If you celebrated your 55th birthday this year or are preparing to celebrate it soon, then the thought of where you will retire has likely crossed your mind. Do you dream of retiring to the beach? Or maybe to another country?
Regardless of when you wish to retire, it is possible to retire abroad, however, it can be a long and complicated process, so if you want to retire abroad, it’s time to start looking into the process now.
Read on to learn the best countries to retire for US citizens, as well as some tips and tricks for a successful retirement abroad.
Step 1: Choose a Country
Retiring abroad is a long and complicated process, so you should start by choosing the country at least a few years before you plan to retire so you have time to arrange your visa, purchase a place abroad, and more.
There are several countries that allow US citizens to retire abroad without much difficulty, and they are as follows:
- Panama
- Portugal
- Cyprus
- Malta
- Belgium
- Austria
- The Netherlands
- Luxembourg
- New Zealand
- Ireland
- Switzerland
- Canada
- Costa Rica
- Belize
- Chile
- Colombia
- Dominican Republic
- Spain
- Greece
- Italy
Obviously, you will want to research each country in-depth and learn about the cost of living there as well as the weather, language requirements, and more. The best country to retire abroad for a US citizen varies based on the services, weather, and quality of life you are looking for. You and your partner will have to decide what matters most to you in your retirement country and make a list of the countries that fit those requirements.
Because moving to another country is so complicated, we recommend choosing 3-4 countries you might be interested in before moving to the next step.
Related: The Best Language Learning Apps
Step 2: Investigate the Visa Requirements
We hate to be the ones to break this news, but retiring abroad is EXTREMELY expensive. For example, the cost to retire to Ireland from the USA is over one million dollars, and this is JUST for the visa–meaning you haven’t bought a place to live or paid for food or healthcare yet!
This means that once you have the shortlist of your countries, you’ll need to investigate the associated fees, below we have added the initial costs of the retirement visa (or equivalent) to each of the countries we mentioned above.
Remember, these costs do not include food, housing, or healthcare unless indicated.
- Panama($400 but must show a pension of at least $1,000 per month)
- Portugal($270,000)
- Cyprus($320,000)
- Malta ($100,000 initial investment+$13,000 per annum in rent/mortgage)
- Belgium ($300,000)
- Austria ($100,000 and must show stable investment income)
- The Netherlands($1,300,000)
- Luxembourg ($540,000)
- New Zealand ($3,100,000)
- Ireland ($1,100,000)
- Switzerland ($510,000)
- Canada ($890,000)
- Costa Rica ($50 plus must show monthly income of $2,500)
- Belize (Monthly income of $2,000)
- Chile (Varies by region, but must show at least $1,000 per month of income)
- Colombia (Must show retirement income that exceeds Colombia minimum wage)
- Dominican Republic (At least $2,000 of investment income per month)
- Spain ($500,000+ investment, which can include the purchase of a property)
- Greece ($250,000+ investment, which can include the purchase of a property)
- Italy ($250,000+ investment, which can include the purchase of a property)
As you can see, moving abroad is not cheap. Of course, if you have a paid-off house or other property in America to sell, then it is likely you can get a large lump sum to make some of these possible, but if you can’t, then likely looking at a cheaper country in Central and South America where you are only required to show income can help.
Beyond financial requirements, many visa programs require that you pass a background check as well as purchase or rent a property of a certain value within a country. You’ll want to look into all of these before making a decision.
**Beware of scams as you search. The prices will NEVER be lower than those we mentioned above, as these numbers are established by country-specific laws. They can be higher, but if someone offers you some sort of international visa for less than the aforementioned prices, know that it is a scam. Never send money without speaking to an individual in person, and ask for a family member to vet any services you plan to use to help you acquire your visa.
If you haven’t already, read our article 10 Online Security Tips for Seniors to help you become more savvy as you search for your new home.
Step 3: Start the Visa Process
Once you are within about 3 years of retirement, it is time to start the visa process. This is because visas often take a long time to approve, and it may take you a while to gather all the necessary documents. Additionally, if you need to sell your property to get the funds to move, now is the time to start preparing to do that.
It’s important to note that even if you fulfill all the requirements of a visa for a particular country, that country may still deny your visa. Additionally, regulations can change quickly and without warning. For this reason, we recommend having a preferred country in mind and a backup just in case things don’t go as planned.
