Showing posts with label Moving. Show all posts
Showing posts with label Moving. Show all posts

Thursday, May 12, 2016

The Real Price of Gold

Image source
It's strange how our society values things that are relatively worthless and convinces people that not only do they need them, but they should pay a lot for them. I've heard of blood diamonds and decided way before I got married not to get a diamond wedding ring. Precious metals also have a dark side to them.

I recently came across this article published by National Geographic in January 2009 about the real price of gold. While 7 years old it still holds true today. It has loads of interesting subjects, such as Incas, coca, pisco, an ancient lottery system that is still used today, Quechua, shantytowns, and the impracticality of gold which makes it an interesting read. Gold is Peru's biggest export and Peru is the fifth largest exporter of gold in the world. All this comes at a price though. 

At 13 pages it is a bit of a long article, but it's thought-provoking and makes me think how first world countries take advantage of third world countries. Other countries such as Indonesia, India, China, and the US are mentioned as the history of gold is discussed. There are a number of good books about Peruvian history, such as the New York Times Best Seller: Turn Right at Machu Picchu and The Last Day of the Incas if you're interested n learning more.

Some people believe that the bubble has burst and that gold will no longer be as highly valued as it is today.Gold Bubble: Profiting From Gold's Impending Collapse discusses the history of gold and talks about what the future brings.



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Tuesday, April 12, 2016

How to Give Up / Renounce Peruvian Citizenship

Some foreigners decide to become naturalised Peruvian citizens. They move to Peru and Peru becomes their home. Sometimes Peruvians decide to leave Peru and sever all ties. One way to do that is by renouncing (or giving up) Peruvian citizenship. If you do this you will no longer be a Peruvian citizen and will have to hand your DNI and passport over to the embassy.

Usually to do this you will need to have another citizenship since being stateless is not something you should become unless there are dire circumstances. If that's the case, then what you usually need to do is go to another country and declare yourself as a refugee. Rules vary country to country.

Assuming that you already have another citizenship the process to renounce Peruvian citizenship is pretty straightforward. You have two choices: you can either do it at a Peruvian embassy/consulate abroad or in Lima at the Superintendencia Nacional de Migraciones aka migraciones. The information below was taken from the Chicago consulate's website:
The time varies depending on whether you do it in Lima or abroad. If you're doing it abroad it varies on the embassy/consulate due to holidays and such, so be sure to ask. Keep in mind that just to get a DNI abroad it takes 2-3 months. So don't expect this to be instantanous. In addition, if you're giving up Peruvian citizenship in order to try to avoid being prosecuted for breaking the law, don't expect your request to be granted.

The information above it only for those over the age of 18. You're not allowed to renounce citizenship on behalf of a minor. If you aren't sure if you want to renounce Peruvian citizenship or if you're hoping your minor children will do it in the future, here are somethings you can do.
  • First,change your DNI to show an address abroad so you won't be fined for not voting
  • Secondly, cut ties with Peru: close bank accounts, sell property, don't visit, etc.
  • Third, even though it might be tempting to destroy documents such as birth, marriage, or death certificates, or your DNI or passport: don't do it. Just keep them since destroying them could cause you legal problems. 
  • Lastly, don't renew your DNI or passport. Simply let them expire. For all intents and purposes Peru won't be able to keep tabs on you and you can just disappear.
That's about it. It's a bit step to take, so make sure you're ready before you sign any papers.



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Friday, February 12, 2016

New Tourist Visa Regulations for Peru and Border Hopping

Image source
Updated 5 April 2017

People love Peru so much that they don't want to leave! Unfortunately, some of them overstay their visa.

The Rumours
There were rumors that the $1 a day fine was going to increase to $5 a day. Here's info about the proposal.

"If passed, the new law will allow you up to 183 days in a 365 day period and the fine for overstaying is $5 a day. You can read all 18 pages of the law at El Peruano."

What Happened
The good news is that the law did NOT go into effect, but it did increase a bit. On Expatriates in Peru, Craig Ess asked about the fine on 16 September 2016.  It's $1.25 (yes, that's US dollars that they use since the sol historically isn't stable). Not only that, but there are no other penalties for overstaying, and you can pay, leave, and then come back 10 minutes later.

Visa changes happened in 2008. As a tourist, you are allowed up to 183 days at a time and then you can either border hop or pay the $1.25 a day fine once you leave. Some people have been known to bargain especially those who overstay their visa by years. Yes, years. I've known people to overstay by 1, 2 and even 7 years. While it's not ideal, it's still done.

If you're going to stay in Peru for years and year, make sure you see all the sites worth seeing!

NB: I'll be taking a break from blogging at The Ultimate Peru List in March. While I'm gone you can take a look at my other blogs. New posts will be published starting in April.





