2015-01-02 12:40:27
By Rob Budden
Best places to retire
Sunshine and the dream of a more fulfilling lifestyle where income goes much further have driven more and more retirees to far-flung destinations for their twilight years.
Those retirees in search of a slower pace, warmer weather, a lower cost of living and favourable tax rates without compromising home comforts or quality healthcare need to look no further.
Whether shady towns in the south of France or beachside living in Central America, our guide to the seven best countries to retire has it all. Scroll through the images above for more.
Peaceful Panama
If you're looking to retire somewhere where your money will go a long way, then Panama, the southernmost country in Central America, might be the place for you. Panama City, the country's capital, comes in at 124 in a cost of living survey of 131 global cities, according to the Economist Intelligence Unit. That s less costly than Manila in the Philippines, one of the lowest-cost capital cities in southeast Asia.
A three-course meal for two in a mid-range restaurant in Panama costs 32.50 Panamanian balboas ($32.50), less than half the price of the same lunch in New York City, according to numbeo.com, a website that tracks the prices of everyday items. And, with the currency pegged to the dollar, US retirees shouldn t face any price shocks as a result of currency swings.
A steady, secure income is the key requirement to obtaining a visa. If you receive a pension of $1,000 or more a month (both private or social security payments are counted), you should have little problem getting a tourist pensioner visa which, once granted, lasts for life. Panama has a well-regarded healthcare system, with many doctors trained in the US and Europe. However, retirees should plan to spend at least $200 a month for private health insurance.
You won't need a huge budget to find a home, though. A three-bedroom property in the popular mountain town of Boquete would cost about $179,000, according to globalpropertyguide.com. Foreigners have the same property rights as Panamanians.
The main downside is the poor road infrastructure outside of Panama City. Even so, International Living magazine has named Panama its top global retirement haven in 2014, citing its affordability, wide range of leisure options and its proximity to the US just two-and-a-half hours flight from Miami in the US.
And Panama is relatively safe compared to some Central American countries, according to Overseas Security Advisory Council, a body set up by the US Department of State.
The allure of France
As the world's number one tourist destination, France boasts many natural attractions: beautiful towns and cities, fine cuisine, affordable wine and a warm climate in the south. That s one reason the country attracts among the highest numbers of expats within the European Union.
But, affordability isn t always top of mind when people think of retiring to France. The country has relatively high taxes and social charges, along with a wealth tax, which is levied on French residents' global assets in excess of 800,000 euros ($984,000).
But there are upsides to the costs. France has an admired public transport system, including a high-speed national rail network. Paris to Montpellier in the south of France, a distance of 600km, takes just more than three hours on the TGV, with discounts available people aged 60 and older.
It also has the world s best healthcare system, which is heavily subsidised by the government, according to the World Health Organization. So if you become a legal resident, healthcare is likely to be much cheaper than in many other western countries.
What s more, France doesn t have to be a costly choice. Eating out can be inexpensive and, outside of Paris, property prices are relatively low. They range from just 73,000 euros ($91,000) for a typical property in Creuse in Limousin in the Massif Central region to 415,000 euros ($515,000) for an average home in the department of Alpes-Maritimes Provence-Alpes-C te d'Azur, which includes sought-after resorts like Cannes, according to the French notaires who oversee property sales.
Asian sunshine in Malaysia
Looking for year-round sunshine? Malaysia is surely a contender. This former British colony has it all, from the high-rise bustling capital city of Kuala Lumpur to tropical beaches and remote rainforests.
It is also an inexpensive place to live, with International Living magazine placing the country third cheapest in its global cost of living index. The magazine reports that a couple can live comfortably in a luxury ocean-view condo on the equivalent of $1,700 a month. Website xpatulator.com, which analyses costs for expats, rates healthcare and accommodation costs in Malaysia as very low at the opposite end of the spectrum to expensive destinations such as Hong Kong or Australia.
Malaysia ranks as one of the world's top medical tourism destinations attracting over 700,000 healthcare travellers in 2013, according to the Malaysia Healthcare Travel Council.
Tax perks appeal, too. Under the country's second-home program, retiree residency is relatively easy to obtain, giving those who qualify immunity from inheritance tax or capital gains tax on the property. As well, they typically benefit from pension, or social security income which is exempt from Malaysian taxes, although US retirees may still have to pay US income tax.
