Retire to Tuscany? We Found Better Places
Former war zones never looked so good
Retirees have always wanted to escape from cold, chaos, and crime. But with more folks retiring younger and healthier, adventure and excitement--the fun factors--become increasingly important in choosing where to retire. That may be why some 2 to 3 million retired Americans now live abroad--roughly four times the number 30 years ago.
How does one narrow down the possibilities? Cost of living is important, as are taxes, real-estate prices, and ownership restrictions. But it may be far more important to have some connection with the country you choose--having enjoyably lived there before, perhaps. Panama is an example: Thousands of Americans worked in the Canal Zone or served in the military; it tops the list of countries to which the U.S. government mails civil-service-annuity checks. Alan Fox, publisher of the quarterly magazine Where to Retire ($12 a year, 713-974-6903), says many people fall in love with a place while on a vacation.
Ah, that lovely little villa on a Tuscan hillside, right? A tad expensive. Instead, Gerald Celente, director of the Trends Research Institute in Rhinebeck, N.Y., is keen on much of Central America for its relatively stable currencies and proximity to the United States. Cuba, he predicts, will become a retirement mecca--"like a suburb"--as soon as politics permit. But forget Mexico. Most housing bargains are gone.
If you hadn't yet placed formerly strife-torn Nicaragua or Croatia on your short list, you might want to. "The Pacific coast of Nicaragua is like California," but with property prices about a hundredth of California's in many cases, says Robert Fordi, director of the Global Real Estate Society. In Croatia, three-story homes on Dubrovnik's main square are now going for $60,000. To help potential buyers get a feel for a place and make contacts with local real-estate agents, accountants, and attorneys, Fordi runs his own tours to retirement hot spots for groups of about 15 people (E-mail rfordi@compuserve.com for information). He also conducts trips through International Living monthly newsletter's Discovery Tours (800-926-6575 for tours; 888-263-5812 for $34 one-year introductory subscription).
The worst place to retire? Afghanistan. International Living says the horrors include a civil war, oppression of women "well beyond the norm" for Islamic countries, bandits who delight in kidnapping foreigners, and rampant infectious diseases. Oh, and ravenous wolves.
Best places to retire abroad
With help from retirement experts, trend watchers, and tax gurus, U.S. News has compiled a highly unscientific list of the 10 bet places for the nonrich to retire abroad in comfort and style, rating everything from the country's accessibility to and from the States to its tax benefits (or burdens) on a scale of 1 (poor) to 3 (tops).
A Accessibility
B Climate
C Cost of living
D Fun quotient
E Medical care
F Real estate
G Safety/risk
H Taxes
A B C D E F G H
BELIZE 1 3 2 2 3 2 2 2
COSTA RICA 2 3 3 3 3 2 2 2
CROATIA 2 3 2 3 2 3 2 2
ECUADOR 1 2 3 2 2 3 1 2
HONDURAS 1 3 3 2 2 3 2 3
HUNGARY 2 1 3 3 2 2 2 1
MALTA 1 3 2 2 3 2 3 3
NICARAGUA 2 3 3 2 2 3 3 3
PANAMA 2 2 3 2 2 2 1 3
PORTUGAL 2 2 1 3 3 2 3 1
This story appears in the June 29, 1998 print edition of U.S. News & World Report.