This January, Expatsi released findings in its annual Expatsi Report, with info coming from a diagnostic created for Americans considering living abroad. When asked where they picture themselves living, the majority of the United States wantaway residents crave coastlines and beaches in their daily lives, according to the gathered data.
While neighboring Mexico holds the top spot for American expats, two other Spanish-speaking countries follow: Spain ranks second, and Panama is third. Each location boasts the sand and sea that lure retirees, international professionals, and digital nomads alike. Therefore, it’s no surprise that Condé Nast ranks these destinations atop the preferred 10 countries for expats; however, are expat workers becoming less welcome?
Mexico: More Bang for the Buck
Mexico has long been Americans’ top-considered place to retire: travel researchers at InterNations reveal that the Central American country has held the most sway since 2014. Such a nearby location that offers considerable value on the dollar makes America’s southern neighbor a perennial favorite. However, Mexico’s foreign invasion is causing friction in some zones and, subsequently, its relationship with the hosts.
The Gentrification Curse
Business Insider spoke with longtime American-born resident Jeremy Albelda, who moved to Mexico in 2015. He says the atmosphere has changed since the global COVID-19 pandemic, which has led to a downturn in relations between the residents and wealthy newcomers.
“There appeared to be an influx of mostly white Americans moving into Mexico,” says Albelda, referring to the recent digital nomad phenomenon. “The recent exponential gentrification has taken a toll on the local population.”
Local Outrage at Foreign Incomers
One gentrification trait is accommodation price surges that hurt the local population, forcing them out of previously affordable urban areas. Rising real estate values have a domino effect, also making local resources like dining unaffordable.
“I used to see the local people buying food from the street vendors and small restaurants on their lunch breaks, Albelda concludes. “They can’t afford to do that anymore.” Furthermore, stories of low-income tenants being evicted from older properties to make way for visiting Airbnb residents are common.
The Expat Protocols
His observations should be a wake-up call to anybody thinking of relocating there, and he advises following certain protocols that would apply to any Spanish-speaking locale:
Avoiding older Airbnb rental properties to stop forced evictions;Mixing with the locals; Eating in local, independent businesses and avoiding foreigner-friendly eateries;Being less noisy and more respectful;Learning Spanish, preferably before one’s arrival, and not speaking English.
The Canary Islands Problem
The Airbnb era affects other parts of the world, too. In the Spanish Canary Islands, there has been a growing backlash against non-indigenous residents. The Spanish autonomous community has received heavy foreign-born traffic over the past few decades, mainly through tourism, which accounts for 35% of the archipelago’s economy.
Reaching a Limit
However, the Canary Islands’ expatriate community hit a record 13.4% in 2023, leading to subsequent action from locals who feel they are at a tipping point. A Sky News report this year followed demonstrations in Tenerife that attracted more than 50,000 protestors, who held banners saying, “The Canaries have a limit,” in reference to the ill effects of tourism.
This Was My Home!
Complaints range from more forced evictions, rising property prices, and a lack of local resources due to a tourist-prioritized local economy. In negative scenes, jaded locals have been posting stickers on buildings that read, “This was my home!” Conditions for Canary Island-based foreigners may be about to change, if anything, to save local culture and trade.
The Iberian Backlash
However, it isn’t only islanders who have reached their limit with hordes of yearly visitors — other regions have also had enough. Smaller marches took place across the nation, especially in hotspots such as the Costa del Sol and major Spanish cities. Spain is clearly becoming a victim of its own success — people flock there for its affordable property, dining, and laid-back lifestyle.
Years of Abuse
Some Spanish authorities recognize they have had a foreign visitor problem for some time; they are now taking action to clean up a previously unruly tourist cohort. Every summer, young British, Dutch, German — even Spanish — visitors have been causing drunken problems, burdening the local services in popular holiday zones. Finally, the authorities have acted. This month, the islands of Ibiza and Majorca issued an alcohol purchasing ban from local stores after 9.30 p.m. to mitigate antisocial behavior.
The Post-Brexit Debate
The punitive measures follow previous sanctions in other tourist hotspots against soccer jerseys and all-inclusive hotel alcohol quotas. Moreover, one controversial new rule sends a clear message to anybody coming to visit — make sure you have money. Post-Brexit, British tourists may have to prove they have a daily level of €109; for a family of five, this amounts to much more than £400 per day.
Golden Visas for Real Estate
The Spanish government recently announced a halt to “golden visas” for foreigners buying a home. The system was introduced five years after the 2008 financial collapse to attract more foreign investment, especially in real estate. Spanish Prime Minister Pedro Sanchez told reporters of the government’s intention in April while visiting an affordable housing development.
Pathways To Spanish Residency
This rhetoric may concern potential American investors — Forbes reports that U.S. investors are the fourth-highest group of real estate buyers in Spain. However, if the proposal becomes law, there are still other routes to becoming a legal Spanish resident. One can invest in Spanish bonds or stocks, deposit $1m dollars in a Spanish bank, or start a business of special economic interest.
The 90-Day Rule
A precursor to this scenario was the European Union’s ruling against British expats with overseas property, which now allows them only 90 consecutive days in Schengen Area countries. While the Spanish foreign office is fighting the ruling, it has led to a downturn in real estate investment, which will please many locals, maybe some in the United States. American investors need not worry about the 90-day ruling; it only affects post-Brexit Britons, and even then, it is likely to change in some way, considering Spain’s opposition.
Nevertheless, times are changing for the growing American expatriate community, and a new era of regulations may soon make retiring or moving overseas trickier. Planning for a move abroad and understanding the implications of long-term residency in any region has never been more crucial.