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Saturday, December 12, 2015

Ley de Retorno: How the Peruvian Government is Trying to Get Peruvians to Come Back to Peru

One of my most popular posts of all time is how to get Peruvian citizenship. I thought this post might benefits Peruvians like me who have left. (I got citizenship in early 2009 and left in early 2010. I haven't been back since.) I saw a poster about the Ley de Retorno when I went to the embassy a bit ago here in Seoul. Since so many Peruvians have gone abroad and not come back, their human capital is diminishing. They're trying to do something to entice people to come back.

The complete name of the law is Ley de Reinsercion Economica y Social para el Migrante Retornado and is number 30001 and there are monetary and social benefits. For the monetary benefits there are no taxes on cars up to $30k, household goods up to $30k, instruments, machines, equipment, and capital assets up to $150k when you repatriate to Peru. For the social benefits, they will help you find loans, jobs, with certification, and assistance with psychological and social integration.

In order to qualify for the monetary benefits you must be a Peruvian who has lived abroad for at least 4 years. If you have to leave the foreign country due to immigration issues then they lower it to 2 years. For the social benefits you must be a Peruvian who has lived abroad for at least 3 years. If you have to leave the foreign country due to immigration issues then they lower it to 2 years.

You can find out more about this law on RREE, Ley de Retorno, Facebook, or leyderetorno@rree.gob.pe



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Tuesday, June 2, 2015

The 1-2-3’s of Adapting to Life in Lima

The following is a guest post by Alan LaRue. He is the founder of the Expatperu.com website and the Webspanish.com online school. He has lived in Peru since 1995. There are a number of good books about Peruvian history, such as the New York Times Best Seller: Turn Right at Machu Picchu and The Last Day of the Incas.  

The 1-2-3’s of Adapting to Life in Lima
So, you have decided to relocate to Lima, Peru and you are doing your research to smooth your transition. Good for you! This webpage is a great source of information and I was pleased to be asked to contribute a guest post with some advice for newcomers.

I have lived in Lima for more than 20 years now, and over the past two decades I have seen countless foreigners move here, and I see how some adapted much better than others. Based on their experiences - and my own lessons learned – I´d like to offer you a few shortcuts to adapting to life here. After all, the faster you adapt, the faster you can get on with the chore of making a living, raising your kids, or just living the adventure of a new life in an exciting country, all despair of culture shock.

Step One – Do Your Research 
There are three web pages that stand out from the crowd in terms of providing advice for foreigners relocating to Peru. These are The Ultimate Peru List, Expat Peru and Lima Easy. Take some time and read all that these web pages have to offer; they are all based on personal and collective experience, and while some of the information you find might be out-dated, these three webpages are a tremendous resource.

Besides reading these pages, my advice is that you spend some time reading up on Peru´s economy. The best source I have found is the data rich Peru Business and Investment Guide. Follow the link and download the PDF: you will be amazed at how much information is included here. This guide book is chock-full of charts and graphs gleaned from the World Bank, the Central Bank of Peru, the Peruvian statistical agency INEN, and a host of other reputable sources. When you read it you will gain an overview of the Government of Peru, and the country´s geography, demographics, trade agreements, economic sectors, taxation rules, investment laws, visas, and an up-to-date directory of the main government and regulatory agencies.

Then, round off your reading with the well-written “Lima: A Cultural History”, by James Higgins. I have read dozens of books on Peru and this one stands out as one of my favorites! The book includes a brief history of Lima, a description of its modernization and change, an overview of colonial houses and monuments, an explanation of the historical center and nice descriptions of the neighborhoods where foreigners most often settle, such as Surco, San Isidro, Pueblo Libre, Callao and Miraflores.

So in conclusion: Do your research. You will feel more confident upon arrival and you will have developed some criteria to help you conduct your own analysis of your new-found home.

Step Two: Connect With People
Ask any psychologist - or your mother for that matter - and you will be told that one of the best ways to keep up your spirits is to surround yourself with friends. This holds especially true when you move to a new country or city because - besides giving emotional support - friends will give you the basic information and tips you need when settling in. With this in mind, I´d like to recommend a few networks where you can find people who want to get to know you, and who are happy to help.

Do you use Facebook? If so, the two must-joins are Expatriates in Peru and Living in Lima – Expat Support. Both have a large community of people who have already relocated to Peru. If you are an entrepreneur, you can also consider joining Expat Entrepreneurs in Lima. These guys organize regular face-to-face meetings where entrepreneurs share their experience and network. If joining a forum is more your thing, I invite you to join the Expat Peru forum (I am the founder) where you will find an archive of thousands of questions and answers.

