The bottom line is that talented people from the Northern Hemisphere are both welcomed in Chile and will be able to find lucrative opportunities. Professional licensing is possible, but in those fields one must be fluent in Spanish. Otherwise, the easiest fields to enter have to do with exploiting natural resources, exporting them, importing other goods, and establishing tourism and recreational facilities. When considering a place to establish a physical residence for you and your family, Chile should be at the top of the list. I have lived here for many years without any regrets. If you would like to find out more about Chile and relocating to Chile, please take a look at what I have to offer in the sidebar to the right.
Business and Economic Environment in Chile During the Age of Turmoil
Sovereign Man proprietor Simon Black has hit the nail right on the head when he states that people in most countries of the Northern Hemisphere are entering an “Age of Turmoil.” He is not the only one talking about coming turmoil either. Just listen to investment experts like Peter Schiff, backed by many free market economists, who understand what happens when government radically inflates the money supply in order to “bail out” sectors of the economy. You should view the online documentary from Four Corners entitled Overdose (and be sure to click on parts 2 and 3 too) if you have not already done so. The party can only last so long. Successive bigger “bubbles” (caused by easy money policies) will likewise burst, causing even longer recovery times and economic disaster in the meantime. Many of us already see the autopsy room being prepared.
But the big question is “Where will you and your assets be when it all comes down?”
It makes little sense to live in the same country where the bulk of your money resides. And finding a residence for you assets is actually the easy part of the equation. There are the famous enclaves in Europe like Liechtenstein, Switzerland, Andorra, Isle of Man, Jersey and Guernsey, among others, which provide unparalleled sophistication with asset management and storage. There are worldwide financial centers an boutique islands like Hong Kong, Singapore, Panama, Abu Dhabi, the Cook Islands, Mauritius, and other places which provide a home for business and personal assets.
Legal structuring and positioning can also be accomplished fairly easily. For instance, it is relatively easy for those with significant assets to buy a second passport from Nevis, Dominica, Belize, etc. And once done, the new citizens can renounce their USA citizenship and be free of American taxation. (Europeans in general, will not have to take this step.) But financial planning, legal and nationality structuring, albeit expensive, are not that hard to set up.
The more difficult part has to do with where you should be physically planted and domiciled. After all, your life is more than money handing and nationality. You have feelings, desires, needs, wants, objectives, plans, etc. that provide purpose and meaning to your life. You want to live in a place that is secure, relatively free of corruption and social unrest. You need to be in a place where property rights are secure and business and self-employment opportunities abound. The ability to exit and enter freely are of paramount importance too. And you do not want to live anywhere that you cannot avoid major tax problems.
Many of the aforementioned islands and postage stamp nations could serve this role, so long as you do not mind living in such places. But I would also like to suggest that you consider Chile as a destination. In addition to being the most beautiful country in the world, Chile offers all of the benefits listed above. There are many satisfying attractions for single people and families, including church life, night life, cultural events, fine dining, travel, and recreation. That is not to say that Chile is perfect. It is not. But in Chile one can structure himself legally so as to avoid major government failures and significant personal taxation. He can also find a wealth of business opportunities.
Chile (pop. 17 million) is still a booming economy and its capital city Santiago (pop. 6.5 million) provides a First World standard of living. Chileans are ever-interested in importing new goods from other countries and its current businesses are eager to export its high-quality products to new markets: copper, gold, silver, iron, molybdenum, lithium, avocado, fruits, salmon, lumber, pulp (for paper), and wine. Chile’s tourism and recreation (surfing, skiing, fishing, kayaking, casinos, etc.) potential has been developing nicely but could be developed far more. Chile has many sea ports but it needs more. The export capacity is already reached its limits. The same thing is true for the growing need for three star hotel chains throughout the country. Chile needs more private schools. Hospital and medical care, including chiropractic, is a boom market waiting to happen (especially in the provinces). The variety of retail goods is significant in Chile, but there is room for much more to be brought in, especially in terms of things like fine furniture, specialty technologies, guns, and gourmet foods.Starting a business in Chile is still not “easy,” although it is far better than in other Latin countries. And the point is that it can be done with patience and the right contacts. Set up will not be cheap but doing so will likely be very profitable. Infrastructure, internet, communications and transportation are all top-notch in Chile, especially in Santiago. Capital markets are fluid and many investors are willing to lend money for new Chilean projects. Companies also have significant assurance that their executives will be able to get established and live comfortably in Santiago. The tax system is transparent and can be calculated with significant certainty. Usually, corporate taxes will not exceed 12% flat. One major obstacle for employers is finding reliable labor since local labor is not always competent and there are restrictions on the percentage of foreigners that can be hired by new or foreign companies operating in Chile (a cap of 15% of workforce is the latest figure I have heard).