It might be easy to get on board with the idea of retiring overseas…
But it’s not as easy to figure out where in the world you’d like to do it.
Most people, faced with this tough question, make comparisons to help narrow things down…
One of the most commonly asked questions we get at Live And Invest Overseas is “Which place is better?”
No place is inherently better or worse than the other. Which place is “better” depends entirely on you and your preferences, circumstances, and agendas. And although we can’t define those things for you, we can help you consider your options for reinventing your life in one destination relative to another.
Overseas Living Letter Editorial Director Sophia Titley took this challenge head on and pitted the world’s favorite retire-overseas havens against each other, examining the pros and cons at the country level.
To give a more realistic view of what life is like in each place, she takes the time to zoom in on one town in each country and compare it to its counterpart in the other.
No place is perfect, everywhere has its pluses and minuses… but by going through the comparisons, you’ll come away with a stronger sense of which haven is the best choice for you.
Let’s take a quick look at some of the country comparisons between our top havens in Latin America…
Panama Versus Costa Rica
| Panama Pros: | Costa Rica Pros: |
| • World’s top offshore haven
• Bona fide tax haven (taxes income on a jurisdictional basis)
• Uses U.S. dollar, meaning no currency exchange risk
• Generous and easy-to-maintain visa policies (including the Gold Standard of retirement visas, the Pensionado Visa)
• New residency by investment program
• Strong economy
• Quality, affordable health care
• Diverse lifestyle options (Pacific and Caribbean coasts, islands, mountains, and Panama City)
• Entrepreneur’s playground
• Super accessible, the “Hub of the Americas,” with direct flights to the States and Europe |
• Long-standing reputation as an overseas retirement destination, well-established expat communities
• High-quality health care (higher ranked than the States and Canada)
• Dual coastlines: Pacific and Caribbean
• Stunning natural environment: beaches, rain forests, rivers, lakes, etc.
• Trailblazer in protection of environment and biodiversity
• Progressive policies: widespread LGBT acceptance, high literacy rates • Stable government and economy
• Politically neutral, no military |
| Panama Cons: | Costa Rica Cons: |
| • Mostly humid climate; long rainy season
• Poor service standards
• Mañana attitude
• High-quality health care isn’t evenly distributed across the country |
• Road quality is among the worst in
Central America
• High cost of living
• “Tico time”—the slow pace of life, doing administrative tasks can be painful
• High import fees for goods brought into the country
• High costs to qualify for visa options (the Rentista Program requires $2,500 in monthly income) |
Belize Versus Mexico
| Belize Pros: | Mexico Pros: |
| • Official language is English
• Commonwealth nation that uses rule of law
• Tax haven (taxes income on a jurisdictional basis)
• Big, well-established expat communities
• Laid-back pace of life
• Belize dollar pegged to the U.S. dollar (1 Belize dollar = 50 cents)
• Amazing natural scenery that the government makes an effort to protect
• Mesoamerican Reef (largest barrier reef in the Western Hemisphere) is found offshore
• Top fishing, snorkel, and scuba destination (particularly at the Blue Hole)
• Qualified Retirement Program (QRP) is one of the world’s best retiree visas
• Several sites of historical significance |
• Most accessible overseas retirement
destination in the world for Americans and Canadians
• Home to the biggest population of North American expats in the world (2 million-plus) • Familiarity—home to American franchises (from Walmart to Home Depot)
• Dual coastlines: both Pacific and Caribbean
• Diversity of lifestyles: many well-preserved Spanish-colonial cities, desert environments, white-sand beaches, jungles, etc.
• Rich history, with the sixth most UNESCO World Heritage Sites in the world
• High-quality, low-cost health care
• Easy to get residency, generous tourist visas (180 days)
• Delicious and inexpensive food and drink |
| Belize Cons: | Mexico Cons: |
| • High heat and humidity
• Limited access to quality health care
• Poor road infrastructure
• Limited selection of goods in super markets
• Cayes and coastal areas can be impacted by hurricanes
• Time-in-country requirement to maintain QRP status |
• Reputation for crime, gringo pricing
• Foreign restrictions on property ownership (can’t own within 100 kms of international borders or within 50 kms of the coast without a fideicomiso)
• Over-development of tourist zones
• Not everyone speaks English |
Colombia Versus Ecuador
| Colombia Pros: | Ecuador Pros: |
| • Top investment haven with enormous upside
• Best health care in Latin America
• U.S. dollar to Colombian peso currency advantage
• Strong economy
• Welcoming locals, interesting culture
• Diversity of lifestyle options (Euro-chic to Caribbean-beach, Spanish-colonial to rural living)
• Dual coastlines: Caribbean and Pacific
• Residency is inexpensive, quick, and easy to attain (you can even process the application yourself)
• No criminal background check required for residency
• Fast paths to citizenship
|
• Renowned for its low cost of living and real estate
• Geographically diverse country
• Uses U.S. dollar, meaning no currency exchange risk
• Low tax jurisdiction
• Welcoming locals, interesting culture
• Residency is inexpensive and easy to attain
• Senior benefits program includes discounts on goods and services and line-jumping ability
• Residency affords one the same rights as a citizen and the right to import household effects duty-free
• Fast paths to citizenship
• Well-established expat communities in Cuenca and Loja |
| Colombia Cons: | Ecuador Cons: |
| • Necessary to learn some Spanish
• Expat communities are small and dispersed
• Not a low-tax jurisdiction
• Foreigners can’t own within 2 kms of international borders or within 2 kms of the coast
• No Colombia-United States dual taxation treaty in place |
• Ecuador has restrictions on being out of the country during your first two years of temporary residency
• A criminal background check is required to obtain residency • Foreigners can’t own within 50 kms (31 miles) of international borders or the coast
• No Ecuador-United States dual taxation treaty in place |
Happy trails,
Kat Kalashian
Editor, LIOS Confidential
