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International Retirement Destinations

By Patricia Tan

Ask any American where they plan to retire to, and you might expect to hear Florida or Arizona.  You might be surprised however, at the many different answers you will hear today.

A growing number of Americans are becoming disenchanted with the thought of retiring to a warm and sunny location in U.S.A. Many are looking at alternative destinations outside the country – some driven by politics, some driven by economic reality, and some wooed by the thought of a better lifestyle at a fraction of the cost.

Baby boomers and affluent (or not so affluent!) retirees have become a prime target for many governments looking to increase international investment in their countries. From Mauritius to Malaysia and Belize to the Bahamas, governments have set out to bring overseas retirees to their shores. Many Americans are drawn to Central America and the Caribbean – traditionally attracted to these areas because of their proximity to U.S.A., ease of accessibility and their use of the English language. But what is really on offer? Let’s take a brief look at three popular destinations;  Panama, Costa Rica and the Bahamas.

Panama

Often called the Crossroads of the Americas, Panama lies between Costa Rica and Columbia, with the Caribbean Sea to the north and Pacific Ocean to the south. Perhaps most famous for the Panama Canal, this Central American country has made great strides in attracting American retirees, particularly those on a fixed income. 

Panama has a modern infrastructure and enjoys political stability, a high level of personal safety and security and high standards of health care – many doctors are U.S. trained, and medical tourism is a growing trend. Many Panamanians speak English, the local economy is based on the U.S. Dollar and the “greenback” is legal tender. Panama also enjoys a low cost of living. A U.S.-style home or condominium can be purchased for a fraction of the equivalent home in U.S.A. and domestic help is available and cost effective – a full-time live-in maid costs less than $200 a month and monthly utility bills are low. There are some tax incentives for foreigners too – no property taxes for up to 20 years and the ability to earn tax free foreign income.

If that is not enough to entice you to Panama’s shores, then consider the country’s generous Pensionado program. If you are over 18 and have a pension of at least $500 a month, you can be a pensioner in Panama and enjoy discounts of up to 50% on entertainment, transport and hotels. More modest discounts of up to 25% are available on restaurants, professional, medical and dental services.

But what about the weather? Free from hurricanes and earthquakes, Panama offers something for everyone. Cool mountainous areas, tropical heat in the rain forests, cooling breezes by the calm turquoise waters of the Caribbean or the dramatic waves of the Pacific.

Real estate options can be as varied as the climate.  Retirees can enjoy a mountain retreat, a single family home or condominium, in a development like Las Tierras Altas – a 200 acre eco-development under construction by an American developer in the mountains of Volcan. Or travel to nearby Boquete, a favorite with ex-pats because of the many gated communities and golf courses. Here the retiree might consider a Panamanian style cottage with quiet mountain views. For those who prefer a haven on the beach, there are many resort-like properties along the Pacific and Caribbean coasts. One of my favorites is the Vista Mar Golf and Beach Resort, a high end development, just an hour’s drive from Panama City.

Costa Rica

As Panama’s neighbor to the north, Costa Rica has long been a favorite retirement spot for Americans and Canadians alike. The warmth of the Costa Rican people, stability of the country, its peaceful nature, high literacy rate and emphasis on ecology have made this small country attractive to retirees.

Costa Rica benefits from over 800 miles of coastline set on the Caribbean Sea and the North Pacific Ocean.  Almost 20,000 square miles in area – about the size of West Virginia – the landscape is dominated by Cerro Chirripó, the fifth highest peak in Central America. Endless beaches, dramatic mountain views and an unspoiled environment of lush vegetation and abundant wildlife are just some of the things that draw visitors back time and time again, and persuade these visitors to retire to Costa Rica.

For those who want to be close to nature, it’s important to know that more than 25% of Costa Rica’s land is designated as national park, biological reserve, wildlife refuge, or some other category of protected area – the largest percentage of any country in the world. 

Costa Rica is easily accessible, with direct flights from many U.S. cities and this has no doubt added to its popularity and growth in tourism. While tourism and agriculture play a major role in the country’s economy, government tax incentives and a bilingual workforce have been successful in attracting overseas investments in high tech companies, pharmaceutical and consumer products.

What does Costa Rica have to offer those who want to retire there? There is a Pensionado program, less comprehensive than Panama’s offerings, but nevertheless, very attractive. Retirees must have a monthly income of at least $600 and change that amount of money into the local currency each month.

Real estate options are as varied as the landscape. Beach projects like Del Pacifico on the Pacific Coast offer homes and condominiums close to one of the best surfing and fishing spots in the world. For those looking for a more temperate climate, the large home sites in Bella Vista Estates boast dramatic views of the mountains and Lake Arenal. Other areas rich in beauty like Alajuela and Dominical give buyers a variety of purchasing options – from luxury single family residences to affordable home sites on which to build the cottage or estate of their dreams.

Bahamas

While retirement to Panama or Costa Rica can be achieved on relatively modest financial terms, this may not be the case for those looking to retire to the Bahamas

The first Americans to settle in the Bahamas were Loyalists fleeing America after the War of Independence. They settled in the islands, attracted by the same crystal clear waters and white and pink sand beaches that had so impressed Christopher Columbus in 1492.

Today’s Bahamas can be a bustling town with fine restaurants, casinos, stores and many commercial activities. It can also be a colorful island village from which to experience endless beaches and breathtaking sunsets, or a sportsman’s paradise of golf, bone fishing, and scuba diving. These, coupled with a stable political environment, are just some of the faces of the Bahamas that draw Americans to the shores of its 700 islands. 

For someone looking to retire, what does the Bahamas have to offer? Apart from its obvious natural attractions, the Bahamas makes it easy for foreigners to permanently reside there. An overseas resident must purchase a property valued over $500,000 and make the necessary application for residence. They must be of “good character” and able to show that they have financial resources to support themselves.  Residents are rewarded by very generous “tax free” living – no income, property or capital gains taxes.

Retirees can choose from a variety of lifestyles offered throughout the islands of the Bahamas. The hustle and bustle of the capital Nassau may not be for everyone. Many are drawn to the unspoiled islands such as Cat Island, where it is still possible to live directly on the beach and step outside your front door onto the hot pink sand.  Fishermen will be drawn to other islands. Treasure Island in the Abacos offers unrivalled fishing AND one of the world’s top ten beaches, and these may be enjoyed from an island style cottage on the beach, or a waterfront condominium. 

PHOTOS
Panama: Mountain views from new homes being built in Volcan, Panama

Costa Rica: Single family homes and condos available in Del Pacifico, Costa Rica

Bahamas:
Left: Waterfront living at Pineapple Point on Treasure Island, where the low rise condominiums include boat docks.
Right: Seabird Cottages, an enclave of only 7 preconstruction homes on prime beachfront property on Cat Island in the Bahamas.
 
Patricia Tan was born in England, and moved to Sarasota in 1997. Her career afforded her the opportunity to live and work in many countries around the world, including Australia, Hong Kong, Singapore, Malaysia, Indonesia, Germany, France, Belgium, Netherlands and the United Kingdom. She spent five years as a Director of an American real estate franchise in England in 1990s. Patricia has served as Chairperson of Sarasota Association of REALTORS®’ International Council, and serves on Florida Association of REALTORS®’ International Operations Committee. She currently works as International Sales Director for Prudential Palms Realty. Patricia may be reached at 941-487-5107 or patriciatan@prudentialpalmsrealty.com.

Copyright © 2010 REAL Magazine

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