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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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.

Social Security for Self-Employed Expats

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 Web site: www.taxesforexpats.com.

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