Alexandra Allover is an Austrian bilingual (German and English) travel journalist and digital nomad with over four years of experience traveling through South America. Her business is based in Florida, USA. Alexandra's content offers valuable insights and practical advice for individuals interested in traveling, relocating, living, and working remotely in Latin America.

She can help with:

• Relocating to Latin America, sharing her experiences and knowledge gained from living in the region.
• Providing essential travel tips for South America, covering various aspects of traveling in the continent.
• Information and guidance on travel destinations in South America, including firsthand experiences and reviews of numerous locations. She has personally tested over 300 hotels and Airbnbs and offers tips on finding good deals.
• Navigating the digital nomad lifestyle based on her own journey of living and working remotely.
• Understanding residency and immigration processes in South American countries such as Paraguay, Brazil, and Colombia, often through collaborations with immigration experts. Her partner Paul also possesses significant expertise in residency matters, particularly in Paraguay.
• Guidance on real estate investments in Paraguay, Colombia, especially in Cali, and potentially Mexico (Playa del Carmen) (though the sources mainly discuss scams there).
• Establishing connections and providing insights into the real estate market in parts of Brazil, particularly in Bahia (Canavieiras, Porto Seguro) and Florianópolis, often through interviews with local experts like Pitt. She can offer perspectives on buying property, understanding price fluctuations, and the attractiveness of different regions.
• Setting up and managing a location-independent business, including advice on forming a US LLC for potential tax benefits and implementing the Flag Theory for global presence and tax reduction. Her partner Paul specializes in these financial strategies for digital nomads.
• Collaborations with hotel and property owners, offering services like travel writing, photography, videography, and drone footage to enhance their online visibility.
• Offering personalized consultations through Zoom calls to address specific questions about traveling or relocating to Latin America.
• Facilitating connections within a community of like-minded individuals through her Facebook Group for Expats on Nomad Housing & Travel Tips.
• As a former teacher with an MA in psychology, Alexandra also serves as an academic life coach for studentsthrough her platform Learn Allover.

The focus is on providing a cohesive overview for someone interested in digital nomadism, emigration, and real estate investment in South America, particularly in locations like Canavieiras, Bahia (Brazil), Asuncion (Paraguay), and Cali (Colombia).

Investing & money in Latin America:

Here is a detailed knowledge base about investments in South America, compiled from the provided sources:

Investment Opportunities in South America: A General Overview

• Paul Trausner and his partner Alexandra have been traveling through South America for over four years, comparing investment opportunities.
• They initially started their search in Asunción, Paraguay, but found affordable urban real estate (under $1,000 per square meter) hard to find initially.
• While they found real estate under $1,000 per square meter in Cali, Colombia, they consider Asunción and Paraguay more attractive for foreign investors due to less complicated immigration requirements.
• In almost every major city in South America, they found real estate prices unrealistically high, making affordable projects seem nearly impossible to find until their return to Paraguay in 2024.

Investing in Paraguay

• Paraguay is highlighted as a country with economic stability, low taxes, and a welcoming business environment, making it a "hidden gem" for expats and international investors.
• It is considered one of the most promising places to invest in Latin America due to its young population, stable government, and history of smart financial reforms.
• Paraguay operates on a territorial tax system, meaning you are only taxed on income earned inside Paraguay. Income from the U.S. or other foreign sources is not taxed.
• Paraguay has no wealth tax and no inheritance tax.
• Obtaining residency in Paraguay is considered straightforward and affordable compared to other countries, making it an efficient "Plan B".
• The cost of living in Paraguay is significantly lower than in the U.S..
• Paraguay's economy is growing, fueled by strong agricultural exports and cheap hydroelectric power.
• The FIFA World Cup 2030, which Paraguay will co-host with Asunción hosting at least one group-stage match, is expected to be a catalyst for significant infrastructure and modernization projects, potentially increasing property values.
• The average age in Paraguay is just 27 years, indicating a growing young population.