Oftentimes, starting the visa process requires a visit to the country where you plan to retire abroad. Ensure that you have money to buy the plane tickets, and that your health is sufficient enough to travel in a plane long haul.
Related: The Essential Retirement Checklist
Step 4: Start Selling Belongings
Moving abroad is expensive, especially if you have to purchase a shipping container. We recommend selling all the belongings you possibly can, as it is usually cheaper to buy them again once you are abroad.
Sell your car, furniture, and anything else that you won’t need in your new life. For best results, we recommend just keeping irreplaceable items and those things that are easy and light to ship.
**Do not plan to bring your car abroad. In most cases, Americans cannot switch over their driver’s licenses, or there may be a high cost of doing so. Even if your country allows you to, most American cars are not built for European streets and may not be legal in the country you are moving to. If that isn’t enough, the cost of registering a foreign car abroad can be $8,000-$10,000. And the cost of shipping your car will likely exceed its value. You are better off buying a new car in your future location if you are legally able to do so.
**If you can, sell your home sooner rather than later and either move into a temporary apartment or with a family member for the final months of your moving preparations. This will give you the money to fulfill the visa requirements and allow you a smoother transition period.
Step 5: Obtain Medical Records
Unless you have had a life completely free of doctor visits, you’ll want to get physical or digital copies of your health records as you prepare to move. This will make integration more seamless into the local medical system. Ask for full medical records that show surgeries, as well as any documents covering the vaccines you’ve had and medications you may be taking.
Additionally, if you are currently taking medication, see if it is possible to get an extra supply for 30-90 days, as this is the time it takes to get set up with the healthcare system in a new country. If you cannot get that much extra medication in advance, then be prepared to go without your medication and discuss with your current doctor any side effects you may experience.
In most countries, your medical records will be accepted in English, however, you may want to check if they need to be translated, and if so, get that done now.
Step 6: Buy Your Property Abroad
Unless buying a property was part of your visa process, now is the time to shop abroad for where you will be spending the rest of your life. Moving abroad is stressful and you won’t want to do more than this last final move.
Take the time to find a house that will suit you for the remainder of your years. Consider things like stairs, whether or not there is an elevator, and location in terms of public transport and services like medical care. It’s important to wait until you find the perfect property, as moving to a country where you don’t speak the language is even more difficult than moving within the US.
Once you have bought a place, if it is not furnished, take the time to do so, especially if you aren’t booking a shipping container.
Step 7: Book Your Move
Once you have your house, visa, and medical documents, it’s time to make your move! If you haven’t already, decide whether you are purchasing a shipping container or just shipping your stuff over in boxes, and get everything sent to your new address. Because shipping containers can take months to reach their destination, ensure you have enough clothes, medication, and essential documents in your carry-on luggage to get you through those months.
Also, if you have ordered a shipping container, ensure you enlist friends and family to help you load it in the US, as well as a service to help you unload it abroad!
Step 8: Settle Into Your New Home BUT Remember US Requirements
Once you arrive at your new home, remember to apply for health insurance as soon as you arrive. Many don’t realize this, but health insurance is a legal requirement in most countries (NO, it is NOT free), and there are financial penalties for delaying doing so after your arrival.
Another little-known fact is that there are laws that American citizens must abide by even when they are abroad. Mostly, these laws include the filing of taxes and declaration of investments. While you hopefully considered this while you were still stateside, know that you will need to find a way to file taxes abroad unless you become a citizen of the country where you are living–and be cautious of this as well, as sometimes you may lose your social security income if you change your US citizenship status.
Also, keep in mind that you likely won’t be able to visit your friends and family as frequently as you used to. If you haven’t already, you will want to set up social media accounts or consider purchasing a Zoom subscription to keep in contact with friends and family members abroad. Also, check out our article about Staying Socially Connected as You Age for more tips!
Overall, although it is complicated, retiring abroad can be very rewarding, and we recommend it if it is possible for you. Just know that it isn’t an easy process and that you will need lots of money to be able to do so. But if you plan in advance and choose your country carefully, we think that almost anyone can enjoy their years of retirement abroad.
