The Best Second Residencies in Central and South America

With the sheer scale, vast number of countries and dizzying variety of experiences on offer in Central and South America, you’ll certainly need to do some digging to unearth the destination that works best for you.

One thing that may help when choosing between the 33 nations that make up this spectacular continent is that, for North Americans and for Westerners in general, Latin America is a soft landing in cultural terms.

While Spanish and Portuguese are the main languages, English is widely understood and is even the official language of a handful of countries. The US time zones mirror those of several Latin American countries, including Mexico, Costa Rica, Guatemala, Nicaragua, Honduras and others. 

Perhaps because of the influence of Latin culture on North America, some facets of life in Central and South America will feel far more familiar than those in Southeast Asia, the Middle East and Africa. 

As an added bonus, Central and South American countries are often among the easiest places to immigrate to and the culture easier to assimilate to, than some countries in Asia (which can also be quite easy to immigrate to).

From a cultural perspective, you’ll likely be accepted as Brazilian eventually, but you’ll probably never be accepted as Malaysian or Cambodian.

These countries also generally allow dual citizenship and, if you plan on having children, many Central and South American countries offer citizenship by birth.

That being said, Latin America isn’t perfect. It can be hierarchical and, if you’re a woman, it can be somewhat patriarchal.

Countries in Latin America are also typically highly bureaucratic. While expats tend to enjoy the relaxed pace of life here, the lifestyle also applies to government processes, which can be frustrating at times.

It’s to explain issues like these that Nomad Capitalist’s team created this guide to the best second residencies in Central and South America. From our extensive, boots-on-the-ground research, we’ve learned the ins and outs so you can sit back and start planning your next move overseas.

What Makes Immigrating to Central and South America Difficult?

Despite having some of the easiest second residency programs in the world, immigrating to Latin America can be difficult at times – mostly thanks to good, old fashioned bureaucracy.

Unlike in most countries, bureaucrats in Central and South America tend to apply laws flexibly since regulations there change frequently.

For this reason, Latin American immigration is perhaps Nomad Capitalist’s largest R&D endeavour – navigating these bureaucracies is a lot harder if you don’t know what you’re doing.

On the other hand, immigration requirements are generally a bit easier. In many countries, Rentista programs (rentier visas) allow you to establish residency by proving that you have a minimum monthly income. Similarly, Pensionado programs (retirement programs) let you immigrate if you’re retired and have a monthly pension.

There are many different and easily accessible options for investors, retirees and other potential immigrants.

Despite the low barrier to entry, however, there are people being rejected for residence in Latin America. With more bureaucracy, the process is going to take longer than it would to get a residence permit in Malaysia or even to get a European Golden Visa.

There are exceptions to this, and your willingness to wait for the outcome may vary depending on your individual circumstances. Regardless, you really need to know what you’re doing. To learn more about this process and other aspects of the Nomad Capitalist lifestyle, check out our blog. 

Finally, one of the largest challenges that we have encountered over the years is finding reliable people to work with. While we’ve managed to find the best of the best, it wasn’t exactly easy to do so.

Therefore, while second residencies in Central and South America are often easy in the sense that you don’t need to have hundreds of thousands of dollars to invest, they can be difficult to get if you don’t know how to navigate the process.

A Note on Scams and Legality

When researching second residency programs in Latin America, one of the problems that you’ll run into is programs that are questionably legal at best and outright scams at worst.

Unfortunately, Latin America is a very cheap place to get fake passports. There have been passport scandals even in Mexico. Make sure to ignore any programs that sound too good to be true, such as getting a Bolivian passport in 14 days for US$15,000. 

Because Latin America is so open, and getting a passport legitimately isn’t very hard, a number of unscrupulous operators have tried to take advantage. 

For this reason, the Nomad Capitalist team has carefully ensured that every program on this list is 100% legal and legitimate.

Best Residence Programs in Central and South America

For the following countries we’ll give you a basic overview of the immigration process and provide an honest opinion on the real scoop in each country.

As has been the case on multiple occasions, the law doesn’t always match reality in many Latin American countries. For instance, the law may say they allow you to immigrate under certain provisions, but bureaucrats won’t let you do that because the law is going to change.

