The World’s Best-Kept Retirement and Investment Secret

In September of last year, I wrote a post titled Best Financial Tips from FMF Readers, Part 7: Retire Overseas that talked about how U.S. citizens could retire in Panama for a fraction of the cost of retiring in the States. Next, someone mentioned how the same could be said for Cancun and someone else commented about Mexico in general. In each case, the retirees were living a much better lifestyle than they could have had in America due to lower costs.

So when I saw this post on Nicaragua being a retirement and investment haven, I had to post on it. Here are the highlights:

The war is long over, but the bad rap remains. Today's Nicaragua is an inexpensive paradise eager to welcome expatriates.

Nicaragua is one of the most beautiful countries in all the Americas. It boasts a dramatic Pacific coastline; long, gentle Caribbean beaches, volcanoes and freshwater lakes dot the hilly inland. Colonial cities like Granada and León offer visitors a taste of days gone by, while Managua, the capital, is rapidly becoming a real first-world city.

The piece goes on to say that Nicaragua:

• Is full of great beaches
• Contains lots of attractions that make living there fun and exciting
• Is (finally) safe (recent studies point to Nicaragua’s low reported crime rate -- lower than in Germany, France or the U.S.)

Then, the money part comes in:

In September 1999, Nicaragua enacted the most attractive -- and most aggressive -- tourism-incentive law in Latin America. If you’ve ever toyed with the idea of owning your own B&B, running a sailboat charter, leading adventure treks into the jungle, dishing up meals in your own restaurant or operating any kind of tourism-related business, Nicaragua is the place to do it.

If you’re simply in the market for a place to relax and spend a few months a year in a quiet, safe, affordable retreat, again, Nicaragua is hard to beat.

The benefits come mostly in the form of tax incentives. As a foreign retiree, you:

• 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.

The cost of living in Nicaragua is a fraction what you’re used to paying up north.

Add another potential foreign country to the list of retirement locations! Though this may seem a bit drastic to some, it really is a viable alternative for many people who haven't saved nearly enough for retirement. For others looking for an investment opportunity, it could serve that role as well!

Comments

[Barry Gionfriddo]

How does homeowners insurance work in Nicaragua?
Also auto

[FMF]

Good question. Anyone know?

[Jill]

My husband and I have purchased several properties in Nicaragua. However, as far as I know, there aren't any options for homeowner's insurance. Title Insurance is offered, but it takes much longer than in the states and often has many "exceptions".

If you're interested in investing, you should read NuWire Investor's article on Investing in Nicaragua: http://www.nuwireinvestor.com/article.aspx?id=16

I hope that helps.

[bwg]

My husband and I have purchased several properties in Nicaragua. However, as far as I know, there aren't any options for homeowner's insurance. Title Insurance is offered, but it takes much longer than in the states and often has many "exceptions".