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Originally Posted by Pilgrim21784
Hopefully one of our very astute Mods, earlyretirement will chime in. I think he has a bunch of experience on that topic. You might try DM-ing him.
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I’m on vacation out of the country so I haven’t been reading the board the past several days and will be out of the country until next week. But I got your DM so I thought I’d answer and I hope others in a similar situation find this helpful.
Just my 2 cents. You need to be aware of the differences in law between the USA and various countries in South America. I’m not sure where in Latin America but you can probably apply this advice to many countries.
First of all, don’t assume that any property will automatically become yours in the event that you marry and something were to happen to your spouse (assuming you get married). I know you didn’t ask this part of it but I still think it’s worth mentioning it. The inheritance laws are VERY strict in some of these Latin American countries.
In some, you couldn’t write your kid out of a last will and testament if you tried. So it would be wise to see what is applicable to you. For example, you mentioned this was his 2nd marriage assuming you get married. You need to be mindful and think about the possibility that any properties/real estate he bought when he was married before he married to you might go directly to his ex-wife or children.
I mention this because I know someone this happened to. She got married to someone from South America and he died. She assumed she was going to be comfortable as he owned many properties. They never had “the talk” and she assumed everything was going to her.
He bought them many decades prior in a previous life and he had an ex-wife and kids. Well, he died and she didn’t get any of the properties at all. So go into a potential marriage talking about all of these things. The laws in Latin America are DRASTICALLY different.
Also, keep in mind that the legal and judicial system in many of these countries are totally broken and can take YEARS and YEARS to untangle in the event of some problem. So even if ultimately you might lay claim to something, his family members can make it difficult and ugly for you.
Each countries laws are different so it makes sense to speak to an accountant that specializes in ex-pat tax issues. I can’t emphasis this enough because in many countries there are two totally different sets of laws. One for RESIDENTS that live in the country full-time (or at least a minimum # of days per year) and another set of laws for non-residents. So find the best accountant that specializes in NON-RESIDENT as well as RESIDENT tax laws.
Typically in any country only a handful of accountants specialize in non-resident tax issues. So make sure to find one. It’s like NOT going to a family practice doctor when you need brain surgery. Just because that physician might be a doctor doesn’t mean he can help you. Same thing here.
You mentioned that he owns property with his brother. You need to realize that in many of these countries the brother can make it difficult/impossible for you to ever lay claim to this property. Even if they have a good relationship now, I’ve seen plenty of examples of family members cheating other family members.
If you get married, I’d encourage you to speak to an attorney or Escribano to really map out everything in detail if he wants to leave this property to you. A US last will and testament is typically invalid in many countries so find out what is applicable to the country you are speaking about.
Your plan to live down South part of the year is nice and it can make sense because the seasons are reverse down there. I know many friends that own property down in Buenos Aires and they go down there for the winter when it’s winter in USA/Canada it’s summer down there.
It’s not difficult owning property in two different countries if you have family/friends there to help out. It’s not difficult maintaining it either, especially if you have trustworthy and dependable family members. I own properties in 4 different countries in South America. However it CAN be a nightmare if you don't have anyone dependable or reliable to watch over things.
Owning real estate in South America isn't the same thing as owning real estate in the USA or first world countries. Things can and will go wrong. Dealing with utility companies can be an absolute nightmare. So make sure you have someone dependable and make sure you have a legal power of attorney so they can act on your behalf. Obviously you will want it to be limited in nature so they can't sell the property or take out a mortgage or loan against it. But you should specify on it that they can deal with any utility companies (gas, electricity, water, cable, internet, etc) as well as the building administration or any legal matters in case of any dispute where they need to represent you.
What you need to do ASAP is find a GREAT accountant that deals in non-resident tax issues that can explain in detail what obligations your significant other may potentially have. Find out what minimums if any are required to live in the country or visit the country each year.
And see what the differences are for being a resident vs. being a non-resident. The most important part is finding a good accountant to help explain everything and help you structure everything so you don’t have problems in the future. And my advice is even if you have to pay for a second consultation, to go to another non-resident accountant and make sure they gave you the same advice. If not, find out why not. In my vast experience dealing with non-resident accountant experts, most don't know what they are talking about. However, there are typically 2 or 3 experts in most major cities.
It's VERY important that if you do get married, you discuss in GREAT detail with your spouse everything and also discuss with lawyers the best game plan. As well, many times people have no clue how things will end up and no one likes discussing the possibility of death, etc. So you will want to really discuss this as it pertains to South America. "
Blood is thicker than water" when it comes to family down there. You should know that going into any potential marriage down there.
I hope this helps.
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