Best Places In The World To Retire

Is the electricity reliable in Chapala and Ajijic, Mexico? Are there blackouts or brownouts in Chapala and Ajijic, Mexico?

Magy Carmona - Magy Carmona at Lake Chapala Realty

The electricity in Chapala and Ajijic is generally reliable, depending on the area where you live. The areas that have the most expats are generally the ones that have the most reliable electrical service. Expats care about these things, and they ask for their rights.

I live in Chula Vista, and each time something happens with our electricity, I know that I can go and tell the board, and they will do something to fix the problem. I used to be a...

Is it safe to drink the water in Portugal?

Carol Bartlett Ribeiro - Carol Bartlett Ribeiro, Property Consultant

Ancient Roman aquaduct near Tomar, Portugal – Best Places In The World To Retire – International Living

Yes, it safe to drink the water in Portugal in most areas. Sometimes, if you’re out in country houses, a lot of people will have their own wells and then they say not to drink the water or they’re just fine because people will have their well water filtered.

A lot of people buy bottled water, but, I, for example, drink from the tap. It depends on how you respond, but on average, it’s fine.

(Ancient Roman...

How's the kayaking in and around Granada, Nicaragua and the rafting in and around Granada, Nicaragua?

Lucy Valenti - Liv Nicaragua

Kayaking or any other water sport suitable for the lake, as is the case for paddle boarding, can be a unique experience in Lake Cocibolca, a lake as big as a sea, that makes you forget you are navigating in fresh water.

In Lake Cocibolca (also known as Lake Nicaragua), you will go through the experience of paddling, while enjoying the majesty of nature, going through 365 small islands with lush vegetation and different types of birds (for...

In general, how does the Foreign Account Tax Compliance Act (FATCA) affect me if I move overseas?

Jay Butler - Asset Protection Services of America

What the FATCA is the Foreign Account Tax Compliance Act?

Like a thief in the night, President Barack Hussein Obama enacted Public Law 111-147 (H.R. 2847) just after midnight at 00:01 hours on March 18th, 2010. This law provides the "fiscal transparency" promised under an Obama administration - but just not from the government; it is the citizenry who are subject to such scrutiny.

On February 8th, 2012 the Internal Revenue Service (IRS) released the Proposed Regulations for

What the FATCA is the Foreign Account Tax Compliance Act?

Like a thief in the night, President Barack Hussein Obama enacted Public Law 111-147 (H.R. 2847) just after midnight at 00:01 hours on March 18th, 2010. This law provides the "fiscal transparency" promised under an Obama administration - but just not from the government; it is the citizenry who are subject to such scrutiny.

On February 8th, 2012 the Internal Revenue Service (IRS) released the Proposed Regulations for
the FATCA implementation and subsequent instructions on how and when to file Form 8938 stating, "U.S. taxpayers with specified foreign financial assets that exceed certain thresholds must report these assets to the IRS".

On the same day, the U.S Treasury released a 'Joint Statement' with the governments of France, Germany, Italy, Spain and the United Kingdom "Regarding an intergovernmental approach to improving international tax compliance and implementing FATCA".

So what the FATCA just happened? In layman's terms, "The U.S. government has once again increased its power and scope of authority to intrude, investigate and regulate virtually every sizable international financial transaction you make starting in 2013."

The focus of this answer is to look at House Resolution 2847, or the HIRE Act (Hiring Incentives to Restore Employment Act). And within the legislation, under Title V "Offset Provisions", we shall examine one section of Subtitle A, which is where you can go to find more on how to get FATC "Foreign Account Tax Compliant".

Here are some highlights of "Change You Can Believe In". When Americans wish to send money offshore next year, we find it reads in Part 1, Section 501(a), Chapter 4, Section 1474(a):

"In the case of any withholdable payment to a foreign financial institute which does not meet the requirements of subsection (b), the withholding agent with respect to such payment shall deduct and withhold from such payment a tax equal to 30 percent of the amount of such payment."

