Latam is an interesting destination for investment as it often with a plan B residency permit.

Medellin, Image Credit: Wikiccomons.

For GDP/Capita comparison the local giants, Argentina, Mexico, Brazil stand at 11k, 10k and 7k per year.

Uruguay

A quiet plan B country nestled between Brazil and Argentina with mostly european population

• Half of the 5m population lives in Montevideo, GDP/capita $17k, which is slightly higher than Chile
• income requirement of $1500/month and 6m+ requirements or buy 400k of real estate and stay 60 days.
• 5.6% gross yields in the 4% to 9% area
• higher yields on expat flats renting at 3k
• rental income tax at 12%, territorial for first 10y
• less unsafe
• guruguay does not suggest a real estate agent on her website
• overseaproperty talks about 2014 prices and recommends contacting reynoldspropiedades
• nomadist map of montevideo

Panama

• GDP/capita $14k,
• permanent residence scheme for housing around 300k, no stay required
• rental yield 6.7%
• overbuilt, new builds have renters preference, much vacancy
• income tax at 5%
• less unsafe
• serveral influencers recommend not to buy in Panama: endless new better construction lead to oversupply and high vacancy.

Costa Rica

• GDP/capita $12k,
• many income based visas, territorial tax, stay required
• 6.3% gross yield
• income tax at 15%, territorial
• relatively unsafe

Mexico

• GDP/capita $10k,
• Investable city are Playa del Carmen, Tulum
• playing on nomads staying for month, not tourists staying weeks
• yield at 4%
• income tax at 25%
• permanent residence for purchase of home with value of 170k, no stay required,
• can also get 4Y residence/permanent residence with proof of assets.
• unsafe outside expat enclaves

Colombia

• GDP/capita $6k,
• Investable city are Carthagena and Medelin. The wandering investor advises against Bogota, for Medelin.
• yield at 6.4% for Bogota but above 10% with highend airbnb flat for US expat
• income tax at 26%
• permanent residence for purchase of home with value of 150k, no stay required has been cancelled
• Gustavo Petro elected in Aug 2022, this is the first ever left wing Colombian president.
• safety: no dar papaya

Update 20230216: According to sovereign man research, the permanent residence deal in Colombia has been discontinued. Buyer only now gets temporary residence, needs to show up every 6 month in the country and will be upgraded to permanent after 5Y. Citizenship path now takes 10y while it used to be a back-pocket deal. I would suggest to not buy in Colombia so as not to reward bad behavior.

Argentina

• gross yield 5.7% (2% in Buenos Aires, which means negative net)
• income tax at 21%, cgt 15%, wealth tax
• no indexation of rent on inflation
• can renegotiate every 2 years, there was rent control from 1943 to 1979.

Other countries

• Brazil 5.3%
• Chile 4.9%
• Paraguay: assuncion 3%, tax at 10%, 1br 180k rent 1k, 125m2 house luque 150k rents 4m 5m, furnished 160k rents 6m7m