#410 – The Expat Files: Philanthropy, Immigration, and Banking in Latin America

Automatically transcribed from the original recording; names and wording may contain errors.

[00:00] South of the border, down Mexico way That's where I fell in love when the stars above came up to play and now as I wander Hello there all you expat wannabes I'm Johnny Mueller and you're listening to the expat files living in Latin America The show that tells you just what it's like to live work play and or retire down here in Latin America It's a mix of the good the bad the ugly and the great and it's all right here. So let's get started Okay, let's start out with a little bittersweet news here first I'd like to thank the government of South Korea for donating 1.6 million dollars to build a gigantic center for undernourished children in Honduras a very nice and

[00:47] thoughtful gift you would think right before Christmas, but here's the problem It's had its initial inauguration and ribbon-cutting ceremony and been open about three months now But unfortunately someone most likely the contractors for jobs like this who are almost always connected to corrupt local politicians Are there any other kind? Well surprise surprise the place has been open for three months now and still doesn't have electricity and the plumbing well Unfortunately, the water is not working either It seems that some horses ass of a connected plumber. Um, I wonder who concealed the pipe So well that no one seems to be able to find them not to mention no one actually made the provisions to hire Qualified personnel to run the place. What else is new? This is Latin America, you know

[01:34] So there you have it another idiotic pseudo philanthropic feel-good move by a first-world government And what does everyone get out of a thing like that? Well, they get photo ops and champagne and gourmet meals at four star restaurants first-class airline flights, of course That's what the scumbag dignitaries get anyway in the poor the ones that show up on Inauguration day get a free t-shirt and a happy meal Then everyone goes home and soon enough the place deteriorates into a third world Latin eyesore like all government projects do Which is just another cautionary tale for all you people up north who see those TV commercials with sad malnourished Shoeless kids with skinny bones and shacks for homes. Don't fall for it Just be careful who you donate your money to better yet

[02:22] if you're gonna donate always give it to someone you actually meet in person a person or family in need and Never never donate to any kind of charitable organization That's just nuts because you're just buying range rovers and luxury pickups for the administrators that you'll never see because they're 2,000 miles away, and that's what they count on Oh, and did I mention these charity NGO executives love flying first-class doesn't everyone if you don't believe me You can come on down here to Latin America and see it for yourself I'll point you in the right direction Just go to any small poor town out in the boonies and look for the nicest late model pickups and SUVs and check out those International charity logos imprinted on the side or better yet as you're flying into some big off the gringo tourist trail Latin American City

[03:10] Stick your head into first-class if they let you and ask the first couple people you meet what they do for a living That's when you'll find out what executive charity perks are all about That's it for all you pompous ass charity executives out there if you don't like what I'm saying Sue me or maybe you'd like to give me one of your spare pickups or SUVs. That'd be nice Okay, enough said about that. Let's get to an email now That's very topical and pertains to anyone who wants to get their boots on the ground down here in Latin America And this is coming from Marcos. He starts by saying hey Johnny I know I just wrote you recently about termites and the new Canadian surveillance laws So I hope you don't mind me sharing another story with you. So here goes just a bit of background here

[03:56] I'm one of those guys beginning to live the perpetual traveler lifestyle at least for now until I find a place to settle down So far I've been to five countries Mexico Guatemala Belize Nicaragua and Costa Rica and a number of different cities within those countries I've flown on a few different airlines to without any problems Until today that is having just spent a month in the state of Quintana row in Mexico I plan to fly to Costa Rica your favorite country to get a little more beach time I was all set to go and even took your excellent advice and got a security wrap around my luggage at the Cancun Airport But when I got to the checkout counter the airline attendant took an unusually long time

[04:43] Reading the computer screen and then asked a couple of questions that are usually only asked at immigration Like for example, where am I headed in Costa Rica? How long do I plan to stay there and where was I going afterwards? Then came the kicker? Did I have a return ticket? I said no I was planning to continue on to Nicaragua by bus She pointed to her computer screen and insisted that wasn't good enough that I needed a real return ticket I pointed out that I'd flown to Costa Rica two years ago without anyone ever mentioning that to me Although I was coming in from Canada not from Mexico like this time So she called her supervisor who pointed at the computer screen and backed her up a hundred percent Suffice it to say that I agreed to buy a return ticket right then and there and