Add to this widely-spoken English, low costs of eating out and direct foreign ownership of property freehold, and it is easy to see the country's appeal.
Malta, an island with benefits
Malta, one of the smallest and most densely-populated countries in the world, covers just 120 square miles and boasts a population of 400,000. With English the first language for many on this southern European island, it s no wonder that Brits tend to flock here. More than 5,000 UK citizens live on the small island, just three hours by air from London.
British retirees here find much that they expect at home (such as UK shops and supermarkets), as well as plenty that they don't (abundant sunshine and an average annual temperature of 18 C (64 F). An added draw is the Malta Retirement Plan, which allows EU nationals who take up residency to enjoy income tax rate of 15%.
Malta, named after the local word for honey, holds a wider appeal as a retirement destination. The country boasts a first-rate healthcare system (ranked fifth in the world by the WHO) that is free to all citizens, as well as British residents, under a reciprocal healthcare provision with the UK. The picturesque Mediterranean island's rich history and architecture is also easily accessible.
According to website numbeo.com, the monthly rent for a three-bedroom apartment in the capital Valletta is 700 euros ($850) and a three-course meal for two at a mid-range restaurant costs just 50 euros ($60).
The sandy beaches of Portugal
With an abundance of fishing villages and medieval towns, as well as beaches and golf courses, it is easy to see why Portugal is so desirable. With an established expat population, English is widely-spoken.
Lisbon, the capital city, is one of the oldest cities in the world and enjoys a favourable Mediterranean climate. But the top destination in the country for retirees is the Algarve coastline, which hugs the Atlantic Ocean. Here you will find azure waters, high annual levels of sunshine and temperatures averaging from 12 C (54 F) in January to 24 C (74 F) in July.
Yet wherever retirees choose to settle, Portugal offers beneficial tax regimes. Under the country's non-habitual resident s scheme, foreign-sourced pension income can be exempt from income tax for a period of up to 10 years.
Beyond the country's super-luxury resort towns, such as Quinta do Lago or Vilamoura, property prices are reasonable. One bedroom apartments in the popular coastal resort of Albufeira start at 60,000 euros ($75,000), according to property website rightmove.com.
As well, Portugal s health system is ranked 12th globally by the WHO.
The tropics of Thailand
A low cost of living, no tax on retiree income from abroad, a tropical climate and a culture that respects the elderly what's not to like in this retirement destination known as The Land of Smiles ?
Thailand is also the land of affordable living, according to International Living magazine. It ranked the country as the second least-expensive in its cost of living index, pointing out that an over-the-top luxury two-bedroom condo with great views can be rented for less than 40,000 baht ($1,200) per month. A Pad Thai lunch can be had for $1.
In addition, the country's retirement visa (renewable annually) is available to those retirees with monthly pensions paying 65,000 baht ($2,000) or to those depositing 800,000 baht ($24,000) in a Thai bank account.
However, you should budget to pay for local health insurance as, while the UK Foreign and Commonwealth Office rates many private hospitals to western standards, the group notes that standards at local hospitals vary.
Culture and ease in Belize
The only country in Latin America with English as the official language, Belize is a natural choice for a growing number of retirees, attracted by its swaying palms and white sandy beaches.
With a population of just 350,000, the country is also attracting growing numbers of eco-tourists, drawn by its rainforests, Mayan ruins and the largest barrier reef in the Western Hemisphere.
For retirees, there is the added pull of the country's Qualified Retired Persons program which offers a range of tax perks, including some exemptions from import duties on household goods such as a car or boat. A qualifying person is also exempt from paying any tax in Belize on income or investments which accrue from outside the country. The main requirements are one must be older than 45 and have a monthly income in excess of $2,000.
Property prices are inexpensive compared to the mainland US, but not as affordable as some other markets in Central America. Hollywood actor Leonardo DiCaprio recently bought an island west of Ambergris Caye, the largest island in Belize for a reported $1.75m . Even so, purchasing property is relatively easy with transactions conducted in English and Belize laws modelled on the British system, helping safeguard the interests of buyers.
Belize has high quality and low cost private hospitals but, for more complicated procedures, many expats choose to be treated in the US, often relying on evacuation coverage on their healthcare policies.