The Market Watch article listed some of the issues that Americans should consider before they make a move to another country, and the author repeated over and over again the importance of getting professional assistance and expert advice from attorneys and estate planners who have experience in this area. In fact, you may want to first consult an American attorney, and then work with attorneys, accountants and tax professionals in the country where you plan to reside.
Professional Assistance is Needed for these Issues:
Foreign income tax issues
U.S. income tax issues
Income taxes owed to your former state of residence
Fees for transferring Social Security to foreign banks and converting currency
Foreign health insurance (Medicare doesn't cover Americans living abroad)
Foreign real estate investments
Foreign securities investments
Estate Planning - especially if you want to transfer foreign assets after your death
Retire to Puerto Rico, the US Virgin Islands or Guam
If dealing with these legal and financial problems overwhelms you, it is important to know that you can move somewhere inexpensive and exotic without the complications mentioned above. Rather than live in another country, you could choose to move to one of the U.S. territories. Living in Puerto Rico, the U.S. Virgin Islands or Guam gives you all the advantages of retiring somewhere far away and romantic, without the necessity of learning a new language, finding foreign lawyers, securing foreign health insurance, and worrying about the complications of filing foreign taxes or owning property in a foreign country.
Living in Puerto Rico
While living in Puerto Rico is not as cheap as living in a third world country, rents are affordable once you get outside of the major cities like San Juan. You do not need a passport to travel to any of the US territories. In Puerto Rico, there are no inheritance taxes. If you buy land in Puerto Rico, consult with an attorney, and make sure that you have title insurance and a clear legal title to the land in order to avoid future legal complications. However, the good news is that there are no restrictions on American citizens who want to own property in Puerto Rico. Puerto Rico has beautiful beaches as well as gorgeous mountain towns. There are a variety of climates from which to choose. In addition, your Medicare is valid in all the US territories.
Living in the U.S. Virgin Islands
Like Puerto Rico, if you move to the U.S. Virgin Islands you do not need any special documents. You can travel freely to and from these tropical islands. Among the islands that make up the U.S. Virgin Islands are St. Thomas, St. Croix and St. John. If you have a beloved pet, it is possible to bring it with you when you move to this Caribbean paradise. Some cell phone carriers offer free long distance to the mainland. There are currently no large malls on the islands, although there are a few popular stores such as Tommy Hilfiger and Polo. The weather is fairly constant, with high temperatures normally in the 70's and 80's. Severe rain is unsual. There is no sales tax or state tax. New residents should also realize that this is a laid back, slow paced Caribbean territory, so don't expect things to happen on a mainland schedule.
Living in Guam
Guam, in the Pacific Ocean, is a beautiful island territory that is often compared to the smaller, less populated islands of Hawaii. Pets can be brought here after a short quarantine period. It is a pretty island, and the high temperatures are typically in the 70's and 80's. It is a popular area for anyone who loves to scuba dive or snorkel. It is very laid back, with low speed limits and slow moving traffic. It is also only a four hour flight to Japan and South Korea, if you want to vacation in one of those destinations. There is a large U.S. Navy base located on Guam and, like the other territories, U.S. laws are enforced there.
If you are interested in other overseas retirement destinations that are outside the US, you may also want to read:
Best Places to Retire Outside the US
Americans Retiring in Panama
Live in Ecuador Comfortably on Social Security
Retiring in Luxury to Hua Hin, Thailand
You are reading from the blog: http://baby-boomer-retirement.blogspot.com
Photo or modern Puerto Rico courtesy of http://en.wikipedia.org