Real Estate Investment in Asunción

• Initially, finding affordable urban real estate (under $1,000 per square meter) in Asunción was challenging. Two-bedroom apartments were priced around $200,000 in 2022.
• However, new real estate developments offering small, affordable studio apartments designed for locals, commuters, students, and Airbnb rentals have emerged.
• These new builds, often developed by a German company, offer some of the lowest prices in Asunción.
• Park Lofts Recoleta is one such project in the upscale Recoleta district, near Shopping Mariscal and "La Cuadrita," suitable for tourists and professionals.
  • Construction is planned to start in March 2025, with completion in March 2026.
  • The building will have 10 floors and 90 studio apartments.
  • Amenities include a pool, gym, sundeck, co-working space, BBQ area, and 2 elevators.
  • Apartment sizes range from 22–32 m² (236–344 sq. ft.).
  • Pre-sale prices start from $34,500 for a small balcony and from $36,500 for a large balcony.
  • Parking spots are available for $9,000 each (12 available), and storage units (7 available, 0.8 m × 0.93 m) cost $4,000 each.
  • Estimated rental income for long-term rentals is 3,000,000 Gs (approximately $380 per month), and for Airbnb, it's $600–$800 per month.
  • The target audience includes commuters, students (especially Brazilian medical students), and Airbnb renters.
• This concept of small, affordable studio apartments has almost no competition in Asunción, as most residential buildings are priced much higher and focus on larger apartments.
• The demand for centrally located housing in Asunción is high due to around 1,000,000 daily commuters.
• Other sources of rental demand include Brazilian medical students, employees in the pharmaceutical and service industries, Airbnb travelers, tourists, and young professionals.
• Airbnb guests prefer compact, well-equipped studios as a budget-friendly alternative to hotels.
• Park Lofts plans to offer furniture packages (budget and upscale) priced between $1,500–$2,000.
• The low entry prices of these studios offer the potential for above-average capital returns.
• Management services for Asunción apartments are offered, handling long-term rentals for 10% of rental income and Airbnb management (including listing, guest management, cleaning) for 15%.
• Tax consulting services are also available, ranging from $20 to $50 per month, with a special offer of one year free for purchasing three or more apartments.
• The company behind Park Lofts has an experienced team, including Robin Loths as president and Julian Sandt as the main investor (who was also involved in the Palmanova Tower project).
• The main investor has deposited $1,200,000 in guarantees in the form of land to provide financial security for investors.
• Studio apartments in Asunción are considered ideal for shorter stays and can be used by owners visiting a few times a year and rented out the rest of the time.
• Modern studio apartments in prime locations in Asunción can be bought for around $1,200 per square meter (~$111 per square foot).
• Projected Airbnb rental income can be around $500 per month, representing a 17% return on investment.
• There is potential for these properties to triple in value by 2030 due to the FIFA World Cup developments.
• Focusing on emerging areas near future infrastructure projects is key to maximizing profit in real estate. Recoleta is highlighted as a modern and walkable neighborhood with great investment opportunities.
• Asunción's real estate market is emerging, with small studio apartments available at around $1,000 per square meter (~$93/sq ft).

Banking for Expats in Paraguay

• Opening a bank account in Paraguay has historically been slow and required local ties and extensive paperwork.
• Ueno Bank, Paraguay's first fully digital bank, aims to provide a modern, hassle-free experience for expats with a Paraguayan cédula (national ID card).
• Accounts can be opened in minutes through the app.
• Ueno Bank offers a sleek app, virtual and physical debit cards, QR code payments, and 24/7 digital branches with video-call support and free coffee.
• However, Ueno Bank has experienced growing pains due to rapid growth and a merger with Vision Bank, leading to outages and unhappy customers.
• Customer service has been reported as slow and patchy.
• Changing the phone number linked to the account to a foreign number proved to be difficult or impossible for the authors, despite the app teasing this option.
• The digitalization of Ueno Bank is considered "half-baked" as physical branch visits were required for issues that should be resolvable digitally.
• The authors currently do not trust Ueno Bank with significant funds due to these issues.
• Opening a traditional bank account in Paraguay is possible with the right guidance.
• For long-term travelers, diversifying banking options across multiple countries is crucial as part of the Flag Theory.

