Feb. 10, 2011:
"Kathleen, I get your wonderful e-mails and enjoy reading every one!
"I have a question. I assume the answer depends on the country, but I am wondering if it is advantageous to be legally married when moving abroad?
"My husband (of 14 years) and I are not legally married, with the paperwork and so on. We are completely committed as life partners, but there were tax reasons here that precipitated our choice to keep the U.S. government out of the mix.
"Anyway, in our plan to move abroad, would it be to our benefit to get married before we leave the United States?"
--Andrea L., United States
It depends on how you plan to qualify for residency. In some cases, yes, being legally married could have big advantages.
Generally (as you say, though, it depends on the country), if you are married (that is, if one is the "legal" dependent of the other), then you can apply for residency with one of you as the dependent of the other on the application. This means you have only a single financial requirement to meet.
Take the pensionado residency visa in Panama, for example. This requires proof of income of US$1,000 per month for a single applicant and of US$1,200 per month for a husband and wife applying together.
If you aren't technically married, then each of you would have to qualify on your own application, proving income of US$1,000 per month apiece.Continue Reading:
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Euro-Correspondent Lucy Culpepper interviewed Cathy for her report on this region of France featured in the current issue of my Overseas Retirement Letter.
Here's an excerpt from Lucy and Cathy's conversation...
Lucy: Why did you decide to move to the Basque region from the Cote d'Azur?
Cathy: While living on the Cote d'Azur for 10 years, we spent quite a few holidays in Biarritz and fell in love with the area. My husband enjoys surfing, and the Basque coastline is perfect for that. The area reminds me of Cornwall where I grew up, so it really feels like home. We also love the laid-back atmosphere and friendliness of the Basque people. We appreciate the fact that the countryside is relatively unspoiled, whereas, on the Cote d'Azur, there is building everywhere.
Lucy: Did it take you a long time to find your dream property?
Cathy: It took only a few months. We started looking for an apartment in Biarritz, as an investment and for holidays, but we soon realized how expensive property is there. So we shifted our search slightly inland, where we found that we could get a lot more for our money. The watermill we finally bought was the first property we visited.
Lucy: How long did it take you to turn the mill and the grounds into what they are today?
Cathy: We didn't have any conversion work to do on the mill house. It was mainly just minor work to make the place suit our own tastes—painting, flooring, etc., plus we had a new kitchen fitted.
However, the six holiday chalets on our land were quite another matter, and they took a lot of work to convert. We spent three months working (seven days a week, 12 hours a day) last year trying to get them ready for the summer season.
Lucy: Tell me about your business and how it developed...
Cathy: We bought the property because of the rental potential of the six holiday chalets on the land. With this ready-made business, it meant that we could move here to live rather than just visiting for holidays. At first, before we relocated full-time, we rented out the watermill. We were surprised at how well it rented out of season as well as during the summer.
Lucy: Where do your guests come from?
Cathy: Half our guests last summer were French, the other half were British. I placed online adverts on both international and French sites, to attract both markets.
Lucy: La Bastide-Clairence is a small place; at the last census (2006) there were 990 inhabitants. Do you feel that the smallness is too intense? Do you feel accepted?
Cathy: We love the fact that, after just a few months, we felt like locals in La Bastide Clairence, meeting other people from the village at the weekly farmers' market, which is a real social event. It's lovely to see so many people you know just sitting having a coffee in the village square.
When we want to be in a bigger city, we visit nearby Biarritz and Bayonne.
Lucy: What are the advantages, or best things, about living in the Basque region of France?
Cathy: The best thing is the quality of life here. There are so many wonderful beaches to visit in the summer. My husband, who loves surfing, has a huge choice of places along the French and Spanish Basque coastline.
There are also excellent restaurants and bars. We really love the food here.
Lucy: What, if any, are the disadvantages about living in the Basque region?
Cathy: The only disadvantage we are finding this first autumn/winter living here is the weather! After being spoiled living on the Cote d'Azur for 10 years, we are finding it a little hard getting used to the amount of rainfall here in the winter. Last summer, though, was fantastic, and we do get the odd stunningly beautiful sunny day even in winter, reminding us why we're here!