Besides virtual communities, there are other groups where expats and Peruvians meet in an English-speaking environment. Visit the Lima Toastmasters Club and hone your public speaking skills over a hot lunch and camaraderie. For the religious minded, check out the Union Church of Lima and the Anglican Cathedral of the Good Shepherd. Both are large communities that bring together a wide mix of people from all kinds of backgrounds.

You already know that learning Spanish is a crucial ingredient to your success in Lima, but did you know that you can begin studying Spanish online with a teacher from Lima before you travel? Studying with a teacher from Lima gives you the added benefit of receiving Spanish lessons from someone who also serves as a cultural guide, and who can give you all kinds of practical advice about living in Lima. Allow me to pitch my online Spanish school Web Spanish. Web Spanish is a pioneer in offering private classes online. Opened in 2005, Web Spanish has some of the best Spanish teachers you can hope to find online.

Step Three – Get Your Bearings
One of the best things you can do in your first few weeks in Lima is to treat yourself to a tour of Lima. Clarification: I am not talking about the classic, touristic city tour, but a down-to-earth excursion where you venture into the 4 corners of Lima. Only by doing this can you fully grasp what it means to live in a city of 10 million people, and begin to understand what life if for most of the city´s inhabitants.

 This sounds daunting, but in practice, it is very doable. Taxis are relatively inexpensive here, so ask around and find a reputable driver who can give you an hourly or day rate and explain to him that you want to see Lima up and down, the good and the bad. A full-day tour should cost you around US$60, a small price to pay for such an incredible educational experience. Make sure your driver takes you up to the top of Morro Solar and the Cerro San Cristobal where you can get a bird´s eye view of the city. If you are on a tight budget, you can do the same with using the bus system, but my suggestion here is that you go accompanied by someone who already knows the city well.

Lima is full of museums - some much better than others - but for a newcomer trying to get her bearings, I´d like to recommend three. The first is the Museo de la Gastronomia. There is no other single place where you can get such a good understanding of Lima´s varied and rich cuisine. Then, there is the Cathedral of Lima, which gives you a sense of the important role played by the Catholic Church in Lima´s colonial and republican history. These two museums are within walking distance of one another and can be visited on the same day. Then, go to Miraflores and tour the Huaca Pucclana, a pre-colonial pyramid made of mud bricks with a small site museum. It´s a beautiful location and it will give you a sense of Lima´s pre-colonial history.

I hope this short guide will help you as you relocate. Lima is a fun, exiting city, but not without its challenges. Taking your adaptation process seriously will help you settle in faster and better. Good luck, and enjoy!



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Sunday, April 12, 2015

Reader Request: Can you Buy Property in Peru without a CE?

From Rederij
People are looking to invest in Peru and one way to do so is to buy property. The housing market in Peru is taking off and many people want to get in on it. For those of you who don't have a CE or Peruvian citizenship, you have to go through an extra step to buy property in Peru. It is illegal to buy property as a tourist, since contracts you sign aren't legally bounding. Make sure you read the fine print and know what you're getting into when you buy property abroad.

The good news is that you just need to get a visa that gives you permission to sign contracts. Once you have that you're good to go and can sign on the dotted line. 





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Friday, December 12, 2014

Read More About Peru at TEFL Tips

In addition to blogging here at the Ultimate Peru List, I have a couple of other blogs. On TEFL Tips, I have written quite a number of posts about living and work in Peru. You can read all of those posts about Peru by clicking here.



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Wednesday, January 22, 2014

Pollution and Air Quality Index in Peru

From omfitnessclub.com
Many people say that Lima is filthy and polluted. And while it's true there is a hazy that lingers in the air, it's not as bad as some cities. AQI (Air Quality Index) is used to describe how polluted a city is. AQICN.org is a great website with AQI info. Also it says it's for Asia, it actually has info for cities around the world. Here's the scoring system for AQI. Here are some recent stats from AQICN.org:

Asia
Beijing: 61 Moderate
Hanoi: 203 Very unhealthy
New Delhi Punjabi Bagh: 152 Very unhealthy
Keelung: 53 Moderate
Tokyo Sinjuku: 38 Good

Australia
Melbourne Brighton: 21 Good
Sydney East Randwick: 22 Good

Europe
Amsterdam Hemkade: 10 Good
Bern Bollwerk: 8 Good
Birmingham: 38 GoodLondon Etham: 5 Good
Oslo Alnabru: 7 Good
Paris Center: 58 Moderate

Middle East
Kfar Masaryk, North, Israel: 24 Good

North America
Barrie, Ontario: 21 Good
Los Angeles Reseda: 57 Moderate
New York White Plains: 26 Good
Washington DC Division Street: 59 Moderate

South America
Lima San Borja: 44 Good
Mexico City Hospital General de Mexico: 37 Good
Puente Alto Chile: 80 Moderate
Sao Paulo Americana: 37 Good

So where is it very polluted? If you go to the map (unfortunately it only shows Asia), you can see that China has a lot of red flags as does Dehli in India. With rates over 151 and even as high as 356 (anything over 301 is hazardous), it looks like Peru really isn't that bad. If you do decide to head over to Peru, or are already there, you should try to learn Spanish. It'll help you assimilate to the culture, and you'll be able to communicate easier. Be happy that not all days are hazy in Peru like they are in Linfen, China.



