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BoomerScaping offers much than just warm weather paradise and great real estate. Many countries, in an attempt to lure foreign investment as a means of economic growth, offer very generous incentives to retirees, such as income and property tax exemptions and reduced tariffs on international imports. The following is overview of the many types of incentives available to expat retirees, country by country.

Panama

This booming retirement paradise offers some of the most aggressive incentives available in the region. Panama’s “pensionado” program offers residence status to foreign retirees. In fact, anyone over 18 years of age can apply for this program. An applicant must demonstrate a minimum monthly pension of $500 per month and $100 for each dependent to qualify. Once the visa petition is filed before the immigration authorities, a provisional residential permit is granted, valid for one year. At the end of the one-year period, a petition for permanent residence is filed, and once approved, will grant the applicant a Panamanian identification card and the right to apply for Panamaniam Nationality after 5 years.

The incentives available to “pensionados” are very attractive and include the following:

• Import tax exemption for household goods up to $10,000

• No property taxes for 15, 10 or 5 years depending on the property

• Tax exemption to import a new car every two years

• 25% discounts on utility bills

• 25% discount on airline tickets and 30% on other transportation

• 15% discount on loans made in your name

• 1% reduction on home mortgages for homes used for personal residence

• 20% discount on doctor's bills 15% on hospital services if no insurance applies

• 15% off dental and eye exams

• 10% discount on medicines


Belize

This country offers more than just stability and English as the official language. The Retired Person Incentive Program of Belize is one of the most generous programs of its kind. To qualify, you have to be at least 45 years old. Retirees must have non-Belizean based income that is at least USD 2,000 a month. If you qualify you can bring your family, import all your personal effects and transportation (e.g., car, boat, plane) tax free. Then you can live 100% tax free in Belize. All the income you get - whether from investments or business ventures - will be tax- free, if it is not generated from the Belizean economy. Property taxes are also quite low in Belize. Annual taxes on a $300,000 home are about $75 per year compared to thousands for a comparable home in Dade Country, Florida, for example.

Nicaragua

An emerging, yet lesser-known retirement destination, Nicaragua is one of the easiest countries in which to get a residency visa.If you are 45 or over, and can verify a stable, permanent monthly income, generated abroad, of just $400, you can have a "Resident Pensioner" or, with a $100,000 investment here (real estate qualifies), an "Investor" visa.

These types of visas entitle retirees to numerous benefits:

• Pay no taxes on any out-of-country earnings.

• Can bring into Nicaragua up to $10,000 of household goods for your own home,duty-free.

• Can import one automobile for personal or general use duty- and tariff-free, and sell it after five years, tax-free.

• Can import an additional vehicle every five years under the same duty exemptions.

There are also no income taxes here on income generated outside Nicaragua. This is especially beneficial for Canadians. Upon obtaining a resident visa in Nicaragua, Canadians are no longer required to pay income taxes in Canada, nor in Nicaragua if their income is generated elsewhere. In fact, Canadian citizens are one of the largest-growing expat groups in Nicaragua. This program is much like Costa Rica’s in the 1980s, which also motivated individuals to retire there starting in the 1980s..

Mexico

If you've considered BoomerScaping to Mexico, a well-known retiree destination for many years, you now have another good reason. Although Mexico does not offer a complete pensionado program as many other Central American countries, it is still a friendly haven for retirees worldwide. Mexico grants Americans annually renewable residency permits after verifying a monthly income of about $1,500. Foreigners who hold a valid residency permit for Mexico can now take part in Mexico's senior citizens' benefits program. The program, for adults 60 years and over, offers discounts for a wide range of services. These include discounts on health-related services (hospitals, doctors' visits, lab tests, medical devices, pharmacies, and dental work); cultural activities(theater tickets and entrance fees to museums and archaeological sites; travel-related costs, including airline tickets, buses, car rentals and purchase, and hotel accommodations). Discounts can range up to 50% off the full price of the good or service. Resident retirees also have a one-time opportunity to import household goods and personal effects duty-free and the right to import a U.S.-plated automobile during the tenure of the permit.

IMSS, the Mexican national healthcare system, is also available to any foreigner regardless of immigration status, for an annual fee of about $390. Similar to an HMO arrangement, many opt for IMSS coverage for major medical coverage while paying out-of-pocket expenses for routine procedures. Private medical care remains another option, and there are a number of insurance plans that provide for Mexico-only or full international coverage.

So just why do these countries offer such generous incentives and what’s in it for them?

As an example, the Belizean economy receives a minimum infusion of US$2.4 million in hard currency each year for every 100 new retirees under their Retired Person Incentive Program.

The contribution of relatively wealthy expats on local economies is significant especially for a relatively small economy like Nicaragua’s. Governments are therefore realizing the potential of the US “offshoring” of retirement and the revenues captured from a slice of the more than 76 million American approaching retirement. The multiple good services required by BoomerScapers - including health care, construction, transportation, food and domestic services – will begin to represent a substantial percentage of taxes, revenues and income for these countries.

Most importantly, well-intentioned expats who care about local community, will bring significant social advantages by getting involved in volunteering and social and charitable work. Therefore, the wave of boomers heading south should prove a win/win for these countries, their citizens and BoomerScapers worldwide.

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