This is part of our Retirement Guides series:
– Retire in Portugal
– Retire in the Philippines
– Retire in New Zealand

The reason you’ve stumbled upon this blog is probably that you are dreaming to retire in this Central American nation. Fret not, because we’re here to help you make that dream a bit closer to reality by giving you the information you need on how to retire in Costa Rica. Keen to learn more? Read on.

GETTING A COSTA RICA RETIREMENT VISA

The first thing that you need to secure before retiring to Costa Rica is a residence permit. A residence visa is required from foreigners who wish to live in the country for longer than 90 days regardless of their nationality. You can apply for one at the Costa Rican Department of Immigration (known locally as Dirección General de Migración y Extranjería – don’t look for a website, you won’t find one!) but you’ll need to first secure a provisional visa from the respective Costa Rican consulate in your country.

How do I qualify for residency?

To qualify for a permanent residency in Costa Rica, you must first obtain a temporary resident permit. There are three types of temporary permits issued to foreign nationals:

• Retiree (pensionado) is for people who receive at least 1000 USD pension per month
• Rentiers (rentista) is for people who have at least 2500 USD income per month from investments, business, or property and will continue to receive it for the next two years
• Investors (inversionista) is for people who will invest at least 200,000 USD in Costa Rican real estate, businesses, and others.

If you’ve stayed in Costa Rica for at least 2 years with a temporary resident permit, then you’re eligible to apply for a permanent resident permit. Another way to qualify for permanent residency is if you have a blood-related Costa Rican family member such as your parents, siblings, or child.

How do I become a Costa Rica citizen?

If you want to know how to retire in Costa Rica, then you ought to know how to become a Costa Rican Citizen. Of course, being born in the country is a given. But if you’re born outside Costa Rica, here are the three ways to become acquire a Costa Rican citizenship:

• By descent: even if you’re not born in Costa Rica and you have at least one Costa Rican parent, it doesn’t matter which country in the world you’re born in, you’re automatically entitled to become a Costa Rican citizenship
• Naturalization: foreign nationals who are at least 18 years of age and have been a resident of Costa Rica for at least seven years can apply for citizenship. If you’re from Spain or other Latin American countries, you only need to stay in Costa Rica for at least 5 years before becoming eligible for citizenship.
• By marriage: if you’re married to a Costa Rican, you’re eligible to apply for citizenship after living in the country for at least two years.

In addition, you must be literate in the Spanish language, have no criminal record, and you must present proof of income or a professional career. You also need to demonstrate your understanding of the history of the country by taking an Education Ministry exam or present proof of education in Costa Rica, unless you’re married to a Costa Rican national.

How many expats live in Costa Rica?

Costa Rica is one of the most famous retirement destinations in the world which is why more than 488,900 foreign nationals from all across the globe currently live in Costa Rica, and a huge number of these retirees are from the Americas followed by Europe, Asia, then Africa. This means that you’ll have plenty of opportunities to mingle with fellow expats and a high chance of meeting someone from your own country, too.

WHAT ARE THE BEST AREAS TO RETIRE IN COSTA RICA?

Most Popular: San Jose

Technically speaking, the most popular destination to retire in Costa Rica is also its capital: San Jose. With the many museums and historical sites in the city, you’ll learn so many interesting facts about the history of Costa Rica; two of the most popular museums to visit are the Pre-Columbian Gold Museum and the National Museum.

Aside from its historical museums, there are restaurants in every corner of the city which makes it a convenient place to live in. Mercado Central is the place to be if you want to experience the raw urban life in San Jose with the many eateries that serve local delicacies, and shops, where you can buy various local merchandise, such as hand-crafted items, t-shirts, and more.

San Jose is a fine choice. But with that said, more and more retirees are heading away from the city and towards the areas that truly make Costa Rica such a special place.

Up-and-Coming: Montezuma Beach

What started as a simple fishing village is now one of the most frequented tourist spots in Costa Rica: Montezuma. With its long stretch of stunning beaches blessed with fine white sands and a whole lot of other natural wonders, this small town that sits in Puntarenas Province is quickly gaining popularity from travelers all over the world.

Though a part of San Jose, San Gerardo de Dota is a town with not so heavy tourism. Nevertheless, it is another place that is quickly becoming recognized in Costa Rica. Also blessed with beaches perfect for surfing, but more famous for over 200 species of birds including tanagers, woodpeckers, hummingbirds, and the mythological resplendent quetzal that can all be seen in Talamanca Cordillera.

Most Underrated: Playa Chiquita

Costa Rica is often praised for its scenic locations, but it still has several places that are yet to be recognized. One such place is Playa Chiquita that sits near the Caribbean coast where you can enjoy a meal or two from its little restaurants, and shop for fresh produce in the farmer’s market, plus, it will give you the luxury of being able to visit the stunning beaches, tropical rainforests, and national parks.

Another lesser-known town in Costa Rica is Zacero. If you’re fond of scenic routes, lush forests, and other eye candies, then this town is a great retirement spot. It’s known for being a sugar plantation, and one of the major producers of coffee in the country. Also, this part of the country enjoys a much cooler temperature which is perfect for people who can’t stand high temperatures. It is also home to a topiary garden that boasts of its over 120 hedge sculptures shaped in the form of different animals and even humans.

HOW MUCH DOES IT COST TO LIVE IN COSTA RICA?

It’s common knowledge that Costa Rica has one of the lowest costs of day to day living which is probably the reason why you want to know how to retire in Costa Rica. It only takes a long vacation here to appreciate this fact, more so if you are living in the US, Europe, or Australia. But exactly how much budget do you need to live a comfortable life in Costa Rica? Let’s find out below.

Daily cost of living in Costa Rica

Part of knowing how to retire in Costa Rica is knowing how much the average daily cost of living in the country is. According to budgetyourtrip.com, the average daily price based on the expenses of tourists visiting the country is 73 USD. This is much lower compared to the average daily expense in the USA of 224 USD. Of course, different people have different budget styles, so let’s find out roughly how much you’ll need if you’re on a budget, a mid-ranger, or a YOLO believer:

On a budget

The average daily cost of living for budgetarians in Costa Rica is around 30 USD.

• Food: if you’ll choose inexpensive eateries over luxurious restaurants, you’ll only need to allot a budget of 7 USD per day which is good for two people
• Transportation: an average of 4 USD per day is what you’ll need for local transportation, while intercity travel needs a budget of about 6 – 7 USD.
• Rent: If you choose to rent hostels and other cheap accommodations, you’ll only need to shell out 16 USD per person

Mid-range

At mid-range, a budget of 73 USD is all you’ll need to have a comfortable life in Costa Rica.

• Food: if you’re dining in local fast-food chains and mid-range restaurants, a budget of 17 per day is all you need
• Transportation: Riding a taxi will cost you an average of 10 USD per day; going from one city to another will cost about 17 USD per day.
• Accommodation: mid-range hotels offer a more comfortable stay for a relatively higher price of 41 USD per day

Luxury:

If you want Costa Rica’s high-end experiences, a budget of 189 USD per day is what you’ll need.