[05:31] Ended up in a little room upstairs in the back of the Cancun Airport Watching the supervisor type a ticket reservation into the computer for about 10 minutes Eventually, I paid by credit card to complete the transaction and was given a Figurative pat on the back as I walked out the door relieved of about 500 bucks and the Costa Rican Immigration officials did ask to see that return ticket. So Johnny I just thought you might want to know that Costa Rica has gotten stricter on this return ticket thing But this brings me to an even more important point when I was back in that little room doing the credit card Transaction I was glad my credit card actually worked. Why would this be an issue? Well, I don't know if you knew this but Canadian banks

[06:17] Anyway, make you tell them the exact dates and countries that you'll be using your credit cards from and I told my bank Previously that I'd be in Costa Rica as of that day And I hadn't planned on using my credit card at all at the Mexican Airport in Cancun So since my Canadian bank wasn't expecting me in Mexico that day My card could have been refused as I tried to buy the unexpected extra return ticket Now don't laugh this type of card blocking has actually happened to me once before When I returned home to Canada a day early and used my bank card to get some cash at the airport My credit card and bank card were subsequently frozen because of that

[07:03] so naturally I have a lot of questions about this but now I've come up with a kind of a plan that I'd like to share a Plan that might eliminate that airport check-in Extortion racket if you're coming in on a one-way ticket Why not have a second backup credit card from another bank? Just in case that way you can give yourself some wiggle room on your arrival and departure dates Tell your first bank that you'll be traveling a couple days earlier than you've planned just in case you return early Like I did at that time Then tell your second bank that you'll be traveling a couple of days later in case you're delayed This will give you about a five-day window to use your credit cards in case of Unexpected schedule changes without having your credit cards being blocked and without having to run around and make an inconvenient call

[07:51] Which leads to the question for you Johnny? Do you know of any international credit cards that don't keep track of you like a watchful nanny and don't want to know where? You are at all times? Keep up the good work Johnny signed Marcos. Well. I say whoa whoa whoa Marcos What kind of world are we living in when we got to report every move we make to our damn bank? No way would I or any of my expat friends ever go along with that I have some answers for you, but man you got to dump that first world bank of yours You know hearing things like that and I do hear more and more of that stuff every day It really makes me thankful. I'm down here in Latin America permanently Why do you guys up north put up with that crap? I know I know because you have to or you can't get credit or a credit card right well

[08:38] You know I have a number of solutions to that problem One you do what a lot of smart long-term expats do when you come down here you get a lawyer You open up a bank account in one of the solid banks He recommends preferably the one he banks at you transfer some money into that bank account better yet Transfer it to your lawyer's pass-through account, and then he transfers it to your new account Then your new bank will issue you a visa or a MasterCard or both once you've got an account all banks down here will do that After that your worries about your bank tracking you and blocking your credit card, etc. Are over why because banks down here Don't ask for any Traveling or credit card tracking information unless of course you want to volunteer that information And why should you think of it as if you had a visa or a MasterCard back in the 1980s or 1990s?

[09:29] When none of that big brother stuff was going on at all better yet? You don't get a credit card down here you get a debit card that way you just pump it up as needed Just tie it to a bank account of yours that has a limited amount of funds In fact you can open another account in your same bank and use one just to pump up your debit card any other for everything else Oh, and by the way, if anybody does that if anybody cleans out your credit card one that you've gotten down here in Latin America As long as you've agreed to pay the credit card insurance, which they have on every credit card account down here It's about two or three bucks a month by the way No biggie then if there's ever an errant or fraudulent charge or big screw-up You won't be responsible for it not a cent now

[10:16] I know if you get a visa or MasterCard up in the United States you're not responsible for any fraudulent charges theft or evil doings with your credit card and Though once discovered it might take an awful long time and a lot of phone calls and a lot of time on the internet to Figure it out. You still don't have to pay for any of that stuff. Well note that down here in Latin America It's a bit different some cards are like their first world equivalents in that you're not responsible for fraudulent charges, etc But others aren't and you better know that when you first get the card and the ones that aren't you just check the box And they'll withdraw two or three bucks a month for insurance now, remember these are third world banks But you will get a visa or a MasterCard or both and they do work everywhere worldwide Including all ATM machines the only difference being when you call the customer service number

