Very interesting article about aging, retirement and why people live abroad when they retire. Incredibly the article includes:
Rod Burylo, national marketing director with Calgary-based Axcess Capital Advisors and a specialist in international retirement topics, says living abroad in retirement is often mistakenly viewed as the domain of the ultra-rich. But in many cases, snowbirds are settling in towns such as Ajijic – a lakeside town in Mexico’s Jalisco state that’s become home to a growing community of Canadian and U.S. expatriates – because of cheap rents and an affordable lifestyle.
“You can retire comfortably there on $2,000 a month, depending on whether you rent or buy,” Mr. Burylo explains. “If a retired couple are on a Canada pension, they could comfortably retire and that includes being able to eat out every night. Having that lifestyle in Canada … wouldn’t be possible.”
But Mr. Burylo reminds Canadian retirees that they need to take steps to ensure they’re making the right decision to relocate in their golden years. His first recommendation: Find an accountant who specializes in international tax law and have him or her work closely with their financial planner to ensure compliance and reap any and all possible tax benefits.
Unlike Americans, he explains, Canadians are not taxed based on citizenship, but residency. That means retirees who live abroad full-time can take themselves out of the Canadian tax system and – local legislation permitting – be subject to the tax laws of their adopted retirement home.
This article is interesting and reminds me why it’s difficult to be an American abroad in your retirement years. The main reason is the vicious and punitive taxation of passive income. The author of this article doesn’t fully understand how problematic it is to be an American abroad.
It’s appropriate to end this post in the way I ended my earliest post:
Renounce U.S. Citizenship and Rejoice! (the sooner the better).