latin American immigration is perhaps our largest R&D endeavor – navigating these bureaucracies is a lot harder if you don’t know what you’re doing.
On the other hand, immigration requirements are generally a bit easier. In many countries, Rentista programs allow you to establish residency by proving that you have a minimum monthly income, and Pensionado programs let you immigrate if you’re retired and have a monthly pension.
There are many different and easily-accessible options for investors, retirees, and other potential immigrants.
Despite this low barrier to entry, however, I see more rejections in Latin America. I see more bureaucracy, and the process is going to take longer than it would to get a residence permit in Malaysia or even to get a European Golden Visa.
There are exceptions to this, and your mileage may vary depending on your individual circumstances. Regardless, you really need to know what you’re doing.
Finally, one of the largest challenges that my team and I have encountered over the years is finding reliable people to work with. While we’ve managed to find the best of the best, it wasn’t exactly easy to do so.
Therefore, while second residencies in Central and South America are often easy in the sense that you don’t need to have hundreds of thousands of dollars to invest as you would in, say, Dominica, they can be difficult to get if you don’t know how to navigate bureaucracy.
A Note on Scams and Legality
When researching second residency programs in Latin America, one of the problems that you’ll run into is programs that are questionably legal at best and outright scams at worst.
My friend Christian with IMI Daily and I frequently talk about how there are so many different corrupt programs that come out of Latin America.
Latin America is unfortunately a very cheap place to get fake passports. There have been passport scandals even in Mexico, and I also found a joke of a program that claims it can get you a Bolivian passport in 14 days for $15,000.
One of the reasons why this is the case is because Latin America is so open, and getting a passport legitimately isn’t very hard.
For this reason, my team and I have carefully ensured that every program on this list is 100% legal and legitimate.
The Best Residency Programs in Central and South America
The following countries are the best second residencies in Central and South America.
For each country, I’ll give you a basic overview of the immigration process, but I’ll also provide my honest opinion on what the real scoop is on each country.
As Jovana and I have discovered on multiple occasions, the law doesn’t always match reality in many Latin American countries. For instance, the law may say they allow you to immigrate under certain provisions, but bureaucrats won’t let you do that because the law is going to change.
My goal here is to give you a real perspective on what really happens on the ground in each of these countries – not just theory and a few random people’s experiences from internet forums. My team and I have learned the culture and the lingo, allowing us to give you this important information.
Mexico
I’ve talked about Mexico a number of times here on the site and on my YouTube channel. There are interesting investment options available in the country and the location is fantastic for those who want to be close to family in the US. There’s incredible variety in Mexico. It has some of the best food in the world – from top-ranked restaurants in Mexico City down to the amazing street tacos – the people are incredibly warm and helpful, the shopping is fantastic, and the culture throughout the country is fascinating. In fact, Mexico City is one of my two favorite international cities in Latin American. You could spend years exploring just Mexico City and you still wouldn’t have seen and experienced everything this vibrant city has to offer, let alone the entire country. If you’ve never been, make sure you put Mexico on your list because it is also one of the easiest countries in the world to visit.
GETTING SECOND RESIDENCY IN MEXICO
What’s great about Mexico is that getting residency is a very straightforward and simple process. The first step is getting a temporary residence visa. These are available to anyone who plans on staying in the country for anywhere between 180 days to four years. You have a few different options for qualifying for this visa:
- Show proof of income of $2,500 every month for the past 6 months.
- Present records showing you’ve been invited to volunteer in the country for an organization or institution;
- Provide evidence that you’re related to a temporary/permanent resident;
- Submit documents that prove you’re married to a Mexican citizen.
A temporary resident visa is only granted for a one year period. If you reapply, you can renew that visa for up to three years at a time. You are not required to spend a certain amount of time each year in the country to maintain your visa. And you can enter and exit Mexico as many times as you’d like.
Residence through Real Estate
You can also qualify for residency by investing in Mexican real estate. As long as you can prove that you’ve made an investment of around $300,000, you will automatically qualify for residency. Note: The official investment amount is calculated by taking the Mexican minimum wage and multiplying it by 40,000 days of work. Because the minimum wage changes over time, the full investment amount will also change with Mexico’s economy and labor laws. Whatever the required amount may be, you will be able to find a nice place with your investment. With $200,000 you can purchase a modern, two- or three-bedroom apartment in Mexico City or a luxury home in the suburbs or other parts of the country. If you can prove this investment, you automatically qualify for a temporary residence visa and can begin the process of getting a permanent residency and even citizenship.