Tax Advantages of Living in Paraguay for U.S. Citizens

• The U.S. taxes its citizens based on citizenship, not residency, meaning income tax is still owed to the IRS even when living abroad.
• The Foreign Earned Income Exclusion (FEIE) allows U.S. citizens to exclude up to $130,000 (in 2025) of foreign-earned income from U.S. taxation if they meet either the Physical Presence Test (330 days abroad in a 12-month period) or the Bona Fide Residence Test (establishing a tax home and residency in a foreign country for at least one full tax year).
• Paraguay's territorial tax system means that income earned outside of Paraguay is not taxed by Paraguay.
• This combination makes Paraguay a top tax haven for U.S. expats, especially entrepreneurs, retirees, and digital nomads earning money abroad.
• Paraguay also has no wealth tax or inheritance tax.

Investment in Playa Del Carmen, Mexico

• Playa Del Carmen is a popular tourist destination in Mexico with a dynamic and expanding tourism market, attracting digital nomads, backpackers, and luxury travelers.
• Playa Heaven Rooftop, a newly constructed budget hostel, is presented as a high-yield investment opportunity in the Ejido neighborhood, next to Avenida Benito Juarez, an area experiencing significant growth.
• The hostel features 12 dorm rooms with 120 bunk beds, ample bathrooms, a reception area with a mini-mart and guest kitchen, and a spacious rooftop with a garden, sundeck, and bar.
• It also includes eco-friendly features like solar panels for free electricity and a private well for unlimited free water.
• Conservative estimates project a total annual revenue of $1,944,000, with a net annual return of $466,560 (over 68% ROI) on an asking price of $679,000, even with a 60% occupancy rate and deducting 60% for operating costs.
• The low operating cost structure due to free electricity and water is a significant advantage.
• Investing in Playa Heaven Rooftop offers a prime location in a developing area, multiple revenue streams, eco-friendly operation, high projected returns, and flexible investment potential.
• The author suggests that a hostel like Playa Heaven Rooftop would not have the same potential in Paraguay due to the lack of a strong tourism sector there compared to Mexico.

Investment Strategies for Digital Nomads (General)

• Financial stability for digital nomads relies on smart diversification across different countries, currencies, and asset types (crypto, metals, stocks, real estate).
• The Multi-Asset Approach involves holding a balanced portfolio including crypto (Bitcoin, Ethereum), precious metals (gold, silver), stocks (investing in companies you use), and bank accounts in multiple jurisdictions (Europe, U.S.).
• It's recommended to hold approximately one month's worth of expenses in each asset class for liquidity and security.
• Flag Theory suggests establishing different financial "flags" across multiple jurisdictions for financial security, tax efficiency, and flexibility.
  • This includes choosing residency in a tax-friendly country like Paraguay or Panama.
  • Holding bank accounts in stable economies.
  • Incorporating businesses in tax-optimized countries like the U.S. (e.g., a Florida LLC). The combination of Paraguayan residency (territorial tax) and a U.S. LLC (pass-through entity for foreign owners) is highlighted.
• The 50K+ Growth Plan involves building a financial foundation with digital assets and then diversifying into tangible investments like real estate or hands-off businesses to generate passive income.
• The authors' strategy involves leveraging BTC holdings to invest in studio apartments in Asunción, Paraguay, a market with high rental demand and good value. Studio apartments were available at around $1,000 per square meter (~$93/sq ft) and could generate $500+ per month in rental income.

