The Advantages And Disadvantages

“Kathleen, thank you so much for all your valuable, insightful research. Would you answer a quick question for me?

“I’m Spanish bilingual and a dual citizen (United States and Mexico), although I’ve lived my life mostly here in the States. Your Top Picks list shows Mexico as #13 for retirement.

“For a person with my citizenship advantage, would that make Mexico a #1 pick for me? Or is another Spanish-speaking country, like Panama, still better, in your opinion?”

— Ed R., United States

Mexico taxes residents on their worldwide income…and the United States taxes anyone who holds a U.S. passport on his worldwide income, period. This means that moving to Mexico could mean an additional tax hit for you.

On the other hand, you have no residency or employment issues, as you have Mexican citizenship.

The bottom line, though, is, Where do you want to live? As I like to say, you don’t want to organize your life around things like tax code and residency visa requirements. These are important issues that you want to research, understand, and factor into your thinking. But I advise against making any overseas move based 100% on these practical issues.

Allow your heart a voice.

Being fully bilingual and familiar with Mexican culture, you could easily make a comfortable life for yourself anywhere in this country that appeals to you. In other words, all things considered, Mexico could well be the best option in your case.

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