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Hi @DPHUDSON1 We’ve checked in with Ted Baumann, our Global Diversification Expert, to get an answer to your question. This was his response,
To begin with, you need to live uninterruptedly in Spain for 10 years to become a Spanish citizen. Unless you are a Spanish resident through a golden visa, which is being abolished, “uninterruptedly” means at least 183 days (about 6 months) a year to keep your visa status. For example, if you live in Spain on non-lucrative visa as a person of independent means, you are expected to be in the country for at least six months of the year. But the issue is subjective; the Spanish authorities may expect a deeper commitment to the country and use time there as evidence.
Nationals from Latin American countries, Andorra, The Philippines, Equatorial Guinea, Portugal, and people of Sephardic Jewish origin can apply for Spanish citizenship after only two years of residency.
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Hi @RAEANNG We’ve checked in with Ted Baumann, our Global Diversification Expert, to get an answer to your questions. This was his response,
Every US state has the authority to set its own residency rules. Some are quite liberal, in the sense that all you've got to do is surrender your driver's license and switch your voter's registration to somewhere else, and you are no longer considered a tax resident. Other states investigate whether you have really cut ties to the state, looking for evidence that you might still have a home for your own use there, significant investments there, make regular visits, and so on. The best way to avoid continuing liability for state taxes is to cut as many ties as possible to your previous state, and keep official records of canceling your license, voters' registration, and so on. Another way is to move to a no-tax state before you move overseas, like Florida. Again, a lot depends on the subjective assessment of the tax authorities.
If you are referring to using a US license abroad, most countries will let you drive on your US permit for a specific period, ranging from 90 days to a year, after which you must apply for a local driver's license. Most countries offer the option to convert a US license to a local license without additional testing.
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Hi @ZORROZUA We’ve checked in with Ted Baumann, our Global Diversification Expert, to get an answer to your questions. This was his response,
Yes, 401K income is considered passive. Not sure what you mean by strategy to diversify, but essentially, any income that is not the result of current work or business ownership is considered passive and is subject to U.S. tax even if you live abroad. So even if you moved retirement savings into a non-tax advantaged brokerage account, it would still be regarded as passive income.
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Hi @WYLCHILD We’ve checked in with Ted Baumann, our Global Diversification Expert, to get an answer to your questions. This was his response,
I think you are lumping all your offshore residency options under the residential or other investment options for a golden visa. Those are not your only options. Most countries in Europe and Latin America offer independent means visas which are suitable for retirees or independently wealthy people. You just need to prove a sufficient monthly income from passive sources to support yourself, as well as a local address and various other paperwork. There are also digital nomad visas for people who can work remotely from a foreign address.
Another thing to bear in mind is that if you convert some of your retirement savings into a self-directed IRA, you can use those resources to buy property in a foreign country, as long as you don't use it yourself until you retire. That gives you the possibility of getting a residential golden visa with that property, although at this point your options in Europe are limited to Greece, Cyprus, and Malta.
There's no need to invest directly in a country's stock market to get a golden visa, since that's typically not one of the options. Instead, you must invest in approved investment funds or bonds, which are typically not traded on the stock market. For example, Portugal will give you a golden visa if you invest €500,000 in venture capital funds.
Once you have got legal residency in a country, you should have no problem opening a bank account and a brokerage account. Doing so before you become a resident is quite difficult unless you have substantial money to invest, or you do so through an SDIRA, which typically can qualify you for a foreign brokerage account.
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Hi @DTAYLOR03NM We’ve checked in with Ted Baumann, our Global Diversification Expert, to get an answer to your question. This was his response,
Portugal is the best option. You can qualify for either permanent residency or citizenship after five years legal residency, and the clock starts ticking from the day you submit your application.
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Hi @LARRYHUNTER59 We’ve checked in with Ted Baumann, our Global Diversification Expert, to get an answer to your questions. This was his response,
To get a permit to live more than 90 days at a time in Spain, you need to apply for either a non-lucrative visa, which requires a certain monthly passive income, or a digital nomad visa, which requires a certain amount of income from remote work. Simply having a residence there, either through rental or ownership, doesn’t qualify you for long term residency.
