“Gringo Go Home”: Effects of Expatriates on Latin America

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Since the emergence of remote work options during the COVID-19 pandemic, Latin America has seen an influx of foreigners. The majority of these foreigners are wealthy Americans that are well aware that the US dollar holds more value in Latin America. While these people are trying to maximize their money’s worth, local landlords and businesses have to accommodate these newcomers. Expatriates, or expats, are individuals who live outside of their native countries temporarily and maintain cultural ties to their countries. These expats usually make no effort to learn the language of the country they move to. In the context of Latin America, the immense number of US foreigners migrating to these countries has led to the creation of English-speaking communities. This migration can be attributed to the influence of online relocation guides and social media that encourage wealthy individuals to move to Latin America for economic benefits, including tax advantages. Locals suffer the most from this as these countries are still recovering from COVID-19 and are extremely affected by rising inflation. 

Mexico

Accelerated migration began during COVID-19 as Mexico had limited border restrictions, unlike the US. This fact combined with the large number of US companies that adopted work-from-home policies led to a dramatic increase in migration to Mexico City. According to the US State Department, about 1.6 million US citizens live in Mexico, however, this number does not include those with tourist visas. This migration has proven to generate wealth - American tourists have produced about $11.5 billion in revenue for Mexico in the first five months of 2022 alone. However, the revenue stays in the hands of the wealthy and is not being used to invest in the communities who have to deal with the consequences of gentrification. 

Gentrification occurs when urban, low-income areas become overrun by the wealthy and leads to the modernization of housing and businesses. While some focus on the positive aspects of gentrification, the process causes the displacement of a great number of locals, including those with businesses. This displacement happens due to increases in rent that locals cannot afford but expats can. Eventually, neighborhoods of expatriate residents form and local taquerias are replaced with coffee shops. 

Mexican citizens are discontent with Americans taking advantage of Mexico’s “low” rent and open borders. Many view this as modern colonialism as this migration has highlighted the social repercussions citizens have to face. Businesses and services have begun to prioritize white Americans over brown citizens. Brown Mexicans then have to compete with both white Mexicans and Americans as well. The influx of US foreigners has increased economic and ethnic inequality in Mexico. These inequalities have triggered backlash from citizens and strengthened the Mexican anti-gentrification movement. 

Puerto Rico 

While Puerto Rico is a US territory, the term “Latin America” includes all countries and territories within the continent that primarily speak a Romance language. As Spanish is a primary language of Puerto Rico, it can be considered part of Latin America. Further, the US treatment of its territories, especially Puerto Rico, have sparked debates regarding the growing need for full independence from the US. 

Puerto Rico has turned into a “tax haven” for wealthy investors and other businesspeople. As a US territory, Puerto Rico is exempt from the US federal tax. The island’s financial struggles also created an avenue for the government to pass Acts 20 and 22 that incentivizes foreign investment through reduced tax rates. These acts mostly apply to non-Puerto Ricans, so locals do not have the same tax incentives. These laws are enough to attract wealthy Americans to the island and the sunny beaches are enough for them to settle down. 

Similar to Mexico, white flight to Puerto Rico has strengthened inequalities on the island as gentrification makes housing unaffordable to Puerto Ricans. Locals are then evicted from their neighborhoods and struggle to find refuge. In addition, some locals have been evicted from their homes as properties are bought out by rich mainlanders. Not only does this happen to people’s homes, but many schools have also been shut down. Some locals have no choice but to move to the US in search of a better life. 

The Puerto Rican government claims these tax break laws are necessary to improve the island’s economy. However, improvements have not been seen by locals, meaning that only the wealthy are reaping the benefits. This has prompted Puerto Ricans to start an anti-gentrification movement favoring the abolishment of Acts 20 and 22, collectively known as Act 60. The movement calls for rich mainlanders to leave the island and the end of tax incentives. 

Conclusion

The rise in protests throughout Latin America have popularized the saying, “gringo go home,” calling for white gentrifiers to return to the US. While these expats have claimed to feel negatively targeted by these protestors, the phrase has brought awareness to the effects of tourists and expatriates on Latin America. This movement has also revealed the hypocrisy of anti-immigrant sentiment in the US. There is a racist double standard on immigration as it is acceptable for white people to relocate anywhere but people of color are subjected to xenophobic sentiment when they relocate to Western countries. In addition to awareness, it is also important to consider the feelings of natives when planning to visit another country. Informing yourself on the political and social climate of a country can help you determine whether it is ethical to visit or not, especially as tourism can have negative impacts on natives’ environment and lifestyle. 

References

Culver, David and Karol Suarez. “Mexico City Becomes ‘Work From Home’ Haven for US Expats, but 

Locals are Getting Priced Out.” CNN Business, August 22, 2022. https://www.cnn.com/2022/08/22/business/mexico-city-work-from-home-us-expats.

Dent Jr., Harry S. “Get Expat Benefits, but Stay Close to Home? Here’s How.” International Living, 

August 18, 2021. https://internationalliving.com/get-expat-benefits-but-stay-close-to-home-heres-how/. 

Donnelly-Deroven, Clarissa. “When the Children Leave: What’s Left After A Mass Exodus of Young 

People from Puerto Rico?” The HEchinger Report, August 7, 2019. https://hechingerreport.org/when-the-children-leave-whats-left-after-a-mass-exodus-of-young-people-from-puerto-rico/. 

Espada, Mariah. “Influencers, Developers, Crypto Currency Tycoons: How Puerto Ricans Are Fighting 

Against the Outsiders Using the Island as a Tax Haven.” Time, April 19, 2021. https://time.com/5955629/puerto-rico-tax-haven-opposition/.

Miller, Andrew M. “Mexico City Residents Angered by Influx of Americans Speaking English, 

Gentrifying area: Report.” New York Post, July 28 2022. https://nypost.com/2022/07/28/mexico-city-residents-angered-by-influx-of-americans-speaking-english-gentrifying-area-report/.