American retirees are looking elsewhere more than ever. 255,000 social security checks were sent overseas in 2004.
Internet has created a global community in the last 20 years. Access bank accounts, tax returns, and contact with friends and family with one click. This has made retreating overseas more possible and desirable for many seniors who may not have considered it before.
Better places exist. New Places to Retire, based on tax liabilities, property expenses, visa ease, health care, climate, and culture. Many retirees have given up their ambition of living abroad because they drastically overestimated the cultural and financial strain. Choosing an overseas pension site requires research and strategy. According to The Times on January 20, 2008, research by the Homebuyer and Property Investor Show lists the 10 most popular retirement countries based on the main qualities. Here are the top five countries and a summary of the report’s findings:
Foreign seniors who have lived in Cyprus for at least 183 days are taxed 5% per year. The standard rate is 0% on the first $28,516.46 and 30% on the next $53,085.
IRS taxes U.S. bank accounts and stock portfolios. Moving assets to an offshore account and subsequently to Cyprus can prevent this. Cyprus has no inheritance tax, but expats must prove they’ve severed all ties to their former nation.
Cyprus real estate starts at USD 150,846.69, but prices will undoubtedly grow as the location becomes more popular. Stamp duty is 0.15% for real estate up to USD 254,626.68 and 0.2% for more expensive homes. 3% of the first $127,297.51 may be transferred.
5% on houses worth $ 127,297.51 – $ 254,626.68, and 8% on those worth more.
Retirees need a short residency permit upon landing in South Cyprus, but no visa. To buy real estate in Cyprus, you must prove you can live there without working. The minimum is now USD 15,672.63 per year.
Government and private hospitals provide healthcare. Medical government services can be used by anyone, however American retirees must pay the nominal expenses as defined by the system.
|Ibiza Hotels Satisfy All Tastes and Budgets|
English is widely spoken in Panama, and the US dollar is the official currency.
All foreign income is tax-free. However, commodities and services transfer at 5%. There’s no inheritance tax, however real estate gifts may be taxed 4% to 33% depending on the beneficiary’s relationship. As long as they’re US residents, retirees must pay Uncle Sam income tax.
An average property in Panama costs USD 215,000. After one year, anyone who buys property can apply for a permanent residency visa. To qualify, you must have at least $200,000 in property and local bank accounts.
Panama’s “pensionado” system gives retirees a 15% discount on hospital services in private clinics, 10% off medicines, 20% off medical consultations and surgical operations, and 15% off dental and optical treatments.
Retired couples can earn up to USD 102,000 and pay 14% tax in France. That may be better than US New Places to Retire.
France’s housing is one of the most costly in the survey, averaging $275,000 – and prices are rising. Existing homes cost 7%, new homes cost 3%, and property costs are 6%.
If you spend more time in France than any other tax zone, tax-resident
France has a public health system, but pensioners need a plan that covers all medical costs. The public health system pays 70%; you’ll need a supplement to cover the other 30%.
Belize features a tropical climate, clear rainy season, and inexpensive living costs.
Some income, like pensions, is tax-free. Retirees in Belize don’t pay capital gains or inheritance tax. Cars and boats are duty-free imports. Maximum item tax is $15,000
A three-bedroom seaside home costs about $ 375,000 for New Places to Retire. When selling a home, there are 5% stamp duties, 2% legal expenses, and a 1.5% transfer tax.
45-year-olds or older can apply for a permanent residence visa under the Belize pension plan. As a “qualified retiree,” you get tax breaks and other perks.
Belize’s tax-funded healthcare may be lacking. Private healthcare is affordable.
Due to high taxes, Spain may not be the greatest retirement location. Residents of Spain who spend more than 183 days a year pay up to 40% of their income. The capital gains tax is 18% and the inheritance tax for foreigners is 7.65% – 34%, depending on the amount inherited and the person’s relationship.
Spanish residents pay a 0.2% to 0.5% wealth tax on their worldwide assets.
A typical retirement home costs $268k, plus 10% for real estate.
Spain’s healthcare is universally free. For insurance, you need a Spanish SSN. Paying for one requires working or being self-employed. Private health insurance is an alternative.
When deciding where to retire overseas, you can consider the environment, vistas, and food, but your finances must be the deciding factor. The key numbers will determine if you can afford to retire.