News From Latin America

Welcome to Paraguay

2011-03-02T12:45:00.088-02:00

Lake Ypacarai near San Bernardino, Paraguay

We arrived in Ascunsion at 10 a.m. one Friday in August, 2010, on a connecting flight from Buenos Aires. From the plane window, my first impression of Paraguay was red. There was red soil and palm trees as far as I could see.

From this vantage point it reminded me of India, a good impression. We like India. We had never been to South America before, but had decided to make it our home. We were newly retired and knew that we could not have a comfortable lifestyle on our pensions in the UK. Our pension provider had gone bust and future prospects were looking grim, so we decided that it was time to go.

We had done extensive research online and chosen Paraguay because of the availability of water, farmland, and a small, young population for a big space. We had already decided that we wished to seek permanent residency, so had come with all the required documents legalised by the Paraguayan consulate in the UK. We had arranged a lawyer to assist us from a contact in the UK. The permanent residency process began immediately and we are now just waiting for the final signatures to be granted permanent residency in this beautiful country.

I struggled with trying to decide where Paraguay reminded me of in the first few weeks here. The traffic was noisy and the buses belch fumes. This reminded me of India and some Mediterranean cities. But that wasn’t quite right as it didn’t look like that. Central Asuncion is quite elegant and built up like any other major city. There were vendors of this and that on the buses, shoe shine boys, things that I didn’t see anymore in the UK. Then the penny dropped. Asuncion is itself, familiar enough to be comfortable but different enough to be interesting.

Everyone, including the Paraguayans, describes Paraguay as a third-world country. There are major arteries of asphalt roads from city to city and larger towns, while other routes still have dirt roads. There is no railway. Much cargo still arrives on the river.

Has my lifestyle suffered? Certainly not. My food is fresher and frequently grown in Paraguay. It is vine ripened and not flown halfway across the world in a gas-filled container. This results in food that tastes like it should. And it is seasonal; if it is not strawberry time, there are no strawberries.

I prefer this to year round accessibility to fruit with no taste. Any food imported is usually from Argentina or Brazil.

Eating out is also good. There are good quality restaurants that are expensive for people here but do not break a western budget. There are some international brands such as Burger King and McDonalds but these are not on every corner. Most places to eat are still small and privately owned. Around the corner from where we live the bar owner can be seen at around 6 p.m. happily making his own burgers.

The lack of imposed health and safety regulation is refreshing, returning me to an age where people were allowed and expected to take some responsibility for their own safety, even if this raises the occasional eyebrow when bits of masonry fly off a roof.

The fixed-line telephone network is expensive and tired; so this has resulted in 85% of the population having mobile phones. We have wifi internet that is a bit more expensive than in the UK, but a connection that is fast enough to use VOIP and allows us to bypass the expensive overseas costs of the phone provider.

We have not yet seen every season in Paraguay, but there is sun--lots of it--resulting in a profusion of beautiful plants and trees. Occasionally something will catch our eye, familiar but strange. Then the realisation that a temperamental little houseplant in the UK is in it’s natural home here and six feet tall.

Every month there are new flowers and colours in the trees, leading us to wait in excitement for what will come next. In January the mangoes ripened and have been dropping off the trees, people gather them and leave spares on a wall for passers by. We don’t know the names of most of the trees here, but it doesn’t matter, they are still beautiful and we know that the chance we took going to a different place is going to give us years to learn.

Jean

Jean is a contributing reader who recently moved from England to Ascunsion, Paraguay. She has promised to send more information in the future, so if you are interested in knowing more about Paraguay, stay tuned!

New Tax Law in Uruguay

2011-01-26T17:29:00.032-02:00

We have reported in the past on the proposed new tax law that was under consideration in Uruguay. That proposed change has now been finalized and passed into law. The following report was graciously submitted by Mark Teuten, Attorney in Montevideo, and is here posted in its entirety. We invite your thoughts in the comments section at the end.

Update on Changes in Income Tax Law and Bank Secrecy Provisions in Uruguay

Introduction:

After more than 6 months of debate, on 29 December 2010, the Uruguayan parliament approved Law No 18.718 which makes changes in the Income Tax law.

In a previous report this year we set out the details of the changes that the government was proposing. At that stage the bill had caused widespread controversy due to a lack of prior consultation and it was uncertain how many of the changes would actually be implemented. In the end and as a result of agreement with some of the other political parties in Uruguay, most of the bill has been passed unchanged with only minor changes in the provisions regarding bank secrecy. The new law was published in the Official Gazette of 3 Jan 2011 and the law is already in effect.

Income Tax:

The principal change is that income arising from foreign monetary instruments is now taxable income. This is a very major change for Uruguayan law as it is the first time that the territorial basis for liability to tax has been varied.

The idea of the government is that residents who have an income from, for example, bank accounts in Uruguay should not be penalised vis-a-vis others who have their savings in a non-Uruguayan account. In fact as the law is now, it will be the other way around - those with a Uruguayan bank account will actually pay a lower rate of interest than those with a foreign account.

The rate of interest on foreign generated income is 12%, whilst for local income the rate of interest is 3-7%. Residence for the purposes of this law means 180 days or more of physical presence in the country in any given tax year – which corresponds with the calendar year in Uruguay. It does not have any relationship with the concept of legal residence for immigration purposes. It is possible to be a legal resident, but not be resident for tax purposes and vice-versa, not be a legal resident, but still be resident for tax purposes.

It is important to note that credit will be given for any tax already paid in the foreign jurisdiction, whether or not there is a double tax treaty in force with that country. It remains to be seen in the Regulating Decree, however, how the tax office will administer this and what documentation it will require. But the principle is that if 12% or more tax has already been paid, there will be no additional liability; and if, for example, 5% tax has been paid abroad, then the taxpayer will only have to pay the difference, i.e., 7%. Also it should be noted that the law ONLY covers foreign income arising from monetary instruments – bank deposits, loans, share income for example. It does not affect any other kind of income, particularly pension or rental income.

If payment is received via a Uruguayan subsidiary of the foreign institution where the funds are based, then the Uruguayan subsidiary is obliged to act as a retention agent for the 12% tax due.

Bank Secrecy:

Uruguay is renowned for having a very strict bank secrecy law. It is a criminal offence to reveal information about any particular bank account or anybody’s personal dealings. It is largely as a result of these secrecy provisions, plus Uruguay’s history of stability, that Uruguay has such a large financial sector. Bank deposits of non-residents far exceed those of residents. As a result of this Uruguay, like many other tax havens, has come under increasing pressure from the OECD countries to make its system more open. Uruguay is in the process of signing the 15 tax information sharing treaties with other countries in order to be removed from the OECD “grey list”. It is in this context that the secrecy provisions have been modified to make it easier for the criminal and tax authorities to get access to bank information.

The new law states that in the case of an alleged criminal offence, the tax authorities must make a request to a judge for access. The judge or the public prosecutor must object to this request within 30 days; otherwise the request will be considered as granted and forwarded to the Uruguayan Central Bank, for it to forward on to the appropriate financial institution.
In cases where the tax authorities simply want to check that a person has paid the correct amount of tax, then again the tax authority must make a written request to the court and the judge will only permit access if there are objective indications that make it reasonably clear that tax evasion has taken place and also that the information requested is necessary for the authority to make a correct determination of the tax due and what offence/s have taken place.

Secrecy can also be lifted in accordance with the terms of any treaties signed, on application by the authorities of the relevant country.

Notice:

This report is not intended to be legal advice and should not be taken as such. You should consult with a lawyer or accountant about your particular circumstances.

Mark Teuten
Teuten Abogados
Juncal 1408, Oficina 702
CP 11000 Montevideo - Uruguay
Tel: + (598 2) 9088638
Fax: + (598 2) 9088640

mteuten@teutenabogados.com
http://www.teutenabogados.com/

Expat Learns the Argentina Culture! No Small Project!

2010-11-30T10:57:00.000-02:00

El Tigre Train Station

One thing I like about this part of the world is the respect that people usually show to each other. It may not always be real, but it is consistent.

The challenge is that, when you are here, you are expected to follow the protocols. If you do not, someone is likely to ceremoniously correct you.

For those of us from the United States, this is not easy. For example, if you were on the street in the U.S. and a stranger walked up and said, “Good afternoon, how are you?” you’d wonder what he was up to, wouldn’t you? And what would be the attitude of the very busy clerk in your power company business office, if you walked up to their window and casually greeted them and asked about their health? Impatience, right?

We all know what the U.S. is like. You don’t bother people with all that. Everyone is short on time. You state your business and get on with it or you are likely to encounter irritation.

Well try to get over that before you arrive in Latin America.

In this part of the world, you have to do the amenities. There isn’t much choice. Some people will not answer you if you don’t.

Every time I have been back in the States and then returned with my son to the southern hemisphere, he has to remind me. If I walk up to someone and ask directions without the preliminaries he says, “Mom, you can’t do that here.” With him, it is as if he flips a switch and changes cultures. Not his slower mother. It always takes me a few days to make the transition. And I can still lapse into old behavior at any time.

But I guarantee you if you don’t get it pretty quickly, the locals will help you. And it will not be their usual, gentle approach either. If you are impolite (by their standards) many will treat you like an unruly child.

Here are some examples. I live on the 6th floor in Buenos Aires. For security, the door to the building is locked. Only residents have a key. If someone comes to see me, personally or on business, they ring the buzzer downstairs for my apartment and wait. I answer, “Hola!” from the apartment. They state their business and, if I am open to the visit, I take the elevator down, unlock the door and greet them on the planta baja (ground floor).

Well I was expecting a package and the postman rang. I told him “Uno momento” (one moment) and I quickly was out the door with my key. But alas, someone else called the elevator first and I had to wait. And whoever it was was not in a hurry to close the door at their floor so that I could use it. When I finally reached the ground floor, I didn’t see the postman at the door. I saw the maintenance man and I said, “I think the postman has left!” as I hurried to the door. The maintenance man said, very pointedly, “Bueno dia, senora! Como estas!” (Good morning, senora! How are you?”) while glaring sternly.

He was making his point. It is unimportant if I miss my package. The only important thing at that moment was to greet him properly. And that would have applied to anyone else present if there had been others. For me it is a challenge to do all that when the postman is getting away with my package!

No matter!

It was only after I had responded appropriately that he let me know that he had taken the package for me from the postman. The lesson was, it doesn’t matter what is happening, the priority is to give him a proper greeting.

In another example, I take a backpack shopping with me a lot. It is so much easier than carrying items in my arms. If I decide to buy a watermelon, for example, no problem getting it home. I just wheel it behind me.

But there is also little trust here--and for good reason. If you carry a container big enough to use to steal, they want it stored in a locker near the front. My backpack is just a little too large for the locker. So, upon entering the store, I stopped briefly to show the security guard that my “mochila” was empty. He told me to “adalante” (go ahead). I said “Okay” and turned. From behind me came this clear, crisp voice in perfect English, “You’re welcome!”

Saying a quick okay is not sufficient. You must say “Thank you” before you move on.

There are expats here who resent this, but I like it. There are things about the culture that I do not like, but this is not one of them. But will it ever become second nature for me as it is with them? As North Americans from the U.S., our focus is on speed and efficiency. It is built in. I sometimes think that in this part of the world, those factors are the least considered.

While being pretty particular about certain things, the people here are also sweet almost to the point of being funny. For example, yesterday I decided to attend an English-speaking church I heard about at Martinez--located on the train route to El Tigre. Martinez is a subdivision of Capitol Federal, Buenos Aires. I had never been there before and was following directions for the first time. I was afraid of missing my stop, missing church, and ending up at El Tigre waiting for another train back. So I asked the man in the next seat on the train if he would help me get off at Martinez. He told me this was not the right train to Martinez.

I really think he just didn’t know where Martinez was. If they don’t know, some of them will tell you anything rather than refuse to help you.