• Food: if you’re choosing fancy restaurants, a budget of 40 USD per day is sufficient.
• Transportation: allot a budget of 30 USD per day for local transport, while a luxurious intercity trip needs a budget of about 55 USD per day.
• Accommodation: high-end hotels on average costs around 110/day per person

Buying real estate

One of the reasons why it is a good idea to retire in Costa Rica is that, unlike some other countries, Costa Rica allows foreigners to fully own a real estate property which means that you don’t need to partner up with a local and can straight up buy a property under your name with the exception of beachfront concession properties because a different set of rules apply to these.

Housing costs in the country differ from one city to another. As a general rule, a property in an urban area is more expensive than a property in a rural spot. A beachfront condominium may cost 100,000-130,000 USD or higher.

What are the tax benefits of living in Costa Rica?

Aside from being rich in natural wonders, another thing that makes Costa Rica an attractive country to retire in is the tax advantage. Get this: the only income that is taxable in the country is the income that you earned within the country. In other words, you only need to pay tax if you are employed or have a business in Costa Rica. Employees are subject to up to 15 percent income tax per month, while the self-employed are subject to about 10-25 percent.

This means that you won’t have to pay tax for your business or investments outside the country, which is a good thing especially for freelancers and digital nomads. This also means that you don’t have to pay tax for your monthly pension or social security.

COSTA RICA RETIREMENT COMMUNITIES

Best expat towns for retirees

Tamarindo, a small town named after the tamarind fruit, is one of the most safest expat havens in Costa Rica. It has some of the best beaches in the country, and it houses around 80 restaurants where you can meet and socialize with other expats who chose the town as their retiring place. Tamarindo is quite popular to both casual tourists and retirees, but is also one of the most expensive places in Costa Rica, with a day to day cost of living comparable to the US.

Arenal has a high number of American retirees which makes it another great spot if you love socializing with like-minded people. Plus, it’s rich in natural features such as a lakeside where you can enjoy so many water activities with friends and family, not to mention that it is located next to a rainforest.

Heredia is another city with lush forests, scenic views, friendly locals, and everything else that makes Costa Rica a great place to live in. Though the expat community in this city is not that huge, because of the simple lifestyle and the beautiful environment, it is becoming popular among retirees and it won’t take long before it becomes a one of the top retirement choices in the country.

Assisted living in Costa Rica for expats

Another reason why Costa Rica is one of the best places in the world to retire in is because of the low cost of assisted living. By comparison, assisted living in the US costs anywhere between 1000-5000 USD a month depending on the location, while in Costa Rica, you will only pay half of that figure or even less.

One of the best assisted living communities in the country is the Jose Pujol Marti Retirement Residence, which is supported by the Spanish Cultural Association. Majority of retirees are Spanish, but there are many English-speaking residents, too. The monthly fee is just USD $1,000 USD and it covers meals, rent, housekeeping, laundry, as well as access to the Spanish Country Club. A majority of residents here are independent retirees, but they also offer on-site, or even full-time nursing services. 

LIFESTYLE

Cuisine

I’ll be honest – I don’t think food is Costa Rica’s strongest quality. Don’t get me wrong – there is plenty of fresh fruit available at roadside stalls, in restaurants, and well, pretty much everywhere. But for international jet-setters, Costa Rica’s gastronomy can often leave something to be desired.

While American and European food is widely available in the country, especially in fast food chains and commercial restaurants, part of knowing how to retire in Costa Rica is becoming familiar with the local cuisine. Some of the staple foods here are rice, beans, and lots of fruits and veggies, so if you’re thinking of going vegan or are already one, you’ll find it easy to live here. Meat is also a large part of Costa Rican cuisine.

Because it is a Latin American country, expect a myriad of Spanish food anywhere you go here, such as empanadas, tamales, and so on. Here are some of the traditional Costa Rican cuisines that you should definitely try:

• Casado: the most common dish in Costa Rica; a combination of rice, beans, bell peppers, onions, tomato, and cabbage, plus the meat of your choice.
• Gallo Pinto: a staple breakfast food in the country. It’s a mixture of rice and beans served with scrambled eggs, chopped beef, and tortillas
• Sopa Negra: also known as black bean soup, it is Costa Rica’s version of a chicken soup, which is served to people who are not feeling well. It is served with hard boiled eggs, rice, and tortillas. This dish is best eaten when the weather is cold

These are but the tip of the iceberg because Costa Rica still has many food and dishes for you to taste, and you’ll only be able to experience all of them if you choose to live in Costa Rica for a long time.

How to get around

Driving: (aka “The Costa Rican Massage“)

They call driving here “The Costa Rican Massage,” and once you experience the miles of unpaved, bumpy roads, you’ll understand why! The fact is, driving is very difficult in Costa Rica, and can be quite dangerous. Roads are windy, steep, generally not well maintained, and in fact rarely paved. Tread carefully. Very carefully.

Buses are the most common mode of transportation in Costa Rica. If you want an inexpensive fare, go for public buses which are not just cheap but also offer excellent service. If you want a quicker travel time, opting for privately owned shuttles is the way to go, however, it is also pricier. There are also an abundance of taxis in the country, which offers better value for a group of people. Car rental is the most expensive option.

Flying

You can also fly around Costa Rica if you value less travel time and more playtime. The most popular airlines that offer domestic flights here are NatureAir and Sansa. Air travel is the most recommended option if you are thinking of visiting remote regions of the country, because it will only take you less than an hour to get to your destination as compared to riding a bus which can take 4-5 hours.

Is Costa Rica a safe place to live?

One of the most important things to consider when choosing a place to retire in is its safety. Costa Rica, like every country in the world, has its fair share of inconveniences and people with bad intentions. Petty crimes such as theft happen here, but with vigilance and common sense, you can easily avoid them. If you take care of yourself and your belongings just as you would in your home country, then you’ll be safe from harm. Here are some tips to keep you from becoming a victim of crime in Costa Rica:

• Don’t bring lots of money with you. Bring only what you’ll need.
• Keep your cellphones, gadgets, and expensive jewelries out of sight from potential robbers.
• Stay alert when riding a public transportation.
• If you need to withdraw money, use ATM’s in malls and avoid the ones in the street
• Do not walk alone at night, and avoid going to dark and less crowded places.
• Use ride-hailing apps as it is much safer, especially at night.
• Avoid the poorer neighborhoods because the majority of violence in Costa Rica happen there, like gang wars.
• Keep a low profile. You don’t want to be a walking target of bad guys.

Health insurance

One of the benefits that Costa Rica is famous for among tourists and retirees is its excellent healthcare system. They have a government-run healthcare system called the Caja Costarricense de Seguro Social (CCSS) and Foreigners who are on a rentista or pensionado residency can join this program for a small monthly fee and avail of free treatment when the need arises.

On the other hand, the private healthcare systems have higher fees, but still considerably low as compared with many other countries. If you choose to pay cash, doctors on average charge no more than 60 USD per visit. Surgeries are a quarter or more cheaper than surgeries in the US.

Both public and private healthcare systems in the country are of a top-notch quality in terms of equipment and medical staff training, their processes are still continuously being upgraded. Although the healthcare system here is advanced, you won’t have to pay a fortune just to be treated when you become sick.