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Tuesday, January 7, 2014

Poll Results 2013: What brought you to Peru?

The 2013 poll was "What brought you to Peru?" Here are the results.
  • Love: 57% with 57 votes
  • Work: 7% with 7 votes
  • Studies: 3% with 3 votes
  • Other: 33% with 33 votes
I'm not surprised that most people choose love. I get far more questions and emails regarding dating and marriage to Peruvians than any other topic. I am surprised to hear that "other" got 33%. What brought you to Peru then?

Be sure to vote in this year's poll: What's your monthly salary?

Recommended Reading




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Saturday, December 14, 2013

Reader Request: Getting Peruvian Residency If You Have a Criminal Record

From peoriachronicle.com
Note: Full disclosure here I have never been detained, arrested, or charged with anything; I don't have a criminal record. I have run across people who have records and have managed to get visas. Here's all I know.

If I've said it once I've said it a thousand times, laws in Peru are not black and white, but shades of grey. I've had a couple people email me over the years and ask if it's possible to get Peruvian residency if they have a criminal record. They never tell me what's on their record, which is totally understandable. Everyone who has written to me has told me that they were young and stupid and haven't had any run-ins with the law since then.

One tip to remember is that speaking Spanish will help you greatly. You'll be treated differently than if you speak English all the time, it'll help you assimilate to the culture, and you'll be able to communicate easier.
I believe that there's no way you'll get a visa for Peru (or pretty much any country) if you have certain things on your record such as rape, murder, sex crimes, etc. In fact, here's what will definitely exclude you according to Peru this Week: convicted murderers, drug smugglers, illegal miners (gold, diamonds, etc), and being involved with organised crime. Take note that sex crimes aren't mentioned, though I'm willing to guess they would deny a visa to anyone convicted of them.

Expat Peru has contradictory information. They say that anything on your record will deny you a visa, but then say that they got their CE way before they got the results from their CBC (criminal background check). That's not to say that their home country and Peru aren't in contact though and Peruvian immigration gets the results before they do. 

There are three things to consider when applying for a visa.
  1. Will it even show up?: You'll have to undergo a federal check in order to get a visa in Peru. For Americans, that means an FBI check. Misdemeanors that happened over 7 years ago shouldn't show up. It varies by state, but 7 years seems to be the most common. The best way to find out is to ask a friend in law enforcement to run your name. If you get fingerprinted and it's been less than 7 years it will add another 7 years to whatever time is left. Once you find out your record is clean then you can get an FBI check. Most police stations charge about $20 to fingerprint you and you'll pay about $20 to the FBI to get your record. You can find the steps in apostillisations and criminal background checks.
  2. Misdemeanors: Now if you have misdemeanors, such as possession of drugs (not trafficking!) or underage drinking or drunk driving, it is possible to get a visa. I'm not saying that you will definitely get once, because each and every immigration officer is different, but it's possible. 
  3. When it happened: Let's say that you're 50 and when you were 17 you got busted for underage drinking. It was a one time thing and you've never had any issues, not even a parking ticket, since then. If it happened a long time ago and you haven't had any other issues, then it's much different than a 25 year old who has been busted three times for drugs.
If you are denied a resident visa you still might be able to live in Peru. Many people are allowed up to 183 days in Peru as a tourist at a time. You could go as a tourist, then travel for a couple of days and then go back to Peru as a tourist. Be aware that there's no guarantee that you will get 183 days. If you've border hopped a lot, or if they decide that they don't want to let you in because of your criminal background, they can deny you entry to Peru, so keep that in mind. If you're looking at teaching, you might also want to check out teaching with a criminal record. The latter has a list of countries where you can get a visa even if you have a criminal background.



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Saturday, September 14, 2013

Reader Request: I'm Going to Live in Peru Forever!

From dogwalkmusings.blogspot.com
Updated 20 October 2017

It's not uncommon for me to get emails from people who say that they want to live in Peru forever, but don't know how to do it. It's usually accompanied by statements saying that someone (their husband / wife / partner / boyfriend / girlfriend / fiance / fiancée) is living in Peru / going to move to Peru and they'll get married and live happily ever after. More often than not the person emailing me has never been to Peru or has spent less than two weeks there.