So I got off immediately and went to the ticket agent. He said that it was, indeed, the train to Martinez. He kindly walked back with me to the train and, just inside the door, showed me a map of stops all the way to El Tigre. Martinez was eight train stations from the station where I was boarding.

So I sat down. We were soon under way. After about two stations I decided to go and check the map near the door and read the specific names of the stations en route to Martinez. When I got up to check the map, two people near me said, “Falta! Falta!” (Wrong! Wrong!) and pointed for me to sit back down.

My Spanish is not good enough to explain to them that I was not going to get off. I was only going to read the map. So . . . I obediently sat down.

About two stations further all those people got up and exited the train so I thought; NOW I can go look at the map. I stood up again and a man across the aisle became alarmed and said, “Falta! Falta!” and he, too, pointed for me to sit down.

So . . . sit down I did.

Finally everyone had exited my car but one very attractive lady with long reddish brown hair near the very rear of the car. NOW I can go read the map! Apparently everyone on the entire car knew I was going to Martinez because, as soon as I stood, this lady became alarmed and started calling, “No! Falta! Falta!” and thought I should stay seated. So . . . I sat down again.

A few kilometers later she came and told me it was the next stop.

I never did get to read the map, but I did get off at the right stop—with a LOT of help!

I love it!

Hoping to see you soon—in Latin America!

Uruguay Asset Tax Update

2010-08-06T14:13:00.011-03:00

As we promised, we have stayed in touch with one of the top attorneys in Montevideo, Juan Fischer, regarding the status of the proposed asset tax in Uruguay and we are passing his report along to you, verbatim.

You will notice that there is no tax levied on foreign residents in Uruguay. However, if you were to become a citizen before 2017, this new law would affect you. But if Uruguay abides by their word, this tax will be phased out anyway by 2017.

The current report is as follows:

In May of 2010, Uruguay announced it would make some adjustments to its tax laws.

Unfortunately, some unnecessary panic was generated when an early draft of the law that was still under discussion within the cabinet surfaced.

The aim of the tax changes is (and was from the start) to tax interest on deposits and dividends that Uruguayan citizens hold abroad, not to tax foreign residents living in Uruguay. In fact, the final draft of the law makes specific distinctions to ensure that those who relocate to Uruguay do not face extra taxes as a result.

Shortly after announcing the tax changes, the government made four successive announcements, to clarify matters:

· On May 28th, the Ministry of Finance issued an official statement ratifying that there will be no new taxes on Uruguayan companies, and that their offshore assets will not be taxed.

· It also clarified that there will be no taxes on assets owned abroad by foreign residents in Uruguay. The tax on assets is only for citizens (at a very small scale; and remember that this asset tax is gradually being phased out since 2007, and will disappear by 2017).

· On June 1st, another official announcement was made, stating that the law will in no way jeopardize the country’s policy of attracting foreigners to relocate in Uruguay. And that their income will not be taxed or double taxed.

· And finally, on August 3rd, the Minister of Finance announced, when submitting the final draft of the bill to Congress, that it contains an explicit solution to avoid double taxation: a tax credit is granted to those who pay income tax abroad. This ensures that foreign residents in Uruguay are not double taxed.

In sum, then, the tax changes that will result, and will likely be effective from 2011 onwards, if the bill is voted, are:

A) On assets: Citizens (not foreign residents) will face a small tax on overseas deposits, securities and loans. The rate is 0.07% to 0.5%. (Between less than a tenth of a percentage point and half a percentage point). This tax, the asset tax (known as “IP”) is being phased out, annually, and will disappear by 2017.

B) On income: Only three types of income generated outside of Uruguay will be taxed: interest on deposits, interest from loans to a foreign company and dividends. The rate will be a flat 12%.

But, if a person already pays income tax abroad, on any of those three types of income, he or she will not have to pay in Uruguay. The person gets a tax credit, to avoid paying taxes twice.

Any other type of income generated abroad (besides the three listed ones) is excluded. Thus, salary, capital gains on sale of shares or property, pensions, lease, income, or any other type of income are all untaxed.

Juan Federico Fischer
Managing Partner
FISCHER & SCHICKENDANTZ
Tel: (+598) 2 915-7468 ext. 130
Cell: (+598) 99 925-106
jfischer@fs.com.uy
http://www.fs.com.uy/

Bed and Breakfast for Sale, Piriopolis, Uruguay

2010-06-14T07:29:00.027-03:00

$170,000, furnished

Here is either a lovely home, or a ready made business for you in Piriopolis, Uruguay. The home has been operated as a Bed and Breakfast and, in fact, earned recognition of Garden of the Year in this beach resort town in 2007.

The building is situated on an approximately 891 meter lot just two blocks from one of the most beautiful beaches in Uruguay. The walk is lined with plenty of aloe plants so be careful not to get a sunburn. But if you do, just pick up your aloe on the way home!

The house is of concrete construction, as most are in Uruguay, with walls approximately 16" thick, with four bedrooms, three baths, 2 kitchens, a screen room, a shed, and outdoor barbecue.

Piriopolis is a high tourist area during the season, is a short distance from Punta del Este--the Miami Beach of Uruguay--and an easy commute to Montevideo. There is a possibility of financing with 50% down payment.

For more information contact Rex Febus at rexfebus@yahoo.com.

Street Smart Spanish

2010-05-22T12:01:00.038-03:00

View of Volcan Villarica from the writer's home in Patagonia, in the South of Chile

One of the aspects holding many North Americans and other native English speakers back from living in South America is the language barrier.

Let’s face it. Once you are out of school, your time is taken up by your job, family and just regular bookkeeping and household chores. And if you’re on our wavelength you’re cramming your day with research on how to escape the ongoing economic crisis and collapse of western civilization…no small matter.

So learning Spanish is right up there with going to the dentist and doing hand wash with Woolite.

If you enroll in a class, unless you are lucky enough to find an excellent and unusual teacher and teaching method, you’ll spend the first three months of the class de-clenching irregular verbs—or maybe that’s your teeth—getting mired in a maze of verb endings and hours of homework, studying grammar rules.

Oh please! Enough torture. Trust me. I know. I spent my first three years in college studying Mandarin Chinese. And, for example, here are two sample sentences from my level one Chinese language book.

“I’m thinking of studying Chinese or American Literature.”

And here’s the sentence that tells it all, “In studying Chinese, Mr. King is good in every aspect of pronunciation, sentences and grammar.”

I can laugh now, but I can tell you it was basically a waste of time. On my first day in Taiwan I realized I didn’t even know how to ask where the bathroom was! I had spent three years with a bunch of ivory tower professors and I barely learned anything practical. I couldn’t pull people over on the street and discuss literature or grammar with them when I needed to find a toilet or the bus station. In our upper level classes we even learned the vocabulary we needed to discuss communist revolution and concepts of “universal love”. If I didn’t know better (looking back) I might think that they were trying to indoctrinate us.

Do you really think this style of learning will help you order food in a restaurant or ask for directions? No, me neither. So much for experts.

Here’s my suggestion, based on my own experience. Get a copy the following materials.

First, the language guide titled 30 Words: Start the Conversation: South & Central American Spanish Language Guide for Travelers. I bought mine from Magellan’s at
http://www.magellans.com/store/Translators___Language_TranslatorsCL247?Args=

This is a 5 x 4 inch, 10-page, double-sided, fan-fold guide that is made from nearly indestructible material. It is full of only the most highly practical list of words you’ll need to start your gorilla learning methods.

Next is Latin American Spanish (Phrasebook) by Lonely Planet, available at
http://http://www.blogger.com/www.amazon.com/Latin-American-Spanish-Lonely-Phrasebook/dp/1740591704

This book is broken up into logical sections by topics such as, shopping, going out, etc. . . . you get the picture. Within the book are three mini dictionaries: a Spanish to English dictionary, an English to Spanish dictionary, and the third is a separate food dictionary.

Both are small, light and compactly designed to fit in a woman’s handbag or mens jeans pocket. Use these, not only as your textbooks, but carry them as guidebooks, which is their principal feature. You will become quite used to working with them without fumbling around with unfamiliar material in a hurry. Remember, the key in my unorthodox method is to build up as large and practical a vocabulary as possible in the speediest time. Forget about verb usage, declensions and grammar. Your goal is to make yourself understood, try your best to understand the answer you receive, and just get the job done! You might also want to check out the web site at http://www.30words.com/.

You’re not being graded on grammar or pronunciation so feel free to massacre the language. And don’t be shy. The less inhibited you are about it the better you’ll fare. In Chile, unless you are getting professional services such as medical or legal, virtually no one outside of Santiago speaks more than ten words of English so you’re on your own, really. Don’t believe what you read elsewhere. But on the flip side, the people are generally very patient, non-threatening, and treat you with respect, so you don’t feel like a dumb-dumb.

Start with a segment of the book that interests you. It helps to be working on words you like or find useful. I started with the food sections. Go through and just look at the words, without trying to speak them. Familiarize yourself with the vocabulary by sight (the whole word method). It’s easiest to learn to read/recognize Spanish words before attempting speaking and listening comprehension.

Next learn the vocabulary by using a memorizing trick I picked up and customized to use here. My trick to learning Spanish is to look for the “root” (real or imagined) in the word. Use an English word to connect the new Spanish word in your head to a meaningful word in English. We aren’t trying to do a lingual-anthropological study of words. It’s just a gimmick to help us learn faster. So here’s my root sample below:

necesitar (root= necessary) to need
contratar (root=contract) to hire
salir (root=salutations/salute) to leave
encontrar (root=encounter) find
escribir (root=scribble) to write
dormir (root=dorm, dormitory) to sleep
fumar (root= fumes) to smoke
linterna (root=lantern) flashlight
cacerola (root =casserole dish) pot

So there you have it. It’s just an adaptive word association method. By associating the Spanish word to a word in English that is already in your memory, you will make your recall of the translation faster.

Next step, use the anglicized pronunciations given in the book. It’s pretty good. Now go through the Spanish words and read the pronunciations out loud, over and over. This will help to train your ear. Imagine yourself in different situations. Put the book down and try to figure out how you would ask questions. Test your memory of vocabulary and recall. See how you do. Stand in your kitchen and see how many items you can label from memory. Work with your partner or children and quiz each other. Have one read the words and the other give the definitions. And then swap. Have fun. Tease each other. Just keep at it. Don’t expect immediate results, it will take time.

Work in one of the sections of the book until you feel accomplished in that section. Then move to another section. If you have difficulty in one area, skip it for a while and go back to it later. Don’t let it become drudgery. Try to keep it fun and challenging. Try to devote time each day to the task, even if it’s just 20 minutes. Remember that even if you just learn two words a day, by the end of a year you will have a sizable vocabulary.

Eventually, when you get the basics of practical guerilla-communicating down, then consider yourself ready to take a class and start to tackle grammar and verbs. You will be much more motivated because you will already have a base of learning to add to and that will remove a lot of the feeling of drudgery. You will not feel overwhelmed.

Well that’s it and good luck.

Jeanette Schnall

Editor note: After investigating several Latin American countries, Jeanette and her husband, Martin, chose the beautiful southern area of Chile. Jeanette will be using her own hard-earned lessons to help others who are considering relocating to Chile. Her web site is http://www.southernchileproperties.com.

You are invited to add comments by clicking on the "comments" section below. If you have questions, feel free to post them.

©Arlean Kelley 05/21/2010 All rights reserved.

Petty Thievery in Latin America

2010-03-24T11:21:00.020-03:00

Palermo Alto

Capital Federal

Buenos Aires, Argentina

Or How I Managed to Get My Wallet Stolen on the Subway in Buenos Aires

Last week I was a crime victim in Latin America for the first time. I have been in and around Buenos Aires for extended stays several times in the past few years without even a suggestion of a problem.