REASONS NOT TO RETIRE IN COSTA RICA

Disadvantages of living in Costa Rica

Each country has its own annoyances, and Costa Rica is no exception. Traffic is one of those things that will drain your positive energy here, coupled with roads that don’t have the best quality.

Also, the huge number of stray dogs roaming around the streets of Costa Rica can be really sad to be a part of. Though most of these dogs won’t do you any harm, there’s still a chance of getting attacked by one bad dog. They can also get very noisy at night when they start howling which can be irritating when you’re sleeping.

Language barrier

Generally speaking, there are a lot of English-speakers in Costa Rica. Students learn English from a very young age here, so it won’t be much of a problem. Although there are certain parts in the country where you might have a hard time communicating with the locals. This can easily be solved by learning a few Spanish phrases during your free time. Learning a new language is easier nowadays, thanks to the Internet.

Other things to know before moving to Costa Rica

Ticos (Costa Rican natives), unlike Americans, are more relaxed when doing almost anything. So don’t be surprised if you order food from a restaurant and the staff are taking their time to serve your order. It’s a cultural thing, and it’s called Tico time. Who knows? Maybe you’ll learn to appreciate the small things in life with this relaxed attitude if you learn to shift into this mindset from time to time.

FINAL THOUGHTS

With Costa Rica’s rich biodiversity, stunning scenery, relaxed pace of life, coupled with an excellent healthcare system, friendly locals and fellow expats, the country truly deserves to be one of the best retirement spots in the world. And even if there are minor inconveniences, the good far outweighs the cons.

I hope this article helped you in deciding how to retire in Costa Rica. If you have any questions, or if you have a tip or two for your fellow readers, leave them in the comment section below and let’s learn from each other. Take care!

This is part of our Retirement Guides series:
– Retire in the Philippines
– Retire in Portugal
– Retire in Costa Rica

Has the thought of living or retiring in New Zealand has ever crossed your mind? Perhaps you want to buy some farmland, raise some sheep, and live out your days in paradise?

Here are some things you should know. Read on…

GETTING A VISA

To immigrate to New Zealand you have two options: You can apply for temporary or permanent residency. Both programs require good health and character, investment in New Zealand, and proof of ownership of additional settlement or maintenance funds. Visit the immigration website to get started. 

Do I need a special retirement visa in New Zealand?

After being on pause for the past 3 years, the official retirement category has finally opened up once again in 2020. This is the first option for retirees wanting to spend their lives in New Zealand. But it is capped at only 1,000 applicants per year, so it’s best to get your application lodged as soon as possible.

How do I qualify for NZ residency?

The Work to Residence program allows workers. to upgrading from a temporary work visa to a permanent residence. However, to be eligible, you at least need to show proof that you’ve worked in New Zealand for two years. Immigration will also ask you to meet their health and character requirements.

If you are over 56 and have an adult child currently residing in New Zealand, you likely qualify for permanent residency. However, to apply permanently, you’ll need an annual income of at least NZ $60,000, with an additional NZ $1 million to invest over four years, plus NZ $500,000 to continue living on afterwards. This will certainly be out of reach for many individuals. But once you complete the 4-year investment period, you’ll be granted eligibility for permanent residency. 

WHAT ARE THE BEST PLACES TO RETIRE IN NEW ZEALAND?

It’s been a year since New Zealand’s capital city, Wellington, topped the annual index and became the city with the single best quality of life in the world. However, there are other regions that are worth considering.

Best retirement Villages in New Zealand

The anticipation of demand for retirement villages in New Zealand is rapid in the aging population. There are two types of retirement villages, lifestyle villages, and full-care villages. The former has more independence but under a secure community, and the latter offers independent living units, rest homes, and private hospital facilities.

New Zealand has something for everyone. Where to retire depends significantly on your taste and preference. If you’re seeking stunning scenery and the opportunity to stay active for the rest of your life, alongside other internationals, you’ll enjoy the mountain town of Queenstown in the South Island.

If sipping wine along the coast is more of your style, then the region Tasman and Hawkes Bay will sound more appealing. Those who want to truly escape will find their solace in the East Cape or the Far North, while urban settlers will more likely appreciate the cafes, recreational parks, museums, natural sites, and excellent transportation in Wellington or Auckland.

Most Popular: Marlborough

Famous for its glorious Sauvignon Blanc wine, Marlborough scores highly on the main six measures: House prices, climate, crime rate, health systems, number of retirees over 65s, and ease of access to basic needs and amenities. 

One of the best things about the Marlborough region is its sheltered inland waterways. If you’re into fishing and boating, these are perfect. You’ll also love its iconic sceneries and arid hills, definitely best combined when you start cycling, mountain biking, tramping, and taking pleasant walks to the renowned Queen Charlotte Track. 

Northern Marlborough breeds more tranquillity and nature. A mostly hilly region, the last ice age carved Marlborough Sounds into an extensive series of sunken river valleys, which are now the north’s most notable feature. The curvy landscape in this region means a whopping 20% of the country’s coastline. Many expats feel Marlborough is the overall best place to retire in New Zealand.

Most Underrated: Nelson

If you want a place quite different from the rest of the best, Nelson is a small but stunning city. Living here is more familiar to those who want a small-town feel. Sunny nearly all year round, the landscapes are almost also as spectacular as the weather, which allows you to get all the outdoor activities you could ever dream of.

This small village just outside the Marlborough region has more percentage of old retirees than most areas in NZ. It’s ethnically diverse, and regularly attracts many foreigners – especially immigrants from European countries – who over the past 50 years have been drawn in by the pleasant weather, and tend to to visit in the fall.

HOW MUCH DO YOU NEED TO RETIRE IN NEW ZEALAND?

Although it may be a dream for many, the truth is only a few can afford to live and settle here due to the strict financial requirements in obtaining a visa, and the high cost of living.

Statistics by Numbeo show that New Zealand is the 17th most expensive place to live in the world. While cheaper compared to nearby Singapore, South Korea, and Japan, it is similar to living to Australia; though a bit more expensive once you take rent into account.

The daily cost of living in New Zealand

First and foremost, visa requirements alone can cost a considerable amount of money. The application fees for getting a visa ranges from USD $45 to USD $2,000, depending on the visa program you use.  

Once there, the cost of living in New Zealand is slightly higher than the U.S. Rent is typically lower than most American cities. Renting a flat costs a minimum of USD $1,000/month, and in the major cities can easily top $3,500 for a nice place.

There are other hidden costs as well. If you’re in NZ, particularly for studying, you must provide evidence that you can cover at least $15,000 to support yourself for the first year. And nonresidents will also need to pay income tax on their pension. 

Buying real estate vs renting:

Renting a flat

In 2018, New Zealand banned most foreigners from buying a home. This was due to wealthy foreigners from the US and China buying up homes, and driving up the price for New Zealand residents. However, those with residency are still be able to buy homes, as are residents of Australia and Singapore.

Run your numbers first before you decide whether to rent or own. Although it’s less of a hassle, buying a house is not always the best decision. If you’re moving to New Zealand for the long haul, you should strive own a property.

