Living And Working In Bolivia As A Foreigner

Bolivia is an attractive option for foreigners looking to relocate, with its rich culture, affordable cost of living, and diverse investment opportunities. The country offers a relatively simple and accessible residency process, with several visa options tailored to different types of applicants, including investors, retirees, and remote workers.

For those planning to stay in Bolivia for an extended period, it is necessary to apply for the appropriate visa, as overstaying without the right visa can lead to fines and other consequences. The specific requirements and procedures for obtaining a Bolivian visa vary depending on the applicant's country of origin and the purpose of their visit. Understanding the intricacies of the Bolivian visa process is essential for foreigners seeking to reside and work in the country.

Obtaining residency through real estate investment

Bolivia does not have a formal residency investment programme. However, foreigners can still obtain residency through real estate investment, albeit with some restrictions.

Firstly, foreign investors are restricted from purchasing real estate in rural areas and within a 31.1-mile-wide (50.03 km) frontier band of the country. Only citizens are permitted to purchase properties in the Bolivian countryside close to its borders.

There is no fixed amount for this type of investment. Urban land and properties can range in price from $10,000 to $1,000,000. To obtain investment residency in Bolivia, a minimum investment of $30,000 is required, which can be in the form of a real estate investment.

To apply for investment residency, you must first identify the investment you wish to make in the country. The application process, which typically takes 3-6 months, involves submitting the required documentation to the Bolivian embassy or consulate in your home country.

• Documentation proving the source of the investment funds
• Criminal background check from your home country
• Medical certificate
• Police clearance certificate from Bolivia

Additionally, you will need to enter Bolivia to sign the contract or send a notarized letter explaining a power of attorney.

Residency via company incorporation

Residency in Bolivia can be obtained through company incorporation. There are three types of companies that can be incorporated in Bolivia: a Limited Liability Company (LLC), a Corporation, or a Branch. Each option has different requirements that must be met.

Limited Liability Company (LLC)

To set up an LLC in Bolivia, the following requirements must be met:

• There must be a minimum of two shareholders, who can be individuals or entities.
• A minimum initial capital of USD $500 must be contributed, although a higher amount is recommended for an efficient bank opening process.
• A Legal Representative must be appointed, who is a local national or a foreigner with the right to live and work in the country.
• A Fiscal Address within the country must be registered and used for official correspondence.
• The founding shareholders do not need to physically travel to the country, as the establishment can be completed via a power of attorney.
• The company must be registered with the Public Registry of Commerce and pay the associated fees.
• A Tax ID (NIT) must be obtained from the Tax ID Authority and the company's fiscal address registered.
• A company bank account must be opened in the company's name.

Corporation

A Corporation in Bolivia requires:

• Three directors, one of whom must be a resident of Bolivia.
• Three shareholders, who can be foreign or local.
• A Síndico (controller) and an auditor.
• A fiscal address.
• If the company generates over USD $160,000 in revenue, annual financial statements must be submitted to the Tax Authority and SEPREC.

Branch

To set up a Branch office in Bolivia, the following steps must be taken:

• The branch office must be officially registered in Bolivia.
• A legal representative must be designated, who is a resident of Bolivia and has a local fiscal address.

It is important to note that foreign ownership of businesses in Bolivia is allowed, with up to 100% of the shareholding permitted. Additionally, corporate shareholders and directors are also permitted.

The process of incorporating a company in Bolivia typically takes 5 to 6 weeks after all the required documentation has been provided.

Immigration by investment in accidental society

A temporary joint venture, also known as an Accidental Society or Sociedad Accidental, is a commercial business arrangement between parties for a specific project or investment. This route to residency in Bolivia requires the applicant to reside in the country and can involve a challenging application process. It is a viable option for those who want to invest in real estate or agricultural properties.

There is no fixed amount for this type of investment. However, foreign investors must reside in Bolivia and face legal representation and tax obligations. One example is where foreign investors contributed $200,000 to real estate without needing to live in Bolivia, only investing in the property without receiving residency.

The company must be operational and have other shareholders. The applicant will need to pay the 37.5% Bolivian corporate tax. There must be proof of companies holding annual meetings of shareholders, and a registered legal firm must be retained for an address. There is also a legal obligation to file accounts every year, and these are often audited.

To apply for a temporary residence or work visa, candidates must submit the following documents to the Bolivian Consulate in their home country:

• A completed and signed application
• A valid passport with at least six months of validity remaining
• Proof of a yellow fever vaccination if the workplace is in a high-risk area
• Documents proving employment, such as an invitation from the company and other supporting documents
• A police record issued through INTERPOL and criminal and police records from the applicant's last country of residence
• A medical certificate
• A passport photograph
• Any other supporting documents the consulate requests

The entire process of obtaining the necessary visas could take another one to five months. The employee cannot start working in Bolivia until they have the appropriate visa.