But that all changed last week.

I rented an apartment in Buenos Aires. I paid the real estate woman out of my wallet, put the wallet in my purse, zipped the purse, and left for the subway.

The subway was at capacity. The expression “packed like sardines” has a new meaning for me after that trip. People were pressing me on all sides. When there was no space left for even one more person, ten more got on. It was pretty amazing.

A very lovely young woman stood to my left. I was holding to the rail overhead, but she tapped me, smiled sweetly, and indicated she was making room for me to hold on to the vertical post she was standing next too. I thought, these Argentina people are so sweet. Well they are. But it pays to be a bit skeptical. I did reach for that post. My purse was on my shoulder.

I was amazed the next morning when I opened my purse and my wallet was gone. I couldn’t believe it. WHERE could it be? The subway was the only explanation. But how could they have gotten the wallet without me having a clue, with my purse right there on my shoulder?

A companion who was with me thinks there were three people working together. He was a short distance from me but could not see well enough to know for sure. But the woman was to my left, there was a man close behind me, and the man to my right had a heavy winter coat folded over his arm. What was he doing with a heavy winter coat in the middle of summer in Argentina? It was reason for suspicion but I didn’t even notice the coat. My friend thinks that the coat helped to shield their activities, and that was how the wallet was taken.

In my case, I think that after so much exposure in Buenos Aires with absolutely no threat, I got careless. It is human nature, when nothing happens for a long time, to think that it never will. Not so!

Fortunately my serious money was in a pocket zipped into the lining of my purse. The wallet contained only small bills and cards that just needed to be reported and replaced.

The worst of it is that my passport was in the wallet. Since I am not leaving the country any time soon, there is time to replace the passport without stress, but it is inconvenient and there is a cost.

Since this incident I have observed other women. Some apparently have a high level of trust, carrying their purses swinging freely. But most hold the purse tightly under their arm (even though most are shoulder purses) and if they have a fold down flap with a catch, many hold the purse in front of them with a hand on the catch.

Remember that I am in Buenos Aires, a city of twelve million. One should not be surprised to find pick pockets in any city this size. There are capital cities in South America that I would call dangerous, but neither Buenos Aires, Argentina, nor Montevideo, Uruguay, would be included on that list.

For those of you who have lived in New York or Chicago—or maybe even London—all of this is old information. But for those of you who are used to a smaller, less crime-ridden area, I have collected the following stories from other expats—especially for you--so that you will have more than just vague and general information. Our hope is to give you a more specific idea the things to watch out for.

One expat tells of knowing that she should not hang her purse on the back of a chair. So she put it on the floor between her feet in an upscale restaurant in a supposedly low crime area. Two well-dressed (don’t let that fool you) men came in, sat behind her, and managed to get the purse from behind. She had had someone take a picture of her and her companion at the table and when she saw the picture later, there were the faces of the two men right in the picture. (Hint: If the purse had a strap, she could have wrapped the strap around her legs. But the safest place for it was in her lap.)

The Buenos Aires bus station is one place to be very careful. One man told us about losing his backpack there when someone with an ice cream cone “accidentally” bumped into him and got ice cream on him and his backpack. The “careless” person was hugely apologetic, went and got napkins to help him clean up . . . while an accomplice stole his backpack. And if you have more than one bag and someone gets one of them, what do you do? Chase after him while the accomplice takes the others? If you are traveling with a companion, you might want to decide ahead of time, in the event something is snatched, who will stay with the other luggage and who will give chase, if anyone.

One street smart traveler told me if there is anything unusual—someone spills something, someone trips and falls—whatever—gather your things immediately and step back and survey the situation. Do not allow yourself to be distracted by the incident. Focus on your possessions until you can determine what is going on. Any incident can be a distraction for a set of thieves working together. And they do work together. Even if they did not create the incident themselves, there are opportunists. One of our friends who operates a hospedage* in Chile had a fire break out in a neighboring building. While everyone ran out to the yard to look at the fire, a thief came in from the street and stole a number of items from the house.

Other things that people have lost are: a camera taken from a backpack stowed under a bus seat with the backpack opening to the rear. We heard of one entire backpack, stowed under a bus seat, that was taken from behind. Many bus seats have a bar underneath at the rear that prevents this. But not all do.

Our group once had a backpack taken in Peru when a man tripped and spilled a bottle of water beside our seat on the bus. Since the backpack was on the rack directly over our heads, it is amazing that there were three of us sitting below it and none of us saw the backpack leave the rack. Our street-wise companion who knew to be careful of “incidents,” checked above our seats almost immediately and saw that the backpack was gone. He was able to retrieve it before the next stop while it was still on the bus--and regretted for days that he didn’t give the man who was involved a good taste of Yankee retribution. But he didn’t know if he might spend his vacation in a Peruvian jail. (Hint: When several of us are traveling together with backpacks stowed overhead, we now detach the straps and refasten them so that all packs are tied together, as a precaution.)

In Peru this type of crime is so common that it is almost the national sport. When you tell Peruvians about a loss or attempted theft and how it was done, their eyes often light up as if you are telling them how close their soccer team came to winning the game and what their strategy was. The more southerly countries are not quite that bad. But don’t underestimate them either.

Even George Bush’s daughter had her purse lifted in Buenos Aires from under the table where they were eating. And what were all those secret service men doing at the time?

A businessman here in Buenos Aires told me about putting his briefcase on the floor right next to his chair in a restaurant. Two men in suits walked in and sat near him. He noticed them and moved his briefcase to a “safer” place between his feet. When he got up to leave and picked up his briefcase, the men had switched cases with him.

How these people manage these feats is beyond me. But they do. I asked the briefcase victim what he could have done differently and he said either keep your possessions in your lap, or leave them at home in the safe!

Here is another scenario: A young man comes running down the street. No big deal, right? Maybe he is about to miss a bus. But . . . maybe not! As he goes by at full speed, he grabs the strap of your purse. With such momentum it is impossible to hang on if he gets a good grip. For this reason, many women wear shoulder bags, put the strap over their heads to the opposite shoulder from the side the purse is on, and then keep the purse in front. This has a couple of benefits. Just the fact that it doesn´t look easy is a big deterrent to a thief.

Another situation for caution is with your bags in a taxi. Stay with the taxi driver while he (and perhaps you) load your bags into the trunk. Time your entrance to the taxi for after the trunk is securely closed (when an accomplice or stander by cannot take something out unnoticed) and your driver is entering the taxi. When you arrive at your destination, don’t just jump out. Take your time until the driver is exiting the taxi also. Don’t get out with the driver behind the wheel and your bags in his trunk with no companion left behind in the taxi. If you have a companion, your companion can delay a bit exiting the taxi. Particularly if you have bags inside the taxi as well.

Some people say that, in Buenos Aires, it is best to take only the Radio Taxis and not the taxi of an independent operator. But I suggest being careful in all of them.

Thankfully most of what you need to be cautious about in this part of Latin America is petty crime. But it is still important to be cautious on every level, as you would be in any large city.

I find Uruguay a more honest country than Argentina. Yet Montevideo has its corruption as well and one Uruguayan woman I know of has lost her purse to snatchers twice. Others have lived in Montevideo all their lives and never had it happen even once. Even once is one time too many for most of us.

I hope that from these scenarios you can get the idea and you can use your own good judgment from here. Just think cautious, be aware of your surroundings. If you don’t see the young man running down the street in the first place, or like me, you don’t notice the heavy coat over the man’s arm in the subway, you won’t take necessary precautions.

Be nice and enjoy the wonderful people here because there are many. But don’t let your guard down. There are challenges here to mitigate against, but it’s a beautiful and interesting place.

We look forward to seeing you one of these days . . . in Latin America!

*Hospedage = A hospedage is similar to a hotel, with rooms for rent to guests, but normally the owner and his or her family live there as well. Some are similar to what is often called a bed and breakfast.

Earthquake Hits Chile

2010-03-03T07:11:00.015-02:00

8.8 Magnitude Earthquake Hits Chile

On Saturday, February 27, 2010, at 3:34 a.m., an earthquake of 8.8 magnitude hit Chile, with the epicenter located 70 miles northeast of Concepcion and 200 miles south southwest of Santiago, Chile’s capital city.

Tremors were also strong along the cordillera of the Andes Mountains in Argentina and felt as far away as Buenos Aires. At present there are reports of 800 dead in Chile.

Chile has a long history of earthquakes, with 13 quakes of magnitude 7.0 or stronger in the last 35 years. According to the United States Geological Survey, the May 1960 earthquake, at magnitude of 9.5, was the largest quake in the past 200 years.

We include here a report sent to us by an expat who was, along with her husband, in Santiago, Chile, the night of February 27, along with the account of another expat living near Bariloche, Argentina. Our special thanks to both for sharing their experience with us! First the account from Chile.

We are now at the Don Eduardo Hotel in Temuco. I was very worried about coming here with all the reports of looting etc., but I wanted very much to get out of Santiago in case one of the aftershocks took the power out again or a second quake happened. I think that, with so much structural damage to some of the older buildings, like our hotel, another mild to large quake or aftershock might bring some of the already damaged ones down.

It has taken us 12 hours to take a normally 7 hour trip to Temuco from Santiago. Our exit route from Santiago was down the Pan American Highway (Route 5) to Temuco. The road is inland so we didn’t see Concepcion, which was most affected by the quake and tsunami. Some of the coast supposedly was hit by a two-story wave after having been hit by the earthquake.

I heard stories of people falling out of 12 story buildings and surviving.

The night of the quake, I really thought it was time for me to meet my Maker. We jumped out of bed at 4 a.m. and ran the few steps to an archway in the room. Both of us felt the building starting to lurch. We held onto the walls of the archway. The shaking was tremendous. Everything—lamps, books etc.—fell to the floor.

I was trying to decide if we should lie on the floor near the bed or get near the window so that we wouldn't be under so much rubble if it fell when Martin suggested we dive into the closet.

Then suddenly it stopped moving . . . phew!! Chunks of wall plaster fell. There were vertical cracks all over the hotel and a significant ten-foot horizontal crack just at head height over our bed. I had brought flashlights but there was enough moonlight that we were able to gather a few important things and book for the lobby four stories down.

Most of the guests and staff spent the night in the lobby. There were over 130 aftershocks but only several were large enough to send me running again. I slept the next night with my shoes on!

We are now two hours away from our house in the south of Chile. Thankfully that area was hit very mildly as far as damage, although there was looting in some places. But the power is back now and people have water again. There are long lines for gas with 30 or more cars in queue. There are shortages of things here because the roads and bridges were damaged.

Of the people we saw on the news here, many were apologizing in the beginning about looting the shops. They hadn't had any food or water for more than 24 hours and were feeling desperate. Women were crying that they had children to take care of, the government wasn't giving them any support, and they had no idea when help would arrive. Many had lost everything and only escaped with the clothes from their backs.

Then it got out of hand. People were raiding department stores, taking washing machines and other items. That was just plain opportunism then.

The police here are excellent. They are not corrupt and between them and the military they got things under control quickly. I still don't understand why they had water canons to spray the looters but didn't have any water to give them to drink.

The people here are really lovely. This is a country with a good work ethic. There is no doubt a lot of poor but they have a large middle class for their income levels. There is petty crime in this country but they generally don't have major or severe crime. I was amazed at how tranquil and accepting the people have been--really laid back and taking it all in stride for the most part.

The hotel staff has been great, helping the tourists as best they can. People are constantly trying to help us out (not invasively so) in ways like pointing out the direction we should take on the subway when we look confused and are digging through maps and looking like scatterbrained tourists. One man at the bus station stopped me on the street and was scolding me. I had no idea what he was saying. Finally he walked over and, in a very fatherly manner, pulled at my backpack showing me he wanted me to wear it hanging in the front so I could see it. I didn't feel worried but did it obligingly.