[11:04] You'll have to press one for get this English. What a switch, huh? But like I said some credit cards from banks down here in Latin America Don't have that nifty built-in theft insurance. So you have to pay an extra two or three bucks a month So do pay that don't elect out of it Like the vast majority of Latins do and end up getting screwed in the end In fact, I can't tell you how many Latins I've met that have been stuck for errant charges because they didn't check that box Come on two bucks a month ain't gonna kill you right and here's another option If you haven't taken that step to come down here get a lawyer open a bank account, etc. Etc. Etc. Don't worry You can always do that later. Oh, and by the way, your lawyer will help you open a bank account in your name or Better yet much better yet. Your lawyer will help you form an SA corporation and then the SA

[11:52] Corporation opens the bank account and then your new credit cards will have the corporate name on them with you as the authorized Signatory which gives you a nice buffered layer of insulation and anonymity Something you'll never get up north in a first world bank However, if you haven't got that far yet if you're new down here You're just traveling and getting your boots on the ground. What you could do is this you go to your big brother nanny bank up north in Canada or whatever and You'll have to do this at least a couple of weeks before your trip and you order another visa or MasterCard But this time you make it a debit card. You can load it up with let's say $2,000 and use that as your spare for emergencies, but why even do that? Why play into the hands of those ass white banksters?

[12:38] Just get yourself a nice money belt with an inside zipper and pack in about five or ten folded $100 bills 500 to a thousand bucks in a money belt won't even make a bulge and you'll always be ready for any emergency But then you might say well, you know, you can't buy airline tickets anymore for cash Well, guess what? You can't up in the first world but down here in Latin America You can walk in with a suitcase full of cash and buy out the whole place. They'll take cash Why because so many Latin Americans have bad credit or are maxed out on their credit cards Therefore can only buy airline tickets and such with cash now I'm talking about non US and non European airlines now and down here in Latin America Travel agencies are glad to take cash too

[13:24] So try that if you don't want to do it at the airport that said let's talk about Marco's main problem in the email That when he's flying from Mexico, for example to Costa Rica on a one-way ticket If he doesn't have a return flight They in this case, anyway, we'll make them fork out 500 or whatever for a return ticket In fact in a few past shows i've mentioned the subject it's actually happened to me three times already, but i'm prepared Why wouldn't I be so i'm gonna give you a number of cheap and easy ways to get around this But first i'd like to say that it's nothing but a money making scam for the countries and the airlines themselves Now you might remember quite a few shows ago when I mentioned they tried to pull that on me when I went from Costa Rica To Nicaragua and back through a land border no less

[14:12] And all it really was was a scam to get you to buy a bus ticket at the local bus station Which was the only place to buy a ticket in that scruffy border town And it turns out the bus company was actually owned by someone's brother-in-law in immigration So the immigration and border guards would pick on stupid gringos with just a one-way ticket The ones coming through on buses of course and scare them by saying they wouldn't let them through unless they had a return ticket Which could be bought at the local bus station two blocks away How convenient, huh? Naturally those tickets were never used So it was really a small-time extortion scam to get money in the hand of the bus company With a kickback to the boys in immigration So the point is all this scamming gringos for return tickets happened first and guess where?

[14:58] Gringo saturated Costa Rica where the locals know gringos under stress will fork out when necessary Now the next time this happened to me was about a year and a half ago I was flying from Panama to San Pedro Sula Honduras And when I went to the check-in counter at the Panama airport They asked me if I had a return ticket from Honduras And then I asked why and she said tourists to latin american countries generally have a 90-day tourist visa And she said we now have to make sure that they have a return ticket or a ticket out of that country So that they don't overstay their 90 days Which you know really didn't make sense to me because I know if you overstay your 90 days in latin countries They charge you a buck or a buck and a half a day

[15:43] And it's just another way for corrupt latin bureaucracies to collect on you when you leave In fact, I think I mentioned before that I had a friend in mexico that overstayed his visa by I think it was 11 years and finally he just couldn't take mexico anymore You know what it's like these days, right? And when he left immigration gladly accepted his I think it was $2,000 in fines No problem gringo. Have a fine day come back soon So it seems to me there's a subtle little tug of war going on between airlines who want to pc you by getting you to buy Another ticket and the government who wants to pc you by you overstaying your visa and fining you So anyway, how did I handle that situation myself when I was sitting in the pan of my airport and they tried to get me a Buy a ticket Well, I dug into my little travel pouch and I pulled out a bus ticket. I was prepared