Keep in mind that marriage is no longer forever. Divorce rates are high enough between people from the same culture let alone those from different cultures. The good news is that there are alternatives to residency besides marriage.
Differences in culture can also wreck havoc on cross-cultural partnerships. There's a reason why I wrote think carefully before marrying a Peruvian and that's it's one of the top 5 posts on my blog.

Moving is hard but it can be even harder if you move to a different country, don't speak the language, or if you don't have a job waiting for you. More often that not people end up begrudgingly teaching English. While there are other options than teaching English in Peru, they do take time to set up. If you do decide to to move to Peru, definitely take time and read the advice that other long-term expats have written.

While there are plenty of people that do end up living in Peru forever, just remember to keep your options open. Don't limit yourself to one country. Take things in stride and realise that there are many things beyond your control.





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Thursday, July 25, 2013

Reader Request: Registering Your Peruvian Marriage Back Home

From happydietitian.wordpress.com
I've been asked a couple times if marriages in Peru are legal back home and the short answer is yes, they are.

Now if you get married in Peru, does that mean that it'll automatically show up on your records back home? No, it won't. If you get married in Peru and then go home and check if you have a marriage record, you won't. It'll still show that you're single.

So what do you do? It depends on where you're from. If you're from the US, they usually don't ask for official translations or apostillisations. Personally, I would still get my Peruvian documents notarised, apostillised, and translated. Here's a guide on how to use Peruvian documents abroad.

Update August 2014
Some counties in the US aren't allowing you to record foreign marriages or divorces anymore. Contact your county clerk for more info.

In the US you cannot register a foreign marriage. It's impossible. What exactly does that mean for people who get married abroad? It's simple. In the US you're only allowed to register a marriage that takes place on US soil. If you get married abroad all you have to do is bring your foreign marriage cert and a translated copy (Doesn't have to be official. You can translate it, a friend, Google, etc) to the county clerk's office. Then the record it and it'll show up on your record.

What does it mean? It's just semantics. You register marriages that take place on US soil and you record marriages that take place on foreign soil. The end result is the same: you'll show up as being married. If you get divorced, you follow the same procedure.

One tip to remember is that speaking Spanish will help you greatly. You'll be treated differently than if you speak English all the time, it'll help you assimilate to the culture, and you'll be able to communicate easier.

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Monday, July 15, 2013

Reader Request: Alternative Ways to Get Residency in Peru Besides Marriage

From blog.smalltownkid.net
Updated 30 April 2017

About once a month I get an email from someone asking me how in the world they can get residency in Peru. Usually it's due to the fact that a significant other in Peru, but they don't want to or aren't able to get married.

One tip to remember is that speaking Spanish will help you greatly. You'll be treated differently than if you speak English all the time, it'll help you assimilate to the culture, and you'll be able to communicate easier.

The good news is that after three years of residency you can apply for inmigrante status (permanent residency) or become a Peruvian citizen.

Here are some other alternatives to residency besides getting married.
  1. Get a work visa. If you can score an expat package, all the better.
  2. Start your own business. It'll get you a visa. You'll need $30,000 and there's a lot of paperwork involved.
  3. Get a student visa. You will be able to work part-time as well. married.
  4. Get a retirement visa. You'll have to prove a steady source of income, not from a job. (ex, government retirement scheme, private retirement scheme, etc.)
  5. Get a family visa. If you have children that were born in Peru, they can become Peruvian citizens. If your kids are Peruvian, you might be able to get a visa through them. Get a lawyer. I've heard it's possible, but don't know anyone who has done it.





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Friday, July 5, 2013

La Leche League in Peru

Breastfeeding is back in style thanks to the internet and slogans such as "breast is best". If you're looking to meet other like-minded people, try going to a La Leche League (La Liga de La Leche) meeting in Peru. Their book, The Womanly Art of Breastfeeding, has over 1,000 reviews and is highly recommend.

Check out La Leche League Peru's Facebook Page and LLL Peru. Most of the LLL Peru's page is in Spanish, but they do have a monthly English meeting as well.

One tip to remember is that speaking Spanish will help you greatly. You'll be treated differently than if you speak English all the time, it'll help you assimilate to the culture, and you'll be able to communicate easier.

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Thursday, January 10, 2013

Poll Results 2012: How long are you staying in Peru?

The 2012 poll was "How long are you planning on staying in Peru?" Here are the results.

  • less than a year: 22% with 29 votes
  • 1-2 years: 21% with 28 votes
  • 3-5 years: 20% with 20 votes
  • 5-10 years: 6% with 8 votes
  • more than 10 years: 29% with 39 votes
It appears that people are here for the long haul. If that's the case, look into getting Peruvian citizenship and read up on Peruvian culture. One tip to remember is that speaking Spanish will help you greatly. You'll be treated differently than if you speak English all the time, it'll help you assimilate to Peru, and it'll get you cheaper prices.