Residence through Investment
The last option is to make a combination of different investments in Mexico that could include real estate but can also involve businesses and stocks. Altogether, you’ll want around $100,000 in real estate and the same amount in a Mexican corporation. To qualify through investment, you need to provide sufficient documentation to prove you made those investments. You’ll also need to prove through the Mexican Social Security department that you’re employing at least three people. If you can do all of that, you automatically qualify for the temporary residence visa.
Qualifying for Permanent Residence
Permanent residence is granted to individuals who have the intention of living in Mexico on a long-term basis and who meet at least one of a few different qualifications. If you meet any of these qualifications, you can skip getting a temporary residency.
- You have a child, sibling, parent, or grandparent who is a permanent resident.
- You are pensioned or retired and can provide adequate monthly income through investments, savings, or pensions.
- You are seeking political asylum.
- You are an unmarried minor with a Mexican father or mother.
If none of these apply to you, you’ll need to apply for temporary residency first and keep it for four consecutive years (two years if you’re married to a Mexican citizen) before applying for permanent residence. Mexico uses a point system to approve permanent residence applications. The criteria this point system uses was crafted to attract foreign investors and individuals with expertise. It includes your education, work experience, international awards, investment in the country, Spanish language proficiency, and a knowledge of Mexican culture.
Can I get a Mexican Passport?
Obtaining a Mexican passport might not be the best option for everyone, but there are some situations where it can be very beneficial. Unless you have relatives that are Mexican citizens, you’re going to have to go through the naturalization process. This shouldn’t be daunting. Naturalization is a very straightforward process that only requires five years of residency. Whether you have a temporary or permanent residence does not matter, just that you have had resident status for a total of five years. This can be a great option for someone running a manufacturing business with American customers or for a digital nomad looking to get out of the US without getting too far away from family. It isn’t a good idea for someone looking to build out a passport portfolio. While you can become a dual citizen in Mexico, the country does not allow multiple citizenships beyond two. Mexico is a call option residence. You can get and keep a temporary residence there without spending any time in the country during the first few years. During that time, you can explore other options and consider if Mexico works for your nomadic strategy. You don’t have to spend a huge chunk of time upfront to make it work as you would in a country like Chile.
Golden Visa Portugal
Golden Visa Portugal - Golden Residence Permit
Since October 2012, foreign citizens wishing to enter and reside in Portugal have been able to do so under a Golden Visa/Golden Residence Permit rule. It is a fast track for foreign investors from non-EU countries to obtain a fully valid residency permit in Portugal (“Golden Visa”).
Since then more than 10,000 applicants have received their Golden Visas, generating over EUR 6 billion for the government.
10 years of success
In January 2022, after nearly 10 years of a successful programme, the government, led by political pressure, decided to increase the minimum threshold of certain eligible investment activities and limit the areas where real estate investment can be executed.
The minimum investment amount for real estate will not change – €350,000 for a rehabilitation project and €500,000 for any other property. This price is reduced by 20% if the property is located in an area of low population density.
Residential property in urban areas such as Lisbon, Porto and the Algarve will no longer qualify although there are some exceptions. Investors can buy residential and commercial real estate anywhere in Portugal’s autonomous islands of Madeira and the Azores, worth at least €500,000 or €350,000 if investing in a rehabilitation project.
Commercial real estate
Investors can also purchase commercial real estate intended for services, commerce, tourism, aparthotels etc anywhere in the country worth at least €500,000 or €350,000 if investing in a commercial rehabilitation project and if the commercial property is located in a designated low-density area, then a 20% discount applies.
Real estate investment funds
Real estate investment funds are an alternative to the real estate sector, given that this type of investment allows foreign investors to remain eligible to obtain the Golden Visa, as a way of continuing to invest in assets located on the coastline and metropolitan areas of Portugal, without resorting to direct investment in residential real estate assets.