[16:34] Because I'd heard a few stories like this from gringos who'd been traveling before They too got stuck paying a few hundred bucks for a ticket They never used at the airport again because they couldn't produce a ticket Showing that they were going to leave the country. They were now entering within 90 days Now in my case knowing that my final destination was going to be san pedro sulla honduras What I had done a couple of weeks before is I went online And looked up a couple of the bus companies that go from san pedro sulla to other local latin countries like mexico Belize etc And I purchased a bus ticket from san pedro sulla to belize city belize Now I wasn't going to take the bus even though it's a nice bus not a chicken bus with air conditioning and Restrooms on board and first run pirated movies and such that bus ticket was just an insurance policy

[17:24] So I went online bought a ticket for 35 bucks and had the voucher printed out at the same internet cafe And when the irritable lady at the panama airport asked me for a return ticket. I handed her that voucher She looked at it and said fine, but when are you leaving? There's no date on here I said look at the bottom. It says it's an open ticket good for a full month She said fine, but you have to pick a date when you're gonna leave honduras and go to belize I have to put that in the system and she did and that was the end of it now true It cost me 35 extra bucks, but that's a far cry from 500, right? Oh, and by the way, I just like to say right now that panama has a beautiful international airport But most of the people that work there are unhappy abusive slugs and jerks It's obvious

[18:09] They don't like their jobs and they don't like seeing all the gringos and first world people coming through who obviously have money and even have kids with designer clothes toting ipads and iphones and Gadgets worth at least six months of the average airport slug salary Nope, most pinheads working at the airport don't like it one bit and they use that 10 minutes of power They have over you to screw with you. So again, all you expat wannabes and gunabes out there Panama is not recommended except for a change of planes or for shopping and clone at the international duty free district where you can get some of the best shopping deals in the world do of course to the fact that a good portion of The world's goods coming from the asian countries get offloaded transferred and sorted at the panama canal

[18:58] Anyway, be aware certain airlines landing in certain latin countries have found ways to nail clueless gringos who've got one-way tickets Now for some good news on that front suppose you're interested in getting your residency in a latin american country Let's take this example. So let's say on another trip You're in honduras and you hook up with a lawyer there and you apply for honduran residency So in doing that you'll have a piece of paper that's signed by your lawyer and the immigration department That's all sealed and stamped and says you are in the process of applying for residency And that's your application is in tramite. That's tramite. That means it's in progress Now in latin america depending on what country and it could take three months six months a year

[19:45] Or if you have a really bad lawyer forever Anyway, once you've got that piece of paper in your hand that says you've applied you get that right away So then you have one copy certified by your lawyer and you carry that thing with you And you produce that if you're at an airline counter with a one-way ticket and you're home free Now remember you don't have your residency yet. You just have applied for it, but that's good enough You're saved You won't need a return ticket because you're going to become a resident in a latin country And if that bureaucrat gets more belligerent and says well, then why aren't you in that country right now? Well, you can inform the jerk that it's not necessary for you to be in that country until the final stages But believe me, it's unlikely they're going to ask you anything as complicated as that once they see that paperwork

[20:31] And while we're on the topic of gringo's getting residency down here in latin america Do note that I get a lot of emails on the subject More and more people are thinking about it and if you intend to get residency in a latin american country It really is a very wise move to make while you still can as you know, it's not getting any easier What's so nice about it is that it does in a few years lead to a passport and citizenship and of course a second passport is kind of like having a brand new spare tire for your car or A reserve tank if you're flying an airplane Very nice comforting things to have in case of emergency not to mention for some people It's essential to have that second passport in the event. You're thinking about giving up your u.s. Citizenship I'm sure you've been reading about that. It's been all over the news lately, especially with people who have a lot of money with them