We are cautious travelers, but we haven't felt threatened or in danger of any kind except as previously mentioned.

I was surprised that they are already busy working on the road to get traffic moving down the main highway. The pavement is buckled and many fissures in the road make for lots of drops and we got rerouted through many, many small towns.

Regular flights out of the capital may be delayed for up to a month.

Next an account from Patagonia area near Bariloche, Argentina. Bariloche is in the cordillera of the mighty range of Andes Mountains which lie along the border with Chile.

There was an 8.8 Richter earthquake in Chile this morning . . . actually quite a distance from my house . . . but I woke about 4 am to my house shaking, things rattling around, etc. This is a big solid house made of blocks and concrete. with large timbers in the ceilings.

Still half asleep, I thought the house was going to break off the cliff and fall into the ravine . . . after a little while it stopped so I went back to bed and soon it was doing it again.

So, I rounded up my laptop and my passport and decided how I should get out of the house. Then I remembered I was not dressed! I heard a few voices of the neighbors. And if the house fell it would crush my car and there I would be on the street with my computer in hand, but no clothes.

Well, it stopped soon. So I put on my clothes and went back to bed.

You can see a list of previous earthquakes in Chile by going to http://en.wikipedia.org/wiki/List_of_earthquakes_in_Chile.

©Arlean Kelley 2/28/2010

Buy In Costa Rica?

2009-11-22T09:45:00.032-02:00

In the woods on the Nikoya Peninsula, Costa Rica, a place of truly desirable though expensive real estate.

Some of you may have read articles recently about new opportunities opening up in Costa Rica, with the new highway being built and the new airport, all opening up access to real estate that was hitherto difficult to access.

One of our readers who has lived in Costa Rica for nearly a decade has been monitoring these events for possible opportunities. He sent us the following information with the suggestion that we share it with our readers. We think he makes some points worth considering.

While we love Costa Rica and strongly considered driving our own stakes there, we decided against it right now for several reasons--one being that the land prices were totally out of reason and in many places the crime rate is very high. In fact, we have one expat here who tells a horror story about doing business in Costa Rica--which is the reason that he is now in Montevideo.

We pass on the following for your consideration along with other facts your research may turn up. And David, thank you very much for your contribution. Here it is:

There was a reason the road never was built before. It goes through a 40 km swamp that floods with every rain. The highway road bed now is many meters above the surrounding land. This area sees a lot of rain all the time and also sees much flooding. With all that water standing around, the bugs are also always there. They do have palm oil and pineapple farming there. But I really don't think it is a great place to buy.

Enter cheap and end up expensive is a translation of a local saying, "entra barrato y sale caro." People will probably be happier paying more to get land in a more desirable area. Just now having road access does not mean the land will go the same way as desirable places did when they got road access. I would warn anyone about buying in this area although you may be able to find a good spot. It also may be better for visiting than living in full time.

Many places went up in value after getting a road. But the road won't change the detrimential things that make this area undesirable--or less desirable than more expensive parts of Costa Rica.

Dave C

© Arlean Kelley 11/21/2009 All rights reserved.

As with all of our contributions, we always appreciate your feedback. Please post your comments if our information has been helpful or if you have corrections or further contribution. Contributions from others living in Latin America are always welcome, subject of course to editing.

We Introduce Marcela Ponce Menendez

2009-11-21T09:48:00.038-02:00

We want to introduce you to our latest "find" here in Uruguay.

She is Marcela Ponce Menendez.

Marcela is experienced in obtaining legal residency for newcomers arriving in Uruguay. She can tell you what steps you need to take, help you with your medical exam, and guide you successfully through the process. She speaks both English and Spanish with proficiency.

She also offers another service that we consider helpful to newcomers with limited or non-existent Spanish-speaking skills. Often, along with being linguistically challenged, new residents are handicapped in negotiations because we don't understand the culture and how things work here. Add to this the fact that locals are often blinded by imaginary dollar signs when they hear an English accent and may attempt to adjust the prices accordingly.

That's why it can help to have a local translate and even negotiate for you when it comes to renting or even buying here or handling other business matters. We can recommend Marcela.

A native-born Argentine, she has lived in Uruguay for the past 20 years. She is a graduate of Enterprise Argentina University in Buenos Aires and her fees are very reasonable.

She will also teach you to speak Spanish, once you are here, having taught professionally in private schools.

You can contact her at marceponce099@hotmail.com.
Her office phone is 037-28902 and her cell phone is 095-317676
If calling from the US you will need to dial
011-00598-37-28902(line phone) 011-00598-95-317676 (cell phone)
Or she can be contacted on Skype at marceponce099.

As with all of our contributions, we always appreciate your feedback. Please post your comments if our information has been helpful or if you have corrections or further information or experience to add.

Culture Shock

2009-10-12T12:50:00.009-02:00

Recently we had the privilege to meet with a young couple who were planning to move to Montevideo with their two children. During our meeting we told them that they were almost sure to suffer culture shock once they had moved. We described it for them and assured them that it would pass.

Later after they had made the move, she wrote and told me how glad she was that I had prepared her because it did happen and, since she recognized what it was, she was able to weather the storm.

On another occasion, I met a woman at an English speaker’s meeting who was seated off to herself, looking depressed. I approached to talk to her and she actually said, “I’m about to slit my wrists.” I think (hope!) she didn’t mean that literally, but after listening to her for a few minutes I said, “You’re experiencing culture shock, you’re going to be okay. This will pass.” Today this lovely lady owns a small farm, her new home is under construction and she is doing fine.

Culture shock takes different forms with different people, and can be present in different degrees. It seems to me that it affects women more than men but can seriously affect men as well. Some people who go through this period of adjustment develop hostility and irritation toward the host country and its people. Others just feel depression or a sense of loss or insecurity, excessive concern about cleanliness, excessive fear of being cheated, sadness or any combination of a variety of other reactions. Ultimately it all culminates in a desire to return to the place where things are familiar.

I experienced culture shock for the first time when I accepted an invitation from my son to visit Belize with him. Even though the language was English, the culture and the people were so unfamiliar that it took just five days for the shock to set in. It was hot there and the entire country seemed to have neither ice nor toilet paper. You had to carry your own roll and some of the public bathrooms were awful. I had never seen anything like it. Plus a man who rented a beach cabin to us tried to cheat us. My son took care of that in short order. But in the end, all I wanted to do was get on that plane and get back to Florida. It only took five days for me to get to that point!

A few years later, when I moved to Bariloche, Argentina, I experienced it again. In that case the people in Bariloche, unlike Belize, spoke a different language. I am not easily depressed but I certainly was then. I had the unrealistic feeling that everything I had ever done in my entire life had been wrong—a mistake. Of course that was foolish thinking, but it was a part of the culture shock. I wrote so many emails to my poor daughter that she wrote me in exasperation, “Mom, I don’t know what to do with all your emails!” I didn’t realize how many I was writing. I did the same with friends. It was an unconscious attempt to reach back to the familiar—to things and relationships that were comfortable.

Today I can be in the land of my birth for months on end and when I return to South America it feels so good to be back--like a return to my other home. It is a joy. In fact, some American expats have told us that they feel such a sense of freedom here that it is when they return to the United States on visits that they experience culture shock. It is culture shock in reverse, hard as that is to imagine. One couple who had lived in Guatemala for 18 years told me the only reason they ever go back is because of their aging parents and once they are gone they will never return. They are that much at home in Guatemala.

The area of South America with which I am familiar was a much easier adjustment for me than Belize. I think that it is partly because people here are of European descent. When I go out anywhere, the people look the same as people that I would normally see if I were not in a foreign country. So on the street, in restaurants or stores, things don’t seem strange at all. Also, the people here seem to think and reason the same way. It was not difficult to relate to them once I had a little command of the language. And so, in some ways, the country naturally has a certain degree of familiarity for me.

These things may not apply to everyone. For example, if you have chosen to live in Belize, I have no doubt that you will become accustomed to the culture even though it might take just a little longer. Or, in your case, it might not. And besides, they may even have both ice AND toilet paper in Belize by now! That was a few years ago. But finally settling in a country where things and people are more similar to the way they were “back home” has been helpful to me.

Now that we have established that some degree of culture shock is normal, what can we do to minimize it?

First, I think that just recognizing it as normal and knowing that it will pass is a big factor. You CAN live through this, and you will! The day will come when your new home will be . . . well . . . home!

Next, try to find a support group of other expats who have been in the country for a while. Many problems that you encounter in a new country are probably common and other expats may already have found the solutions. It may take a while to get used to the fact that Latin America may be quite different from what you are used to. In this part of the world there is almost always a way to get things done. Newcomers get upset about things that the rest of us are likely to laugh about! Meanwhile, this kind of group provides social contacts with whom you can communicate while you are learning the local language and building local friendships. In Montevideo there is a group of English speakers that I recommend. You can read about them here. Other cities, both in Uruguay and in other countries, usually have an expat community.

Also, when you face frustration in your host country, don’t forget that you had frustrations back home as well. No country is free from frustration and no bureaucracy free from stupidity. If you want to experience real frustration, just try repairing the roof on a house in Dade County, Florida. Talk about bureaucracy! In all honesty, with all the frustrations and inefficiency I have experienced in Latin America, none of it even comes close in comparison to the stupid bureaucracy involved in repairing a storm-damaged roof on your own house in Dade County!

So far I have frankly found life much easier here! But if you are coming here from the hills of Tennessee where there is (perhaps) little bureaucracy, you just might disagree!

In any event, when we are facing foreign inefficiency, it is easy to forget the inefficiencies we experienced back home and become inpatient and critical—especially when we are going through the adjustment period. So one suggestion is to try to remember that things were not perfect in your native home and avoid being too critical of your new one.

Get daily exercise, get enough sleep, and eat a natural, balanced diet. Loss of sleep, in itself, can cause depression and exercise relieves stress. Remember that high intake of sugar is known to bring on hyperactivity and unmanageability in some children. It can do the same for adults. Try to take care of yourself so that your lifestyle will not contribute to the problem.

Enroll in some classes in the language of your host country. In our area many Spanish classes include an introduction to the culture. Once you begin to be able to communicate enough to get what you need and know your way around on your own, you start to notice the feeling of empowerment—of being at home in your environment.

So do take heart. You, too, will survive and almost surely learn to love your new home.
_________________________________________________________________

© Arlean Kelley 10/12/2009 All rights reserved.

Please feel free to send any questions. We will answer in the blog or write or call you directly. Comments are welcome. You can write comments for all to see by clicking on "comments" below. Or send us an email and we will include it for you. If you would like to be notified of new posts coming online, please send an email to us at newsfromlatinamerica@yahoo.com and we will add you to our email list. And we hope to meet you in person soon--in Latin America!

How to Subscribe to this Blog

2009-10-05T15:32:00.009-02:00

If you would like to be notified when new material is added to this blog or to receive other messages from us, please send an email to
newsfromlatinamerica@yahoo.com and we will add you to our mailing list.

Likewise, if you decide that you don´t want to receive mailings from us any more, just let us know.

We encourage any comment on any of the posts. Just click on the comments line at the bottom (next to the email envelope).

All opinions and viewpoints are welcome and encouraged. We especially appreciate additions from expats already living in South America but other questions and comments are also welcome. There is only one rule. That is that everyone show the same respect and courtesy for others that we would if we were a guest in another's living room. Aside from that, it's a free for all!

Arlean

____________________________________________________________________

© Arlean Kelley 10/10/2009 All rights reserved.

Diversify Your Retirement Account

2009-08-31T15:21:00.016-03:00

Have you ever wished that you could diversify your retirement account, not only among different assets but also among different countries? Many people think that their only options for their IRA funds are in the stock market or in cash.

Happily that is not the case. There are many opportunities out there--and they are not even limited to a single country.