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Monday, September 17, 2012

Reader Request: Think Carefully Before Marrying a Peruvian

Updated 4 October 2017

Got your attention, didn't I? I was thinking about making "Think Carefully Before Getting Married" the title, but since my blog is about Peru, I figured I'd tweak it a bit. I'm not saying that you shouldn't marry a Peruvian, but what I'm saying is that marrying a foreigner can be more difficult than marrying someone from the same country or culture. Also, dating someone is vastly different than marriage. Americans marrying Americans have usually been brought up similarly and can relate to many of the same things. Americans marrying Brits might have some difficulties, but their background is often the same. However, Americans marrying Peruvians often have many difficulties that they encounter. My marriage ended after nearly 8 years. Here's what I had to do to get a divorce in Peru.

Love is blind (deaf, dumb, and stupid) and everyone knows that, but it doesn't stop us from jumping in. Try to learn Spanish. The Rosetta Stone is amazing and you can learn at your own pace. Don't forget to read up on Peruvian culture, it will help you understand more about Peru and its people, including your in-laws.

Online love
With the internet, more and more people are marrying people they met online. While it's good in one way since the focus is getting to know each other mentally rather than physically, I also think it's really romanticised and people get married too quickly.

A bit of help please
I get countless emails from foreigners, mainly from the US and the UK, but other countries as well, such as Canada, Germany, etc, asking me what docs they need to marry their Peruvian sweetheart. I wrote the post how to get married in Peru in order to help people out. I also get lots of emails asking me how to divorce a Peruvian because things didn't go according to plan, they felt like they had been used for visas or money, or cheating occurred.

Pedal to the metal
More often than not these couples have known each other for less than 2 years. Sometimes the foreigner wants to live in Peru and sometimes they ask me about visa info to go back home. More often than not when the foreigner wants to live in Peru, it's "forever".

I'm going to live in Peru forever
I can't help but smile and shake when I see that a foreigner wants to live in Peru forever. It's got nothing to do with Peru itself, but living in a foreign country forever is the hard part to understand. Many times these people have only spent a week or so in Peru on vacation and have never lived outside their own country. They don't speak Spanish and their plan is to teach English. While I myself am an English teacher and blog about it at TEFL Tips, I will admit that it's not easy. Especially in Peru. Older people have a tougher time than younger people. They're leaving their careers, benefits, and decent salaries behind.
  • Jobs: Teaching English doesn't pay that well and there are minimal benefits. You often have split schedules and have to cater to people who don't want to study, yet think that you hold the secret to teaching them English. There are other jobs available, but Peru isn't known for its high salaries. Expats get great packages, but if you're already in Peru when you're hired, you're often given a local contract which means you can kiss those high salaries, benefits, and perks out the door. If you want to work in a Peruvian company you'll probably have to learn Spanish and you're going to need a higher level of Spanish than being able to ask "how much is this?" and "where's the bathroom?"
  • Cost of living: While many people are thinking, "but the cost of living in Peru is so much cheaper," I know that this is partly true. If you want to live like a local then the cost is cheaper, but other things are more expensive. We rent out our apartment in Surco. It's a walk-up on the 4th floor with rattly windows, no heat, no insulation, a minimal kitchen, two baths (but one's outside and doesn't work) and very poorly laid out. While it has 80 m2, it's unfurnished and has no parking space. We rent it for $400. That's a lot of money in Peru where the average salary is about $500 a month. Most English teachers are earning about $10 an hour (if that, which comes out to about $800 a month). Whereas in the US you'd pay about double that ($800), but have a much nicer place. In Peru a higher percentage of your income tends to go towards housing. Transport is cheap in Peru, if you want to take combis. I did for years and they took forever, stopped at green lights, went at red, were driven by maniacs with dirty fingernails, had people crouching down in mini-vans, fighting over fares, bribing police officers, making me angry and stressed out. Many expats drive or take taxis due to this. Electronics are much more expensive in Peru. The good news is that food and household help is pretty cheap. You can live pretty well in Peru. You will have to budget if you want to save or travel. If you're in Lima, here are a bunch of tips written by expats to help you out.
  • Other concerns: If you're going to have kids, education is another concern. Public schools are appalling and private education usually starts around $10,000 a year. Some of the better schools run as much as $25,000.

Taking my Peruvian sweetheart back home
Just as you'd have problems living in a foreign country, your spouse-to-be will also run into problems. Many Peruvians miss their families much more than we miss ours. Getting things done can be harder. Peru is a country of flexibility. Laws are grey, not black and white. Emphasis is put on helping people out, doing favours, and bending the rules. Time is another issue as it is rigid abroad whereas in Peru you have "hora Peruana" and "hora Inglesa" and most Peruvians prefer the former.