Our goal at Nomad Capitalist is to give you a real perspective on what happens on the ground in each of these countries – not just theory and a few random people’s experiences from internet forums. Our team is familiar with the culture and the lingo, allowing us to offer you this valuable information.

Mexico: One of the Best NorthSouth American Countries to Live In

It’s not a secret that our team at Nomad Capitalist loves Mexico. We’ve discussed it a number of times on the site and on our YouTube channel. The country offers interesting investment options, and the location is fantastic for those who want to be close to family in the US. 

There’s incredible variety in Mexico. It has some of the best food in the world – from top-ranked restaurants in Mexico City down to the amazing street food – the people are incredibly warm and helpful, the shopping is fantastic and the culture throughout the country is fascinating.

In fact, Mexico City is one of our two favourite international cities in Latin America. You could spend years exploring just Mexico City, but you still wouldn’t have seen and experienced everything this vibrant city has to offer, let alone the entire country. If you’ve never been, make sure you put Mexico on your list because it is also one of the easiest countries in the world to visit.

Getting Second Residence in Mexico

What’s great about Mexico is that getting residency is a very straightforward and simple process. The first step is getting a temporary residence visa. These are available to anyone who plans on staying in the country for anywhere between 180 days to four years. You have a few different options for qualifying for this visa:

1. Show proof of income of US$4,350 every month for the past 6 months
2. Present records showing you’ve been invited to volunteer in the country for an organisation or institution
3. Provide evidence that you’re related to a temporary/permanent resident
4. Submit documents that prove you’re married to a Mexican citizen.

A temporary resident visa is only granted for a one-year period. If you reapply, you can renew that visa for up to three years at a time. You are not required to spend a certain amount of time in the country each year to maintain your visa. And you can enter and exit Mexico as many times as you’d like.

Residence through Real Estate

You can also qualify for residency by investing in Mexican real estate. As long as you can prove that you’ve made an investment of around US$220,000, you will automatically qualify for residency. 

Note: The official investment amount is calculated by taking the Mexican minimum wage and multiplying it by 40,000 days of work. Because the minimum wage changes over time, the full investment amount will also change with Mexico’s economy and labour laws. Whatever the required amount may be, you will be able to find a nice place with your investment. 

With US$220,000, you can purchase a modern, two- or three-bedroom apartment in Mexico City, a luxury home in the suburbs or other parts of the country. If you can prove this investment, you automatically qualify for a temporary residence visa and can begin the process of getting a permanent residency and even citizenship.

Residence through Investment

The last option is to make a combination of different investments in Mexico that could include real estate but can also involve businesses and stocks. Altogether, you’ll want around US$100,000 in real estate and the same amount in a Mexican corporation. 

To qualify through investment, you need to provide sufficient documentation to prove you made those investments. You’ll also need to prove through the Mexican Social Security department that you’re employing at least three people. If you can do all of that, you automatically qualify for the temporary residence visa.

Qualifying for Permanent Residence

Permanent residence is granted to individuals who have the intention of living in Mexico on a long-term basis and who meet at least one of a few different qualifications. If you meet any of these, you can skip getting a temporary residency:

• You have a child, sibling, parent or grandparent who is a permanent resident
• You are pensioned or retired and can provide adequate monthly income through investments, savings, or pensions
• You are seeking political asylum.
• You are an unmarried minor with a Mexican father or mother.

If none of these apply to you, you’ll need to apply for temporary residency first and keep it for four consecutive years (two years if you’re married to a Mexican citizen) before applying for permanent residence. Mexico uses a point system to approve permanent residence applications. 

The criteria was crafted to attract foreign investors and individuals with expertise. It includes your education, work experience, international awards, investment in the country, Spanish language proficiency and knowledge of Mexican culture.

Can I Get a Mexican Passport?

Obtaining a Mexican passport might not be the best option for everyone, but there are some situations where it can be very beneficial. Unless you have relatives who are Mexican citizens, you’re going to have to go through the naturalisation process. This shouldn’t be daunting. 

Naturalisation is a very straightforward process that only requires five years of residency. 

Whether you have a temporary or permanent residence does not matter as long as you have had resident status for a total of five years. 

This can be a great option for someone running a manufacturing business with North American customers or for a digital nomad looking to get out of the US without going too far away from family. 