Here is a partial list of investments that you are legally allowed to hold within your retirement account, whether inside or outside the U.S. For this partial list we give credit to Simon Black of the Sovereign Man newsletter.

"- Gold stored in your home
- Foreign real estate
- Gold stored securely overseas
- FOREX, hard money loans, Options, Stocks & Bonds

And of course much more…"

Simon goes on to say that the process is simple. It involves investing your IRA funds in a properly structured LLC of which you are appointed manager and you direct the activities of the LLC.

Most of us are painfully aware that we are living in an age of financial uncertainty. Diversification is one way to protect oneself financially. Not only between different banks and types of investment, but also different countries.

Simon writes a very good newsletter. Right now it is free, although I suspect it will not always be so. You can read the current issue about how to diversify your IRA, as well as back issues, at http://www.sovereignman.com/. You can even sign up for his daily newsletter there if you are interested. Simon provides information that is not easy to come by. Plus he tells you enough details about how to do it that at least you have some idea how to proceed or where to find the information that you need.

Let me know what you think.

I hope to be back in South America in mid-September.

Please feel free to send any questions. We will answer in the blog or write or call you directly. If you click on the comments line below you can add your opinions or comments for all to see. Or just send us an email and we will add it for you. Contributions from other expats living in Latin America are encouraged. They are, of course, subject to editing. If you would like to subscribe to this blog, just send us an email to newsfromlatinamerica@yahoo.com and we will add you to our email notification ist. Likewise email us any time you want to be removed from our list.

Uruguay Battles Brazil on the Futbol Field

2009-06-11T23:40:00.016-03:00

This week in Montevideo was The Big Game. Uruguay met Brazil on the Futbol (soccer) field.

You already know that latinos excel when it comes to celebrating a holiday. They have their priorities in place and holidays are right up there at the top.

Stores close for all kinds of reasons anyway. Once when we were visiting a couple here in this part of the world, she closed down her clothing store because we were there. I said, "But can you do that? What about your customers?"

To which she replied, "It´s my store. I can close it if I want to!" I guess she was right. And you will find that she isn´t the only storekeeper that closes if she wants to.

When you are an expat in this part of the world, holidays often sneak up on you and catch you unawares. But we were not prepared for the city to shut down just because their team was playing soccer. I was warned that I could expect not many people or traffic on the street because most would be either at the stadium, gathered in homes in front of the TV, or at a sports bar.

But the day started out like any other day. Traffic in the streets was about the same and people rushing about, as always. But along about noon all that visibly started to change. Doors were being locked as each customer left the store and finally the metal grillwork was rolled down over the glass in one store after another.

About an hour later the streets were relatively quiet and there were few pedestrians. A few people were still out and about and if they came into the hotel you would hear them ask "What´s the score?"

One more reason for a holiday in Uruguay.

And the score? Brazil 4 - Uruguay 0

Please feel free to send any questions. We will answer in the blog or write or call you directly. If you click on the comments line below you can write comments for all to see. Contributions from other expats living in Latin America are encouraged. They are, of course, subject to editing.

Montevideo Stock Exchange

2009-06-03T23:45:00.016-03:00

Bolsa de Valores de Montevideo

Uruguay does indeed have its own stock exchange, located in the Ciudad Vieja--the Old City--in Montevideo. The exchange itself handles only bonds and Uruguay companies. But if you ask at the Bolsa de Valores, they will give you a very long list of stock brokers in the city.

Or you can get the list from me.

We visited one broker on the list who also handled only bonds, but who underlined, on our list, the stock brokers that he knows and recommends who do handle stocks for their clients. A visit to one of them provided the following information.

Gaston Bengochea & CIA can buy shares for you in major markets of the world. They do work with Mellon Bank in Pittsburgh, Pennsylvania, through Merrill Lynch--however you happen to feel about that at this point.

They can hold your account there in the name of the brokerage, or designated in your own name, as you prefer. Or they can set up a custodian account for you in their commercial bank here in Montevideo. They do not provide stock certificates but hold all stocks in electronic form, but they can sell your stock certificates if you are now holding them.

They also volunteered an alternative custodian in place of Merrill Lynch. It is the Julius Baer Group, a Swiss "boutique" bank that they have researched and recommend. Julius Baer requires a minimum of $500,000. A little rich for the blood of some of us but the option is there if you are interested and qualify.

Of course there are other Swiss banks that have a lower minimum and will buy stocks directly for you on many exchanges, if that is what you are after. However, if you are a U.S. citizen, some of the banks that we know of will buy shares of foreign companies for you (Canada, Brazil, Asia, etc.) but will not buy U.S. shares. I am sure they would like to but they feel that they avoid a lot of problems by just saying no.

If you have questions, please don´t hesitate to email us.

Please feel free to send any questions. We will answer in the blog or write or call you directly. If you click on the comments line below you can write comments for all to see. Contributions from other expats living in Latin America are also encouraged. They are, of course, subject to editing.

Argentina International Analyst Offers Financial Advice

2009-06-03T11:09:00.022-03:00

Adrian Salbuchi, Argentina International Analyst, in this video describes the global financial system as one huge Ponzi scheme. Argentina has faced inflation and devaluation of their currency in the past and some of them believe that the United States and other countries are traveling the same path that Argentines have already traveled. I don´t know if he is on target on everything but I thought what he has to say worth considering. One never knows. His advice might be helpful:

Please feel free to send any questions to us at newsfromlatinamerica@yahoo.com. We will answer in the blog or write or call you directly. If you click on the comments line below you can write comments for all to see. Article contributions from other expats living in Latin America are encouraged. They are, of course, subject to editing.

Free Medical Care in Montivideo, Uruguay

2009-05-24T10:10:00.006-03:00

Today I spoke with an M.D. who works at the public hospital in the Ciudad Vieja area of Montevideo. He is a cardiologist.

Naturally I questioned him about health care in Uruguay.

As already posted elsewhere in this blog, medical care is reported to be very good here--and affordable. I have been told that if you need something as sophisticated as a heart transplant you would need to cross the river to Buenos Aires. But Uruguay is prepared for illness short of that.

Actually, free medical care is available at the hospital in the Old City. Those of you from the U.S. who are old enough to remember the old free county hospitals may have a good idea of how this physician described the public hospital. You have to wait for a long time because they accept everyone. Even someone with a child with sniffles. It is so easy to run to the hospital when it is free. Probably it is the worst thing you can do since who knows what you can pick up there that you didn´t have already--in ANY hospital.

But they will treat anyone, whether you are a resident or not, citizen or not--doesn´t matter. You will have to pick up and pay for your own medication if you do not have a card issued by the hospital. All you have to do to get a card is apply for one. Once you have a card, they will even provide your medications.

However, this cardiologist told me that if you can afford the private doctors and clinics you are better off there. I said "Why? Is there something wrong with going to the public hospital?"

"No," he said, "but sometimes we do not have the things we need. Sometimes we don´t even have gloves."

But still, qualified free medical care is available for those who need or want it.

Of course there are private physicians and numerous private clinics and hospitals. I have not had experience with them, but other expats report satisfaction with their private medical care.

Please feel free to send any questions to us at newsfromlatinamerica@yahoo.com. We will answer in the blog or write or call you directly. If you click on the "comments" below you can write comments for all to see. Article contributions from other expats living in Latin America are encouraged. They are, of course, subject to editing.

How to Qualify for Residency or Citizenship in Uruguay

2009-05-20T09:28:00.021-03:00

Some of the first questions we all ask are:

Must I be a legal resident before I can buy real estate?

How can I live in the country legally?

Are my property rights protected there?

You don´t need legal residency to buy real estate in Uruguay. You can just cross the border into Uruguay and buy real estate. The Uruguay government claims to protect the rights of Uruguay citizens and foreigners equally the same.

There are two ways that you can live in Uruguay without getting on the wrong side of the Uruguay immigration laws.

1. Take a bus, the hydrofoil, or the ferry across the river to Argentina every 90 days. Go shopping. Go out to dinner. Go to the opera. As you cross the border back into Uruguay, you automatically renew your tourist visa.

Or, if you choose to live on the Atlantic coast of Uruguay, and you are a U.S. citizen, get a visa for Brazil and take a mini-vacaton there every three months. Many non-U.S. citizens do not need a visa to enter Brazil from Uruguay, but U. S. citizens must obtain a visa to enter Brazil.

When I lived in Bariloche, Argentina, in the Andes near the border with Chile, I crossed a mountain pass into Chile every three months. In winter it was not unusual for the pass to have snow and ice. In Uruguay you don´t even have snow and ice to contend with.

But why even do that if you don´t have to? If you have $500 a month retirement or from another source, or you can find a job or a way to work in Uruguay, you´re in. Well, almost. You just need to jump through a few hoops.

You must provide documents to immigration as follows:

1. Your birth certificate

2. Your marriage certificate. If you are divorced or your spouse has died, just to be on the safe side, bring a copy of your divorce decree or the spouse's death certificate. This is just an overview. If you do decide to obtain legal residence, I suggest you check with an immigration attorney regarding your own circumstances.

3. Police record from your home country as well as anywhere else you have lived in the last five years. (For U.S. citizens, this is obtained at the Interpol office in Uruguay.)

4. Documented proof that you meet the income requirements. At present that requirement is $500 per month. This income can come from a pension, retirement fund, rental property either in Uruguay or elsewhere, income from a company you own, or a job contract in Uruguay. Really almost any income, if sufficient, will qualify you for residence.

These documents must be obtained before leaving your home country. They must be legalized at the Uruguay Consulate in your home country and legalized in Uruguay at the Foreign Ministry.

You must also provide a certified translation of all documents into spanish language.

My own immigration attorney suggests gathering the documents, having them authenticated, then sending them to him just to be sure everything is in order before leaving for Uruguay.

You then enter Uruguay as a tourist and present your papers to immigration. Once you have submitted the papers, and before you are approved, you are allowed to ship personal and household items into the country duty free. You do not have to wait until official approval. However, there is a process of posting the duty amount for the incoming goods just in case you do not follow through with your residency. But once you do, the deposited amount is returned to you.

It can take 8 months to a year and a half for temporary residency. It may well depend on whether you do it yourself, use an attorney or representative, and even what representative you use and the connections that person has with immigration. As you probably know, much of what happens in Latin America depends upon who you know.

There are also some medical requirements. Women are required to have a mammogram and all applicants must have a tetanus shot. I have no idea why tetanus. Living in Uruguay is not that much different from any other developed country--I am only reporting the current requirements.

After one year as a temporary resident, you may apply for permanent residence. In three to five years, you may apply for citizenship and a second passport.

Although I prefer to work with a knowledgeable attorney or representative, a number of expats here successfully obtained their residency without an attorney.

If anyone has had a different experience from what is reported here, your input is appreciated. As we all know, things change often in Latin America and your input could be important to someone just now taking this step.
___________________________________________________________________

© Arlean Kelley 03/11/2009 All rights reserved.

Please feel free to send any questions. We will answer in the blog or write or call you directly. If you click on the "comments" below you can write comments for all to see, or just send us an email. Article contributions from other expats living in Latin America are encouraged. They are, of course, subject to editing. If you would like to subscribe to this blog, email us at newsfromlatinamerica@yahoo.com and we will add you to our mailing list. Likewise send us an email if you want to be removed from the list. We look forward to meeting you personally--in Latin America!

Shopping the Organic Market in Montevideo

2009-05-20T07:58:00.032-03:00

This is especially for those purist folks who are concerned about the poisons and other chemicals that add insult to so many of our fruits and vegetables around the world.

When we were considering living in Montevideo, one of my concerns was about the availability of organic produce and other food products. To my delight I found that there are, indeed, farmers in Uruguay who are committed to organic farming.

A small section of the Sunday open market at Parque Rodo is populated with organic farmers. We buy fruits and vegetables, organic wheat flour, bread, cheese and even personal care products there.

