Article from NAR http://theglobalview.blogs.realtor.o...rging-markets/
If there is already a related thread please merge





Article from NAR http://theglobalview.blogs.realtor.o...rging-markets/
If there is already a related thread please merge





^^^ indeed the issue of ex-patriate retirements is a 'growth' industry. Also, it's not only ex-patriate Americans who are moving to different countries to retire.
While the historical numbers on 'destination' countries for ex-pat Americans show that the lion's share have emigrated to Canada and ( southern ) Europe, as your article points out these destinations have now become too 'expensive' for non-wealthy Americans. This is arguably due to a relatively high taxes / cost of living in these countries, as well as the near 'transparent' co-operation provided by these countries to assure that Americans living within their borders must continue to pay US taxes, as well as paying local country taxes, on their 'foreign' incomes.
As your article also points out, in recent years lots of would-be American ex-pats are now considering central and/or South American countries. Mexico has indeed been a popular option in the past. However, Mexican law which prohibits 'gringos' from actually owning property, and increasing Mexican lawlessness, has definitely reduced Mexico's appeal. To fill the gap, a few 'central' American countries have stepped up to fill the void. The obvious appeal of these countries is the very low cost of living, very low local taxes, limited financial information sharing with the USA etc. With the traditional ex-pat 'model' involving people on 'fixed' incomes, every dollar of that fixed income that doesn't have to be spent on US income tax and/or some local tax directly contributes to an improved standard of living for that ex-pat. These tax savings may be direct ( i.e. the absence of a sales tax, a VAT, high taxes on fuel / energy ), or they may be indirect ( i.e. low real estate taxes for landlords translates to low rent prices for tenants ).
I would also point out that the 'retirement' based permanent resident visa programs now offered by some of these countries defines 'retirement' far differently than Americans traditionally assume. For example, the 'retirement age' requirement may only be 40. And the verifiable 'foreign' income requirement may only be US$25,000 per year ( or less ). And even if you are younger than age 40, many of these countries offer 'infinitely' renewable visitor's visas.
The latter point is of potential great importance to camgirls ... since camming from one of these countries means that the local country considers your camming earnings to be 'foreign' income ( thus NOT subject to local country income tax ), while, with certain conditions applying, the IRS considers ( the first $106,000 per year of ) your camming income to also be 'foreign' income thus legally exempt from US SSI and income taxes as well. In 'real world' terms, for an ex-pat camgirl earning perhaps $1000 per week in 'gross' camming income, this can mean ...
- spending essentially zero on income taxes instead of paying $12,000+ per year to the IRS
- spending $500 a month instead of $1000+ per month to rent a 'nice' apartment
- spending $500 a month instead of $1000+ per month on food, utilities, and other 'necessities'
- being able to save / invest $20k+ per year instead of near zero.
Obviously, a permanent move to these countries involves trade-offs. One major 'sacrifice' is a lack of ready access to big city 'Western Culture'. Local 'Culture' offers its own appeals, but you're certainly not going to find much in the way of world class art, music, fashion etc. For US girls, another is a restriction they cannot 'visit' the USA for more than 35 days per year without sacrificing their IRS 'foreign' income tax exemption. And, in certain areas, physical security is a growing consideration ( thus gated communities ) ... although that situation may exist in certain areas of the US as well !!!
Last edited by Melonie; 03-02-2014 at 04:35 PM.





here's a fairly interesting 'log' describing the ex-pat situation in a couple of popular 'central American' locations


Where there's a hustle, there's a way. ;-)
[SIGPIC][/SIGPIC]





Wouldn't permanently retiring in another country be destructive in the sense that you have moved away from your family and friends?





^^^ you never met my family LOL !!! And my ex-pat friends are far more 'level-headed' than my friends in New York !!!
Actually, as an ex-pat, you are allowed to return to the USA to visit family and friends for up to 35 days per year without losing the legal IRS 'foreign income' tax exemption.
However, for me it's more often the case that friends and family want to visit ME !!! Well, they want to visit me AND the Caribbean beaches / Cancun ( which is a $25 1/2 day bus ride away ) etc.
Actually, Mexican law prevents the outright purchase of Mexican real estate by a non-citizen. The best you can do is a 99 year lease. This in combination with rising 'lawlessness' has tarnished Mexico's appeal as a permanent ex-pat destination.Maybe we should rethink buying property in Mexico
Last edited by Melonie; 03-05-2014 at 04:43 AM. Reason: u

I have been wanting to go to Belize for the longest time! I would love to alone. Would you recommend this melonie?





^^^ it's one of the more popular 'low cost' ex-pat destinations these days !

Melonie, what would recommend for a single girl to do when she is down there? I mean I have been researching things to do like scuba classes and possibly a tour of some kind? I wonder what a girl could do down there by herself? Did you make friends with people before you moved down there? Also I would like to see if there would be a way for me to live there and also make a living if need be.





One thing I would like to do in Belize would be to go swimming with whale sharks.
http://belizescuba.com/diving-snorkeling/whale-sharks/
I briefly spent some time there when I was on a cruise. One thing I recommend before you go, is to find out more about safety and security. When I took a tour there, the tour guide pointed out that most of the decent homes have bars over their windows because of the crime.