[21:21] It's become quite popular to renounce You know a u.s. Passport's not what it used to be now. It's more like a lead weight around your neck Anyway, you'll find if you come down to my expat wisdom seminar in january 2015 We dissect that subject very thoroughly In fact, we spend quite a few hours on passports and residency as well as banking sa corporations trusts llc's business startups it Partnerships the way it is right now the way expats living down here are utilizing that stuff So come on down and see how expats really live and do business down here Get it from the horse's mouth and meet the short and long-term expats yourself Just go to www expat wisdom.com click on the seminar link for all the information

[22:07] We're more than half filled now. So don't wait too long and miss the boat Now in regards to that email I just read one of our longtime listeners alex who's been looking heavily at argentina He just sent me a link that proves argentina's pulling the very same border control thing And what they're doing is even more disturbing It's all about that 90 day tourist visa thing, too Meaning residency is looking better all the time that way you eliminate the visa border problems Anyway, and i'll paraphrase this article that just came out last week This is from the argentina independent and the title is government titans border controls for quote false tourists. Unquote It starts by saying the immigration department of argentina has established a new border control to determine whether foreign citizens who enter argentina

[22:59] Should really be classified as tourists or not Additional controls will be applied to people suspected of being quote false tourists Unquote that is those seeking the standard three months tourist visa But entering the country for reasons other than the defined criteria of quote rest and recreation tourism Unquote in case of any doubts regarding the purpose of stay of incoming foreigners That would be you not me because I like to keep out of argentina Immigration officials at all entry points into argentina will be able now to demand further information And supporting documentation regarding a person's number one place of permanent residency number two estimated time staying in argentina number three a list of the places the incoming person will visit for

[23:52] How will that person be traveling to these places? Five a list of any friends relatives or acquaintances living in argentina Then it goes on to say your supporting documentation will include one air tickets two credit cards three domestic or international transport tickets for Your hotel bookings or any other evidence immigration officers may consider necessary to your case Then it goes on to say those foreign citizens That would be you who have remained in argentina for long periods of time Which could indicate they do not live in the country They actually have declared as their place of permanent residency will also be targeted by these new rules

[24:37] If a person entering the country is found to be a quote false tourist unquote They will be rejected at the border These new measures come in the midst of a debate regarding the links between immigration and crime With the government pushing a reform of the criminal procedure code Which will allow the authorities to expel any and all foreign citizens who are caught committing a crime Okay, then. So what does all that mean? It means i'm not going to argentina anytime soon Come on. Doesn't that sound a bit like cold war east german stasi tactics? And doug casey and all his buddies who live in that very upscale private development in the northwest with the golf course the spas

[25:23] And the vineyards and all that well years ago. I was a bit jealous, but now I feel sorry for those guys I just wonder what his VIP visitors are going to do when they get called out on the border And they have to produce list after list of names and numbers and flights and routes, etc, etc I mean come on What a nightmare and if you live there you're gonna have a lot of friends eventually you think they're gonna be happy about you Naming them on government lists. Whoops. There goes yours and everyone else's anonymity even someone with george bush jr's iq could tell you that argentina is a place for a vacation but no place to live the expat life And you know the real point of this border crackdown on tourists is not because of tourists committing violent crimes

[26:08] Come on. It's really about cracking down on so-called financial crimes because you know argentina's got currency controls There are tough limits on dollar deposits withdrawals and transfers and those currency controls have caused heavy distortions In the economy pushing argentina to the edge of bankruptcy again And note when tourists come in and out of the country you think they're bringing pesos in and out Nope dollars So it's not hard to figure out why they're tightening up on tourists coming in and out of the borders So just note that big brother has truly arrived in argentina And also note that when people like doug casey say don't worry about all those rules and regs. Argentina is a chaotic latin country Well that may be true

[26:54] But remember every gringo and expat has to cross the border to get there now, doesn't he? Yep, it's a huge country and you can get lost in it But when you're standing in line at airport immigration and customs, they got you So again, if you've truly chosen argentina as your expat haven The only way to foil that border problem is to get residency there Otherwise every three months or so you'll be facing a spanish inquisition But thankfully since this is latin america There will be some lawyers and border guards who will take 50 or 100 bucks and look the other way If you know what I mean, but you know, it's gonna have to be us dollars not argentine pesos South of the border You've been listening to the expat files living in latin america coming to you twice a week from somewhere south of the border

[27:43] Email me the expat files at gmail.com And don't forget to check out expatwisdom.com to sign up for your free reports on latin america See you next time nos vemos