The aggregate amount for foreign financial assets has initially been set exceeding $50,000. Eerily, the federal income tax started at a mere 3% wartime tax, was never repealed, and has brackets today well over 40%. History has demonstrated governments will expand their power and attempt to lower this $50,000 threshold.

The term "withholdable payment" is broad and covers virtually all salaries, wages, dividends, annuities, periodical gains, profits, and income; or gross proceeds from the sale of property which can produce interest or dividends from sources in the United States.

The term "foreign financial institution" does not refer to just offshore institutions, but any financial institution which does not meet the requirements of subsection (b) to "comply with such verification and due diligence procedures as the Secretary may require with respect to the identification of U.S. accounts." And if any financial institution is not in compliance with these yet to-be-determined procedures required by the Secretary before 2013 (some by 2014) then such financial institutions shall be considered "foreign".

The term "withholding agent" refers to the bank who is sending the money and is responsible for deducting the payment. Generally, banks charge a fee to send a wire transfer and are not designed to be an administrative body capable of determining if the receiving financial institution has a tax-sharing agreement with the IRS and is currently in compliance with the requirements of subsection (b).

Under this law, foreign financial institutions shall be pressured to report the name, address, and Tax Identification Number (TIN) of each account which has a United States person as a beneficial owner, including foreign entities. Banks will be forced to disclose account numbers, balances, receipts, withdrawals and payments.

So, in short, Obama has turned your bank and financial institutions around the world, into tax policemen. Since banks will not assume any liability for failing to withhold the 30% from your transactions, they will likely turn these payments over to the IRS or will begin refusing to comply with the disclosure requirements altogether and close-out the accounts of American citizens as has Hong Kong, Switzerland and other prominent jurisdictions.

Americans have never had so many reasons to protect their assets than with the passage of this Draconian bill.

Does Belize have any special retirement program or retirement benefits?

Ryan Wrobel - Wrobel & Co., Attorneys-at-Law

QRP program – Best Places In The World To Retire – International Living

Belize has a special retirement program, which is called the Qualified Retirement Program (QRP). The QRP affords great benefits for those persons who would like to retire to Belize and import household goods, motor vehicles, planes, and boats.

The best benefit of the program is being able to bring in your household goods—and when I say household goods what I mean is the contents of your house. Belize is trying to attract persons to retire here,...

Belize has a special retirement program, which is called the Qualified Retirement Program (QRP). The QRP affords great benefits for those persons who would like to retire to Belize and import household goods, motor vehicles, planes, and boats.

The best benefit of the program is being able to bring in your household goods—and when I say household goods what I mean is the contents of your house. Belize is trying to attract persons to retire here, so they would expect you to bring the contents of you household—furniture, appliances, television, clothes, your personal assets—tax-free. Not only can you bring in these items import duty-free, but also free of all of the additional sales taxes and environmental taxes would be applied to these standard goods. This can be an enormous financial benefit in addition to the household good exemption from taxes

If you didn’t have the Qualified Retirement Program, some of the import duties of motor vehicles are quite high-- from 50% to 100% of the value of the vehicle.

My office has helped out quite a few retirees under the QRP. I haven’t heard any complaints. It’s a great program. There are some requirements and some prerequisites under the program. The applicant would need to 45 years older, a citizen of Canada, US, or UK, and you must be able to show proof of a pension or some type of income stream of US $2,000 per month. So that’s US $24,000 per year. These funds need to flow into a Belizean bank account. Beyond that it’s relatively straightforward to comply with those prerequisites. There are some medical checkups that need to be done. You have to get a doctor to submit a medical report. You also have to submit some police reports in your own jurisdiction.