Ecuador is becoming a popular retirement destination.
http://abcnews.go.com/Travel/america...ry?id=19187268










As discussed in other threads, ex-pat countries are usually very strict in regard to not allowing 'visitors' to work at straight jobs within the country. However they place no restrictions ( and levee no taxes ) on 'foreign' income. Generally speaking, this means that the long term 'visitor' to an ex-pat country must have a source of passive income ( typically investment income, retirement income, etc. ) sufficient to cover their living expenses. However, as long as the webcam host is located outside the ex-pat country, camming income is considered to be 'foreign' income.Also I would like to see if there would be a way for me to live there and also make a living if need be
This point requires some clarification. As long as the ex-pat person retains US citizenship, they are subject to US taxes even if they are living in an ex-pat country. However, the IRS offers a 'foreign income exclusion' on the first $106,000 per year of non US based income for US citizens living abroad ... providing the US ex-pat does not spend more than 30 days per year inside US borders. So under this scenario, an ex-pat camgirl who is working for a non-US based webcam host and earning say $1000 per week gets to keep that entire $52,000 per year ... PROVIDED that she does not visit the US for more than 30 days in the same calendar year. If she visits the US for more days than that, her camming income will be subject to the same US taxes she would have owed if she was still living and camming from within the USA. Thus on the same $52,000 worth of 'gross' camming income, an extra day's visit to the USA makes the difference between being able to legally pocket the entire $52,000 versus say only $37,000 after paying US Social Security and income taxes. And down here 'way south of the border', that $15,000 difference is often enough to cover the cost of renting an apartment plus buying groceries for the entire year.You also have the option of remaining a US citizen, and you can visit the US as often as you want.
Obtaining actual citizenship from an ex-pat country is becoming increasingly difficult. These days, it typically requires a 6 figure investment in establishing a local business that hires local workers, or five continuous years of incident-free residence within the ex-pat country in the absence of such a business investment. And until one receives some form of second citizenship, renouncing US citizenship isn't a realistic option ( since without a second citizenship / passport remaining, there is no way to travel internationally once your US passport is voided ).
But gaining citizenship from an ex-pat country and subsequently renouncing US citizenship really isn't a big issue for most ex-pats. I still have my US citizenship while the 5 year 'clock ticks down' toward being able to apply for citizenship in my ex-pat country. And I really don't plan to renounce my US citizenship, since my earnings don't exceed the $106,000 per year that can legally be 'excluded' from US taxes regardless of whether I'm still a US citizen. Renouncing US citizenship is typically only a major issue for celebrities and ultra-high earners whose incomes greatly exceed $106,000 per year.
indeed ! One problem for ex-pats these days is the fact that rising US taxes ( particularly state and local taxes ), combined with a stagnant economy / poor US job opportunities, are motivating a lot more people to become ex-pats. As such, some particular areas of ex-pat countries have experienced very rapid growth in terms of the size of local ex-pat communities / populations. Sometimes the 'locals' view this as a good thing ... but sometimes the 'locals' view this as a bad thing. However, in either case, the influx of ex-pats creates rising pressure on local rent / property prices, on local grocery prices etc. Granted that having these 'costs of living' rise from $10,000 per year to $20,000 per year still constitutes a major bargain compared to living in many parts of the USA where rent alone would cost more than $20,000 per year, but many ex-pats relying solely on investment income or retirement income cannot afford the $20,000. Thus as the ex-pat community in one country / city grows to a certain point, the rising costs prompt certain ex-pats to seek new, less expensive, alternatives ... with Ecuador being one of the more recent popular destinations.Ecuador is becoming a popular retirement destination
Every ex-pat country has it's own balance of important factors ... English language usage, local cost of living, terms of interaction with locals, local 'security' concerns, 'social and cultural' attractions, climate / weather, infrastructure ( health care, high speed internet, mass transit ) availability, gov't regulations on ex-pats / legal system treatment of ex-pats etc. It really requires quite a bit of research to determine the optimum mix of factors for a given potential ex-pat, based on their financial means, their personal values, their 'social and cultural' expectations, their fluency in Spanish, their climate requirements, their self-defense skills, etc.
This is a fact about virtually all ex-pat countries which cannot be ignored. It is also the reason that communities of ex-pats wind up being formed, versus individual ex-pats 'sprinkling' themselves throughout the area at random. In my particular ex-pat community, we ex-pats have far more available in terms of 'firepower' than the local cops of local 'bad boys' do ... and we also make sure that the local cops and politicians 'widows and orphans' fund receives generous regular contributions. So in general the 'bad boys' tend to leave us the f#@k alone, and if they don't the local cops and politicians are 'grateful' if we deal with the problem ourselves since it spares them all of that annoying paperwork !One thing I recommend before you go, is to find out more about safety and security. When I took a tour there, the tour guide pointed out that most of the decent homes have bars over their windows because of the crime.
On the 'plus' side, because tourists tend to represent a major financial element for ex-pat countries, generally speaking the closer an ex-pat community is to a popular 'tourist' area, the safer things will be. However, in some ex-pat locations, even this situation is degrading ( for example, Mexico and Guatemala ).
It's worth noting that certain popular ex-pat countries have increasingly high exposure to, shall we say, the 'drug' business. There is no way to reach an accomodation with those guys ... hell the local cops and gov'ts can't get a handle on them either !!! The de-facto response by ex-pats in 'drug' business areas appears to boil down to 'keep a low profile'. In my own case, it's impossible for me to 'keep a low profile' because I seem to draw attention if I simply walk out of my house, so the ex-pat destination I chose was about as free of the 'drug' business as I could find.
Bottom line here is the fact that if a potential ex-pat is seeking the same sort of 'safe' life as can be found in an upscale area of a US city, you're simply not going to find that in any ex-pat country at an 'affordable' price. Thus, as eagle2 aptly points out, it's absolutely necessary to personally scope out potential ex-pat destinations before making any decisions or commitments. However, if you're comfortable with some 'adventure' in your life, being an ex-pat can be very appealing as well as very lucrative.
Last edited by Melonie; 04-05-2014 at 05:16 AM.

Wow! Melonie that was a great response! Thank you for all the information!
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