When you first rent, the landlord may ask you for rent in advance, and a bond. The total of your first payment would probably be 1 or 2 weeks advance. If the landlord asks for a bond, it could take four weeks of rent, and the landlord must give a receipt for your bond money and issue it with Tenancy Services within 23 days. You will get your bond back by presenting the receipt and making sure to leave the property in good condition.

Buying a home

If you are able to buy a property in New Zealand, expect it to take at least 3 to 4 weeks to complete the processes. It’s a lot less stressful to buy than other places around the globe, since after the bid is accepted formally, they don’t tolerate last minute offers. 

New Zealand housing types are a mixture of standalone buildings on what can often be large blocks of land. Most home and land purchases require a qualified real estate agent. In some cases, it’s best to get independent advice from lawyers or people more experienced in-home buying (‘conveyancing’) before embracing an offer.

LIVING IN NEW ZEALAND AS AN EXPAT

Food and Wine

New Zealand offers a refreshing and authentic experience in modern global food travel. Its wineries have been operating for more than five generations. There are about ten major wine-producing regions in New Zealand, and Marlborough and Hawke’s Bay are the two premium growing areas.

It’s good to practice to find food from your homeland while living in New Zealand. But don’t hesitate to try local cuisine and specialties. Seafood, lamb, wines, and cheese are some of the well-known ingredients New Zealand cuisine offers. Locals are also fond of Asian cuisine as well as European food, done with a Kiwi twist. Cafes are cheaper, and posh restaurants can be quite expensive. 

People

New Zealanders have an exceptional accent, which can be quite confusing to travelers and newcomers. You certainly do not need to learn a new language to live here, but a bit of knowledge in Kiwi lingo will go a long way.!

If you spend enough time in New Zealand, you’ll notice how locals here are easygoing, good-natured, and oozing with positivity – thinking everything will work out well at the end of each day. It’s one of New Zealand’s biggest draws, and the friendly nature of the Kiwis is something that expats or migrants will notice straightaway.

Everyone is incredibly friendly and might start a conversation and make small talk once in a while. Expect to walk around town and have a stranger smile or greet you – this is not unusual at all. You’ll always find your people somewhere in New Zealand. Between backpackers, expats, retirees, long term immigrants, it’s a multicultural society.

While there truly aren’t many people living in New Zealand, there are plenty of sheep. In fact, nearly 30 million of these furry creatures dot the landscape like a fluffy white cloud; far outnumbering the 4.8 million humans.

Health Insurance

Thanks to government subsidies, residents and people who hold work visa benefits from a sound public health system, often free or low cost. If you’re a retiree and have limited income, you’ll be liable to get help from the government for regular and unexpected medical expenses. 

Weather

New Zealand is known for its temperate, mild climate. The Far North has a subtropical climate, so expect a typically long, hot, and humid summer. The temperature here drops as low as -10 Celsius down in the South Island’s alpine region.

Winter is often associated with large storms, and summers are mild, never too hot. People residing close to the coast enjoy a mild climate pretty much throughout the year. 

FINAL THOUGHTS

New Zealand is a place everyone wants to live – and for good reason. There are few countries who strike the balance between cities and nature so well. There is plenty to enjoy here, from the cuisine to the people to the raw beauty. If you are lucky enough to be able to make retirement happen here, you can’t do much better. Good luck!

Portugal is almost nine hundred years old, with a distinct culture and a fascinating history. In this Mediterranean country, you can find impressive monuments and culture everywhere, and the food is as diverse and creative as its French and Italian counterparts – reflecting a huge amount of cultural influence brought during the Age of Discovery.

Public services and infrastructure are very good – especially the Public Health System, which is free for all residents. And the country ranks in the top-5 countries of the Global Peace Index, clearly demonstrating that it is one of the safest places in the world.

Getting excited about retiring in Portugal? I don’t blame you. Read on…

This is part of our Retirement Guides series:
– Retire in the Philippines
– Retire in New Zealand
– Retire in Costa Rica

WHAT ARE THE BEST AREAS TO RETIRE IN PORTUGAL?

Most Popular: Algarve

The three most popular areas for foreigners to retire or invest in real estate in Portugal are its two main cities: Lisbon (the capital) and Porto (the second city), and the Algarve region. We’re picking Algarve among these three assuming that you don’t need to be close to a big urban area in your retirement.

Algarve has been, for almost six decades, the main tourist area of Portugal. Ever since the sixties, British people have come to play golf, to spend some days in the seaside and to retire.

In 2019, for the whopping fifth year in a row, the region has won the World Travel Award as Europe’s Leading Beach Destination. The World Travel Awards are the most prestigious awards for world tourism, and are usually called “the Oscars of Tourism.” French and Italians are now also arriving, but you still can find places not hurt by mass tourism or development.

The warm climate (mild even in the winter) and the lovely beaches are just a few of the factors gathering visitors. Those looking for luxury real estate find developments throughout the region. And according to the New York Times, the demand rose nearly 5 percent during the first quarter of 2018.

Known for the beaches, this 125-mile shore region has plenty of diversity. You can find urban beaches like Praia da Rocha (Portimão), vast desert beaches between Faro and Tavira (the Ria Formosa Natural Park), and also the amazing sights of the St. Vincent and Sagres cliffs.

If you fancy living in the countryside, take to the hills and historic villages like Querença or Alte. You’ll be a 30-minute drive from the beach, but you’ll feel in a different world, away from the globalized crowds of Albufeira or Portimão. Gambling is allowed in Portugal; you can find three licensed land-based casinos in Algarve (Portimão, Vilamoura, and Monte Gordo). 

The region has its own international airport, the Faro Airport/FAO. Although there are no direct flights from the US, you can pick a direct flight to Lisbon. Then, you can either rent a car, take a bus, or get a quick 45-minute flight to Faro. The A22 highway crosses the region from west to east, connecting to the A-49 Spanish highway at the border. 

Up-and-Coming: Oeste

The Oeste (literally, “West”) region of Portugal is becoming the new hub for foreigners to invest in real estate in Portugal. Here there is a combination of three factors: the countryside, the sea and the closeness to Lisbon (an average one hour-drive from the airport). If you long for a quiet place, able to reach the sea by car in a few minutes and the capital city in less than an hour, this will be your choice.

Gastronomy, wines, history, and culture are solid points for the Oeste region. This includes, in its territory and vicinity, plenty of World Heritage monuments (Mafra, Alcobaça, Batalha). The walled streets of Óbidos invite you to feel like you’re in the Middle Ages, and bubble with cultural events throughout the year. 

You might consider to set yourself up on the beach, by the Atlantic. The resorts of Óbidos (Praia D’El Rey, Royal Óbidos) await your visit, with their golf courses with a sea view. And Oeste is a famed surfing and beach spot. This is where Garrett McNamara, the giant wave surfer, came in 2011 to beat the record of the biggest surfed wave in history, in the fishing town of Nazaré. However, the town did not need McNamara to become famous, as it is a seaside destination for decades. In fact, in 1948 a little-known photographer named Stanley Kubrick visited and fell in love.

