Many of us dream of our retirement, and very often we envision warmer climbes – spending our days relaxing in the sunshine, and our evenings enjoying perhaps a glass of wine al-fresco.
For many, that also means considering a move to a new country. But what are some of the best places to retire to in 2021? We discuss some of the popular options.
Retire to The Algarve
Often topping the polls as having a high standard of living, The Algarve offers retirees the benefits of affordable property costs, a great climate and favourable taxation. Indeed, foreign resident retirees can enjoy their pension tax free for ten years.
NHR is an option to attract foreigners to Portugal. It offers favorable tax conditions, including for earnings otherwise subject to Portugal retirement tax. The NHR status is available to anyone who has not been a tax resident in Portugal in the last five years, as long as they meet certain criteria. Those with NHR status have a tax exemption in Portugal for a period of 10 years. There will also be no tax on wealth during this period. In addition to this, any income generated in Portugal will be taxed at a flat rate of 20% instead of at the progressive rates, which can be as high as 48%.
Year round sunshine, a tax friendly attitudes to retirees and a welcoming community make Florida a sure fire winner when it comes to retirement.
For those already in the USA, moving to Florida can save a lot of money it takes, as it’s one pof the most tax friendly states for retirees. It has no state income tax. That means no state taxes on Social Security benefits, pensions, IRAs, 401(k)s and other retirement income. It also has no inheritance tax or estate tax.
For those considering retiring to the US from further afield who have not already obtained a Green Card to enable them to live in the US, the EB-5 investor program can be an excellent option. This involves the retiree investing in a pre-approved US enterprise and the current minimum investment amount is $500,000. If the retiree provides this investment amount, there is an opportunity to become a full US citizen and reside in the US permanently. It is not a retirement related visa, as it is open to all investors but it is probably the only option for most retirees if they do not qualify for another method of obtaining a Green Card.
Thailand provides an extremely enticing retirement proposition – low property prices combined with a low cost of living can make your pension go a long way. In fact, according to Numbeo – the average cost of living in Thalind is around 35% lower than the average cost of living in the USA.
It is very straightforward to obtain a retirement visa. You must be at least 50 years old to qualify and have a pension of at least 65,000 baht (£1,648) or at least 800,000 baht (£20,700) on deposit with a Thai bank or a combined pension and Thai bank account of at least 800,000 baht (£20,700). A retirement visa is valid for one year but is renewable. After you have a retirement visa for three consecutive years, you can apply for permanent residency.