You have the opportunity to achieve both personal and financial liberation overseas by tapping into new and developing sectors and developed areas of investment, allowing and encouraging you to diversify your portfolio.
One emerging area for investors is Central America. For many, especially US investors, Central America means inexpensive foreign real estate that is close to home. To learn more about foreign investment in Central America, continue reading.
Thinking of Investing Offshore?
One of the biggest draws to making offshore investments is the diversification. According to Modern Portfolio Theory, diversification is one of the cornerstones of a successful portfolio. In fact, diverse portfolios outperform a concentrated one. By owning a large number of investments in more than one sector or asset class, investors can protect themselves from unsystematic risk, the risk that one encounters when investing in one particular asset.
One of the biggest draws to offshore banking is security. For some, depositing money into a bank in their home country is not safe. In terms of investment, banking offshore can help diversify your portfolio, protect your assets, and is the first step in moving your assets out of your country. Opening a bank account offshore also plays a key role in forming an offshore corporation, offshore SD IRA, or international trust. Many offshore banks offer investment opportunities, managed investment accounts, and foreign exchange services.
One of the other benefits of investing offshore is the possibility to expatriate. Many countries in Central America grant investors residence. In some cases, they will even allow full citizenship after a certain amount of years. One nation that has a very attractive residency by investment program is Belize.
The formal residency-by-investment program was suspended in 2002, but there are other ways an investor can gain residency in the country. One is by establishing a business with the Belize Country Registrar. After doing so, the investor can apply for permanent residency after one year.
Why Choose Central America?
The region known as Central America is a group of countries located at the southern tip of North America. Typically, the border of the region is considered Mexico to the north, Colombia to the southeast, the Caribbean Sea to the east, and Pacific Ocean to the south. Sometimes, especially in cases when it comes to investment, Mexico is considered Central America since the processes of making foreign investments in the country are similar to those in the region.
Now is the best time to invest in Central America, especially in real estate. The political and economic climate have not been as strong as it is now in years. Factors like tourism and inexpensive real estate have drawn investors from all around the world, especially the United States.
Before you make a decision, let’s take a look at where investors are finding their next offshore asset in Central America.
The growing tourist industry and simplicity of making a real estate purchase make Mexico a great place to make your foreign investment. It also has a sizeable expat community so you won’t be left alone if you choose to stay.
Costa Rica has been a safe place for foreign investors to make their offshore purchase for years. The country has one of the most stable political and economic environments in the world. Expats and investors have flocked to this tropical destination for a long time.
As one of the easiest countries for foreigners to buy property, there’s no question why many choose Panama as their investment destination. There are many different kinds of options for real estate investor in the country and residency is easy to obtain. Panama also has one of the fastest growing economies in the Western Hemisphere. Whether you are looking for returns or a new retirement home, Panama is a good choice.
Belize is emerging as a real player in the global real estate game. This small Central American country is drawing investors from all over the world, mostly from North America. The country is mostly English-speaking with easy access to healthcare.
Your wealth is important. If you are serious about your life goals, financial planning and investments are probably important to you. Financial planning can involve many steps from tax optimization to asset protection. Different investments have different rules with different returns.
With the help of financial planning, you will be able to predict where you will be in the years to come by evaluating where you are currently, what sources of income you plan to have in the future, investments you plan to make, and your retirement plans.
Alpen Partners Wealth Management International AG, the sister company of Alpen Partners Wealth Management AG, is now a registered investment advisor with the U.S. Securities and Exchange Commission (SEC). Together with our partner Swiss private banks, our company can now offer the full Swiss private banking experience to American clients, both resident and non-resident.
Thinking of seeking residency in the Caribbean? Together, with respected law firms in various regions of the world, Alpen Partners is advising its clients on expatriation issues. In a world of increasing tax pressure and professional mobility, expatriation has become one of the most efficient tools for asset protection and estate planning. Moving abroad can come along with an abundance of benefits that can affect your taxes, your investment portfolio, cost of living, and your lifestyle completely. As the cost of traveling becomes cheaper, the benefits of expatriation for financial reasons are more easily obtained.
Taking the leap and leaving your home country can be a big decision with tons of personal and legal steps. The hassle of navigating the legal process of expatriation can be reduced with the guidance of Alpen Partners. Each step requires assistance, including getting the passport, making sure everything is completed correctly regarding taxes, acquiring work permits, making investments, and more. No matter what expatriation route is chosen, it can be a powerful tactic to allow clients to gain better control of their financial and personal lives.