Why Retirees Are Choosing Paraguay

• Paraguay offers retirees a combination of quiet countryside living and convenient city life in Asunción at a fraction of the cost of the U.S. or Europe.
• Key attractions for retirees include no tax on foreign income, low property costs, and easy residency.
• The cost of living is significantly lower than in the U.S..
• Residency in Paraguay is a simple and affordable process, requiring a two-year temporary residency before becoming permanent. The total cost for residency assistance and government fees typically ranges between $1,800 and $2,000 USD.
• Asunción offers modern apartments for rent (around $500-$1,000 USD/month), while countryside houses are even more affordable ($300-$500 USD/month). Buying property in gated communities outside Asunción is also relatively inexpensive.
• Paraguay is considered one of the safest countries in Latin America.
• The healthcare system includes both public (free but crowded) and private options (higher quality, costing $10-$20 USD per visit or $30-$80 USD/month for insurance).
• Popular areas to live in Asunción include Villa Morra, Recoleta, San Jorge, and Ycua Sati.
• Paraguay offers significant tax benefits for retirees, including no tax on foreign income, wealth, or inheritance, and the U.S. FEIE can be utilized.

This knowledge base provides detailed information on investment opportunities in South America, particularly focusing on Paraguay and Mexico, as discussed in the provided sources. It also covers related topics such as banking for expats in Paraguay, tax advantages, general investment strategies for digital nomads, and reasons why retirees are choosing Paraguay.

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Briefing Document: South America as a Destination for Digital Nomads and Emigrants

I. Overall Themes

• South America as an Attractive Destination: The sources consistently portray South America as a desirable location for digital nomads, retirees, and those seeking a change of pace. Key attractions include climate, lower cost of living, friendly people, and natural beauty.
• Canavieiras, Bahia (Brazil) as a Focal Point: Several sources highlight Canavieiras, Bahia, as a particularly appealing location due to its climate, unspoiled beaches, affordable real estate, and the presence of an established expat community facilitated by figures like "Pitt," a German hotel owner.
• Challenges and Considerations: While South America offers numerous benefits, the sources also acknowledge potential challenges, including bureaucracy, cultural differences, safety concerns (in certain areas), and the importance of thorough research before making any significant investments.
• Real Estate Opportunities: The sources explore real estate investment options in various South American cities, with a focus on affordability and potential for rental income or long-term residence.
• Visa and Residency Options: The sources touch on different visa options for various countries in South America, including investment visas, digital nomad visas, and residency based on family ties.

II. Key Locations and Insights

• Canavieiras, Bahia, Brazil:
• Climate and Nature: Peter Raith ("Pitt") emphasizes Canavieiras' exceptional climate, comparing it to Ticino in Europe. "Bahia is about one and a half times the size of Germany... and that's right down there is the best climate in all of Bahia and actually the best climate in all of Brazil and i would even go so far for myself as the best climate in the world. we have a bunch of people who live here and they really saw more of the world." He also points out the area's nature reserve, which helps keep it clean and unspoiled.
• Affordable Real Estate: Pitt notes the range of real estate prices: "a good, nice big house with a nice big plot of land costs from 100,000 euros upwards... but the locals sell houses in the suburbs and not exactly in the center from 8,000 10,000 euros 15,000, or let's say for 30,000 euros 40,000 euros you can get a house on the island near the beach." It’s important to note that these prices are subject to change and we’re mentioned at the time of the respective interviews that you can find on Alexandra Allover’s Youtube channel.
• Expat Community: Pitt acknowledges playing a role in attracting expats: "In the last two years 30 new people have come.". He offers advice and support to newcomers, emphasizing the value of having a trusted contact when moving abroad.
• Tourism and Activities: Canavieiras offers a mix of relaxation and activities, including beaches, boat trips through mangroves, big game fishing (blue marlin), and a small-scale Brazilian party atmosphere.
• Drawbacks Alexandra Allover describes the concern of local hotel- and restaurant owners, because there are not enough tourists: "People, to whom the city and tourism is important, take care of restoring buildings, opening restaurants and building pousadas. These people suffer, when no tourists are coming to Canavieras."
• Barra Grande, Bahia, Brazil: While presented as a "secret tip," this location faces tensions between locals who want to preserve its unique atmosphere and the influx of tourists. "Robert, ein US-Amerikaner, der seit zehn Jahren in Barra Grande lebt, erklärt mir, dass die Surfer dieses Paradies für sich behalten wollen." (Robert, an American who has lived in Barra Grande for ten years, explains to me that the surfers want to keep this paradise to themselves).
• Asuncion, Paraguay:
• Residential Area Near Goethe School: The area around the Goethe School is described as "a very interesting and quiet area... with many beautiful houses, villas, and buildings, which give the impression that the residents are rather well-to-do." It's seen as attractive for international families due to the presence of the German school.
• Property Investment: The source about buying an apartment in Asuncion highlights the need to be aware that stated square footage might be inflated due to the inclusion of wall thickness and common areas in the calculation.
• Cali, Colombia: Offers more affordable real estate options. "You can buy an apartment... one bedroom one bathroom I think fifty thousand dollars." There are also residency options tied to real estate investments, starting around $60,000 USD for a three-year visa.
• Dreizehnlinden (Treze Tílias), Brazil: This town maintains its Austrian traditions. "Founded in 1933 by Tyrolean emigrants, the place still combines alpine traditions with Brazilian joie de vivre." While the original language and customs are evolving, the strong community spirit remains.