It isn’t such a good idea for someone looking to build a passport portfolio. While you can become a dual citizen in Mexico, the country does not allow multiple citizenships beyond two. 

Mexico is what’s called an option residence. You can get and keep a temporary residence there without spending any time in the country during the first few years. 

During that time, you can explore other options and consider if Mexico works for your nomadic strategy. You don’t have to spend a huge chunk of time upfront to make it work as you would in a country like Chile.

Nicaragua: One of the Cheapest Central American Countries to Live In

If you’re looking for a low cost of living with an outstanding quality of life, head to Nicaragua. This Central American country is one of the safest and most scenic countries in Latin America, but unlike its more expensive neighbour, Costa Rica, you can live there for remarkably little money. 

In fact, hiring a full-time housekeeper will only cost you slightly over US$100 per month. Getting a second residency in Nicaragua can, therefore, be a great way to lower your cost of living while enhancing your quality of life. And, luckily, getting your residence permit there isn’t too difficult.

Getting a Second Residence in Nicaragua

The process for getting your residence permit in Nicaragua is quite simple. There are options for getting a second residence without an investment, making Nicaragua one of the easier places on this list to establish residency. In general, there are three ways that people commonly qualify. 

First, retirees who receive a pension of US$600 or more per month can qualify for Nicaraguan residency. If you’re not retired, a second option is to qualify by proving that you have a foreign income of US$750 per month (plus US$150 for each dependent). The third option is to invest US$30,000 in an employment-generating business (creating 15 new jobs).

For the most part, these criteria are straightforward and uniformly enforced, but people occasionally run into trouble when applying for the financier residence permit since what qualifies as foreign income can be up to interpretation. For example, while an investment account or annuity that pays US$750 per month will surely qualify, running a remote business might not count in the eyes of all Nicaraguan officials. 

Once you’ve determined whether you can qualify for residency under one of those categories, you must then travel to Nicaragua to apply for a residence permit. 

You must remain in Nicaragua for 30 days after you submit your application. For your application, you will need to fill out all the paperwork required for your particular type of residence permit, such as a formal application and health assessment. You will also need other documents like an apostilled copy of your birth certificate. 

When you complete your application, we highly recommend hiring a trusted local lawyer to assist with the process and speak directly to local officials.

Can I become a Nicaraguan citizen?

If you get your Nicaraguan residence permit, then yes, you can apply for citizenship after five years of staying in the country. However, as in most Latin American countries, the naturalisation process can be tediously bureaucratic. You’ll need to work with a high-quality immigration lawyer and you’ll need to be prepared to wait for months or even years to actually get your passport. 

What makes getting citizenship in Nicaragua potentially interesting but also challenging is that currently, the government is not enforcing the requirement to spend half your year there. The question you need to be thinking about and working with your immigration lawyer on is: will that situation change?

Residence Requirements

Once you become a resident of Nicaragua, maintaining your residency is rather easy – if you’re willing to live there. While you don’t need to renew your residence permit once you have it, you need to stay in the country for six months out of the year to maintain it. That’s the main reason why becoming a resident of Nicaragua isn’t always the best option for our Nomad Capitalist clients.

If you have various business interests around the world, it can be difficult to ensure that you spend over 180 days per year in one location. 

However, if you’re a digital nomad or entrepreneur who’s just starting to build your business, then becoming a resident of Nicaragua might not be the worst idea – it will allow you to live well while maximising your money.

Costa Rica: Pura Vida in One of the Best Central American Countries for Expats

Costa Rica’s national motto is ‘Pura Vida’, which translates to ‘pure life’, and that’s exactly what you’ll find in this gorgeous Central American country. Thanks to its stunning scenery and friendly locals, Costa Rica has attracted nomads and expats from all over the world.

Although certain Costa Rican cities have something of a reputation as party towns, the country is one of the safest in Central America. And thanks to its popularity as a tourist destination, it has good health care and transportation.

It’s not as cheap as some of the other countries on this list, but you can live well in Costa Rica for a fraction of the cost of living in major cities like New York or Los Angeles.

In general, Costa Rican residency can be a good option for those who want a second residency with minimal physical presence requirements, great health care benefits and the possibility of citizenship.

How to Become a Costa Rican Resident

The two most effective options for becoming a Costa Rican resident are the Rentista option and the Investment option.