The Portuguese government has explained that these changes are necessary to evenly spread foreign investment to other parts of the country. With the Lisbon and Porto real estate market thriving, the government is now focused on relieving pressure from metropolitan locations and encouraging foreign investment into other areas of Portugal.
Golden Visa still a very appealing regime
The Golden Visa continues to be a very appealing regime, renowned as being one of the most popular in the world, it allows investors to live, work and study freely throughout the Schengen area and after five years they can apply for a Portuguese passport. For high net worth individuals, this is a gateway to freedom. It’s not about relocating – but about creating future opportunities for family, either for an improved quality of life, access to better education, or a safe haven from political instability.
Investors can also add family members to their applications as dependents and there is no need for full relocation, as long as they comply with the minimum stay requirements of just seven days in the first year and fourteen days in each subsequent period of two years.
BHHS Portugal Property – Golden Visa experts
Our expertise in the marketplace allows us to provide a complete service – with a network of lawyers, banks, rental companies and tax advisors – we will assist you with the application professionally from start to finish.
Property is still the investment of choice for the majority of investors. Here at Berkshire Hathaway HomeServices Portugal Property, we have overseen a very large proportion of these visas, helping our clients gain Golden Visas every day of the year, which we are very proud of. We are Portugal’s leading Golden Visa real estate agency.
Our team will happily guide any client through the buying process and lead them towards getting a Portuguese residency.
At a Glance
- Starting December 25, 2022, the Indonesian government will implement a new multiple-entry tourist visa valid for up to five or 10 years, called the ‘second home visa’.
- Foreign nationals who have at least IDR 2 billion or its equivalent in their bank accounts will be eligible to apply online for the new ‘second home visa’.
- ‘Second home visa’ holders will be granted with either a five- or 10-year validity, which includes multiple-entries, as opposed to the regular single-entry tourist visas granted to foreign nationals upon entry.
- Under the visa, foreign nationals must limit their activities to tourism and must not conduct hands-on or profit generating work in Indonesia.
- The Indonesian government introduced a new long-term tourist visa called the ‘second home visa’ for high-net worth foreign nationals which will be available starting December 25, 2022.
- Eligibility. Foreign nationals who can provide proof of having at least IDR 2 billion or its equivalent in their bank accounts will be eligible to apply online for the new visa. At the time of the publication of this alert, 1 IDR = 0.000064 USD.
- Validity. ‘Second home visa’ holders will be granted with either a five- or 10-year validity, which includes multiple-entries, as opposed to the regular single-entry tourist visas granted to foreign nationals upon entry.
- Tourism purposes only. ‘Second home visa’ holders must limit their activities to tourism and cannot conduct hands-on or profit generating work in Indonesia.
- Eligible foreign nationals will benefit from the longer tourist visa durations of the new five- or 10-year visas, compared to the usual 60-day tourist visa granted to foreign nationals upon entry. Furthermore, foreign nationals will benefit from multiple entry rights and from the eligibility to reside in Bali, which is not allowed for regular tourist visa holders.
- Continued reopening of Indonesia. The Indonesian government gradually started reopening the country to tourists starting from Bali last October and has since lifted most of its travel restrictions and reinstated visas-on-arrival in March 2022.
- Attracting foreign nationals to the region. The Indonesian government has been seeking to launch a digital nomad visa since 2021 with the goal of attracting visitors to the country to jumpstart the economy. Also in the region recently, Thailand introduced changes to the country’s immigration rules that allow high-potential ‘work from anywhere’ professionals to apply for a long-term 10-year visa; New Zealand introduced a new visa program for high-value investors; and Malaysia introduced a new Digital Nomad Pass that allows high-income foreign nationals to stay and work in Malaysia for up to 12 months. These innovative immigration routes are intended to boost the workforce at a time of critical skills shortages in these countries.
- Digital nomad visa update. Although various media reports mentioned that the new visa is a ‘digital nomad visa’, holders of the new ‘second home visa’ are not automatically granted work authorization in Indonesia without first obtaining a Work Permit. The Indonesian government has yet to announce if there will be a separate ‘digital nomad visa’ that will be launched.
It is likely that the Indonesian government will introduce further immigration changes that will benefit foreign nationals, such as special work visas to attract foreign nationals to Indonesia for both work and tourism during its post-pandemic recovery period. Fragomen will report on related developments.