Kathleen Peddicord
Editor's Note: Lucy's complete interview with Cathy is included as part of her full report on living in France's Basque region. If you're an Overseas Retirement Letter subscriber, you should have received this report in your e-mailbox. If you're not yet an ORL subscriber, get on board here now.Continue Reading:
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Jan. 25, 2011:
"Kathleen, I just wanted to say that your Emergency Offshore Summit Home Conference Kit is truly worth the price.
"I've listened to the entire collection of audio recordings and have a couple of questions.
"I have more than a few concerns. I am planning to move offshore in 2012 or early 2013, so I believe the HIRE act will affect my plans and potentially the way I set up a permanent visa.
"My first question I hope is not too complex. Do I (and anyone else planning to move to Panama) need to allow for US$1,000 plus an extra 30% a month for a Panama visa, knowing that now, under the requirements of the HIRE Act, 30% will automatically be taken out of our annuities and of our Social Security checks and sent to the IRS? Or am I jumping the gun?
"Will this directly affect people who are already living abroad and annually renewing their visas, assuming that these people are just about at the US$1,000 mark for, say, a Social Security payment. Won't they be short 30% and therefore unable to renew their visas? This will be a big deal for a lot of people who have been living years on a US$1,000 allowance from annuities, Social Security, or other investments, correct?
"Now, regarding a residency visa for Panama, specifically, I'm interested in the reforestation program that country offers and that your presenter details in your Offshore Summit package. I'm wondering:
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How long does this type of residency require that you be in Panama per year?
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When you decide to sell the trees, does the company do that for you and at what cost?
- How long must you keep the trees to ensure your continued visa?
"Finally, with regard to the QRP residency program for Belize. I know that you can finance this in several ways. When using the US$24,000 a year in a Belize bank method and renewing every year, must you continue to deposit an additional amount of US$24,000 each year or can you simply leave that amount permanently and never use it and renew your visa that way?
"Thank you very much for your time to answer these questions for me."
--Norman W., United States
The US$1,000 a month required to qualify for a pensionado visa in Panama has to be proven, but it doesn't have to be transferred each month to Panama.
Belize does require you to transfer the US$24,000 per year required to qualify for the QRP into the country. You can do this in monthly installments of US$2,000 or annually.
In other words, the 30% withholding coming into place as a result of the HIRE Act might be an issue for people retiring to Belize under the QRP program, but it shouldn't have a direct impact on visa requirements in Panama.
That said, I believe that transfers to yourself would effectively be exempt from the withholding requirement. In other words, if your Social Security check is deposited into a U.S. checking account and then you wire it to an account in your name in Panama or Belize, the transaction shouldn't be affected by the withholding rule.
Also, remember that you could simply use an ATM to access funds from your U.S. account in either of these countries. This is an easy, practical way to access cash for living expenses overseas.
Regarding the reforestation visa program in Panama, there is no specific physical presence requirement, but you would have to be in the country to renew the visa.
The forestry company will sell the trees for you (at least the one that we recommend will). This is at no extra cost. The company (United Nature) simply sells your timber along with their own when the time comes. They get a better price than you'd be able to, because of their volumes, and, of course, they have all the infrastructure in place to facilitate a sale to the highest bidder.
With a reforestation visa, you can apply for permanent residency in Panama after three years. Once you have permanent residency, you could sell off the land where the trees have been growing if you want (you own the land, as well as the trees, with the United Nature program).
Finally, Belize wants to see the US$24,000 required for the QRP visa transferred into the country every year. This is one of the key reasons they have created the program…to attract hard currency into the country.Continue Reading:
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"We agreed we'd spend a year or so trying different places on for size," Lucy explained today for the Overseas Retirement Circle members on the line for our monthly members-only Teleconference.
"We wanted to do this before our children, then 6 and 10, got too old to appreciate the adventure (or the time with us!).
"We focused first on the Caribbean coast of Mexico, at Merida. We'd done a lot of research and thought we'd really love this part of this country. We rented a house in Progreso, the beach town outside Merida, for a month.
"We knew within the first 24 hours, however, that this place was not for us. It was too hot, too flat, too arid...
"We stuck out our month here but couldn't wait to move on.