The QRP is not a visa. If you come into the country under the QRP program, you’re effectively treated as a permanent tourist. You just show the QRP card at immigration when you enter the country. They don’t grant you a tourist visa. The QRP is kind of a different immigration track than what would be the standard immigration track, which is entering with a tourist visa, after one year if you still desire applying for permanent residency, and then if you still desire after 5 years of being a permanent resident, applying for nationality. Under the QRP immigration track, you’re treated as a permanent tourist. You need not update or apply to renew your tourist visa. Once a year you renew your QRP status and you get a fresh QRP card. Under the QRP program you cannot work so you’re supposed to be retired. You can be an employer but you cannot be an employee, and you’re prohibited from working.

A qualified retired person under the QRP would not be taxed here in Belize on any revenue, any earnings that may be derived from other jurisdictions. So, if you’re earning interest on a bank account, or there’s an appreciation with perhaps some of your investment holdings, stocks, and bonds, or you sold a property outside of Belize and saw some appreciation in income, all this would not be taxed in Belize. However, in contrast, if you’re living here in Belize and working here in Belize, your income is subject to taxation here in Belize.

(Retiree warning sign, pictured.)

What's the food like in the markets in Bocas Del Toro, Panama?

Anne-Michelle Wand - United Country Bocas del Toro

Deli section at Super Gourmet, Bocas del Toro, Panama – Best Places In The World To Retire – International Living There are several grocery stores in Bocas del Toro. The Chinese own 95% of them, and they are all very similar. They have a big stock of canned goods and a big stock of laundry soaps, household stuff, bleaches, a few dishes, and Tupperware. They have cake mixes and all kinds of non-perishable items. They also have the refrigerated section where you will find some meat, chicken pieces, and some dairy products. There are no juices and soda products. Some stores have meat counters, where you...

Deli section at Super Gourmet, Bocas del Toro, Panama – Best Places In The World To Retire – International Living There are several grocery stores in Bocas del Toro. The Chinese own 95% of them, and they are all very similar. They have a big stock of canned goods and a big stock of laundry soaps, household stuff, bleaches, a few dishes, and Tupperware. They have cake mixes and all kinds of non-perishable items. They also have the refrigerated section where you will find some meat, chicken pieces, and some dairy products. There are no juices and soda products. Some stores have meat counters, where you can get hamburgers, fresh meat, and chicken breasts so you can get pretty much everything.

Generally, the grocery stores have potatoes and onions. If you want lettuce, broccoli and fresher things, you can go to the fruit and vegetable stands which are separate from the grocery stores. The fruits and vegetables get delivered twice a week. People here in Bocas know the days when the deliveries are done. You could go and stock up on some more perishable items like mangoes, lemons, and lettuce. Some of the grocery stores are trying to carry more and more items but I noticed that they are not as fresh when they carry it on the open-air market.

There is one gringo grocery store and it is called The Super Gourmet. It is the best grocery store in town. It is not very big but it has a lot of items imported from the US that you cannot get in any other store, so we like to shop there. They have the deli counter where you can get sliced meats, sliced cheese, and have a sandwich made. They also have cookies that are not in a package. They usually cook something for lunch like lasagna or roast chicken and will sell that for what is similar to the price in the States. The Chinese grocery stores do not have anything like that.

Many expats shop at The Super Gourmet but they do not hang out there. We know Organic Friday is when The Super Gourmet imports organic fruits and vegetables from Boquete. On Friday morning, you can see a lot of people at The Super Gourmet because they are all going together to get the same things.

(Deli section at Super Gourmet, Bocas del Toro, Panama, pictured.)

Recently Answered Questions

Is the electricity reliable in Chapala and Ajijic, Mexico? Are there blackouts or brownouts in Chapala and Ajijic, Mexico?

Is it safe to drink the water in Portugal?

How's the kayaking in and around Granada, Nicaragua and the rafting in and around Granada, Nicaragua?

In general, how does the Foreign Account Tax Compliance Act (FATCA) affect me if I move overseas?

Does Belize have any special retirement program or retirement benefits?

What's the food like in the markets in Bocas Del Toro, Panama?

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Best Places In The World To Retire