For the Rentista visa, you’ll need to provide bank statements that prove you consistently make at least US$2,500 in income per month from your employment, self-employment or other sources. 

You also have the option of depositing US$60,000 in a Costa Rican bank or opening a US$60,000 fixed deposit account with a statement that you will receive US$2,500 from that account each month.

The Investor visa, on the other hand, requires you to invest US$150,000 in Costa Rican real estate, stocks or businesses.

If you fit either of those categories, you can begin the process of gathering your documents and applying for residence.

Before you apply, you’ll first need to gather thirteen different documents. These include a police report from your country of residence for the past three years, an apostilled birth certificate, an apostilled marriage certificate and (if using the Rentista option) bank statements from the past twelve months.

Once you have gathered the required documents, you may then apply for a temporary residency. The application process can take up to six months to complete, but once your application is approved, you will begin your two-year period of temporary residence.

After your first two years, you can renew your temporary residency and wait a further year to apply for permanent residence.

Residency Requirements for Costa Rica

One of the biggest benefits of becoming a Costa Rican resident is that maintaining your residency is relatively simple.

You only need to spend one day in the country per year, and once you have permanent residence, you need only return once every four years.

The only major requirement for Costa Rican residency is that all residents under the age of 55 maintain national health and retirement insurance, which costs roughly US$230 per month. However, health insurance covers all public health expenses, which can be helpful if you need emergency coverage.

Citizenship in Costa Rica

Like most Latin American countries, Costa Rican citizens can become citizens after a period of residency.

In Costa Rica, you must wait seven years to apply for citizenship after becoming a resident. During those seven years, you must remain in Costa Rica for at least 183 days in each year.

Costa Rica is fairly strict about the 183-day residency requirement. Therefore, while citizenship is a possibility, you must be willing to actually live there to get it.

Panama: A Business-Friendly Option Among the Best Central American Countries

If you’re looking for a second residence with minimal physical presence requirements in a business-friendly jurisdiction, look no further than Panama.

Now that it has overcome the Panama Papers scandal, the country is a high-quality banking and business jurisdiction. It’s also a tax-friendly second residence by virtue of its territorial tax system.

Panama is a great option if you want to live in Central America with all of the conveniences that you have at home. It has the quality of infrastructure and amenities that you’re used to and is relatively well-connected to other parts of the world.

It has a low cost of living – it’s quite possible to enjoy big-city living in Panama City for as little as US$1,500 per month.

Of all the countries on this list, Panama offers the largest variety of residence options. The easiest one is the Friendly Nations Visa, but if you’re not from a qualifying country, then you still have other options.

The Panama Friendly Nations Visa

Many Westerners can use Panama’s Friendly Nations Visa to become a resident. To be eligible, you must be able to deposit US$5,000 in a Panamanian bank account and have an economic tie to the country. The easiest way to do this is to start a company there, but you can also choose other options, such as investing in Panamanian businesses.

If you’re married or have children, you’ll need to deposit an extra US$2,000 per dependent.

From there, the process for applying for a Friendly Nations Visa is quite simple. Once you complete the financial requirements and gather the required documents, you’ll be set for your Panamanian residence.

Additionally, under this program, the physical presence requirement is minimal. Like Costa Rica, you only need to spend a day in the country per year to keep your residence permit.

The problem with the Friendly Nations Visa is that it’s only available to citizens of 50 different countries, including most EU countries, the US and major Asian economies like Taiwan and South Korea.

If you do not have citizenship in one of these countries, then you will not be eligible for this visa.

Additionally, if you plan to renounce your US citizenship, you may not be able to keep your Friendly Nations Visa after you renounce – unless you choose to get Panamanian citizenship.

Reforestation Investor Visa

If you don’t qualify for the Friendly Nations Visa, then you can also qualify for residence through the Reforestation Investor Visa.

To be eligible for this visa, you must invest a minimum of US$80,000 in five hectares of certified reforestation project land and US$2,000 more per dependent.

Once you have made your investment, obtaining your visa and permanent residence is straightforward.

Other Panamanian Residency Visas

If neither the Friendly Nations nor Reforestation visas work for you, then there are a handful of other options to choose from. 