"Next we tried El Valle, Panama. This place we loved. Cooler climate, rolling hills, and much greener. This area outside Panama City is so lush. The trouble was that there's no international-standard school in this region of Panama. So, while we really enjoyed our time here, we knew we'd have to move on.
"While in El Valle, other expats we met recommended we take a look at Costa Rica. This country, in the mountains outside San Jose, could offer just what we were looking for, they thought—lush landscapes, cool climate, and, critical for us, good international schooling options.
"Again, we rented a house for a month. On paper, as those we'd been speaking with had explained, this was a perfect fit. But we didn't feel comfortable...or safe.
"All the expats we met had invested in gates and grills and glass-encrusted walls around their properties. Home break-ins are very common, we found out.
"We didn't feel good about raising our children here, and even our easygoing children found the attention they got a little unnerving.
"Then we had a family emergency in the United States. It was good timing, as the six weeks we spent in the States gave us a chance to regroup. We decided we wouldn't return to Costa Rica…and we came to a more fundamental decision, as well...
"What we really wanted, we realized, was Europe. We'd been so happy in Spain all those years. Central America just wasn't working for us.
"More research led us to France, where we've been happily installed now for two years.
"France simply offers the best quality of life of any country I know.
"We're in the Bearn, next-door to the Basque region in the southwest of this country. The lifestyle here is very relaxed, and the community has been very welcoming. We feel completely at home and very safe. The crime rate is exceedingly low. We have no sense of insecurity…
"Plus, this part of the world is historic, cultured, and beautiful. As I'm talking to you right now I'm watching out my window as the sun is setting on the Pyrenees..."
Lucy went on during our conversation with Overseas Retirement Circle members this morning to discuss options for educating children in this part of the world…the comparative costs of living on the coast versus inland…excursions to the Basque region (the featured destination for this month's issue of the Overseas Retirement Letter...and big old farmhouse renovation projects currently on offer...
If you're an Overseas Retirement Circle member but were unable to be on the call with us today, don't worry. The recording of the conversation has been posted to your website.
Kathleen PeddicordContinue Reading:
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To tell you the truth, for me, they're not enough. We're loving our sun-drenched, escape-any-weekend-the-whim-strikes-us-to-the-beach lifestyle in Panama, but we miss our former lives in the Old World sometimes.
We miss café culture, museums, live theater, cheese shops, chocolate shops, bookshops...
We miss river walks that take you past centuries-old buildings, well-kept parks, formal gardens...
For some, tropical sunshine doesn't replace Continental charms. But who could afford to retire to the Continent?
In this month's issue of my Overseas Retirement Letter, Euro-Correspondent Lucy Culpepper shows you that, in fact, it could be that you could, for Continental living doesn't have to be nearly as costly as you might fear.
Lucy's ORL report shows that a couple could retire to Biarritz, France, on a budget of less than 2,000 euro per month, including rent. No, that's not super-cheap, but, if your retirement nest egg is denominated in U.S. dollars, that's less than it was a few years ago...and more than we believe it will be as this New Year progresses.
In other words, we see the cost of living in euro-land falling for those with income denominated in Greenbacks.
Lief and my long-term plan is part-time retirement on the Continent. We intend, when the day comes to flip our retirement switch, to spend part of each year enjoying Panama's Pacific coast...part of each year savoring country life in Istria, Croatia... part of each year in Paris...and part of each year somewhere...else...
Paris isn't necessarily a bargain, but the costs of spending three months a year in what, for us, is the most beautiful, most romantic place on earth will be mitigated by the lower costs of living we'll enjoy in Panama, Nicaragua, Belize, Vietnam, India, China, and Thailand...all places that we intend to include on our retirement schedule.
When we're not in residence, our Paris apartment can be rented out, further offsetting our overall annual retirement budget.
In other words, if, for you (as for me), there's no substitute for regular doses of the kind of culture and history you can find only in Europe, get creative. The Old World can be at least a part of your retirement plan, even if your retirement nest egg is limited.
Kathleen Peddicord
Editor's Note: Euro-Correspondent Lucy Culpepper's complete guide to retirement in Basque, France, is featured in this month's issue of my Overseas Retirement Letter, in subscribers' e-mailboxes now...Continue Reading:
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