Stroll a little to the south, and you’ll find S. Martinho do Porto, a perfect shell-like bay of very calm waters. Just like Óbidos lagoon, a few miles south. Then you get the great spots for competitive surfing, in Peniche (home for one of the Rip Curl World Pro yearly stages) and Ericeira. 

In the towns and villages of the countryside, you can find bargains to invest and to live in, always ensuring that you’re near the A8 highway that takes you to Lisbon. Locals are already welcoming a steady but smooth wave of tourists. After all, this is not the capital – this is the countryside by the capital.

Most Underrated: Alentejo

The southern plains of Portugal are not a tourist hotspot – at least not yet. Local politicians lament the depopulation effects. Industries are few and small scales. Large scale agriculture is still the main economic activity, and it was given a good impulse by the Alqueva Dam and its big lake.

But in Portugal, depopulation doesn’t mean depression. Local town halls provide a minimal number of public jobs, and the existent, active entrepreneurs aren’t going anywhere. The result is that foreigners find small but well-functioning towns, with all kind of services working smoothly. You can be sure that you’ll find a good cafe or restaurant at the end of the road.

There are about 750.000 inhabitants in a territory comprising roughly 12,000 square miles (almost the size of Connecticut, 3.5 million people). Low-density population ensures that you never get rushed for anything. You can cross the 10-mile road between Pavia and Vimieiro and not find a single car.

This is a land of white-washed villages and towns, punctuated with medieval castles, built during Islamic rule (which ceased here in the 13th century) and kept after the Christian Portuguese conquest. Évora, classified as a World Heritage site, is the principal city of the region – but still maintains its medieval walls surrounding the historic center.

The Alqueva lake is now welcoming beachgoers and fans of water sports. For wine lovers, this region is a paradise; it is becoming the leading wine producer of Portugal, and wine tourism is developing along the way. Don’t forget the food, so distinct from Northern Portugal, or the Atlantic beaches (Troia, Porto Covo, Milfontes…)

The low-density population also contributes to the meager prices of real estate. Many youngsters move to Lisbon or abroad, searching for jobs, which ensures that there is more supply than demand.

Finally, the region is quite close to Lisbon. A road trip from the Lisbon airport might take between half an hour and two hours, depending on where you stay. The region is connected to the capital by the A6 (Lisbon-Spain) and A2 (Lisbon-Algarve) highways. If you fancy a tour to neighboring Extremadura in Spain, couldn’t be easier.

Warm climate (similar to Algarve’s), excellent gastronomy, wines and landscapes, and all very inexpensive. Alentejo is a treasure waiting to be discovered.

HOW MUCH MONEY DO I NEED TO RETIRE IN PORTUGAL?

Portugal is Western European quality with South American prices.

The cost of living, overall, is lower than in the United States and other European countries. As the saying goes: Portugal is Western European quality with South American prices.

Real Estate 

You’ll find a big difference in real estate prices between the big cities (Lisbon and Porto) and the countryside. The fast growth of tourism and second-home residency meant a steady price increase in these areas. Recent data shows that the square meter value is about USD $2,500 in Lisbon, but the national average is just $1,000. 

A two-bedroom apartment could cost between $900 and $1,500/month, aside from both luxury developments and low end, suburban housing. In the countryside, the price could go from $350 to $600.

Monthly Budget

For $500, you can get your monthly groceries comfortably, for two people. This would include utilities: cable, internet and cell phone (around $45, without premium channels); power ($30 to $45); gas ($20 to $30) and water ($15 to $20). A liter of milk is $0,55; 1 kg of pork could come for less than $5. A coffee (Portuguese style, a tiny but powerful cup) is less than $1, just like a beer. The Big Mac menu is not as cheap as you would think (around $6).

A regular Portuguese restaurant gives you a complete meal for $15/person: appetizers, main dish, a bottle of wine, bread, dessert, and coffee.

Groceries and utilities don’t have the same variation between Lisbon or Porto and the countryside as real estate. However, you may conclude that settling in the countryside can be a little cheaper, regarding groceries too. In touristic places of Lisbon, a coffee can cost a little more than $1.10 – and most Portuguese feel that’s too high!

Lately, Portugal clothing market is being overrun by ultracheap products made in Bangladesh. You can get new t-shirts for $3, jeans for $12 and so on. Primark, the European low-cost retailer which has 9 locations in the Northeast, has 7 stores in Portugal alone.

Cars

European roads and streets are tight, and so are the average European cars. Aside from typical American brands with little world reach, like Dodge or Buick, you’ll find all sort of car brands for sale, and a big market for used cars too. A brand new BMW Series 1 is $30,000; the tiny Ford KA+ is only $11,000.

Mind that you’ll find the fuel prices surprisingly high. Gasoline has been floating between $1.40 and $1.70/liter ($4,20 and $4,84/gallon). This could be another reason to go for a smaller, cheaper car, which will need less fuel.

Aside from fuel, some expenses might surprise an American expat. Almost every highway has tolls; processed drinks suffer from a governmental tax to fight obesity. But, overall, the country is a good bargain. Remember that Lisbon, Porto and some Algarve areas (the most “touristic” ones) can be a little more expensive than the rest of the country; hence the opportunity of areas like Alentejo, Oeste and others.

DO YOU NEED A VISA TO RETIRE IN PORTUGAL?

Portugal is a member of the Schengen Area, a group of 26 European countries that abolished their internal borders, almost matching European Union. US citizens do not need to apply to a Schengen VISA to stay up to 90 days. To stay for longer, one should contact the Immigration service, SEF (Serviço de Estrangeiros e Fronteiras), equivalent to the Department of Homeland Security. 

The route to citizenship

If you’re a regular, US-born citizen of no Portuguese descent, there are two ways to get Portuguese nationality: marrying a Portuguese national or living in Portugal.

• In the first scenario, you’ll need to be married for three years or longer. Cohabitation for the same period is also valid, although a Portuguese court should recognize it.
• In the second, you’ll need to live in Portugal for six or more years permanently. You will also need to complete a written test certifying that you have sufficient control of the Portuguese language.

Obviously, there are some other requirements to apply for Portuguese nationality. The candidate must be at least 18 years old, not having been sentenced for a crime in Portugal punishable with 3 or more years in prison, and not having been involved in terrorist activities.

How to qualify for residency

You can ask for a residence visa (visto de residência), allowing you to stay up to four months, or two kinds of “normal”, “regular” residence permits:

• Temporary (autorização de residência temporária, ART), valid for one year, renewable for two;
• Permanent (autorização de residência permanente, ARP), renewable after five years or whenever a change occurs in its data.

Family reunions, working, access to the legal system and access to healthcare are some of the rights granted to permanent residents. 

SEF will ask you for several documents when you apply to a residence permit. You should schedule a meeting with them beforehand, to avoid queues in the regular service.

Special residency permit #1: Non-Habitual Residency

Aside from the “regular” residency permits, there is a very special one: the non-habitual residency permit (Residente Não Habitual, RNH). The RNH allows foreign citizens to change their tax address to Portugal and get benefits from it.

Through this scheme, if you’re retired, your foreign-based pensions, received in Portugal, will be exempt from taxes. 

