La Paz is the administrative capital of Bolivia. The economy of La Paz has improved greatly in recent years. Due to the long period of high inflation and economic struggle faced by Bolivians in the 1980s and early 1990s, a large Informal Economy developed. Bolivia is in Central South America, southwest of Brazil. The climate varies with altitude from humid and tropical to cold and semi arid. The official language is Spanish. Bolivian Spanish – which is generally spoken slowly and clearly – is considered one of the easiest Latin American accents to understand. The indigenous Quechua and Aymara languages are widely spoken outside business circles. The main religion is Christianity. The economy of Bolivia is characterised by the lowest GDP per capita in South America. However, the country is rich in natural resources and has the second largest natural gas reserves in South America. Bolivia is also estimated to have 50%-70% of the worlds lithium. Bolivians are generally tolerant of expatriates, however xenophobic and openly racist sentiments are not uncommon. Formal expatriate business dress is the norm. Expatriate businesswomen are likely to be treated with consideration, however harassment of a sexual nature is not uncommon. The security risk for expatriates in Bolivia is medium. Risks include opportunistic theft, car theft, burglaries, clashes between demonstrators and security forces, as well as violent crime primarily in impoverished urban areas. Other risks include floods and landslides during the rainy season. The currency of Bolivia is the Bolivian Boliviano (BOB). Banking facilities, including ATM's are good in all main cities. Medical facilities in major cities are generally good and acceptable, however elsewhere facilities may not meet acceptable standards. Cases of Zika virus have been reported. Dengue Fever and Malaria is common. The population of La Paz is 2.4 Million (Metro) (2019 est.), while the inflation rate (CPI) is 1.35% for Bolivia as at April 2019. Xpatulator Hypothetical Tax for Bolivia is based on the current personal income tax rate which is a flat rate of 13%.
Cost Of Living
The cost of living for expatriates / professional migrants in In La Paz, the cost of each basket, based on local prices, compared to the international average, is categorized follows (Exact cost of living percentages only available in personalised reports): La Paz as at 1 July 2019 is average in comparison to other places in the world. 1) Alcohol (where available) & Tobacco: Low 2) Clothing: Low 3) Communication: High 4) Education: Average 5) Furniture & Appliances: High 6) Groceries: Very Low 7) Healthcare: Low 8) Household Accommodation: Low 9) Miscellaneous: High 10) Personal Care: High 11) Recreation & Culture: High 12) Restaurants Meals Out and Hotels: Low 13) Transport: Average La Paz is for example -11.2% cheaper than Houston TX for groceries, -2.1% cheaper for household costs than Kuala Lumpur, and 43.4% more expensive for transport costs than Dubai. The hardship premium for La Paz for an expat from Perth, is for example 30%, i.e. host location (La Paz) premium of 40% minus home (Perth) location premium of 10%. La Paz is ranked as a extreme hardship location. Want to know more about cost of living, hardship (quality of living) or expat salary in La Paz? Register subscribe to your home location and La Paz and run your personalised reports.