Why you need a foreign residency
Another country recently overhauled its immigration laws - is this a bad sign for the future?
Intro
While it may seem minor, the small, landlocked country of Paraguay recently changed its residency program. For those that have been interested in foreign residencies, Paraguay was usually top of the list because of how easy it was to obtain. It’s a country most Westerners can’t point on a map, and largely outside of the sphere of Western influence – these are good characteristics for a Plan B spot. There’s also a lot of cheap, arable land in the country.
The process was essentially depositing ~$4,500 USD in a Paraguayan bank account, awaiting the visa processing and documentation to complete, and boom, one would have permanent residency in the country. Yes, it was that cheap, and that easy.
But the government recently suspended that program, essentially putting on hold any new applications. Those that previously submitted an application will be grandfathered in under the legacy laws. They’ve also removed the option to buy land as a path to permanent residency.
One can now invest $70,000 USD into a Paraguayan company to circumvent the temp residency, and obtain perm residency straight away.
The new law means that one will first be eligible for temporary residency for two years, after which time they can apply for permanent residency or for another two years of temporary residency. Remember, with a small deposit in a local bank account, the government allowed permanent residency (meaning it’s good forever, you don’t need to deal with the immigration office every year to renew which is usually a pain).
This may seem minor but it’s yet another step in making foreign residencies/citizenships more difficult to come by. I expect more and more countries to do this. If you have your sights set on diversifying your life in the face of increasing government tyranny, I highly recommend setting yourself up sooner rather than later.
Panama
Panama had a similar visa offered via their Friendly Nations Visa. The US is considered a Friendly Nation because of the history between the countries, and dependence on trade.
Since 2012, up until August 2021, they had a similarly easy and simple visa. It was equivalent to the Paraguayan version – deposit about $5,000 USD in a Panamanian bank account and one could get permanent residency. Again, not temporary residency, but permanent residency.
Now the scheme has drastically changed and only grants temporary residency.
Effective August 5, 2021, you can qualify for a Friendly Nations Visa by meeting any one of the following requirements:
-Get employment at a Panamanian company ( could be your company)
-Purchase real estate worth at least $200,000 (can be financed) It takes about 90 days to get financing. This must be titled real estate. It cannot be ROP real estate.
-Deposit $200,000 into a 3-year CD earning 3.5% interest at a Panama bank
You can finance the purchase of real estate but it will take at least 90 days to get financing. Most banks want 20-30% down. Plus, you need a life insurance policy naming the bank as beneficiary and all loans must be paid off by the time you turn 70.
So, the new Friendly Nations Visa rules are not so friendly.
After applying for a Friendly Nations Visa, you will receive a temporary visa for 2 years. After 2 years, if you continue to meet the qualifications listed above, you can request a permanent residency visa.
So it essentially went from a $5,000 deposit to $200,000 or working for a local Panamanian company.
These changes are huge. And to credit the article, they’re not so friendly after all.
Note that for those on a pension income (or similar recurring revenue from the military/etc.) the system hasn’t changed. Just show $1,000 USD per month and you’re good to go.
Mexico
During the cerveza sickness, Mexico was one of the only countries that stayed open, without restrictions. No testing, no vaxx requirements to show. As a result, a lot of tourists came down. A lot of people established residency as well. With a US passport one would also automatically get a six month tourist visa – this is relatively unheard of but commonplace for Mexico.
Starting in 2020 and to this day, however, the local immigration officers started asking to see when the visitor’s return flight was, say three weeks from the arrival date, and only giving a three week visa. This signaled a big change in how the government and local immigration was thinking about foreigners entering the country.
Mexico is currently one of the easiest foreign residencies to obtain, especially for Americans. Show income or assets, the figures of which vary depending on the consulate you visit, and it’s a fairly straightforward process.
But with Panama and now Paraguay changing their tunes, Mexico could very well start tightening up their requirements as well. Cities such as Mexico City are experiencing extreme gentrification and tensions are increasing between expats and locals. I expect changes to come in the next year or two.
Why do Western countries not want this?
An important point to keep in mind is that the US is one of only two countries in the world that taxes your income no matter where it’s earned. If you lived in Mexico for nine months out of the year and three months in the US, you still owe money on all money earned that year. It’s insane.
The only other country to do this is Eritrea, a tiny African country that nobody’s ever heard of. Uncle Sam makes sure he gets paid. Now with many more IRS agents being hired, they’re making sure they can steal all the money they can from its citizens.
There is a loophole called the Foreign Earned Income Exclusion (FEIE) which allows someone to exempt about $106,000 from federal taxes – state taxes are still owed, however. One needs to stay outside of the country for 11 months out of the year, however.
I think there are a few reasons the US government doesn’t want people leaving / expatriating.
One is that they start losing a segment of their tax base. Expats are usually skilled enough to figure out how to work abroad, so they’re probably high earners. High earners means more taxes they can confiscate.
Another reason is that it’s easier to ‘hide’ wealth when abroad. Many countries in LatAm, for example, are highly cash-based. The governments hate cash to begin with, so using foreign currencies provides just another layer of obfuscation that Uncle Sam would need to uncover.
The third reason is more of a philosophical one that ties in the previous two. They don’t want citizens, again usually high earners, to see that it’s possible to leave the plantation. To see that with a fraction of the income and perhaps some savings, one can live a better life outside of western degeneracy, high taxes, and other stupidity the west is currently doing. It’s also possible to avoid funding these retarded wars and, more recently, the billions to Ukraine and their Nazis.
Why it’s a good idea to obtain foreign residencies
I’ve outlined some of them, but here are some others. This lifestyle isn’t for everyone but it can provide necessary protections and options for those that value freedom.
As governments continue to destroy their economies and currencies, they’ll only look to increase taxes. I see asset confiscation coming as well – this isn’t unprecedented after all.
If one can hold USD and live/spend in a country with a comparatively much weaker currency, one’s purchasing power goes even further. Then it’s possible to live in a deflationary environment.
Another reason is say that the US is targeted by a biological/nuclear/other weapon, given it’s the nucleus of so much terror around the world and is bound to be attacked at some point again, living in a place like LatAm or, better yet, a place like Paraguay, one is much less effected by such event(s). E.g. Uruguay, Paraguay’s neighbor, exports only ~10% of what it produces and imports about 10% of what it can’t produce itself – a country like that is quite isolated from any retarded things the US does.
As part of a diversification strategy that I’ve written about before, it’s a good idea to have. Even if it’s just in case. But it’s possible to diversify holdings in foreign bank accounts/currencies and also assets such as businesses or real estate. Investing in the right emerging market could bring an incredible return. It also provides additional protection of one’s assets from bloated western governments looking to increase their thefts.
So with Paraguay overhauling its policies, and Panama making it much more difficult as well, if you’re interested in a foreign residency, the window might be closing. And if you want any more specifics or help, contact me on Twitter or leave a comment below. Having someone to guide you along this process, which can feel daunting, makes the process go much smoother.
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