So you’re thinking about retiring overseas. What do you need to do first before attempting such a life changing move?
Here are 7 things you should consider before retiring abroad.
1. Do Your Research
The Internet is probably the first and foremost place people go to for information about retiring overseas.
However, be aware that MOST of the information on the Internet about overseas retirement is either written by an author who profits from real estate sales or blatant sales brochure copy written by developers. In spite of what you read, throngs of locals are not waiting at the airport to greet you, many do not like foreigners and English is almost never spoken “everywhere”.
There are many “top ten” type retirement lists on major websites, but they often offer very little detail and are created to bring traffic to the website. That’s why it’s important to find unbiased information sources like this Great Retirement Places website and Boomers Blog. We have no direct relationship with any real estate companies and have never profited from the sale of real estate since the first day this site went live.
2. Determine the financial impact
We’re primarily referring to taxation here. Will you have to pay taxes on your income or investments in a foreign country. Your best strategy is to contact an English speaking attorney in the country you are considering. This attorney should have no discernible financial relationships with real estate companies, land owners or developers. Besides providing tax advice, this attorney will be invaluable should you consider purchasing real estate overseas.
You will also have to consider how you will access your money back in the home country.
3. Evaluate Health Care options
Since you are not covered by Medicare or other home country government sponsored insurance abroad, you will need to research insurance options, particularly if you don’t qualify for the country’s government sponsored health care.
In spite of what you hear in this country, medical care is often quite good overseas and almost always far less expensive. You will need to find out about qualification and insurance options.
The most common health care issue overseas is not the quality or cost, but availability. For instance, in some countries fine English speaking doctors and hospitals are available in larger cities, but non-existent in rural areas.
4. Research the issues related to real estate purchase
Here is where that attorney comes into play again. What are the taxation issues with foreigners purchasing (and later reselling) real estate? What kind of deed or entitlement will you be provided with? What are the restrictions for foreign real estate ownership? In some countries you may not be able to purchase real estate or may have to create a legal entity to do so.
5. Learn about language, money and politics in your overseas country
Living abroad often means learning a new language, and usually means a new currency. It is helpful to hit the ground running by having done some of this learning before moving to an overseas retirement place. You’ll need to learn about the political system and how that will impact your life.
6. How do you move your household goods to another country?
This can be a complex and expense issue. There are transportation costs as well as tariffs, taxes and fees involved. Consult an in-country expert before even thinking about bringing your household goods into the country.
7. Live In the Country for a While
Before you make the move to relocate to another country, you should live there first for a while assessing the local amenities, discovering unforeseen challenges, and generally getting a feel for living in a foreign land.
Find out what the true cost of living is, what the cultural environment is like, what you can expect from the weather, climate, food and entertainment.
So do your homework, gather information, talk about it, try it out and you just might find that overseas retirement is just what you were looking for.
The majority of the 999 homes in the Legacy were built by Pringle beginning in 2000 . Of the four communities we visited, Legacy was the only one with new construction homes for sale. After the demise of the original builder, Florida Leisure Communities stepped in, and is in the process of building out and selling the final 72 new homes.