Best Places In The World To Retire

As an American, in 2016, they will open up a bank account in Mexico with your tourist visa and passport. That is something that seems to change back and forth every other year but currently, all you need is a visa, which you will get at the airport or your land or water entry point and your passport.

 

They will open an account for you in pesos. We do not have an issue with the Mexican banks here fearing the American IRS or any similar institution. There are...

As an American, in 2016, they will open up a bank account in Mexico with your tourist visa and passport. That is something that seems to change back and forth every other year but currently, all you need is a visa, which you will get at the airport or your land or water entry point and your passport.

 

They will open an account for you in pesos. We do not have an issue with the Mexican banks here fearing the American IRS or any similar institution. There are strict money laundering laws that have come into play so if you are going to be moving money down here you will need to prove that it is not from drug sales or any other illegal activities.

 

Moving your money back, for example, when you buy a property and then sell it, is not an issue either as long as you prove that it comes from a listed legal house sale or a business sale. The sales price and purchase price and the amount of taxes paid should all be reflected in your deed so when you sell a house, you take a copy of the new deed, which is like your receipt for the transaction done, and with that you can freely move your money anywhere without any obstruction by the Mexican authority.

 

(Banamex ATM machine, Mexico, pictured.)

The Portuguese government introduced the Non-Habitual Resident Scheme in 2009, which has only really taken off since 2011. It is designed to attract retirees from other countries to come and retire in Portugal.  Under this scheme, for 10 years retirees from other countries will not have to pay any Portuguese income tax on their pension. If one’s pension is tax-free in the country from where it is sourced if the retiree lives abroad, then a retiree can move to Portugal and...

The Portuguese government introduced the Non-Habitual Resident Scheme in 2009, which has only really taken off since 2011. It is designed to attract retirees from other countries to come and retire in Portugal.  Under this scheme, for 10 years retirees from other countries will not have to pay any Portuguese income tax on their pension. If one’s pension is tax-free in the country from where it is sourced if the retiree lives abroad, then a retiree can move to Portugal and pay no tax on his pension, either here in Portugal or in their home country, for a period of 10 years. 

 

That is the only retirement program here in Portugal. If you live here in Portugal, you work here, and then you retire, you get no pension relief at all. Pensions are taxed just like salaries here in Portugal. If you are not qualified under the Non-Habitual Resident Scheme then you don’t get any tax benefit at all. 

 

To qualify for the Non-Habitual Resident Scheme, one has to move here to Portugal and be a tax resident by renting or buying a property. Then he can apply to benefit from this program. For example, you are from the UK and you move to Portugal, you qualify as a tax resident of Portugal for the Non-Habitual Resident Scheme. The UK will no longer tax your pension because you are already living in Portugal and under the Non-Habitual Resident Scheme, Portugal will not tax your pension either for a period of 10 years. However, this rule doesn’t apply if you are on a civil servant pension because that continues to be taxable in the UK. The Non-Habitual Resident Scheme applies to private pensions.  

 

(In the town of  São João Arga de, Portugal, pictured.)

The best place in the world to retire is someplace you really want to be.  Will your retirement destination give you what you want?  And what is it, that you really want?

 

Do you have a retirement destination in mind?  Can you imagine yourself spending years and perhaps decades there?

 

If you simply wish to escape from things you don’t like (high taxes, over-regulation, cold weather, etc.) then any...

The best place in the world to retire is someplace you really want to be.  Will your retirement destination give you what you want?  And what is it, that you really want?

 

Do you have a retirement destination in mind?  Can you imagine yourself spending years and perhaps decades there?

 

If you simply wish to escape from things you don’t like (high taxes, over-regulation, cold weather, etc.) then any place that has lower taxes, little or no regulation and warm weather, might work for you.  But getting away from things you don’t like alone isn’t enough to have a happy retirement.  You also have to get things that are important to you, beyond merely safety, great infrastructure, internet access, etc.  Are you planning a retirement within easy walking distance of a hammock and a beer cooler?  Or do you wish to be active in retirement and want lots of things to do like hiking, riding, white water rafting, deep sea fishing, etc?

 

There are many places in the world where you can retire at reasonable cost.  The question is whether you will be happy there.  And that is a matter not so much of where you go but what your tolerance is for change.  If you want to live in a place that is ‘just like home’ your choices are dramatically reduced   But if you want to live just as you have been in your working years, why do you want to leave home and travel to another country?

 

I like Panama as a retirement destination because it has things that are important to me:  English is widely spoken, the economy is booming, the currency used is the American dollar, there are lots of North American and other English-speaking ex-pats to interact with if I wish, and the locals are friendly and welcoming.  But there are also things that are frustrating for escapees from any go-go society.  Everything takes longer to get done.  Having anyone show up to an appointment on time is always a welcome surprise.  On the other hand, prices are relatively low, there is a lot to do, and life slows down enough so that you can actually take the time to enjoy everything you do.

 

I like change.  I like adventure.  If you do too, then Panama might be a good retirement choice for you.

The cost to build a house in Bocas del Toro is anywhere between US $60 a foot to $150 a foot, depending on how elaborate you want your house. The standard house, a good one, with single wall wooden construction and concrete pillars, will run you around $100 to $110 a foot.

Most people who come down to Bocas del Toro will say that it costs the same to build a house in Houston as it does to build a house here.  The reason is that we have logistics issues here. You have to...

The cost to build a house in Bocas del Toro is anywhere between US $60 a foot to $150 a foot, depending on how elaborate you want your house. The standard house, a good one, with single wall wooden construction and concrete pillars, will run you around $100 to $110 a foot.

Most people who come down to Bocas del Toro will say that it costs the same to build a house in Houston as it does to build a house here.  The reason is that we have logistics issues here. You have to get everything to Bocas del Toro. That’s what costs money. That’s 30% of the building cost. You have to get materials from the mainland and then transport it on a boat and go over there. It’s time consuming. You have to handle the material several times. By the time you are done, the cost to build on an island in Bocas del Toro would be about the same cost as to build a house in the mainland in the metro area of Houston, Texas. 

 

(50 minute boat ride to Bocas Town on Isla Popa, a 200 acre farm and wood plantation homestead, pictured.)