To apply to the RNH, you cannot have lived in Portugal in the previous five years. One should be willing to stay in Portugal for at least 183 days per year or to own a house, demonstrating he can live in Portugal permanently.

The RNH permit has granted Portugal some criticism from its European Union partners. Some call it an “offshore for people”, like the offshore tax havens for financial movements and capital. Sweden and Finland, two Nordic countries with stringent rules regarding fiscal policy, have denounced their treaties with Portugal regarding double taxation. Due to the RNH, they discovered that their nationals were paying no taxes on their pensions; exempt at home due to the treaty, exempt in Portugal via RNH status.

While climate, security and lower prices are the factors that people usually use to explain the success of the retirement market in Portugal during the last ten years, the RNH is the unsung hero of this success. The program appeared in 2009, and there are currently 30,000 foreign, “non-habitual residents”.

Curious coincidence: in Portugal, the income tax on individuals it’s called IRS (Imposto sobre os Rendimentos das pessoas Singulares). Make no confusion with the American IRS; the Portuguese revenue service it is called Autoridade Tributária e Aduaneira, or Finanças (Finances) in everyday language (pronunce like “fee-nan-sas”).

Special residency permit #2: The Golden Visa

The Golden Visa is a residency permit given to people investing at least €500,000 in real estate in Portugal.

The official name is “Residency Permit for Investment Activity” (Autorização de Residência para Atividade de Investimento, ARI). The candidate will be allowed to enter in Portugal without a residency visa, circulate in the Schengen Area and bring the family. He could also apply to a permanent residency permit or Portuguese nationality, according to the law. You should be in Portugal 7 days per year in the first year of permit and 14 days per year subsequently.

There are other ways to invest through ARI, like capital transfer of $1,000,000, or creating a minimum of 10 jobs in Portugal. But investing in real estate is by far the most chosen way by candidates. Chinese are the most frequent candidates to Portuguese Golden Visas.

Legal system

Once you get a residency permit, you’ll have the same legal rights as a Portuguese citizen. Portugal is a fully-fledged democracy and a member of the European Union, based on the principles of the rule of law, civil liberties and Human Rights. You will feel no particular problems regarding this. 

The Portuguese legal system, as the whole Continental Europe, follows the Roman Law tradition, falling in the Civil Law system, unlike the Common Law followed in America. However, and apart from the almost inexistent role of a jury, these differences are mostly felt by lawyers, rather than by citizens seeking justice. You’ll always have the right to an attorney.

IS REAL ESTATE EXPENSIVE IN PORTUGAL?

As we mentioned above, the local property market displays a significant value difference between Lisbon (and also Porto) and the rest of the country. Throughout the country, you’ll find that there is way more offer to buy than to rent. The current macroeconomic policy of the European Central Bank is stimulating owners and developers to sell.

Choosing a real estate agency (or agent) is the first step to find a property. You could buy or rent on your own, but a good agent has the local knowledge of the market (and regulations) that a foreigner lacks. There is no difference between agents, brokers, or realtors; you’ll find a single category of real estate companies, which can have a single agent or a team.

Beware of non-licensed agents; always check if they have an official AMI number with the APEMIP, the Portuguese NAR. Remax, ERA, and Century21 are in the market.

If you’re thinking about a long-term investment, buying will be wiser. Ask your agent for advice, but don’t forget to check online for properties yourself in web portals like Casa Sapo, Imovirtual, Idealista, and OLX (a Craigslist-like portal present in 45 countries). Portals show both properties to rent and to buy.

HOW MUCH DOES HEALTH INSURANCE COST?

The Portuguese government maintains a public, national Health Service, in line with the European welfare tradition regarding this matter. The service is free; aside from minor taxes, which one can pay for consults or Urgency services (never above $22). Even major surgeries are free!

Once you have a residence permit, you can benefit from the service like a national. To register, US citizens need a document of the Immigration Service (SEF) and show it in their local Family Health Unit (USF). As the service is free, it is recommended that you sign up. It’s a cheap way to keep an eye on your general health and perform regular clinical pathology tests. 

However, the public system has its flaws and limitations (efficiency, budget, etc.). You may find that your local USF (“Family Health Unit”, a local government-owned medical facility for basic care) is too crowded. MRIs’ and CT scans are very hard to get. You may need dental medicine, a specialty almost nonexistent in the public service. Or maybe you need a specialty that your local hospital is not providing.

This is especially true in Algarve. In spite of being a significant tourist and second-home market, Algarve still lacks a large, central, and well-provided public hospital like the ones of Lisbon, Porto, and Coimbra. 

Private services are the alternative. Portugal is going through a period of expansion of private hospitals and insurance. You’ll find both domestic and well-known international insurers, like Allianz and Zurich, in the market. You may get partial insurance (for dental medicine, vision, and or other specialties lacking in the public system) or full coverage. Check the terms and conditions carefully, as rates may increase after a certain age. 

The rates can vary wildly. Even searching online, you may find it difficult to get accurate prices before filling a questionnaire. An alternative is to look for help, like the one provided by AFPOP – Portugal Foreign Residents Association, which can get you advice and discounts. AFPOP members affirm they can get full coverage (with an international insurer) for about $660/year.

Elderly care services are also booming, in line with the aging trend of the Portuguese population. It is possible to find full-time (24 hours/day) home support (including hygiene and accompanying) from $880/month; a good elderly home, with more customized service, would start from $1,100. There is plenty of offer below these prices, but usually, it relies on unlicensed professionals.

WHAT ARE TAXES LIKE FOR RETIREES?

The taxes you’ll be responsible for will depend on the kind of investment you make in the country. As discussed above, by getting a non-habitual residency permit (RNH), you may get a flat tax fee or an exemption. The personal income tax is called IRS (it’s the “coincidence,” allowing confusion with the American IRS, also discussed above). 

Portuguese banking technology levels are state-of-the-art. You can open a bank account online: fill your personal data and then go to the nearest branch just to confirm and sign. Some banks might allow you to do everything online. Eventually, you’ll find out that most Portuguese still don’t use this kind of accounts. But that is due to the usual reasons for people using what they already know. 100% online banking is used by millennials, executives, urbanites, and other early-adopters.

If you buy a house, you’ll need to pay a yearly property tax (IMI, Imposto Municipal sobre Imóveis). It is decided at a local level, by the municipalities (Câmara Municipal), but payment is made to the tax authority (Autoridade Tributária). It varies between 0.30% and 0.45% of the amount that the tax authority considers your property is worth (something you can contest if you find it too high).

If you buy a car, you’ll have to pay the yearly IUC (Imposto Único de Circulação), calculated by the tax authority according to the value and capabilities of it. 

If you set up a company in Portugal, you’ll pay corporate tax (IRC, Imposto sobre o Rendimento das Pessoas Coletivas). Apart from some exceptions, most companies pay 23.5% (including a municipal corporate tax, usually of 1.5%)

Portugal is not the most competitive country in terms of taxes (unless you get the non-habitual residency permit, as we made clear.) Due to the 2011 bailout, amid the Great Recession and the Eurozone crisis, the country has had to apply a hefty dose of taxation on economic activities, especially on consumption. That’s why fuel seems so expensive, compared with the US. Portugal’s VAT or sales tax (named “IVA”) is 23%, which is above the EU average (although several exemptions goods have reduced IVA).

