Taxes for retirees - TOP 5 countries

Parent Category: ROOT Published: Thursday, 05 August 2021 Print
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Tax breaks for retirees 2021: Top 5 Countries

Where should a pensioner move to tax breaks for retirees? There are quite a few options. It all depends on the preferences, goals, and capabilities of each pensioner. In this article, you will find out where is the best place to live in retirement abroad.

 

Thailand

Low cost of living, no taxes on retirement income earned abroad, tropical climate, and a culture of respect for elders - what more could a retiree want from life in a state called the "Land of Smiles".

A nice two-room apartment with great views can be rented for less than 40,000 baht (1050 EUR) a month, and a dish of traditional Thai rice noodles costs just a euro.

A one-year retirement visa is issued to those who receive a monthly pension of 65,000 Baht (1700 EUR) or deposit 800,000 Baht (21000 EUR) with a Thai bank.

 

Portugal

Portugal offers a Special tax regime for new fiscal residents Non-Habitual Resident (NHR). The retirees do no need to pay tax on income from sources abroad for 10 years. 

Pensioners are among the main beneficiaries of the NHR - tax breaks for retirees. NHR members often buy property in Portugal, making it easier to obtain a tax residency certificate in that country.

The Portuguese also issue residence permits to foreign retirees from non-EU countries in exchange for investments in Portuguese real estate for 350 thousand euros.

Besides, Portugal provides an opportunity to get European residency without investment - a D7 visa. It is enough to have passive income in your country of at least 665 euros per month (7980 euros per year). 

 

boats docked near seaside promenade]

 

Greece

Investors and high net worth retirees are increasingly interested in buying real estate in Greece, encouraged by a pleasant tax regime.

Greece creates strong incentives for foreign investors and retirees to transfer their tax residency to this country. Greece could become a tax haven for foreign retirees, who are offered a 7% rate for their first 10 years of residence in the country.

Foreign retirees are entitled to a 7% tax rate for the first 10 years of residence in Greece if the following conditions are met:

  • Not being a tax resident in Greece for more than one of the last six years;
  • Transfer your tax residency from a country with which Greece has a valid tax cooperation agreement;
  • Provide a document confirming the payment of a public or private pension abroad.

 

Malta

In Malta, foreign retirees feel fabulous: the climate on the island is very sunny, and the average annual temperature is + 18 ° C. 

An additional benefit is tax breaks for retirees called the “Maltese Pension Plan”, under which the income tax for EU citizens who have received a residence permit in Malta is only 15%, compared to 30-40% in the US and Europe.

The country has an excellent health care system. According to the WTO, Malta ranks fifth in the world for this indicator. Besides, all citizens of the country are provided with medical care free of charge.

Renting a three-room apartment in the capital of Malta - Valletta will cost 700 euros, while a three-course meal for two in an average restaurant costs only 50 euros.

 

Panama

Panama's Pension Visa Program has a 'special status as it grants foreign applicants the right to permanent residence. Also, members of the Pensionado program receive discounts in tourism, utilities, medical services, and entertainment.

The state does not require the filing of financial statements and tax returns regarding foreign income. Also in Panama, there are no taxes: inheritance, wealth, donation. Currently, Panama has intergovernmental agreements "On the protection of investments" with 22 countries.

The COVID-19 pandemic, which triggered the global economic crisis, has also impacted the Panamanian property market. The decline is felt both in the segment of real estate rental prices and in property prices.

Considering the oversupply of offers on the market, some development companies are ready to lease real estate with the right to fully purchase it. Therefore, the Panamanian real estate market today is the most attractive situation for buyers and potential tenants.

A pile of passports with visa stamps.

Businessman standing in the airport, waiting for hif flight.

Backpacker looking at a sunrise from the mountain.

Sunny beach on a tropical island.