I'm thinking of retiring down there, and wondering what the paperwork and legal hassle would be with a U.S. citizen setting up a hedge fund. Do I need to pay attention to U.S. or Mexican laws or both? Does it matter where the funds come from U.S., Mexico or elsewhere off-shore? Any good banks in Mexico with U.S. offices? Anyone ever do this before? Can I use a U.S. prime broker? IB?
I would avoid domicile in non native country. There are certain nuisances that locals have regarding business affairs that you may lack. You would be prime target for exploitation. Think of how hard it is in the USA and multiply it by 50. Living somewhere non native is different than doing business non native. Was thinking of buying beachfront property in Xcalak, it looked gorgeous. But the idea of being US citizen in Mexico is scary in itself. Especially a rich US citizen even worse. Look at the trouble the Virus Software developer got into in Latin America. http://m.huffpost.com/us/entry/2118845 It's very easy to get anyone into a situation where leverage is used against them because they consider that person wealthy enough to pay off for the effort. Usually most rich locals don't get messed with because of secondary judicial system in place like the mafia or cartels.
Where you set up is based on where you will take investors from. If they will be US investors, form your fund in the US. If they will be all foreign investors, choose an offshore fund. If you will focus on US listed equities and options, we would be a good choice too. Bob
Are you very familiar with Latin American culture and very adaptable? If not, do not even consider moving south of the border. Culture shock is a lasting reality. I wouldn't even consider Mexico. Look at Costa Rica and Panama and educate yourself about both of them. Keep in mind that nothing works in Latin American countries the same way as it works in Anglo countries.
Setting up a hedge fund and asking for international securities law advice from a bunch of anon strangers on ET? I smell BS.
Move down to Mexico and buy a nice big house and make sure everyone knows you are the rich gringo driving around without security. Was nice knowing you
If you are going to be rich and live in a third world country you better be ready to kill a few gods and decorate your walkway with the heads of local criminals and corrupt officials. If you are really set on it I might help you out. I'd enjoy the practice.
If it was anywhere overseas, it would be Grand Cayman.. was relatively safe and infrastructure already exists. Rule of law prevails.