Hindsight is 20/20
Flexibility seems to be the key in Peru and marriage is no exception. Many Peruvians have parejas rather than spouses and having children out of wedlock seems more excepted, which is odd since Peru is such a Catholic country. Despite this, divorce is also very common. The only legal marriage takes place at city hall; church weddings aren't legal.

Unfortunately, many divorced foreign wives that I know ended up divorcing due to their cheating Peruvian husband. While it may be more accepted in Peru or people turn a blind eye, that's usually the straw that breaks the camel's back.

Think before you leap
I'm not saying that you shouldn't marry a Peruvian. What I am saying is that I think many people get blinded by the fact that they're going to marry a foreigner. They tend to think less and move more quickly than if they were with someone of the same nationality. When really, the opposite should be true. If you're going to marry a foreigner, you need to think twice as hard as you would if you were marrying someone from the same country as you.

I know plenty of happily married Peruvian-foreign couples. I also know plenty of happily divorced (and bitterly divorced) Peruvian-foreign couples. Marriage is a decision that will affect you the rest of your life, so give it some thought and time before you jump in. 




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Tuesday, August 21, 2012

Basic Overview of US Expatriate Tax Requirements

The following is a guest post by I.J. Zemelman, EA. Tax Operations Director at Taxes for Expats              
                                                                             
Bottom Line:  File Your Taxes Every Year
As a US expatriate working overseas you must file your US federal taxes annually just as you would if you were living in the United States.  Why?  Because your total world income determines your tax liability – not simply the income you receive in the states.  As an American expatriate, though, you have more tax saving options than those with a stateside residence such as housing and subsistence allowance, income exclusions, foreign tax credits, and more.  Savvy taxpayers who’ve taken the time to research additional deductions and savings opportunities or who work with a tax professional may have access to even more options.  Let’s refer back to the bottom line, though:  If you don’t file your taxes you don’t qualify for such deductions and exclusions. There are lots of tax guides out there designed to help you.

How to qualify for FEIE (Foreign Earned Income Exclusion)?
In order to qualify for the Foreign Earned Income Exclusion on Form 2225 or Form 2555-EZ you only have to be a resident of another country and file your taxes in said country.  Married couples who both live overseas may file jointly.

A number of taxpayers are unclear as to what income qualifies for exclusion, and the answer is simple:  Only income earned as an employee or contractor.  Any monetary gain from dividends, interest, rental income, and other types of investment returns are not excludable from your US tax liability.  The last update to the amount US expats were able to claim as exclusion is $92,900 for 2011 and $95,100 for 2012.

Another definition it’s important to take a look at is exactly what constitutes foreign.  For IRS taxation purposes, foreign income is viewed as any income received outside of the United States or any US Territory, which include American Samoa, Guam, Micronesia, Northern Mariana Islands, Puerto Rico, and the Republic of Marshall Islands.

Before you can claim FEIE there are certain additional requirements you must meet; you will be required to have lived in a foreign country for a full year, or at least a minimum of 330 days out of a 12 month period.

Information on Foreign Tax Credits?
Tax treaties with the United States ensure that you will be not taxed twice by 2 countries for the same income.  In order to ensure you receive your foreign tax credits you must file Form 1116 if you are an individual and Form 1118 if you are a corporation.  If you still owe anything to the United States after having applied your credits, the total amount you owe should be very low.

While tax treaties are great for saving international taxpayers money, there are a few important rules and exceptions of which you should be aware:
  • Travelling Restrictions:  Some treaties become ineffective if the taxpayer travelled to a country with restrictions such as Cuba.  It is important for you to check with the State Department before travelling.
  • Tax Home:  If you are involved in a civil unrest you may qualify for an exception which allows you to claim your overseas residence as a tax home.
Note: There are a variety of other rules included in international tax treaties such as those regarding the IRS auditing process.  Filing any return begins the 3 year backtracking period to which an IRS agent can perform an audit – including international returns or returns with no taxable income.

Keep in mind that it will not behoove you to try to give false information to the IRS, as quite a few countries including Barbados, Colombia, Dominican Republic, Honduras, Jamaica, México, Trinidad, and many more have active information exchange agreements in place with the US.

If you are living overseas and you are self-employed you will be subject to all US income and SE taxes just as you would if you were living stateside.  It is important to be aware that foreign income credits CANNOT be used to decrease your SE tax liability. 

You will be protected, however, along the lines of Medicare and Social Security contributions.  The US has what is known as Totalization Agreements with multiple countries which prevent a taxpayer from having to pay into 2 social insurance systems.

