Retiring Outside of the U.S.

Discussion in 'Off-Topic' started by isucyfan, Jan 1, 2020.

  1. isucyfan

    isucyfan Speechless

    Apr 21, 2006
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    I have started seriously considering retiring in a country where my dollars go much further and where healthcare is excellent and not out of control cost-wise.

    Running some numbers through a retirement calculator shows that I might be able to retire much earlier overseas as well. I am only 47, but may be able to retire at 60 in Panama, which is our choice as of now.

    Anyone have any experience, thoughts, or advice on this? Here is an article that shows some of the pros:

    https://nypost.com/2019/12/28/here-are-the-12-best-countries-to-retire-in/
     
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  2. clone1990

    clone1990 Active Member

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    Thought about this myself. I have no info to add at this point, but will be interested to hear from others.
     
  3. BryceC

    BryceC Well-Known Member
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    Mar 23, 2006
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    I've thought about this a lot. I'd really want to live somewhere that flights are cheap though, because man it'd be tough for me to leave my friends.

    Sound dumb but I love house hunters international for this reason. They did one in Columbia and it was beautiful there.
     
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  4. isucyfan

    isucyfan Speechless

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    One of the (many) reasons I am considering Panama is that they give a 25% discount on all flights to retirees, along with other discounts.
     
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  5. CyCrazy

    CyCrazy Well-Known Member

    Dec 17, 2008
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    In a dream world I would pick Spain, Portugal, or Germany. That being said I will retire in Ames.
     
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  6. boone7247

    boone7247 Well-Known Member

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    Just don’t forget that as long as you keep your US citizenship you will need to pay US income taxes.
     
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  7. CyCrazy

    CyCrazy Well-Known Member

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    I like those shows too Belize seems awesome. I would be wary about SA though.
     
  8. isuno1fan

    isuno1fan Well-Known Member

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    I have family in Costa Rica. Sold everything in Chicago 2 years ago and moved there. They have zero regrets.
     
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  9. isucyfan

    isucyfan Speechless

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    But, it would be the same as in the US for most retirement income, I think:

    Paying Taxes in Panama
    Foreign residents pay tax in Panama only on money earned inside this country. Regardless of your residency status, personal income tax is only applied to Panamanian sourced income. Americans retirees are not taxed on pensions, Social Security, or similar income earned in the States. Still, the IRS requires that U.S. citizens file U.S. tax returns, even if they’re not living in the States and even if they have no tax liability (as long as they meet the minimum income requirements). You will not be taxed on your first US$101,300 (2016) of earned income (double that for a couple). When it comes to taxation, this is as good as it gets for the foreign resident or retiree
     
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  10. deadeyededric

    deadeyededric Well-Known Member

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    I started a thread on this about a year ago. I've done a little research on this. I'm almost positive I want to retire in Mexico. You can live pretty well on like 1000/month there. Panama is becoming more popular with ex-pats as is Thailand. If you want to go to live in Europe dirt cheap move to Portugal.
     
  11. simply1

    simply1 Rec Center HOF

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    Way behind medically though I think
     
  12. deadeyededric

    deadeyededric Well-Known Member

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  13. clone1990

    clone1990 Active Member

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    Is a particular state in Mexico better?
     
  14. benman82

    benman82 Active Member

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    Note that the $101,300 exemption only applies if you're outside of the USA for at least 330 days per year or have proper residency in a foreign country.

    In general Panama does seem to have one of the easiest routes to residency (and even citizenship) for retirees.
     
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  15. deadeyededric

    deadeyededric Well-Known Member

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    I guess it depends on what you are looking for. I haven't seen a considerable difference in the cost of living.
     
  16. I-stateTheTruth

    I-stateTheTruth Well-Known Member

    Nov 13, 2016
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    Just a few thoughts to share ...

    Panama and Costa Rica are the obvious choices if you want to stay relatively close to US shores.Mexico has so much more narco-violence that I'd be nervous to commit and their land ownership laws don't favor foreigners. From where I live on the East Coast, I can fly to Central America in less time than I can to L.A. Panama has had an uptick ince in the last couple years - some people point to the chaos of Venezuela and the influx of many desperate Venezuelans (not sure if it's true but I've heard that theory thrown out). At least around the capital, I can say that Panama has pretty good infrastructure and services (no shortage of American brands and franchises if that matters to you).

    And Panama has actively sought to bring in retirees so my guess is that there is medical care and favorable regs. Costa Rica is a bit more chill and friendly but I feel like some things like banking servies are behind Panama (also, there is less money laundering going on in CR).

    It always seems like it's hot and sticky in Panama which some people don't like. Some of the higher elevations of CR seem to have more temperate climates.
     
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  17. isucyfan

    isucyfan Speechless

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    This is good info...thanks. The place I have picked out in Panama averages only 75 degrees for a high in their warmest season, although it does rain a lot. We plan on taking an exploratory vacation there in the next couple of years to see if it is right for us.
     
  18. I-stateTheTruth

    I-stateTheTruth Well-Known Member

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    Ah, good. Must be a higher elevation. Good to do an exploratory vacation there, as well. Buena suerte!
     
  19. farminclone

    farminclone Well-Known Member

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    This is interesting to read. I have no interest in doing this myself, but think it’s a cool concept. For those that are interested in this - do you plan to stay in your new country until death? Or just move for your first part of retirement then move back to the states?
     
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