The Pensionado Visa allows foreigners with a guaranteed lifetime pension of US$1,000 per month to become Panamanian residents. If you can prove that your pension income is for life, you can obtain permanent residence and even get a variety of discounts on airline tickets, entertainment, hospital bills and other expenses.

Panama’s Self Economic Solvency Visa is similar to a standard investor visa in that you must invest US$300,000 in a Panamanian term deposit account, real estate or a combination of the two. The process for applying for this visa is similar to the Friendly Nations Visa. 

You can also invest US$160,000 in a Panamanian business to obtain a Business Investor Visa.

Can I Get Panamanian Citizenship?

Although obtaining residency in Panama is not difficult, citizenship is a different story.

Technically, you can get citizenship in Panama after being a resident for five years if you spend the majority of your time there. However, we’ve known people who have been there for fifteen years who have still not gotten Panamanian citizenship.

Additionally, if you value having a second passport portfolio, then Panama might not be the best option for you. Panama does not allow dual citizenship, so you would need to give up your other nationalities in order to become a citizen.

Honduras: An Underrated Gem Among the Best Central American Countries

Of all the Central American countries on this list, Honduras tends to fly under the radar for most people. 

While the country has a questionable reputation internationally, there are plenty of excellent places to live there and you’ll be able to enjoy a quality lifestyle with breathtaking beaches at a fraction of the cost of Miami or even Costa Rica.

Obtaining residence is relatively simple, and most people qualify through one of three different visa types: Rentier, Retiree or Investor.

For all of these, you first need to enter the country on a tourist visa and engage a Honduran lawyer to represent you during the application process.

The Honduran Rentista Visa

To qualify for the Honduran Rentier visa, you must show proof of an income of at least US$2,500 from outside of Honduras.

Unlike similar Rentista programs in Central America, this income cannot be from employment or self-employment. Instead, it must be from a more passive source like rental income, investments or savings.

If you qualify, then you can hire a Honduran lawyer to begin the residence process. Because finding a good lawyer in Central America can be tricky, we recommend using a consultation service as well.

Honduran Retirement Visa

If you can prove that you have a lifetime pension income of at least US$1,500 per month, then you are eligible for the Honduran Retiree Visa.

To apply, you must provide certified proof of that monthly income as well as standard residence documentation, including a police report from your current country of residence and a medical examination.

Honduran Investor Visas

You can also become a resident by investing US$50,000 in Honduran real estate or a local business and by making a US$5,000 deposit into the central bank.

This process is a bit more complicated than the other residence options. You begin by entering the country on a tourist visa and opening a bank account, but you will then need to incorporate a business in Honduras. While no physical presence is required to open the company, you will need to make a US$5,000 deposit in a Honduran bank to demonstrate ties to the country.

You also need to obtain a Honduran business license to operate legally in the country and renew it each year.

Finally, when you apply for Honduran residency by investment, at least half of your investment must be paid into the company. You must, however, provide a timeline for the rest of your investment along with the standard application paperwork.

Getting Honduran Citizenship

Once you have become a Honduran permanent resident, there is a five year wait to apply for citizenship. To be eligible, you must have spent the majority of your time in the country during those five years.

Just as you need to obtain a good lawyer to get through the Honduran residency process, you will also need one to apply for citizenship. Additionally, if you wish to obtain citizenship, you may be able to expedite the process in three ways. First, if you were born in Central America, then you can generally get Honduran citizenship after residing in the country for one or two years. You can also become eligible immediately if you become married to a Honduran citizen by birth or if you have provided ‘extraordinary service’ to the country.

Colombia: A Rising Star Among the Best South American Countries to Live In

Thanks to its stunning scenery, growing economy and openness to foreigners, Colombia has become an increasingly popular destination for digital nomads, investors and entrepreneurs. Living in Colombia is incredibly cheap, which makes it ideal for those just starting to build their businesses. 

However, taxes can be high, something to keep in mind if you’re looking for somewhere permanent to live. As a result of this new influx of foreigners, Colombia has overhauled its residency programs. 

For our purposes, there are two primary options for Colombian residency: the fast track and the slow track. It’s worth noting that the prices for each track are indexed to inflation, and they can and do change.

Colombian Fast-Track Permanent Residence

To obtain immediate residence in Colombia, you can invest around US$165,000 in real estate or a corporation. This can be an individual investment or made in conjunction with someone else. 