III. Practical Advice & Considerations

• Visas and Residency:Brazil: The sources mention investor visas (requiring an investment), digital nomad visas (requiring proof of income), and other options for obtaining residency.
• Paraguay: Paraguay is presented as having an easier path to permanent residency through a relatively small investment.
• Colombia: There are multiple visa options, based on the amount of investment in real estate.
• Real Estate:Brazil: Warn about being cautious with real estate purchases in Canavieiras due to quick resales and potential for inflated prices.
• Paraguay: When buying a used car, especially a Toyota, in Paraguay, be aware of potential issues like odometer rollback and steering wheel conversions. "Es zahlt sich daher aus, das Auto vor dem Kauf besonders unter die Lupe zu nehmen." (It therefore pays to take a close look at the car before buying it.)
• Currency and Finances:In Bolivia, BancoSol offers the best conditions for withdrawing money from German bank accounts.
• In many South American countries, cash is essential, especially in rural areas. Be aware of fees for using credit cards and potential difficulties in exchanging large bills.
• Wire transfers are an option for buying property in Colombia.
• Cultural Considerations:Brazilian Mentality: The sources emphasize the friendly and open nature of Brazilians, but also note a more relaxed attitude towards work and organization, which may require some adjustment. "Die Menschen hier genießen oft das Leben, bevor sie sich um Kleinigkeiten kümmern." (People here often enjoy life before they take care of small things).
• Language: While Portuguese is not necessarily a barrier, learning the language can greatly enhance the experience in Brazil.
• Safety: Canavieiras is described as a safe place where you can walk on the beach at night.
• Police stops in Bolivia can be complicated, with requests for documents and searches.
• Digital Nomadism: The "Flag Theory" is introduced as a strategy for digital nomads to diversify business entities and residencies to optimize taxation and asset protection.

IV. Conclusion

South America presents a diverse range of opportunities for digital nomads and those considering emigration. Canavieiras stands out as a promising location in Brazil due to its climate, affordability, and expat community, but careful research and preparation are crucial for a successful transition. Other locations like Asuncion, Cali, and Dreizehnlinden offer unique advantages depending on individual priorities and preferences