Once the documents are submitted, the applicant must go to the Bolivian Immigration Office and obtain the Bolivian Foreigner's Identity Card (cedula de extranjero). If the applicant is in La Paz, the process will take eight days, and a couple of days more if they are outside Bolivia.

After the application process, the applicant will acquire a valid residence visa. They can then obtain their ID card from the National Service of Identification.

Permanent residence can be obtained after two years of living in the country, during which the applicant cannot be out of Bolivia for more than 180 days. After three years of living in Bolivia, the applicant can become a citizen.

Work visa requirements

To work in Bolivia, foreigners need to obtain a residence and work visa. Here are the requirements and procedures to obtain one:

• Employment contractvalid employment contract with a Bolivian company or organization.
• Valid passport: Ensure your passport is valid for at least six months from the date of your arrival in Bolivia.
• Proof of yellow fever vaccination: This is required if your workplace is in a high-risk area.
• Invitation from the company and supporting documents: You will need an invitation or offer letter from your prospective employer in Bolivia, along with other supporting documents.
• Criminal record clearance: Provide a police record through INTERPOL and criminal and police records from your previous country of residence.
• Medical certificate: A health certification is necessary, especially if you are arriving from a country with a high risk of yellow fever or other illnesses.
• Passport photograph: You will need a passport-sized photo with specific requirements, such as a red background and a neutral facial expression.
• Other supporting documents: Be prepared to submit additional documents upon request by the Bolivian Consulate.

Application Process:

• Contact the Bolivian Consulate: Reach out to the Bolivian Consulate in your home country or country of residence to understand their specific application requirements and procedures.
• Compile the required documents: Gather all the necessary documents mentioned above and any other supporting documents requested by the Consulate.
• Submit the application: Submit your application and supporting documents to the Bolivian Consulate. You may be able to submit the application by mail in some cases.
• Wait for visa processing: The visa processing time can vary from one to five months, so plan accordingly.
• Do not start working without a visa: Employees must not commence work in Bolivia until they have obtained the appropriate visa. Working without a valid visa can result in sanctions from the Immigration Office.

Additional Information:

• Visa duration: Transitory residence or work visas are typically valid for 30 to 180 days. For longer stays, apply for a temporary residence visa, which is valid for one to three years.
• Visa cost: The cost of the visa increases with the duration of the employee's stay.
• Company requirements: Bolivian law requires companies to have at least 85% Bolivian nationals on their staff. Ensure your company complies with this regulation to avoid sanctions from the Ministry of Labour.
• Attorney assistance: Some employees choose to enter Bolivia with a temporary residence visa and then change their status to a work visa through an attorney. This process involves working with the Department of Immigration to gather the necessary documents.

Healthcare and insurance

Bolivia has one of the lowest healthcare rates in Latin America. The country's healthcare system is currently undergoing reform, with the World Bank providing partial funding. The system includes a mix of public and private health facilities, capable of delivering healthcare to foreigners and locals.

Public facilities are subsidized by the government but are often drastically underfunded and overused, resulting in long wait times and a lower quality of healthcare compared to Western nations. Private facilities, on the other hand, offer a higher level of care and can handle most medical problems, but at a much higher cost.

Outside of the major cities, it can be extremely difficult to find any quality healthcare. The prevalence of diseases such as dengue fever, malaria, yellow fever, and typhoid fever, coupled with poor sanitation and lower standards of healthcare, make medical insurance a necessity.

There are three main options for health insurance in Bolivia:

• Public Sector Insurance: The Bolivian government has introduced basic public health insurance to increase access to healthcare for its citizens. This insurance covers most of the costs of medical care and the full costs for at-risk groups (children, pregnant women, and the elderly) at public hospitals.
• Social Insurance: This insurance is mandatory for foreigners actively working in Bolivia. Both employers and employees are required to contribute to a dual-payment system, which provides savings that can cover the cost of healthcare at some facilities in the country.
• Private Insurance: Private health insurance is available to cover the cost of treatment at non-government hospitals. There are two main categories: local health insurance plans, which only cover treatment in Bolivia, and international health insurance plans, which cover treatment in any country.

It is recommended that expats seek treatment at private facilities within the country but consider travelling outside of Bolivia for major conditions and surgeries. Additionally, due to the lack of adequate healthcare facilities in smaller cities and rural areas, medical evacuation may be necessary, which can be very expensive. Therefore, international health insurance plans are often preferable for expats, as they offer higher coverage limits and can be used at the best medical facilities in the country.

The cost of an international health insurance plan in Bolivia will vary depending on factors such as age, coverage requirements, and nationality. For example, Americans seeking coverage in both Bolivia and the US can expect to pay significantly more than those who only need coverage in Bolivia.

When travelling to Bolivia, it is essential to have international medical insurance that covers medical costs and air evacuation in case of an emergency. It is also advisable to carry any necessary prescription medication and essential medical equipment.

Frequently asked questions