Banking in Latin America

[Meta]

I've been in Latin America once and going for a second trip soon. I'm always looking for personal banking options as it's difficult now for me. Are there worthy places? As Switzerland, "Switzerland of Asia" being Singapore, "Switzerland of Middle Easy" being UAE etc. What is Switzerland of South America? Is there such a thing or all countries are not really politically stable and banking services are bad?

Would you keep any reasonable money out there?

I've heard that only stable/rich-ish countries are Uruguay, Paraguay and Panama, first too having terrible banks and the last one being on all possible blacklists. Is it true?

Not really looking for something specific, just gathering some info as I know very little of the continent. Cheers.

 

[JackAlabama]

I've been in Latin America once and going for a second trip soon. I'm always looking for personal banking options as it's difficult now for me. Are there worthy places? As Switzerland, "Switzerland of Asia" being Singapore, "Switzerland of Middle Easy" being UAE etc. What is Switzerland of South America? Is there such a thing or all countries are not really politically stable and banking services are bad?

Would you keep any reasonable money out there?

I've heard that only stable/rich-ish countries are Uruguay, Paraguay and Panama, first too having terrible banks and the last one being on all possible blacklists. Is it true?

Not really looking for something specific, just gathering some info as I know very little of the continent. Cheers.

No, would not bother with it. (im panamanian resident since 2018)
Today theres no need for banking as it was before.

enjoy the good life of caipirina in brasil and steak.

 

[Sols]

Uruguay.

Compared to its neighbours, it's stable, wealthy, and low profile. The banks there are used to non-residents, but mainly from neighboring and nearby countries. They think it's unusual when people who aren't from Latin America show up and want to open accounts. But as long as the due diligence checks out and you deposit enough money, it's not that hard to open a personal bank account. The service levels are generally of high quality for the region.

Panama is also pretty decently positioned for non-resident banking, compared to what else is in the region. Globally, Panama doesn't hold a candle to major financial centers.

 

[Meta]

Thank you for the info, @Sols . I like this "compared to what else is in the region" note Makes it clear that one shouldn't expect too much.

@JackAlabama first-hands experience, thanks! Can you please confirm that Panama is good as long as you deal within the country and with neighbors, but more of a trouble for anything Europe/Asia related?

I want to expand the question a little. Maybe I'm interested in parking some money in real estate. Not chasing high returns in poorer contries, just want to buy some and rent it out for diversification. Again, the same, Uruguay and Panama I guess?

Any reasons to go with Panama over Uruguay for a person who doesn't plan to live there? Looks like I should avoid Panama because of associated stigma (money laundering blacklists etc).

 

[Forester]

I've heard that only stable/rich-ish countries are Uruguay, Paraguay and Panama, first too having terrible banks and the last one being on all possible blacklists. Is it true?

Paraguay is quite stable but not rich. Banks there are really quite terrible, at least as international payments are concerned.

Not really looking for something specific, just gathering some info as I know very little of the continent. Cheers.

There are some members knowlegdeable re: LatAm here at forum. Try to search with some reasonable keywords...

I want to expand the question a little. Maybe I'm interested in parking some money in real estate. Not chasing high returns in poorer contries, just want to buy some and rent it out for diversification. Again, the same, Uruguay and Panama I guess?

Any reasons to go with Panama over Uruguay for a person who doesn't plan to live there? Looks like I should avoid Panama because of associated stigma (money laundering blacklists etc).

Well, I would have similar feelings re: Panama but I am not familiar with the situation there.
I also add that poorer countries can offer interesting opportunities if (and only if) the country is stable.
But this is OT for this thread and for this forum, if you want to discuss it further, feel encouraged to open a new thread in Investment or in General Business Dicussion...

 

[JackAlabama]

Thank you for the info, @Sols . I like this "compared to what else is in the region" note Makes it clear that one shouldn't expect too much.

@JackAlabama first-hands experience, thanks! Can you please confirm that Panama is good as long as you deal within the country and with neighbors, but more of a trouble for anything Europe/Asia related?

no, its not good, for nothing really, unless you really have a compelling business reason.
You can get by tho and solve every issue but need to have a helping hand . Bc its overly bureaucratic and everything takes forever, mails not being answered etc etc.

Try to get a visa first if you do smth in Panama, but even then, better bank elsewhere (usa is good for in the region).
You also need native style spanish fluency otherwise they treat you like being an imbecile or smth. Basically 0 English spoken in the banks.

 

[Martin Everson]

Would you keep any reasonable money out there?

Hell no.

 

[Meta]

Ok, I see. Nothing positive. I've checked a few banks/brokers specifically and many of them say that "We don't want you if you are resident in Panama".

So, I guess only Paraguay / Uruguay, should get a residence permit first, speak Spanish and even then don't expect too much. Many thanks for the very valuable advice.

 

[Meta]

I was reading chats/forums of expats who moved to Paraguay / Uruguay and have some more info to share.

Paraguay. Easy to get a residency permit, apparently easy to get tax residency docs without living there (which should not be the case, but tax administration does not care and hands those out easily). Banks are bad. $1K deposits / month is a typical limit, then they require some discussions and approvals if you need higher limits. Incompetent; personal visits required in case of problems. Bank cards do not always reliably work abroad. No outgoing swift transfers online. Weird legislation requiring banks to charge you 10% VAT on online card purchases (?)

Uruguay. Easy to get a residency permit, but actually staying is essential. You can not come for a few days, get the docs and leave forever. Banks are better. One can open a bank account without local documents (non-resident) by saying that the residency permit is processing, promising to bring the permit in six months and placing a $5k bond. Not sure, if the account would be closed after the six months or can be maintained indefinitely.

Cheers.

 

[Asset Management]

I think it should not to be too much complicate to open an account in a decent bank in Uruguay, they are used to get Argentinian clients in bulk.

 

[SCHLOSSFINANZ]

the best bank in Uruguay is Banque Heritage

www.heritage.com.uy

 

[Piano]

the best bank in Uruguay is Banque Heritage

www.heritage.com.uy

Also for non-residents ? Online opening ?

 

[SCHLOSSFINANZ]

yes for non-residents. But you must show a connection to UY.
Remote opening on a case-by-case basis.