December 23, 2024

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Need a Fast “Plan B”? These 2 Countries Stand Out

9 min read
Need a Fast "Plan B"? These 2 Countries Stand Out  International Living

This is a timed test.

You have one minute to come up with your answer.

The scenario: For whatever reasons—political, social, economic, fiscal—you realize you have no other option but to get out of America as quickly as possible for your safety and your family’s.

Where do you go?

Your time starts now.

Honestly, I don’t expect you to have an answer. Maybe you do, and if so, you’re ahead of the game. But if you don’t, no worries. Because this month’s Field Notes is your answer.

See, I’ve been contemplating this question for more than a decade now.

That’s how long I’ve been voicing my concerns about America’s social, political, and fiscal direction. At first, not many people wanted to hear my thoughts on these topics. And I understand why: No one wants to hear commentary predicting the downfall of their home country.

But a decade later, here we are, pretty much exactly where I predicted: A political chasm separating America, social divides that have the left and right despising one another’s very existence, and a fiscal situation so detrimental that even Federal Reserve and Treasury officials are warning of a debt crisis.

So… where do you go if you want (or need) to escape America quickly?

Two places stand out: Uruguay and Paraguay.

Uruguay and Paraguay offer fast, reliable relocation options for Americans.

Uruguay and Paraguay offer fast, reliable relocation options for Americans.|©iStock/FredLee Na Estrada

The reason why these two countries stand out is simple: Residency is available much faster in either country than almost anywhere else. No need to spend years applying and dealing with bureaucracy.

In Uruguay, for example, you can arrive at the international airport in the capital of Montevideo and, assuming you’ve brought the correct sheaf of documents (passport, birth certificate, proof of income, etc.), you can head directly to an immigration lawyer’s office and file for and receive your temporary cedula—your national identity card—that very day.

This will run you about a grand, and allow you to remain in the country while your application is processed, which takes about four months. Moreover, with the temporary cedula, you’ll be able to rent or buy a home, apply for a driver’s license, obtain healthcare, and open a bank account.

In nearby Paraguay, the process is similar. Either way, you’ll obtain local residency status in either country far faster than in Europe, where the process takes many months to more than a year.

And when you’re applying for EU residency, you might not be able to travel anywhere until the process is complete.

For example, my stepson was supposed to get his Portuguese residency visa in late December, after three months. He finally received it in June, after nine months. During that time, we were unable to leave the EU because he would’ve had no way to re-enter.

Uruguay’s Punta del Este: A hotspot for beaches, nightlife, and coastal beauty.

Uruguay’s Punta del Este: A hotspot for beaches, nightlife, and coastal beauty.|©iStock/brupsilva

So far I’ve talked about the technicalities of the “where do you go” question. And granted, that is the most important part of the calculus since, first and foremost, you need to find a country that will accept you as an immigrant. You might love Scotland, as I do, but most of us don’t have options for jetting off to Edinburgh and immediately seeking residency.

Still, beyond the technicalities, there is the lifestyle component.

I don’t want to decamp to some country just because it will accept me. I’ve been to lots of countries where I could obtain residency, but they are not countries where I would want to live long-term.

Uruguay is not what people tend to think it is. Because of its location in South America, wedged between Brazil and Argentina, North Americans expect it to be plagued by social ills associated with much of Latin America: poverty, crime, panhandling, and governments that run roughshod over the people and the economy.

Uruguay is the total opposite of that.

The country is populated largely by descendants of Italian and Spanish immigrants from the 19th century, and the place feels more like a misplaced piece of Europe than a typical Latin country, with Italian influence in the cuisine and culture as well as the architecture.

It’s one of the freest countries in all of the Americas, including the US. Poverty is low. Wealth inequality is very narrow and the middle class is among the largest in the Americas on a per-capita basis (60% of the population is middle class, compared to 50% in the US).

“Punta del Este recalls the SoCal of the 30s and 40s.”

The economy is healthy, the Uruguayan peso is strong, and local banks are well-regulated and not allowed to venture into the risks that have destroyed American banks in recent decades (such as lending to folks who clearly can’t repay).

Society, meanwhile, is what we all wish for America: great freedoms, a light government touch, and a live-and-let-live attitude. Abortion is legal, and marijuana is legal (for residents, not visitors). Religious freedom is guaranteed, but society is relatively secular. Locals fiercely defend their democracy after living under dictatorship in the 1970s and 80s.