But taxes on consumption are not felt by the user unless the end price gets too high. And, as we mentioned above, Portugal is the cheapest country in Western Europe – even with high consumption taxation.

The main tax tip is to apply to the non-habitual residency permit. While buying a house, you could check the IMI (property tax) collected by the municipality where you’re buying, although the tax rates end up being very similar throughout the country, as we said above.  

Funny note: the Portuguese word for tax is “imposto,” which also means “imposed.” It reveals the nature of it – no one would pay voluntarily; taxes must be “imposed.”

HOW SAFE IS PORTUGAL?

According to the Global Peace Index, Portugal is one of the five most peaceful countries in the World. The World Economic Forum ranks it as the 9th safest country, according to its Travel & Tourism Competitiveness Report 2019. InterNations, the world expat community, developed a 20.000 people (more than 170 countries and nationalities) survey which deemed Portugal as the 8th safest country.

If you move to Portugal, learn to read Portuguese and start reading newspapers in cafes, you’ll find the omnipresent “Correio da Manhã,” the national sensationalist tabloid. Every day there is crime news – which is inevitable because, in a country of 10 million inhabitants, crimes are happening every day. But you’ll quickly find that the country is as safe as it looks. No mass shootings. No police officers dead in the line of duty.

The problematic areas are the impoverished suburbs of Lisbon, which foreigners should avoid – not much to do or see there, anyway. The same happens in Porto, on a smaller scale. In downtown Lisbon, crowded with tourists, beware with pickpocketing.

Elsewhere in the country, follow general rules of common sense. Avoid to exhibit wealth and close the door. Get involved with the local community (face to face and social media) so that you can stay about local precautions (for instance, if a group of bandits keeps invading homes before they’re caught).

HOW EASY IS IT TO GET AROUND?

Local infrastructure is more developed than one would think. Membership of the European Union allowed Portuguese authorities (both at a central and local level) to improve roads and other public structures; there is no shortage of public water supply, electricity, or mobile network throughout the country (especially around the metropolitan areas and Algarve). Portugal has one of the best highway networks in Europe; however, as lovely as Lisbon’s trams are, in general train transportation is below average compared to the rest of Europe.

Driving is smooth throughout the country. Traffic jams in Lisbon are necessarily small, compared with what happens in large American cities. Portuguese drivers are a little more polite in the North than in Lisbon, but general adherence to the rules has improved over the years (and road mortality decreased).

American driver’s licenses are valid for six months. After that, you should exchange for a Portuguese one at IMT, the Portuguese DMV. It won’t be necessary to do a new driving exam, just the usual bureaucracy.

WHAT RECREATION DOES PORTUGAL OFFER?

Leisure and activities can be quite different between big cities and the countryside. In Lisbon and Porto you could expect to find everything you would in a big world city. If you’re all for sports (watching or practicing), you should try to enjoy soccer and visit the 50,000 seat stadiums of the nation’s larger clubs.

You could also practice every kind of sport, from go-karting to surf. In the countryside, there are apparently fewer options, but in most municipalities, you can find a public swimming pool, buy a good bike for cheap or get mates for traditional games (cards and others).

HOW CAN I SHIP MY STUFF?

Regarding your personal goods, several companies can serve you (sometimes involving a shipment to the Netherlands and then a truck transport to Portugal). But depending on your needs, you might consider making an investment locally, as it could end up being both cheaper and easier. For furniture, for example, there are 5 IKEA stores in Portugal (2 in Lisbon, 2 in the North and 1 in Algarve).

TAP Air Portugal and Azores Airlines are both members of the IATA (International Air Transport Association), like most American companies. The main rules regarding pet shipping are the ones designed by the IATA, as the standard of international aviation. You should check each company specific conditions (prices, guidelines, etc.).

ARE THERE RETIREMENT COMMUNITIES IN PORTUGAL?

Yes, and the Portuguese are naturally welcoming of foreigners. As in every country, you’ll seldom find (in the local media) social or political negative references to immigration. (Although way less intense than in other European countries, as immigration from Africa is not that influent, and from the Middle East is non-existent). For expats coming from Northern Europe and North America, nothing of this applies. People are aware that foreigners from these countries are there to enjoy the country. They are universally welcomed.

You won’t have much trouble getting by in English. Keep in mind that the percentage of people able to communicate in English is lower outside Lisbon, Porto, and Algarve (and especially in rural areas). It is also lower with people above 50 years old. But if you find youngsters, it should be easier.

The Portuguese appreciate expats, and you can find English speakers everywhere. In fact, Portuguese prefer to watch American movies with subtitles, rather than dubbed . It has been like this ever since TV transmissions started. Aside from school, this also helps the country to have a higher understanding of English than others, namely Spain.

The most efficient way to find expats it’s still the internet. US communities are too small to gather in dedicated social clubs; only the British do that, and only in Algarve. However, the “best” way (even if not the efficientest) is going around the most frequented restaurants, cafes, and pubs. Foreigners tend to go to similar places – genuine, traditional Portuguese restaurants of good quality.

FINAL THOUGHTS

In terms of finding a place to retire, it doesn’t get a whole lot better than Portugal.

The health care system is top-notch, the people are friendly, the food is wonderful, and there is no shortage of places to explore. Plus, the cost of living is low, and the non-habitual residency permit is one of the most generous legal tax loopholes in the world. The Portuguese are accomodating and want you to know you are welcome. Will you join them?

ARE YOU ON PINTEREST? SAVE THIS FOR READING LATER

Several things should be taken into consideration when picking a country to retire to, such as the cost of living, the weather, retirement visa, and the culture. These factors are what make it ideal to retire in the Philippines. Do you need more convincing? Read on and we’ll talk about more of why the Philippines is the ideal destination to be in the relaxation phase of your life.

This is part of our Retirement Guides series:
– Retire in Portugal
– Retire in New Zealand
– Retire in Costa Rica

REASONS TO RETIRE IN THE PHILIPPINE ISLANDS

The Philippines is one of the countries in Asia that are heavily influenced by western culture. This country has long been associated with Spanish and American culture due to it being colonized by these countries in the past.

It has also been influenced by its neighbouring countries, such as Japan, China, and India, making it a welcoming place for people from all over the world. Of course, it isn’t just the culture that makes it such a great place to retire to. Let’s scroll down and learn more.

Tropical weather

If you’re from the colder parts of the planet, you’ll most certainly appreciate warm and sunny weather, free from the hassle of snow-covered roads.

The Philippines’ weather isn’t all that complicated; it’s either sunny or rainy. This is why many foreigners, especially from the west, think of retirement in the Philippines to be an attractive option.

English-speaking country 

There’s a reason why the Philippines is the BPO capital of the world, and that same reason can also be one of the main reasons why you should retire in the Philippines.

Generally speaking, foreigners won’t have a hard time communicating with the locals. Filipinos are taught to speak or at least understand English from preschool age up to their college days. Even when they are speaking in their native tongue, you’ll hear many English words mixed in their sentences!