While this option gives you immediate permanent residency, the application can be more difficult to complete. However, it gives you the option to apply for citizenship in five years.

Colombian Slow-Track Residence

If you don’t want to invest US$165,000 in a Colombian business or real estate, then you can use the slow-track option to obtain temporary residency. This option can also lead to permanent residence and citizenship. 

For the slow track, you can get a business visa that doesn’t have a minimum initial investment requirement. You’ll likely need to invest US$23,000 at some point, but if you have something like intellectual property that you can prove is worth that much, then you can theoretically invest nothing to get temporary residence. 

However, while you don’t need to make the US$25,000 investment immediately, Colombian immigration has upped enforcement of business activity requirements.

This means that you need to demonstrate six months of business activity – meaning money in and money out – in order to maintain your residence permit’s validity. This is where things can be a bit of a hassle. Colombia isn’t the best country to run a business in, but if you can move money around for a while and eventually put in US$25,000, then you can get residency there.

After you’ve maintained that temporary residence permit for five years, you can apply for permanent residence. However, you’ll need to spend a good amount of time in the country. While Colombia isn’t too specific, the requirement of spending a single day in the country each year is not going to be enough.

Getting Colombian Citizenship

Like many of the countries on this list, getting residency in Colombia isn’t too difficult, but citizenship is more challenging. To be eligible for Colombian citizenship, you’ll need to have been a permanent resident for five years. If you choose the fast-track option, you must wait for five years, but if you choose the slow track, it’s at least double that. 

Spending the majority of your time in Colombia is also required to qualify for citizenship. While this can be beneficial in terms of the cost of living – you’ll be dragged into Colombia’s tax net, which can be problematic. 

But if you’re following our trifecta strategy and living in several different places, Colombia is a great Latin American option.

Peru: One of the Best South American Countries for Investors

Peru is an interesting option for people seeking a second residency in South America.

Between its beautiful coastline, awe-inspiring Andean highlands and fascinating rainforests, Peru is filled with stunning views and plenty of outdoor adventure. It also offers a remarkably low cost of living.

While becoming a Peruvian resident isn’t actually that difficult, navigating the process can be hard thanks to all of the misinformation that abounds on the internet.

That’s why our research team has spent plenty of time on the ground to give you the truth about Peruvian residency. We want you to know the difference between what’s technically possible and what actually happens when you apply.  

In general, there are three ways to become a Peruvian resident – investment, Rentista and retirement.

Peruvian Residency by Investment

Most of the misinformation about Peruvian residence comes into play with the Peruvian Investor Visa.

If you perform a cursory search on the internet, then becoming a Peruvian resident by investment seems easy. Based on what random blogs say, all you need to do is invest US$30,000 into a Peruvian business.

Seems easy enough, right?

Unfortunately, that’s not correct. Based on Nomad Capitalist’s on-the-ground research, you actually need to invest five times as much money – US$150,000 – in order to even be considered.

In addition, you need to create five jobs, and in your application, those five jobs must be outlined in a business plan.

Therefore, while the process of obtaining residency by investment in Peru is similar to other countries, you need to know the facts. Otherwise, you might end up flushing US$30,000 down the drain.

The Peruvian Rentista Visa

If you don’t have US$150,000 to invest in a Peruvian business, then you can also obtain Peruvian residency through the country’s Rentista program.

To qualify under the Rentista visa, you will need to prove that you have an income of no less than US$1,000 per month. While this is easy enough, keep in mind that Peru’s Rentista program is similar to Honduras’ and the income must be from a non-employment source. 

However, if you do have the required non-employment income, then the process is relatively easy. 

Like the Rentista visa, you can obtain a retirement visa by proving you have a permanent income from a pension or other sources of over US$1,000 per month.

Immigrant Visa

Once you have resided in Peru for three years, you have the option to get an Immigrant Visa if you do not want to get Peruvian citizenship.

This visa establishes long-term residency in Peru, so you will not have to renew your visa as often. However, since you will still be a foreigner, you will still need to pay foreigner’s taxes while you are in Peru.

Peruvian Citizenship

The Peru citizenship program is one the fastest in the region, and you can apply after just two years of residence.