Healthcare is high quality, according to the Legatum Prosperity Index Health Score. Food is high quality (Uruguayan beef is among the best in the world). Roads are well maintained (well, there’s pretty much only one road, east to west, that will take you anywhere you want to go). Housing is nice and affordable, and you can find apartments for $250,000 or so, though beachfront and “beach adjacent” go for $400,000 or more.

Uruguay also operates a territorial tax regime. So, you’re only taxed on the money you earn in Uruguay, or which you import into Uruguay for your living expenses. Moreover, foreign residents can structure their taxes so that they can pay a flat 7% tax on their local/imported income for as long as they reside in Uruguay.

You’ll also have an 11-year tax holiday, in which you pay zero tax on money from abroad. Starting in year 12, you’ll pay a flat 12%, but only on dividends and interest—unless they’re already taxed elsewhere, in which case you’ll still owe 0% in Uruguay.

I know from more than a dozen trips over the years that I would absolutely feel at home in Uruguay. It’s a truly lovely country, with wide open spaces of pastureland, gorgeous beaches, and every cultural experience you could want (from museums to tango) in the capital.

For my money, I’d be moving to the southeastern beach city of Punta del Este, or one of the beach towns to the east of that toward Brazil. Punta is the South American Riviera, where billionaires from Argentina, Brazil, and parts of Europe spend their summers (December to February in the southern hemisphere).

In many ways, Punta reminds me of what I imagine Southern California was, circa 1930s or 40s—beachy, laidback, and so quiet for most of the year that the city actually turns off the traffic lights because there aren’t enough cars on the roads to really worry about.

(In-season is a very different animal. The year-round population of roughly 20,000 surges to between 200,000 and 500,000.)

I’ve met and interviewed numerous Americans who now live there. Every last one of them tells me to stop writing about the place because they don’t want Americans overrunning Punta and ruining the ambiance (sort of like Californians who flee California for Wyoming and Idaho, only to try to remake California in their new location).

Uruguay comes out on top as my personal bug-out destination. If for some reason life devolves in Europe (where I’m living now), I’ve already told my wife that we’re packing up and hopping on the first flight we can find to Uruguay.

Asunción, the vibrant capital city of Paraguay.

Asunción, the vibrant capital city of Paraguay.|©iStock/mtcurado

As for Paraguay, it’s a different vibe altogether. First, the climate. Where Uruguay is coastal and cooler much of the year, Paraguay is hot and muggy year-round, like the Louisiana swamps relocated to South America. Outside of Asunción, there’s not a lot of infrastructure, so you’d probably want to center your life around the capital city. There, you’ll find international cuisine, modern malls, opera and ballet performances, craft markets, and a relaxed pace of life.

Healthcare is iffy. And outside of Asunción, healthcare options are exceedingly thin. Most expats, and even locals with cash, tend to head into Brazil and other neighboring countries for better and broader healthcare options.

It’s safe (the US has it categorized as a travel advisory 1—exercise normal precautions), though you’ll want to avoid Paraguay’s border with Brazil. Poverty and near-poverty are widespread in Paraguay, with as much as half the country considered “poor.”

The flip side is that life can be incredibly cheap for expats… though expat-oriented real estate can be surprisingly pricey. Call it the Gringo Rate. Nice, albeit small one-bedroom apartments of 500 square feet or less are available in the $900 to $1,500 range. But the really nice apartments of two- and three-bedrooms rent for $2,000 to $4,000 per month––not much of a bargain.

Otherwise it’s quite affordable. LivingCost.org ranks Asunción among the bottom third of cities in the world in terms of living expenses, largely because prices for food, utilities, transportation, and medical care are so low.

But when temporary residency (good for two years and renewable) is available within a month of applying—and costs as little as $2,300 if you use the services of a local visa agency—Paraguay is a standout option for exiting the US quickly, if need be. Moreover, Paraguay runs a territorial tax system similar to Uruguay. Money earned outside the country is not taxed. You won’t even be expected to file a tax return.

Ultimately, whether you head to Asunción or Montevideo/Punta del Este is a personal decision based on lifestyle wants and the costs you can afford. Montevideo is about twice as expensive as Asunción.

The more important fact is this: You do have an answer to the question, “Where do I go in an emergency?”

You might never need this information.

Then again, maybe this will turn out to be the most important Field Notes you’ve ever read.

***
This article has been archived by Slow Travel News for your research. The original version from International Living can be found here.

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