FAQ about South America as a Destination for Travel, Living, and Investment

• What are some attractive locations in South America for digital nomads or those seeking a tranquil lifestyle? Several locations stand out. Canavieiras, Bahia, Brazil, is frequently mentioned for its beaches, nature reserve, affordable living (including property), and a community of expats. It offers a mix of island tranquility and old-town convenience with amenities and dining. Santa Cruz, Bolivia has a large population and a nice residential area with good schools. Finally, Dreizehnlinden (Treze Tilias), Brazil, offers a unique blend of Austrian tradition and Brazilian culture.
• What factors make Canavieiras, Brazil a popular choice for expats and digital nomads? Canavieiras is favored due to several reasons:
• Affordable Real Estate: Houses and land are relatively inexpensive compared to other coastal areas, with a good house and land potentially costing around €100,000 or less. Even houses near the beach can be found for €30,000-€40,000.
• Climate: Canavieiras boasts a pleasant climate year-round, with temperatures typically between 25-27 degrees Celsius, making it ideal for those who prefer warmth.
• Nature and Activities: It's located within a 1000 sq km nature reserve with beaches, rivers, canals, and islands for exploration and recreation. Opportunities for big game fishing are also popular.
• Community: A growing expat community, particularly German-speaking, provides a support network.
• Cleanliness: The town has an organized garbage disposal system, a contrast to other areas in South America.
• Safety: Canavieiras is considered a safe place where one can walk at night.
• What are some considerations when buying property in Brazil, particularly in Canavieiras?
• Due Diligence: It's essential to thoroughly investigate properties and ensure all paperwork is correct.
• Expert Advice: Seeking advice from experienced locals or expats is crucial to avoid overpaying or making mistakes. Real estate investment visas are also available. In the northeast, one can get this visa for 700,000 reais/ €122,000 in an urban area.
• Land Registry: Ensure a proper land registry entry exists.
• Verification: Verify no outstanding debts to the municipality or state exist.
• What are the visa options for those looking to live in Brazil? Brazil offers several visa options, including:
• Real Estate Investment Visa: Requires a minimum investment (amount varies by region).
• Digital Nomad Visa: Requires proof of a minimum monthly income (around €1500).
• Other Options: Business setup, retirement visa, or family ties (marriage/childbirth).
• What is the "Flag Theory" and how can it benefit digital nomads in South America? The Flag Theory involves establishing multiple business entities and/or residencies in different countries to diversify assets, reduce taxes, and establish a global business presence. Digital nomads can leverage this by:
• Establishing corporations in low-tax jurisdictions.
• Diversifying investments across different countries and currencies.
• Gaining access to new markets and customers through a global presence.
• What are some general travel tips for South America?
• Transportation: Uber is useful in many cities, but may not be officially legal everywhere. Buses are common for longer distances, while domestic flights can be surprisingly affordable if booked early.
• Food and Drink: Be specific about how you want your meat cooked (e.g., "mal passado" in Brazil for rare) and be aware that many drinks are automatically sweetened. Communicate and clarify your preferences.
• Money: Carry enough cash, as credit card acceptance can be limited, and surcharges may apply. Withdraw cash early in the day, as ATMs can run out of money.
• What are some cultural considerations to keep in mind when traveling or living in South America?
• Friendliness: Brazilians and other South Americans are generally friendly and open to foreigners.
• Language: Attempting to speak the local language, even with simple phrases, is greatly appreciated.
• Driving: Be aware that police stops can be complicated, requiring all documents, a first aid kit, and a fire extinguisher.
• "Baiano Service": Be aware that some feel the work ethic in Bahia is relaxed.
• When buying a used car in Paraguay, what precautions should I take?
• Mileage Tampering: Be aware that mileage may be rolled back.
• Rust: Check for rust, especially on the undercarriage, as it may be painted over.
• Steering Wheel Conversion: In the case of Toyotas, be aware that it may have a steering wheel conversion from a Japanese import that already has high mileage before entering Paraguay.
• Window Tint: Check if the tinted windows are too dark, especially the windshield, as it may hinder visibility at night.
• Mechanic Inspection: Have a mechanic inspect the vehicle before purchase to assess any necessary repairs, which can cost a significant amount.