However, in my neighborhood of Montevideo, known as "Centro," only blocks from where I live, a group of organic farmers have opened a coop-type storefront where they bring their food products for display and sale. You can find fruits and vegetables, cheese (yes we can even get organic cheese), some meat, personal care items, books, honey--even some handcrafted items.

They tell me that, if I call in my order the evening before, they will even deliver to my front door.

I have met some Uruguay people who tell me that the farming culture in their country traditionally leans toward avoiding unnatural farming methods and insecticides, and that even the farmers who are not organic avoid pesticides as much as possible.

Something else that I find interesting is the knowledge among the people about the use of herbs for healing. That interest shows up in the selection of books on display at the store. They offer for sale quite a few books dedicated to medicinal herbs.

Productos Organicos is not a health food store like those to which many of us are accustomed. There are no shelves stacked with bottles of vitamins and minerals in pill and capsule form. It is all just fresh farm produce.

Since I like to buy fresh wheat and grind my own flour using the grain attachment of my Champion juicer (does a fantastic job!) I was looking for a source of fresh, organic wheat. I did find an organic wheat farmer here. Someone else in our English speaker´s group (covered in a different article) also found a source of organic seeds for sprouting and grinding.

So for you organic folks, I assure you that we are down here busily gathering information for you all . . . as well as for ourselves!

Purchasing at the organic section at the Parque Rodo market is most economical. All depends on whether you are looking for economy or convenience. The market at Parque Rodo is available only on Sunday whereas Producto Organicos is open every day.

Sadly for those of us who understand the value of an uncorrupted food supply, the organic farmers tell us that Monsanto is here in Uruguay and the Uruguay government is now allowing their seeds. There are stipulations as to how far away they have to be with their genetically modified seeds, but of course it would be best if they were not in the country at all from the point of view of those of us who profer organics. Or even prefer food as nature intended us to eat it--without pig or bacterium genes!

When the camel gets its nose inside the tent, I get worried!

However, the only GM crops, so far as I know right now, are corn and soybeans. Also some crops used for oil, like canola and cottonseed oil, may be genetically engineered. A Wikipedia article at http://en.wikipedia.org/wiki/Genetically_modified_foods lists genetically engineered foods.

A very high percentage of the corn and soybeans in the U.S. are GM products. This is why I don´t eat corn. There was a genetically modified tomato at one time but it could not compete with a traditionally grown tomato so it was taken off the market.

Therefore, for now, GM foods in Uruguay are not a problem (unless one likes corn a lot) and there appear to be plenty of organic farmers ready and willing to provide organic products for those of us who are interested.

As I learn more about organics and farming in Uruguay I promise to let you know.

Please feel free to send any questions. We will answer in the blog or write or call you directly. If you click "comments" below you can write comments for all to see. Article contributions from other expats living in Latin America are encouraged. They are, of course, subject to editing.

Buying Uruguay Real Estate

2009-05-09T18:21:00.036-03:00

This week I purchased my first Uruguay real estate. It is a three-story building in the Centro area--downtown Montevideo--two blocks off the main street, a pleasant four block walk to the waterfront, and walking distance to the Old City.

The structure is only 37 years old, according to the record. While the inside is a shambles, the building itself is wonderfully solid construction. The first floor is an empty storefront and the upper two floors were designed as a four-bedroom, three-bath house, complete with balcony, patio with BBQ grill, and a stairwell going all the way to the roof.

The roof can be used for sunbathing, family get togethers, hanging laundry or throwing a rooftop party if one were interested.

Although it is a wonderful building, it was left unloved--vacant and neglected for years after the previous owner died. The family had raised six children there. They moved away long ago. When the mother became infirm, this Uruguay real estate was rented to a government agency to help with her expenses. When the agency moved out, the building was left alone and empty--a medium for graffiti artists.

Sadly the renters that used it for those years left it in terrible shape.

In addition, leaves were allowed to pile up on the roof and block the drains, causing filtration of water and, eventually, mold in some of the rooms.

Here are some pictures.

Here is your Uruguay reporter in her new diversion of building renovator!

Taking up old carpet

A Little Work Required Here!

Second Floor Patio and Grill

View From the Third Floor

And so begins the business of restoration. We will keep you informed of the progress.

If you happen to be one of us crazy people who just love to see a wonderful, neglected building restored to warmth and beauty, there are plenty of similar real estate opportunities here in Montevideo.

Uruguay is probably one of the few places left in Latin America that is beautiful, tranquil and stable, with low crime, low living costs, where you can find real estate reasonably priced.

A building of this quality, situated even in San Telmo, Buenos Aires (not in the posh Ricoleta area), would cost about three hundred percent more, even in its present condition. And it would not be in the downtown business area.

Stay tuned for more real estate information. Until next time . . .

Please feel free to send any questions. We will answer in the blog or else write or call you directly. Comments are welcome. There is a tiny envelope at the end of the blog where you can write comments for all to see. Contributions from other expats living in Latin America are also welcome. They are, of course, subject to editing.

The Open Farmer's Market in Centro

2009-05-02T16:01:00.023-03:00

Today (May 8, 2009) was market day in my neighborhood in Montevideo. Actually two days are market day in my neighborhood--Tuesday and Friday. Of course any day is market day if I want to go to the grocery store.

I don´t.

For those of you who ask about prices, today I bought the following. I paid pesos but will change value to dollars for comparison purposes. All of the following are fresh.

Pears 50 cents per pound
Oranges 50 cents per pound
Red delicious apples 60 cents per pound
Leaf lettuce 25 cents per pound
Spinach 25 cents per pound
Tomatoes 25 cents per pound
Tangerines 40 cents per pound
Kale 40 cents per pound

June 21, 2009

I have returned to Florida, U.S.A., for a few weeks. It is always wonderful to return to my home country. In addition, with the reversed seasons, winter had seriously set in in Montevideo--as seriously as it ever sets in. Wintering in Montevideo is similar to wintering in Central Florida.

After the cold, sometimes windy streets of Montevideo, the Florida heat and sunshine that many complain about was for me a welcome change. I have been back for two weeks and I am still soaking it up.

However, a few visits to the local grocery stores and I already miss the market in Montevideo with its lush, juicy and inexpensive tree-ripened fruit.

I suspect that since we are getting so much of our food now from outside the United States, it is picked green to allow for shipping time. Much of the fruit appears to be ripe and does in fact soften to what we would consider edible ripeness. But it is relatively tasteless compared to the locally grown produce that is available to us in Uruguay. I think that, if people in Florida are smart, they will plant fruit trees in their front yards instead of ornamentals. Why not plant something that produces something of value?

An organic vegetable garden in the back yard would also be a great idea!

©Arlean Kelley 05/08/2009 All rights reserved

We always appreciate your feedback. Please post your comments if our information has been helpful or if you have corrections or further information. Article contributions of others living in Latin America are encouraged, subject of course to editing. If you would like to subscribe to this blog, just send an email to newsfromlatinamerica@yahoo.com and we will add you to our mailing list. Likewise if you want to be removed from the list. We look forward to meeting you in person--in Latin America!

Labor Day in Uruguay

2009-05-02T07:48:00.006-03:00

Yesterday (May 1, 2009) was Primero de Mayo in Uruguay.

Labor Day!

Little did I know.

Labor Day in Uruguay is a major, major holiday. I was here Easter. Most stores were closed. But the Internet places and quite a few restaurants were open.

But on May 1 the city shuts down. People in Uruguay just plain do not labor on labor day! Holidays in Latin America are times to spend with family and friends.

I had an appointment to meet a friend at 2 p.m. I waited at the bus stop on a strangely deserted street, wondering where all the buses were.

A young woman noticed me and asked in spanish , "You aren´t waiting for the bus, are you?"

"Yes," I said.

"There´s no bus today. It is necessary to find a taxi."

Well let me assure you that there were no taxis either. To be more accurate, I did find a few taxis. They were all parked in the parking lot at the city square with no driver in sight. Obviously the taxi drivers had also joined the festivities.

I called my friend to tell him I was stranded in Centro. Since he too is a transplant to Uruguay, he had forgotten it was Primero de Mayo.

When you join us down here in Latin America, I suggest that you pick up a calendar early and note the holidays. It might save you some unwelcome surprises AND some broken appointments.

In spite of the inconvenience of being able to accomplish absolutely nothing on a holiday, I like the fact that people in this part of the world have their priorities in place in many ways and business and money are not necessarily at the top of their list.

©Arlean Kelley 05/01/2009 All rights reserved.

We always appreciate your feedback. Please post your comments if our information has been helpful or if you have corrections or further information. Article contributions of others living in Latin America are encouraged, subject of course to editing. If you would like to be added to our mailing list, just send us an email to newsfromlatinamerica@yahoo.com. Likewise if you want to be removed from the list. We look forward to meeting you in person--in Latin America!

Opening a Bank Account in Uruguay

2009-04-07T15:25:00.040-03:00

I was able to open a bank account with little effort today in Montevideo. I presented two forms of identification. One of them was my passport, which is required. The other one, my driver´s license from Florida, served as proof of address in the states. Much different from the three other banks I had already tried.

One other bank was willing to open an account but there were a few more requirements. So I went with the easier bank.

Although opening an account in Uruguay still is pretty easy if you find the right bank and fulfill their requirements, there are some things that it might help you to know.

Banking in Uruguay is in a bit of a state of flux right now. For years Uruguay has been known as the Switzerland of South America because of their reputation for safe, dependable banks and strict bank secrecy laws.

Uruguay does not, by law or practice, protect criminals. If someone appears before a Uruguay judge and produces evidence that someone is involved in criminal activity and may be hiding the proceeds in Uruguay, an investigation will be opened. But up until now they would not allow someone to go on a fishing expedition into your private matters without showing just cause.

However, offshore banks have been put under pressure in recent years and some are attempting to resolve the problems by refusing to deal with U.S. citizens.

Recently the Montevideo daily newspaper, El Pais, reported that the OECD put four countries on their black list for refusing to comply with OECD requirements to abolish their sovereign bank secrecy laws. Uruguay was one of those countries. The country faced being denied loans from the IMF, the ability to do business in the U.S., and was threatened with an embargo. They signed an agreement to comply.

Some Swiss banks had already been notifying their U.S. clients to withdraw their money and close out their accounts because they are no longer going to serve U.S. citizens. The Wall Street Journal, on April 8, 2009, reported that one Swiss bank, UBS AG, had barred certain bank employees from traveling outside the country in order to avoid arrest as the U.S. continues their attempts to force other nations to abide by their proscribed banking standards. So naturally banks are becoming more and more afraid to deal with U.S. citizens. And more and more cautious when they do.

All of this makes one wonder what ever happened to respect for liberty and national sovereignty. The International Forecaster, a financial newsletter, reported in their March 18, 2009, issue that the Swiss have no intention of complying because they expect the whole financial system to implode before they will need to. Who knows? Certainly I do not claim to. Probably it will take a little time to find out where all this is headed. AND more importantly, where it ends up!

But in my opinion. Uruguay is one of the safest countries for banking.

Here are things to consider.

Documented proof of the origins of money to transfer into your account is a serious issue. You can deposit a small amount with no problem. But they are very concerned about keeping on file documented proof of origin for larger amounts. It is not sufficient that the money is coming from an established account with another bank or brokerage. You need documentaton that can serve as proof of origin.

Therefore, as you are going through possessions, there are a few things you should make a point of hanging onto until you see if you need them.

If you have a closing statement from real estate or something like that, you are okay. Since some residential real estate sales in the United States have no tax implications if we lived there for two years, many of us have not thought it necessary to save settlement statements from those sales. If you are transfering money here that would correspond with the amount of such a sale, that settlement statement is just what you need. So if you come across something like that, don´t throw it away. Bring it with you. And if you threw it away and can somehow replace that documentation, try to do so. If you have several, bring them all.