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Hi @COURYSTEPHEN We’ve checked in with Ted Baumann, our Global Diversification Expert, to get an answer to your question. This was his response,
Well, I'm not a retirement planning expert, but from a global diversification perspective, there are two things you should keep in mind.
The first Is that once you hit a certain age, you must take distributions from your retirement funds whether you need them or not. That may be more than you need if you’re living abroad, where the cost of living is significantly lower than in the US. When you take an RMD, that counts as global income in the year you take it, which will be taxable both in the US and in Italy. So, it might make sense to put some of your retirement funds into a taxable brokerage or mutual fund account in advance, so you don’t end up with an excessive income and therefore tax burden in retirement.
The second thing to bear in mind is that Roth IRAS are often treated differently by foreign countries than other types of retirement accounts. Some countries give you a steep tax discount on retirement income if you meet certain requirements, like living in small towns in the south of Italy, where the flat tax is 7 per cent. But Roth income doesn’t qualify because it’s not considered retirement income under Italian law. The good news is that there aren’t any RMDs on Roths.
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Hi @MNUNAN We’ve checked in with Ted Baumann, our Global Diversification Expert, to get an answer to your question. This was his response,
Well, the only way to do that is to live in a country that doesn't tax those things or gives credit for taxes already paid on those items. You don't say where you're currently living, so I don't know the specific legal framework there.
Some countries don’t tax capital gains, including Belgium, Switzerland, Singapore, and most of the Caribbean islands. Others offer a flat tax rate to retirees, no matter the source of their passive income.
The other option is to move to a country that levies no tax at all on foreign source income of any type, such as Belize, Costa Rica or Panama.
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Hi @BRANDI-SCHUTTE We’ve checked in with Ted Baumann, our Global Diversification Expert, to get an answer to your question. This was his response,
A “golden visa” is any long-term residence permit based on investment. The most popular option has long been investment in residential property, but that option is being abolished nearly everywhere in Europe, except for Greece. There are other ways to get a residency permit through investment, such as investing in Portuguese venture capital funds or artistic production, which are technically golden visas, but aren’t thought of as such since people are so attached to the residential option.
Beyond that, everything depends on the specific country. Most countries in Europe have quite a high threshold for a qualifying investment, typically between €500,000 and €1,000,000 euros. The types of qualifying investments also vary, from investment in certain types of funds, to government bonds, to bank deposits.
Broadly, your first step is to decide where you want to live. The second is to find out whether there is an investment option that is within your financial means. The third is to reach out to an immigration consultant in that country to help you find the appropriate investment and do the paperwork for you. In many cases, this can be done in as little as three to six months, although some countries like Greece are facing significant backlogs.
The other option of course is to forget about the golden visa and look for a country that offers a financially independent persons visa, as most European and Latin American countries do. That just requires that you demonstrate a certain amount of guaranteed monthly income from passive sources. You’re not required to invest a lump sum, although you will be required to have a residential address. -
Hi @JANISTAN We’ve checked in with Jessica Ramesch, our expert in Panama, to get an answer to your questions. This was her response,
Thanks for your question.
While we can’t guarantee that IL readers will never encounter racism or prejudice abroad, you can rest assured that in many of the countries covered on the International Living website, BIPOC expats report feeling comfortable and welcomed. This is also true for many LGBTQ expats and expats from other minority or marginalized groups that encounter discrimination in the US or Canada. I myself am Asian and feel very comfortable as a single Indian woman living in Panama, which is home to sizeable Chinese, Korean, and Indian communities.
You can find videos of expat interviews on https://www.youtube.com/@internationalliving
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Hi @BCLARKINCO We’ve checked in with Jessica Ramesch, our expert in Panama, to get an answer to your question. This was her response,
Thanks for your question. While this data is not available—countries don’t compile lists of expats—it’s likely that Mexico, which shares a border with the US and has a long history of welcoming US expats, is the frontrunner.
