A new report from International Living’s international experts highlights six countries where expats can protect the income they earn abroad and live a richer life for less.
Panama, Panama City. Image credit: © Hanhiki | Dreamstime.com
A recent survey conducted by International Living found that 78% of respondents are concerned about the fiscal impact of the next U.S. presidential administration. In response, International Living has identified six tax-friendly countries where expats can protect income earned abroad and enjoy a high quality of life.
“You can’t just move to a country you like; you need to consider factors such as ease of obtaining a long-term visa, accessibility, local language, cost of living, and the tax implications. “Yes,” said Jennifer Stevens, executive editor of International Living magazine.
“The countries we feature in this new report offer favorable tax situations for people who may emigrate but still earn their income abroad. It also offers a welcoming, beautiful environment and a well-established expat community. In other words, it’s a good place to live even if tax issues aren’t your primary concern.”
With political tensions rising and the possibility of tax increases looming, many expatriates and retirees are looking for countries that offer both financial security and a peaceful lifestyle. The following six countries meet this requirement:
“In times of uncertainty, protecting your retirement savings is paramount,” Stevens added. “These countries offer great opportunities to minimize taxes and secure your financial future while enjoying all the benefits of living abroad.”
For more information, read the full report here: 6 tax-friendly destinations where you can live cheaper abroad
1. Panama
Casco Viejo, Panama. Image credit: © Rodrigo Cuel | Dreamstime.com
Panama has a territorial tax system, in which only income generated within the country is taxed. Retirees and investors with foreign income can live tax-free, and Panamanian pension programs offer additional benefits such as discounts on medical and utility bills.
Proximity to the United States (approximately 3 hours flight from Miami), strong dollar economy (Panama adopted the U.S. dollar more than 100 years ago), affordable and quality health care, and low property taxes. Being low is also an advantage.
Panama ranks No. 4 on Illinois’ 2024 “World’s Best Places to Retire” list.
Key benefits: No tax on foreign income and significant discounts for retirees. Living expenses: $2,000 to $4,000 per month for couples.
2. Costa Rica
San Jose, Costa Rica. Image credit: © Maurice Brand | Dreamstime.com
With no taxes on income earned abroad and easy residency options through pensionade and rentista programs, Costa Rica remains a popular destination for retirees looking for financial security. The country also returned to the top of Illinois’ 2024 list of “World’s Best Places to Retire.”
People value the stability Costa Rica provides in an increasingly divided world. Costa Rica, hailed as the Switzerland of Central America, abolished its military in 1948 and shifted funding to health care and education. Our environmental efforts are internationally recognized. A quarter of the country is protected as national parks and wildlife reserves. What’s more, these days we run on 98% renewable energy.
Key benefits: Zero tax on foreign income. Living expenses: $2,000 to $2,500 per month for couples.
Next page: Mexico and Belize