Settlement statements from real estate sales are something they understand here. I can´t say the same for things like brokerage accounts. In fact, when I mentioned to one banker transferring from a brokerage account his response was "People in Uruguay do not understand about that."

So, to stay on the safe side for now, don´t throw away any of your documentation if there is a chance that it might serve to justify something that you just can´t justify otherwise. If you will be transferring money that you inherited, be sure to have that documentation with you. One person that I know who had inherited some money as a listed beneficiary on the bank account of a deceased relative was able to justify the transfer through a letter of verification of origin from the bank.

However, a word of caution here. Several have found that Bank of America will not write reference letters. Some banks in Uruguay require a letter of reference from your current bank. When I first heard of the refusal of BOA to write reference letters, I called my branch to verify that. They told me that they, in fact, were not authorized to write reference letters. I changed banks. I didn´t need a letter of reference at the time, but it was a matter of principle. To my thinking that was the least they could do for a long-time customer.

This week when I did need a letter from my bank I was glad I made the change several years ago. My branch of Suntrust has been absolutely great.

In all fairness to the bankers in Uruguay, I don´t think they want to make things difficult for their customers. I think that they are just doing what is required by the international banking cartel in order to keep themselves and their country out of trouble. Perhaps you can make it easier for yourself and for them with this extra information ahead of time, by being prepared when you come.

Following is a list of requirements for opening a bank account as presented to me by a top level Montevideo attorney who claims that he handles more immigrations into Uruguay than any other attorney--and probably does. I have added my own experience. And please, if any of you should have something to add, now or later, please do. There is a little envelope near the bottom of this blog that you can click on and post comments for all to see, or else just email me at newsfromlatinamerica@yahoo.com. We are all in this together and I would like to keep this information as current and accurate--and helpful--as possible.

Here is the attorney´s list in bold type with my own comments in parentheses and italics.

ID, passport is recommended

(The bank where I opened my account required two IDs, not just one. I used passport and driver´s license from the U.S.)

Proof of address--utilities bill

(My U.S. driver´s license served for proof of my U.S. address and my sales agreement for the real estate I am buying here served as proof of local address. However, in case you might decide on a different bank you might want to bring a utility bill from your U.S. address since some do require that. One other bank I considered did want a utility bill. I was up the creek on that one since I have no utility bills. They seemed unwilling to accept anything else.)

Bank reference letter from your current bank, plus one local reference from Uruguay.

(The lawyer who provided this list charges $150 to act as your local reference. I did not need a bank reference or a local reference. But one other bank I checked does require both a bank reference and a local reference. One banker here told me that if I had two bank references from the U.S. I would not need a local reference.)

I hope this information will make the transition to Uruguay a little easier. Things in Latin America are always subject to change and so, once again, please submit any additional information or experience that you might have or let us know about changes that you discover. It could be your opportunity to help someone else. Also if you have questions, don´t hesitate to ask. We don´t know all the answers but will certainly do our best.

© Arlean Kelley 04/16/2009 All rights reserved.
Please feel free to send any questions. We will answer in the blog or else write or call you directly. Comments are welcome. Just click on the "comments" below to write comments for all to see. Article contributions from other expats living in Latin America are also encouraged. They are, of course, subject to editing.

Learning Spanish

2009-03-19T14:48:00.037-03:00

"How could I ever live in Latin America when I don´t speak Spanish?"

In my experience, it really isn´t as big a problem as you think.

In most of the large cities in this part of the world there are people who speak at least some English. Both my attorney and my architect here in Uruguay speak excellent English. I found two banks so far in Montevideo where someone could speak English. And I have not checked all the banks.

So it isn´t as if you are unable to function if you never learn Spanish!

You can also find groups of English speakers here. In Montivideo there is a group that meets at around 1:00 every Sunday afternoon for lunch at the Old Maz Restaurant in the neighborhood called Pocitos. (Location has changed. See note at end of this article for new meeting information.) Many are from the US and Canada. One visits from Australia, and some are Uruguayans who come to practice and perfect their English. Since they have lived here all their lives they are a great source of infomation.

Old Maz Restaurant

We usually meet in an upstairs dining room that the restaurant reserves just for us. Once the group gets there it is sometimes not easy to get them to leave. I have been present when we were asked to at least move outside because the restaurant owner wanted to close! And then some of us usually walk the two blocks or so to the local ice cream store to take up residence there for another hour or two.

This is a friendly group that likes each other´s company. If you decide to come down and check out the territory, I assure you that you are welcome at the Sunday lunch at Old Maz. If you have questions, you will find someone there who can answer most, if not all, of them. Do you see that man a bit to the right wearing the red shirt? That is Glen. He started this group several years ago. If you do get to one of the Sunday gatherings at Old Maz, be sure to say hi to Glen and tell him I sent you! ;)

Having said all that, life will never be normal for you here unless you do learn the language. If you are in preparation stage for a move to our area, I suggest you use the time to learn as much vocabulary as you can before you come. It takes some self-discipline to invest time every day for spanish vocabulary, but you will be glad you did. It will give you a head start.

But with an attitude of adventure (which you already have or you would not be reading about living in a foreign country) it is not so difficult--in fact, in my opinion, it is fun.

There are a couple ways to do it. If you prefer a classroom experience, there are schools that aim to get you speaking Spanish quickly. They usually involve several hours a day of intensive training for relatively short periods. In the Old Maz group we even have a member who gives private Spanish lessons.

Or you can do it on your own. My spanish-speaking son advised me not to waste time at first on grammar. He said spend your time learning as much vocabulary as you can and you will be able to communicate much sooner. After you have the vocabulary, then you can work on grammar.

So I ordered a Spanish textbook like the one he had in college, Mosaicos, second hand from www.alibris.com. I paid less than $4.00. It even had a CD with it.

I was interested to learn that the reason this is called Latin America is because the language is almost pure Latin--hence, Latin America. Since other European languages, including English, are based on Latin, many Spanish words are easy to remember because they are similar to words that you already know, called cognates.

It is working for me. I am here alone in Montivideo right now and am able to communicate just fine without a Spanish class.

I am far from perfect. In fact, my son teases that I am "this woman that talks baby talk!" Sometimes the local people laugh at my Spanish, but it is good-natured laughter. I laugh too! Some of them go out of their way, if they see me, to talk with me in Spanish. And others who are trying to learn English will do the same because they want to practice. All in all people here are friendly and really want to be helpful.

I do have problems communicating with the owner of the hotel where I am staying. One day, joking with her a little about my inability to think of a word I needed to tell her something, I said, ¨Yo necesito una profesora!" (I need a teacher). She put her hand on her chest and said proudly, "YO soy profesora!" (I am the teacher.)

From that day on I have problems saying what I want to say to her because she is so busy being my profesora. She stops me mid-sentence to correct my pronunciation or my arrangement of words. She is encouraging and committed to teaching me . . . whether I want her to or not!

So I hope that you will not worry or be put off by the prospect of learning a new language. It is not the fearsome project you might think. People here will help you.

It will be a new experience. A new challenge to keep you young!

Note: Since this article was originally posted, Old Maz has closed down. However, the Sunday English Speaker's Meeting is still alive and well, still meeting from 1p.m. to 4p.m., but now the location is Fellini Ristobarretto at Jose Marti y Benito Blanco. All are welcome! For further information go to http://www.totaluruguay.com/montevideo/expats.html.

© Arlean Kelley 03/11/2009 All rights reserved.
Please feel free to send any questions. We will answer in the blog or else write or call you directly. Comments are welcome. Just click on the "comments" line below and write comments for all to see. Article contributions from other expats living in Latin America are encouraged. They are, of course, subject to editing. If you would like to be added to our mailing list, just send an email to newsfromlatinamerica@yahoo.com. Likewise if you want to be removed from the list. And we look forward to meeting you in person--in Latin America!

Shopping the Open Markets of Montevideo

2009-03-19T11:06:00.047-03:00

Sunday is the day of the open market at Parque Rodo in Montevideo, Uruguay. It is huge. Entrepreneurs converge on the area en masse. They set up their stands and tents, arrange their merchandise and they are in business.

These are real Uruguayan businesses. Most of the merchandise is new and much is good quality. You can find leather goods, clothing, hats, boots, jewelry, school supplies, handcrafts and a very large selection of fresh vegetables and fruits. And on occasion even wild edible plants.

I bought some verdelago (or so the merchant told me) a few weeks ago because I have an interest in wild edibles. I bought it because he said it is good for salad. As we were leaving, just outside the market, lo and behold, was a grassy area with an abundance of beautiful verdelago growing, free for the taking. But the price I paid was worthwhile just to learn about the plant and what it is used for.

Verdelago

Does it look familiar? We used to have a ton of this in our vegetable garden. We pulled it out by the fists full and put it in the compost. We should have put it in the salad bowl! Little did we know!

Three blocks from my hotel a different market materializes magically every Tuesday and Friday morning, right in the street, shutting down traffic for three blocks. This one is limited mostly to food.

So if you live in my neighborhood in Montevideo you can buy your fish here . . .

your cheese, eggs, nuts, raisins and dates here . . .

flowers for your table here . . .

Your meat here . . .

And your fruits and vegetables here.

Here is a picture of one more market.

Yes, you´re right! It´s an honest-to-goodness grocery store. It is included just to assure you that Uruguay is a civilized country and if you really want a "normal" shopping experience you can have it here.

But I guarantee that it won´t be nearly as much fun! :)

Until next time . . . .

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Please feel free to send any questions. We will answer in the blog or write or call you directly. Article contributions from other expats living in Latin America are also encouraged. They are, of course, subject to editing.

From Uruguay Daily News

World Bank: Uruguay Better Prepared for Crisis
Posted: Wednesday, March 18, 2009 9:02 am

World Bank chief economist for Latin America and the Caribbean, Augusto de la Torre, said that although Uruguay is one of the best prepared countries in the region to face the international financial crisis, it will suffer in terms of trade. De la Torre said trade would suffer “in part because the world is contracting and in part because the country’s trading partners are having contractions in aggregate demand.” The World Bank economist said the government must be “proactive” to prevent higher unemployment. He predicted that if the crisis persists, there will be impacts on employment and household income in 2009.

Saying hi . . . from Uruguay! :)

2009-03-01T01:33:00.055-02:00

Greetings once again. This time from the beautiful capitol city of Uruguay . . . Montevideo!

I know it´s been a while. One friend thought I had deleted him from my list because I had not updated for so long. The fact is my laptop died on this trip and everything must be done from a public (translated that means s-l-o-w!) computer, which has been a handicap. Particularly trying to work with photos.

But I am back to pass on information to you. Several of you complained about the absence of pictures in my last eletter. I excluded them because others had complained the time before because their computers would not open the file. So I had to do some research. I decided to move my letter to a blogspot site where I could include the pictures that some of you want. If it does not work for you, please let me know. I´ll work at it until I get it right.

You will recall that I started writing this eletter by request from friends who are interested in moving to a place that offers low-cost, high-quality living. And so, although travel is involved, this is not primarily a travel letter. It aims to deal with the nuts and bolts of exploring and living in this part of the world.

The City of Montevideo
Montevideo, with a population of more than 1.7 million, still feels like a small town. People are friendly, caring, sweet people. Not detached and disinterested or too busy to say hello--even to a stranger.

Just for example, recently I was waiting with my son, Matt, in line for a taxi. (That´s how they do it here, you wait in line.) It was raining and the young man ahead of us struck up conversation with us. He asked where we were going. We told him. He said, "I am going right by there. Come and go with me in my cab." And we did. I find this friendliness and caring attitude is typical of Uruguayans.

The architecture here is decidedly European. And so are the people. With my European ancestry, no one on the street can tell I am not a local unless I speak. I don´t stand out. As one travel writer has said of Uruguay, it is more European than Europe!

