A wave of emigration has begun for three very popular English speaking retirement destinations. Between three and six million Americans are currently living abroad according to 2011 US government tax statistics. The Telegraph reports, four out of ten UK retirees are looking toward warmer shores for their retirement. What is interesting is that, no previous record has ever shown such a large global migration as the baby boomer generation. So why are people selling their home and starting life over after 65? Let’s take a look at top three destinations that have attracted so many English speaking retirees.
Despite all the negative backlash from political border battles between US and Mexico, when the tables are turned, Americans don’t seem to mind crossing the border and heading south. Mexico is the number one choice for retired Americans with as many as one million Americans living in Mexico. Cheap housing prices, low tax and low cost of living are what draws the crowds here. Your dollar stretches a whole lot further in Mexico allowing you to soak up the warm sun and enjoy plenty of deep sea fishing. Most Americans find Mexico an easy distance from the US making it affordable to own a second home or go home and visit family and friends when necessary.
Paying taxes in Mexico has advantages and disadvantages because there are two taxes. Local residents by definition, people owning only one home and living only in Mexico pay only the local tax rate which is much lower than foreign resident tax. Home owners owning a home in Mexico and outside of Mexico will be taxed at a higher non-resident rate. However this is offset by the fact that Mexico will not charge non-residents home owners, tax on foreign income earned outside of Mexico.
As for safety concerns, most major areas developed for tourism and higher tax bracket residents are safe to visit and live in. These areas are important economic areas for Mexico and the government places extra efforts to maintain these areas. The top two cities that have been picked as favorites among Americans are Puerto Vallerta, and Baja California with attractive modern living conditions and relaxed palm fronted beach communities. According to AARP Lake Chapala, San Miguel, and Cancun host larger retirement communities and breath taking sea side landscape. Retirees have claimed that the cost of living is very comfortable in Mexico at roughly $1000 a month. However, in Puerto Vallerta a very desirable location the average is $2000 a month.
Canada may come as a surprise as a retirement location destination. As the number two destination, many retirees find living in Canada an ideal relocation option. Canadians are know for their social neighborly lifestyle and enjoy the simplicity of nature and good company. Americans find setting up a new home in Canada quite easy due to no cultural or language barriers and an easy immigration processing. Taxes, property and the cost of living outside of major cities is still very affordable. Canada also offers a national health plan for Canadian residents eliminating the need to pay heath care cost. It is an attractive country for those that like to retire to a quite, simple, friendly country community.
Vancouver, Toronto and many more rural areas along British Columbia seem to be the most popular areas where Americans have chosen to live. Vancouver however, is not the most budget friendly place to live for buying property but it does have the warmest climate in Canada and offers a very modern infrastructure and beautiful surrounding countryside dotted with lakes and forest making it an ideal place to live. The cost of living in Canada is quite low if you plan on living outside of the major cities. It is reported that home owners with low or no mortgage can live comfortably on $1800 to $2000 a month income. For more detailed information about the cost of living in Canada visit Citizenship and Immigration Canada for detailed cost.
Panama became the hot spot in 2012 after it introduced some additions to the pensionado program. Retirees must be 65 years of age and show a minimum of $2000 a month in guaranteed retirement income. Pensionado visa allows retirees a permanent resident visa status and it also provides retirees the benefit of not paying tax on foreign pension income. In addition there is no import tax on foreign personal imported goods. Which comes in handy if you wish to transfer property like a boat or car down to Panama.
Panama is part of the Caribbean and host subtropical weather and a variety of geography from white sandy tropical beaches to rugged mountains and thick jungle. English behind Spanish is the second language spoken in Panama. Many people immigrating to Panama find the transition quite easy and the infrastructure and healthcare very modern. Panama has been chosen as one of the safest destinations for migrants and host a large variety of festivals, entertainment and golf resorts. The average couple reports living on $1500 to $2000 a month comfortably while still dinning out at a nice restaurant once a week. Panama Pensionado Services provides comprehensive information on obtaining a Panama visa.