However, in order to qualify, you will also have to spend no less than 183 days in the country per year, which can have some tax consequences. While you may be able to reduce your Peruvian tax burden with some degree of planning, it’s not exactly a tax-friendly second passport.

You will also need to complete a language and history test in Spanish to qualify and have a clean criminal record.

Therefore, while getting a Peruvian passport is doable, it might not be worthwhile due to the residence, language and tax requirements.

Argentina: A Quick Path to Citizenship in One of the Best South American Countries

Argentina is an interesting option for people seeking second residence and citizenship in South America. The country has a bit of a fiery history to the point where some have called it the Thailand of Latin America.

However, despite its recent political instability, Argentina is emerging as a powerful regional player with a strong passport and a growing economy.

Argentina is also a large country with a lot of regional diversity, so like Mexico, it’s a lot easier to find somewhere you would actually like to live.

It’s also relatively simple to get residence there, and in some cases, you may be able to become an Argentine citizen in as little as two years.

Becoming a Resident of Argentina

You can become a resident of Argentina if you can prove that you earn a minimum monthly income of US$2,000 or more.

While you may qualify if that income is from employment, the Argentine government tends to favour applicants with non-salary income sources. Additionally, this income will need to be deposited into an Argentine bank account.

Similarly, you can also become an Argentine resident through a retiree visa with a pension or other guaranteed income of above US$2,000 per month.

Once you have obtained temporary residency through either of these means, you can apply for permanent residency after two years.

Getting an Argentine Passport

After being a resident of Argentina for two years, you can apply for citizenship.

Like most Latin American countries, you need to have spent a substantial amount of time there during those two years. However, it is possible to spend less than 180 days in the country if you have a compelling case.  

So, theoretically, if you want to follow our trifecta approach and establish Argentina as one of your bases by spending three to four months per year there, you can hire a professional to argue your case and still be eligible for citizenship.

From there, the process for applying for citizenship is similar to that in other Latin American countries. You’ll need to pass tests in Spanish, and you’ll likely need to hire a professional to help you navigate the process.

One interesting thing about this passport is that you cannot technically renounce it, which is something to keep in mind if you decide to apply for citizenship.

Since Argentina has had its share of financial problems, you may want to account for the possibility of it imposing citizenship-based taxation. And, unlike the US, you might not be able to renounce your passport.

Despite these drawbacks, however, getting an Argentine passport is beneficial simply because it’s a country that you might want to actually live in. Unlike some of the Caribbean countries, which are incredibly small, Argentina is large and livable, making it a good backup option if you ever want to go there.

Chile: One of the Best South American Countries to Live In

With its stunning mountains, heritage sites, national parks and low cost of living, Chile is an attractive option for easy second residence in South America.

In fact, it has one of the highest standards of living in Latin America, and it’s even part of the US visa waiver program. This makes it a good option for US citizens looking to renounce but who want to visit the US.

Becoming a Chilean Resident

With the Rentista visa, you must demonstrate income of at least US$1,500 per month to apply for residency and US$500-US$750 per dependent. 

For the retirement visa option for those over 55, it’s necessary to show a lump sum of US$125,00 across bank, pension or brokerage accounts. To qualify for a visa by starting a business, you’ll need US$60,000, which jumps to US$75,000 if the venture is based in Santiago. 

You have three months from receiving the visa to begin trading, and the company cannot be dormant. 

Because the immigration process in Chile can be reliant on the discretion of immigration officials, we highly recommend hiring a local lawyer to help you through the process.

Getting a Chilean Passport

Like Argentina, one of the most attractive aspects of becoming a resident is the prospect of getting a Chilean passport.

As we’ve mentioned in other articles, one important factor to consider with any second passport is whether you would want to actually live there if things went belly-up in your home country. Thankfully, Chile is a highly livable country, making it an attractive option for second residency and citizenship.

With a Chilean passport, you can get into the US under the visa waiver program and enjoy visa-free access to a variety of countries, including Russia.

After you have held Chilean residency for five years, you may then begin the application process.

You’ll need to provide the usual paperwork, complete an interview and likely wait at least two years for your application to be approved.

Ecuador: Low Cost of Living and Beautiful Scenery in South America

Ecuador is yet another up-and-coming Latin American country with a relatively simple residence process and an astronomically low cost of living. 