That said, you will find sizeable expat communities in all of the countries featured in the top ten of International Living’s Annual Global Retirement Index.
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Hi @GSGILLUM We’ve checked in with Jessica Ramesch, our expert in Panama, to get an answer to your question. This was her response,
Thanks for your question.
International Living’s Annual Global Retirement Index https://internationalliving.com/the-best-places-to-retire/ features a wealth of information with a breakdown that shows you the top country’s rankings in categories like the ones you’ve mentioned. Panama has taken the number one spot on the index more times than any other country and thus far has always been in the top five. Follow the link provided above to see where Panama landed on this year’s index and for even more information to go InternationalLiving.com/countries/Panama/.
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Hi @STADERVETDVM We’ve checked in with Chip Stites, our expert in Italy, to get an answer to your question. This was his response,
That is a great question. First I would google expat groups in the major cities... that is most likely to yield results as large cities are likely to have expat groups, and often the people live outside the city: Rome, Florence, Milan, Venice, Bari, Lecce come to mind initially... but there are also other areas that do not big cities that have groups like Expats in Umbria and Lazio.... Start with detailed research and once you have two or three places of interest travel there to see how it feels to you.
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Hi @JANETBLOOM54 We’ve checked in with Chip Stites, our expert in Italy, to get an answer to your question. This was his response,
First, decide where you want to go. One better way is by climate, as Italy has seven different climate zones. What kind of climate makes you the most comfortable? NOw you need to look at your VISAs. Can you become a resident by heritage It's a completely different subject than Residency.... Taxes will differ, getting your or not getting a Permisso di Soggiorno will be different. I cannot tell you what to do, but a bit of research will go a long way to helping you decide. citizenship and living here subjects you to Italian taxes while Visas gives you more choices but can be more problematic.
Here is a name you should talk to M. Grazia Colombo. mgrazia.colombo@leexe.it... she is a lawyer... she will charge for her time but she is also the best place to start your search.
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Hi @SARITA-SIMMONS We’ve checked in with Glenda Cole, our expert in Portugal, to get an answer to your question. This was her response,
Expat groups: Afpop is excellent for advice on all fronts. They are throughout Portugal. They also have a website that is very good and they respond to questions.
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Hi @WINTERSVIC We’ve checked in with Glenda Cole, our expert in Portugal, to get an answer to your question. This was her response,
I do NOT recommend shipping a car to Portugal. It is very expensive, and I wouldn’t want my American car here. Expensive to service and frankly, it gets dinged up. Buy a little used car for cash and never word about the dings.
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Hi @BCLARKINCO We’ve checked in with Glenda Cole, our expert in Portugal, to get an answer to your question. This was her response,
Extremely easy to rent a car in Portugal. You do not need an international license, your US license will be fine. It can be very frustrating and difficult to get a drivers license here.
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Hi @TERESALCOWLEY We’ve checked in with Glenda Cole, our expert in Portugal, to get an answer to your question. This was her response,
Leaving family is tough. I have one son I am very close to. I am picking him up in Lisbon today. :-). What’s App is a beautiful tool for free calling. We talk more now than we did when we were both in the States. Everyone wants to visit Portugal. Plan on a lot of company the first few years! I was shocked by how many of my friends made the long trip.
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Hi @DTINTERVAL We’ve checked in with Ronan McMahon, our Real Estate Guru, to get an answer to your question. This was his response,
You have options…
1)You can buy a property overseas through your 401k. However this comes with restrictions on personal use. To comply it needs to be an arms length investment
2)RETA deals (that’s my real estate investment advisory service) in Mexico typical come with pre approved developer finance.
3)in France an Portugal mortgages typically need to be paid off by age 75-80. It varies…but an option is to buy the property with a younger family member, maybe a child if you have one, and by having them on the mortgage you could meet the criteria. Of course you would need to be very comfortable with your partner on the deal
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