Timing is Critical
American expats who are known to be working overseas or who can prove their income originated overseas will be automatically granted a filing extension to June 15th instead of April 15th.  Both military members and civilians working on overseas assignments qualify for this automatic extension. See our complete list of US Tax Deadlines for expats for more information.

Expats are also able to request a further extension and not be required to file taxes until October 15th.  This extension, however, is only for filing.  If you are an American expatriate and you owe taxes which aren’t paid by June 15th you will most likely be subject to penalties and interest.  If you are unable to pay before October you may be able to minimize your penalties by filing Form 2210.

The article is merely an overview of an overwhelming amount of US expat tax information. For additional help, please contact the experts at Taxes for Expats today or read more about taxes at these tax guides.
I.J. Zemelman, EA is the founder of Taxes for Expats
She may be reached at: +1-646-397-2887
Email: questions@taxesforexpats.com





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Friday, August 10, 2012

What If I Can't Afford to Pay My US Expat Taxes?

The following is a guest post by I.J. Zemelman, EA. Tax Operations Director at Taxes for Expats                                 
If you are in a position in which you owe an excessive amount to the IRS from your US expat tax return there are a number of options that may be able to help.  Expat tax filing requirements are some of the most confusing of all, and quite a few expatriates encounter a tax burden from such confusion that seems insurmountable. There are lots of tax guides out there designed to help you.

Most of these situations stem from an expatriate’s lack of knowledge of reporting obligations, available exclusions and deductions, or a failure to file US expat taxes altogether.  Despite the circumstances which have led you to a precarious situation with your tax liability, the IRS understands of the difficulties expats face in filing their taxes, and there are a number of tax payment assistance options available to ensure that all tax obligations are met without bankrupting the taxpayer.

In this article we will take a look at some of the options available to you and how to take advantage of them.

Monthly Installment Plans

If there is no way for you to pay the entire balance of your tax liability to the IRS upon filing your US expat tax return you may be able to set up a monthly installment plan with the IRS.  The important words to recognize here, though, are ‘no way to pay.’  To the IRS, this does not simply mean that you don’t have cash on hand.  Before requesting an installment plan the IRS will want to see that you have sought out other means of coming up with the cash such as applying for a loan, liquidating your assets, applying for credit cards or lines of credit with high availability, or other means. 




If you have exhausted your possibilities and are unable to pay the IRS you may apply for an installment plan by filling out and submitting Form 9465.  If your proposed installment plan will exceed 120 days you will not be charged a fee for establishing such a plan, but there may be a setup fee if you plan to square away your debt in less time.  Note that the IRS will not accept monthly payments lower than $25.




Delayed US Expat Tax Due Date


Tax deadlines don’t always coincide with the most fruitful time of year for expats.  There are many US expat taxpayers who will have no problem meeting their tax obligations in a matter of a few months but are not in a position to pay at the time of filing.  In this case, the IRS may agree to extend the due date on your liability, but it is not free of contingencies.  In an effort to protect its financial interest the IRS will most likely file a Federal Tax Lien Notice against you until you have satisfied your debt.  If your plan of coming up with the money involves assistance or transactions with a financial institution, this lien may cause a number of problems in the execution of your plans.



Offer-in-Compromise
While this may be one of the most desirable tax solutions to expats who can’t afford to pay their total tax liability, the IRS prefers it to be the last resort of a taxpayer.  On offer-in-compromise (also referred to as OIC) is an agreement between the IRS and a qualified taxpayer in which the IRS accepts an amount lower than the actual tax liability due.  In order for an OIC to be approved the IRS must be convinced that the taxpayer will not be able to satisfy his/her debt by any means now or in the future with an extended payment arrangement.  In order to ensure this isn’t the first option sought by taxpayers the IRS assesses a $150 fee for the evaluation of any OIC.  If you feel as though you owe the IRS more than you can possibly ever pay, you may apply for an OIC by filling out and submitting OIC Form 433-1.

Assistance with US Expat Taxes
There are a variety of programs for which expat taxpayers may qualify, and it can be quite exhausting reviewing your options and the qualification criteria.  Every taxpayer’s situation is unique, and identifying the most beneficial option isn’t always an easy task.  You can simplify the process by discussing your situation with an expat tax professional that is equipped with both knowledge and experience in determining the best course of action to take.

The most important thing to remember is that you have options.  If you ignore the problem and simply do not pay without communicating with the IRS you will find yourself in a much worse position with large penalties and a potential prison sentence. Be sure to consult tax guides or expat tax accountants who could help you.

I.J. Zemelman, EA is the founder of Taxes for Expats
She may be reached at: +1-646-397-2887
Email: questions@taxesforexpats.com





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