Part of this city is known as Ciudad Vieja, or Old City. It is the historical area of Montevideo. It is situated right on the Atlantic Ocean, but over the years, the area deteriorated into a slum. The old architecture is grand and beautiful. But the buildings were, and many still are, in serious disrepair. A lot of undesirable folks had taken up residence there. Although I feel safe in the daytime, I would be a bit apprehensive there at night.
Ciudad Vieja where much restoration has taken place.

But the city fathers decided to restore the old area. As part of that program they offer a tax benefit to those who buy and refurbish the old buildings. So if you are into refurbishing real estate, and you like tax breaks, then come on down! It is interesting to wander through the city in the daytime, looking at the old, ornate architecture, and imagine what it was like in years past--the people who laughed and cried and lived and died there. What secrets the old city could tell us!

Here is one of the streets in the restored area.

It is surprising that that part of the city fell into such disrepair since waterfront areas usually are the most expensive. Interesting though it is, I do not want to live there. Even though the old city is gradually improving, there are still quite a few people living on the street.

Aside from the Ciudad Vieja, the type of petty crime that exists in Argentina is minimal in Uruguay. I have seen an unattended cart in the local grocery store with a purse sitting in it, a car left parked next to a sidewalk, running, with the key in the ignition, and other signs that locals are not worried about crime. Things I doubt if you would see in Argentina--and probably should not do here for that matter! But people are not worried enough to be really cautious. I walk around downtown alone, safely, at any time of night.

Throughout Montevideo, all day, you will see the recyclers driving their horses and wagons through the traffic-filled streets where they search through the trash for treasure. These are what you might call professional dumpster-divers!

Comparing Uruguay to ArgentinaArgentina is becoming more and more expensive all the time. I am not sure the reason. The last economic crash in Argentina was in 2001. Argentines claim that this happens to them about every ten years. There is now fear among Argentines that another crash may be in the making. Some people think that that fear is what is moving prices skyward—i.e., that it is a matter of perception. The Argentines experienced hyperinflation leading up to the 2001 crash, with prices changing every day. I don´t mean that when they woke up the next morning the prices were higher, I mean they would go up during the day. That is hyperinflation.

As Doug Casey, of The Casey Report, who invests and lives part of the year in Argentina, says, Argentina has the stupidest government in the world. But many Argentines believe that these crises are not the result of stupidity, but that they are engineered by the bankers and super wealthy who then move in and grab up the spoils. They have a Spanish name for it that I never can remember. I don´t know enough about Argentina´s economics or politics to have an opinion. Many savvy Argentines are too smart to get caught in the trap, if it is true. Their money is in Swiss francs or Uruguay banks.
Several Argentines have told me NOT to bank in Argentina but open an account in Uruguay for any “serious money” since Uruguay is considered the Switzerland of South America, with strict bank secrecy. (Addendum comment: The bank secrecy was changed with the 2009 OECD meeting. See Banking in Uruguay for details.) I happened to mention that advice to a lawyer in Buenos Aires. He looked alarmed and said, “Don´t ever say that to ANYONE! That is illegal!” And then he proceeded to tell me how to do it and said he could give me contact information for Uruguay banks!

I used to criticize how things are done in Latin America. I now think that in some circumstances, the savvy people learn how to survive and prosper in the situation they are in—the others get fleeced.

I don´t think this should keep anyone from living in Argentina. It has a lot going for it, and if you protect the buying power of your cash, perhaps you could snatch up bargains yourself if Argentina has another crisis.

Uruguay is not considered as exciting as Argentina. There are no ski slopes. In fact, as far as I know it never snows anywhere in Uruguay. There are no mountains. No real sightseeing attractions that I know of except for the beaches--which are fantastic. As one writer expresses the difference, Argentina vibrates. Uruguay, on the other hand, is laid back--tranquil. However, Uruguay is also more stable in many ways--particularly economically.

Other Cities in Uruguay

Thanks to a friend and reader who
graciously contributed this map.

We explored all the way up the Atlantic coast to Chuy, on the border of Brazil. I sent a list of real estate buys from that area, at the time, to those of you that I thought would be interested. The prices there are incredibly low. On real estate and everything else! I hear that Brazil is a good place to buy real estate. Houses are available there as low as $25,000 in good areas. Since Chuy is smack on the border with Brazil, that might influence the prices.
There are several small beach towns on the eastern seaboard that would be lovely for retirees who do not need to depend on business or work for survival. La Paloma is one. It is a small beach resort with an interesting lighthouse. Also Piriápolis is a beautiful beach town only 20 minutes from Punta del Este, and about one hour´s drive from Montevideo, one and a half hour´s ride by bus.

Punta del Este is the beachgoer´s mecca of Uruguay, frequented by visitors from Europe and some North Americans as well as latinos. At Punta, if you didn´t know you were in Uruguay you might think you were on Miami Beach. There are fancy restaurants, glistening high rise apartments and hotels and, of course, the beaches. I was there in January and everything was exceedingly crowded--and exceedingly expensive. It is beautiful, though, if you like Miami Beach type cities. As with most of the coastal towns, the economy depends on tourism, which lasts from December to March with some tourists coming as late as May or June. After that most of these places turn into ghost towns except for a few year-round residents. In January, Piriápolis was busy, crowded, and we had problems getting a room. When we did, it was expensive. But in February there was no problem getting lodging close to the beach and prices had dropped.

However, the ghost town effect in Piriápolis may not be permanent. There are many North Americans moving into the Piriápolis area in particular, as well as Punta and points further north toward Brazil. For a retiree who wants to be near the beach, and still close enough to Montevideo for doctor visits and other things, Piriápolis would be a quiet but beautiful location.

Climate

Weather in all of Uruguay is mild. It gets very chilly in Montevideo in winter. Seasons are reversed from the northern hemisphere. You could live in South America during the winter months of North America, and return to the north in May or June and have the best of both worlds. It is the middle of summer here right now. We have had some very warm days--but overall it is very comfortable. Beautiful days, in fact.

Real Estate, Medical and Other Costs
Although I am giving an overview here, I will add more details at a later time. But to begin--at the time this is written, you can buy a breachfront house in a small town in the neighborhood of $75,000 if you have time to wait and look around. Utilities are higher in Uruguay because they are not subsidized as they are in Argentina. As in other areas of Latin America, medical care is good and reasonable and I am told that Uruguay is fine for anything short of heart surgery, in which case you would want to go to Buenos Aires.
Also, believe it or not, in Montevideo doctors make house calls.

For my part, I canceled my supplementary Blue Cross Blue Shield insurance after my experience with the plastic surgery in Santiago de Chile after my fall. I now know where to go where I can afford to pay for medical care if I need it. And I seldom need it. I try to maintain a lifestyle that keeps me from having to resort to prescriptions. I don´t suggest this plan for everyone but it was my decision and I have been happy with it for about four years now. The extra money is handy! I do plan to get accident insurance once my physical address is here. Insurance companies will not write it if I have a U.S. address, which I still do. They will cover me in the U.S. if I happen to be there and need emergency care, but will not insure me if I live there.
Real estate is still reasonable here. Of course the United States is where you find the real steals right now and I understand that in about two years they will be even better. But apartments and even houses are available here in Montevideo from the $30,000s and $50,000 range. I have seen only the ads so don´t know the condition. Probably they need work. Maybe a lot of work! There is no shortage of fixers here for the handyperson. I have seen studio apartments advertised in the $20,000´s.
If you want to check on real estate offered here, two sources that you could try are www.mediano.biz and www.gabinohome.com. You will find pictures, descriptions and prices that will give you an idea what is available. This is not intended as a recommendation. This is only local real estate agents and only to give you an idea what is available. As I have written before, as you read the ads, dormitorios means bedrooms, garaje is a garage, real estate is measured in square meters, not square feet. A parilla is an outside BBQ, usually made of concrete and-or brick. A jardin is a garden. A cocina is a kitchen. Terrazo is a patio. Also, when you look at the ads, if it says alquilar, that means for rent. Vende means sale. And if this is not sufficient, you can always resort to an online Spanish-English dictionary. If there is anything like an MSL listing here I have not found it. In fact, that could be a business idea!

One thing I notice about both Argentina and Uruguay. You do not have the feeling of enforcement. The police have a sweet, servant attitude toward the people on the street. I have never seen one with an authoritarian attitude. They are there to help people. In Viedma, Argentina, I smile when I see the police riding their bicycles through the street. And yet they are there, faithfully doing their job. But their entire attitude is one of oversight and protecting you rather than ordering you around. In fact, the entire feeling of enforcement is absent in both of these countries. And yet, for the most part, you are safe here although subject to petty crime, particularly, in Argentina. Of course one needs to use normal caution in any large city.

There is also apparently no enforcement regarding at least some drugs in Uruguay. I smell marijuana often on the street. Same in Argentina. I also noticed people sitting in doorways openly smoking pot. There is vocal statement of compliance with pressure from the United States, but in practice it apparently is ignored. I think there is a tendency here to "legalize" it whether formally or not. This is not a problem for me but I mention it in case it is for you.

If you decide to refurbish real estate, there are requirements if you change the structure of the building. But according to the lawyer I consulted in Montevideo, you are perfectly welcome to do the work yourself.

Economy
Uruguay is almost all arable farmland. It is gently rolling with little streams that run like veins through the country. Most of the population lives in Montevideo with the balance spread through the farm areas and the beach towns.

Tourism is a major industry. Much of it is Europeans who vacation on the beaches on the Atlantic side. But for the most part it seems to me to be people from Brazil, Uruguay, Argentina and Chile.
I am not sure how Uruguay will fare in the financial meltdown directly ahead. Europe is extremely damaged financially as their governments, retirement funds, etc., are heavily invested in the worthless debt sold off to them by the Henry Paulsons of the world--who was at the helm of Goldman-Sachs, one of the biggest offenders in packaging, mislabeling and selling toxic debt around the world. So I suspect that tourism from Europe and America will be greatly curtailed. Which leaves farming. Countries whose major product is commodities are expected to not fare as badly as the more industrialized countries, like the United States.
Uruguay´s biggest trading partner is Brazil. Brazil is also a farm and natural resource country expected to be less affected by the meltdown for that reason. BUT . . . Uruguay´s second biggest trading partner is the U.S. So it seems to me Uruguay will feel the effects. Maybe seriously. And yet they produce mostly food, and people always have to eat. As far as I can determine, they were not big participants in the toxic debt tranches.

One more bit of information for my friend who always wants to know about firefighting in these countries. I almost never see a fire truck in the streets of Argentina or Uruguay. You see the bombero stations, so they are here. But most of the buildings are concrete. Even the roofs are concrete. A fire could start in a mattress or drapes on the inside but I think it is not likely to get very far. There really is not a whole lot of carpet in the buildings here. Most of the floors I see are tiled. So not much to report on that score. Chile is another matter. Almost everything there is wood and every time I have spent time in Chile, I have seen fire engines racing to a pillar of smoke rising somewhere in the city. But not in Argentina or Uruguay where construction is mostly non flammable.
For those of you seriously considering a move to a less expensive country with great quality of life, Uruguay would be one of the major countries in Latin America that I would recommend considering. In fact, I am considering staying here myself. But if you are going to do it, it might be a good idea not to put it off for too long. If you are from the United States, now is a good time, while the dollar still has purchasing power.

© Arlean Kelley 03/11/2009 All rights reserved.
Please feel free to send any questions. We will answer in the blog or write or call you directly. If you click on the "comments" line below you can write comments for all to see. Article contributions from other expats living in Latin America are also encouraged. They are, of course, subject to editing. If you would like to be added to our mailing list, just send an email to newsfromlatinamerica@yahoo.com. Likewise if you want to be removed from our list And we look forward to meeting you in person--in Latin America!________________________________________________________