Retirement visa is easy 

Getting a resident visa in the country is easy, and you can retire in the Philippines at the age of 35! You’re only required to submit the following documents to the Philippine Embassy or the Philippine Retirement Authority:

• Notarized PRA application form
• Authenticated copy of passport
• Medical Examination accomplished by a licensed physician abroad or a PRA Medical Certificate
• NBI Clearance
• Marriage Contract
• Birth Certificate
• Family Registry

In addition to these documents, retirees between the ages of 35 and 49 are required to deposit at least $50,000, and for ages 50 and above, a deposit of $20,000.

From the day of the Special Resident Retiree’s Visa or SRRV has been issued, the applicant has to enter the country within a year, and the Bureau of Immigration will then convert the single-entry SRRV into a multiple-entry and indefinite stay SRRV, with the endorsement from the PRA. You can find more information here.

RELATED: Philippine tourist visa guide

Affordability 

The Philippines is generally an affordable country to live in. Get this: an average worker’s Social Security benefit in the US is about $1400 per month. You only need about $700 to $800 to live a comfortable retirement in the Philippines. While this amount isn’t that much in the US or other developed countries, it will go a long way in the Philippines!

Westernized 

Most westerners will find themselves in a western setting when they settle in the Philippines. Many food establishments, especially in the big cities, serve western foods such as spaghetti, hamburgers, hotdogs, and the likes.

McDonald’s, Yellowcab, and other American fast-food chains and convenience stores can be found in almost every corner of the country, making its visitors feel closer to home than when they are in other Asian countries.

BEST PLACES TO RETIRE IN THE PHILIPPINES

We’ve already discovered that the culture in the Philippines is a lot closer to the west than most Asian countries, but how about its destinations or perspective place to live?

Many of its destinations have awe-inspiring scenery, and the big cities have many establishments where you can get almost everything you need, from international and local food, relaxation and fitness centres, recreational activities, and more.

RELATED: North of the Philippines – What to see and do

Manila and Davao 

Manila and Davao are some of the places in the Philippines where many foreigners live. You’ll have plenty of opportunities to meet other foreign retirees in a Starbucks cafe’ or a mall and exchange stories.

Everything you might ever need to live a comfortable life can be found in these two big cities, from fresh food and convenience stores of all kinds and recreational facilities and everything else in between.

Cebu, Subic Bay, Boracay, Puerto Princesa, and Siargao 

Filled with foreign tourists and expats thanks to being home to beautiful beaches, and being near airports, these destinations are some of the best places to retire in the Philippines.

Also, these provinces are filled with places to explore and activities to enjoy. These places are far from being perfect, of course, but are beautiful enough to be considered retiring to.

Baguio 

Baguio, the Summer Capital of the Philippines is one of those places that are frequented by a lot of foreign tourists. It is probably one of the coldest places in the Philippines, hence, many who prefer a colder climate tend to retire here.

With all the comforts and convenience of city life and the relaxing atmosphere of a province, you’ll get to enjoy the best of both worlds here!.

COST OF LIVING IN THE PHILIPPINES

The cost of living in the Philippines is about 50% lower than that in the US. The average cost per month in the country is about $300. A budget of $1000 per month will be more than enough in the big city and $600 a month will be comfortable in the provinces. Let’s have a closer look:

RELATED: Southeast Asia travel budget

Rent 

Renting instead of buying a condo will give you more flexibility and lesser commitment. If you see yourself jumping from one place to another in your retirement days, then renting is the ideal option for you. Here’s to give you an idea of the price of rentals in the Philippines:

• 1 bedroom standard Filipino style: $200 – $250 per month
• 1 studio standard Filipino style: $100 – $150 per month
• 1 bedroom western-style (maybe half furnished, with shower, toilet seat, tiled floors): $300 – $400 per month
• Entire house western style: $500 – $600 per month

Food 

Filipinos are well-adapted to western tastes when it comes to food. Many restaurants serve American food, such as burgers, fries, spaghetti, and so on. Also, the Philippines has a lot of fast-food restaurants that typically exists in the US, such as Burger King, Taco Bell, and it is much cheaper in terms of price.

• How much is per meal in a mid-range restaurant: $8 – $12 per meal; single person.
• How much is per meal in eatery: $1 – $2 per meal; single person.
• You can easily plan your daily budget if you buy groceries for the whole month and cook at home, and therefore, typically lowers your expenses.

Internet access 

Internet access in the Philippines typically costs around $25 to $60 depending on the package. Many establishments in the Philippines offer free access to Wi-Fi. You can also purchase a pocket Wi-Fi if you see yourself travelling a lot. It costs around $15 to $60 to get one, and the daily top-up costs around $1.00 per day.

• Companies to choose from for mobile sim card: Globe, Smart, PLDT. The quality of speed depends on which place you are, but the big cities in the country generally have the best speeds
• Cost/month: $25 – $60 depending on the package
• Companies to choose from LAN internet provider: PLDT, Globe, and Converge
• Cons: the internet speed has always been an issue in the Philippines and mostly the big cities and well-known tourists spots only have access to faster internet speed options

Transportation 

The price of transportation in the Philippines is relatively cheap in some places, and relatively pricey in some. A long-distance bus typically costs $5 – $10 depending on the distance. Then there’s the famous Filipino ride called the Jeepney which costs around $0.20 to $1.00 per ride, depending on the distance. Some cities in the Philippines have online ride-booking.

• Online booking (Grab) which cities available: Bacolod, Baguio, Bataan, Cagayan de Oro, Cebu, Davao City, Iloilo, Manila, Naga, Pampanga 
• Motorbike: The price of buying your motorcycle in the Philippines ranges from $1200 to $5000 depending on the make and model.

Healthcare 

Healthcare in the Philippines is generally of a high standard, especially in its big cities, and most especially in Manila, where the latest and state-of-the-art facilities are available to its residents.

Though healthcare in the Philippines may be relatively expensive to many locals, foreign retirees will find it a lot cheaper than the healthcare in their own country.

However, if you possess the retirement visa or resident permit, you are allowed to subscribe to the government program for healthcare services called “PhilHealth”. You will pay annually and then enjoy the services of this program.

RENT VS BUYING A PROPERTY

Foreign retirees in the Philippines can buy a property but not own land. Therefore, it is much more practical to rent instead. However, if you have a local spouse, you may buy land provided that the title is under your spouse’s name. If your spouse passes away, you can either sell the property or transfer the ownership to your children or the spouse’s relatives.

FINAL THOUGHTS

With the Philippines’ highly-westernized culture, breath-taking destinations and affordable cost of living, it is an extremely viable country to live in. Whether you’re considering retiring early or you’re already past the retirement age, you might want to add the Philippines to the list of countries that you are considering to live in for the rest of your life.

Sure, the Philippines has its share of imperfections, like every other place in the world, but the advantages far outweigh the disadvantages. Considering its welcoming culture, its world-class tourist spots, and the warmth of its people, braving its high volume of traffic and weathering its storms during the rainy season is all worth it.

Which countries are you considering to be for the rest of your life? Would you consider to retire in the Philippines? As always, we’d love to know your thoughts! Leave your questions or comments below!