Here, you can have a full-service maid, cook and even driver for a fraction of the cost you would pay at home. Ecuador is also one of the safest countries in Latin America and is relatively well-connected to the rest of the world.

It also offers potential immigrants plenty of residence options and a path to citizenship.

Ecuadorian Residence by Investment

The most common way to get an Ecuadorian residence permit is by investment. To be eligible for this permit, you need to invest US$27,580 into an Ecuadorian company or into a business that you start yourself. Or you must invest US$45,000 in qualifying real estate or land. 

Once you’ve done that, you can apply for a two-year temporary residence permit. You will need to enter the country on a tourist visa and provide proof of your investment as well as standard documents like a police report and an apostilled copy of your birth certificate. 

One of the biggest benefits of getting residence by investment in Ecuador is that there is no physical presence requirement for maintaining your residency. However, you will likely need to stay in the country for the majority of the year to apply for citizenship.

Retiree Visa

You can qualify for an Ecuadorian Retirement Visa by proving you have a retirement income of at least US$1,350 per month. 

Like the Investor Visa, it is only valid for two years, and you must remain in the country for at least six months a year to maintain your residence.

Can I Get an Ecuadorian Passport?  

After two years of temporary and one year of permanent residency, you can apply for Ecuadorian citizenship by naturalisation. If you’re a Westerner, this passport comes with the opportunity for visa-free travel to Russia. 

However, one issue to keep in mind if you apply for citizenship is that you will become an Ecuadorian tax resident in the process. Because you need to stay in Ecuador for more than 183 days per year to maintain your residence (or be eligible for naturalisation), you will pay Ecuadorian tax on your worldwide income. 

If you pay tax on that income in other jurisdictions, you may be able to exempt it, but Ecuador does not allow you to exempt income earned in low- or no-tax jurisdictions. Therefore, while the process for getting Ecuadorian citizenship is straightforward, you will need to consider how it will impact your tax strategy.

Paraguay: A Fast Track to Citizenship in South America (With a Caveat!)

Paraguay is part of the Mercosur trading bloc, which gives you access to numerous South American countries. 

But because it isn’t part of CRS – the Common Reporting Standard or international crackdown on undisclosed offshore bank accounts –  it’s one of the fastest places to get citizenship in the world.

However, while Paraguayan residency seems easy on paper, the letter of the law doesn’t always reflect reality in this part of the world. Legal services in Paraguay are poor, so we recommend using a trusted source for legal representation there.

Becoming a Resident of Paraguay

Paraguayan residency appeals to many foreigners because the process is cheap and simple.

To be eligible to become a resident of Paraguay, you simply need to be able to deposit US$4,500 in a Paraguayan bank account. The physical presence requirement is minimal. Even if you’re only there for a handful of days, you should still be able to renew your residence permit.

Becoming a Paraguayan Citizen

While getting residency in Paraguay is fairly simple, becoming a citizen isn’t. Technically, if you live full-time in Paraguay for three years on your residence permit, you are eligible to apply for citizenship.

As in many of these countries, however, the letter of the law doesn’t always apply in the real world. We’ve known plenty of people who have applied for Paraguayan citizenship after their three years of residency only to find it takes further years – if they even get it at all.

Additionally, legal services in Paraguay are poor and scams are prevalent. Navigating the process can, therefore, be quite complicated, and finding someone to help can be near-impossible.

For this reason, we tend to discourage people from Paraguay citizenship. Nomad Capitalist does have Paraguayan legal services on hand if you want to go this route. That said, there are much better passports than Paraguay’s for the amount of time and effort that you will invest here.

Second Residencies in Central and South America: FAQs

What Residency is Best for You?

This guide detailed the best second residencies in Central and South America, so hopefully, you now have a better idea of the many options available.

However, if you’re interested in taking the next step, you’ll need to plan it carefully, and that’s where Nomad Capitalist comes in. 

We help seven- and eight-figure entrepreneurs and investors create a bespoke strategy using our uniquely successful methods. That will allow you to keep more of your own money, create new wealth faster and be protected from whatever happens in just three steps. 

At Nomad Capitalist, we have a network of lawyers, estate agents, accountants and tax and company formation specialists all around the world. All that expertise and real-world experience come together when we advise your holistic, bespoke action plan. Discover how we do things here.