10 Places for Seniors to Retire and Pay Less in Taxes
One of the largest concerns for retirees is taxes, especially when you want to keep as much of your hard-earned money as you can, and not hand it all over to Uncle Sam. Today, we want to answer the question: “is there really a tax haven where you can enjoy your retirement and shield as much money as you can from the government?” Whether you’re living off of a pension, Social Security, or other retirement savings, we’ve come up with a list of 10 places where you can retire and experience great tax benefits in your golden years.
Seniors have a great list of options, both in and out of the States, and we’ve done all of the research. Here’s a list of the best areas to retire if you want to save on taxes — from Florida to Uruguay, there’s a destination for everyone.
Love colder weather and want a winter playground? That’s Alaska, and it’s perfect for retirees. The climate may come as a bit of adjustment as it’s cold for a good part of the year, but this also providers ample opportunity to enjoy boating, skiing, hunting, and other outdoor recreation options. You won’t be bored in Alaska, and you won’t be hit with many taxes either. Alaska doesn’t have an income or sales tax, plus it doesn’t tax pension or Social Security income either. You can get an additional benefit to retiring in Alaska: once you’re a permanent Alaskan resident, you’ll start to receive a yearly check for the state’s oil production profits.
Florida is one of the most popular retiree destinations, and it’s no wonder why, as the Sunshine State doesn’t have a state income tax, and doesn’t tax Social Security or pension incomes. You’ll also find a low sales tax of just 6%, which will help you save on most purchases compared to other states. There’s an abundance of activities for retirees in Florida, with options including sight-seeing, beaches, golf, nature tours, and so much more. Florida offers a range of landscapes as well, with calm areas by the bay and the sandy white beaches in the Panhandle and down south. A unique mix of cuisine, architecture and cultural opportunities are just a few reasons to visit and stay.
The South offers more than just Florida to retirees. The tranquil state of Mississippi also features no tax on pension or Social Security incomes, plus they take it one step further by not taxing annual retirement income. If you make a withdrawal from your retirement account, they won’t tax that either. The climate in Mississippi is enjoyable and warm, plus there’s plenty of scenery to enjoy whether you’re on the coast or located more inland. If you’ve dreamed about settling down to read a good book on a wide porch, Mississippi might be your pick.
4. Costa Rica
Let’s switch it up a bit and consider a destination that’s not in the U.S, because you can retire outside of North America and pay way less in taxes. Consider Costa Rica, one of the best spots for retirees. Costa Rica won’t tax your money if you leave it in a U.S. bank and it’s one of the easiest spots in the world for retirees to purchase property. This is a great feature, as you can also enjoy a very low housing tax of 0.25% of the property’s appraised value.
Have you considered Ecuador if you want to retire and pay less in taxes? Not only is the country gorgeous,with mountains, cityscapes, beaches, and lush jungles, but it offers a laidback vibe retirees can appreciate, The tax on worldwide income will run you up to 35%, but it’s balanced by the fact that your retirement income isn’t taxed, and sales taxes are only 12%. Retirees can purchase property and enjoy a low property tax of .25% to .5%. You won’t see capital gains taxed as anything other than regular income either. The low cost of living in Ecuador makes it so that you can have the retirement experience of your dreams.
You aren’t constrained to North or Central America when you want to retire in style. Malaysia has been ranked one of the best places to retire by an international retirement magazine and offers a low cost of living. You’ll see a wealth of culture in the country but you won’t be breaking the bank to live there: Your retirement income isn’t taxed, plus the national sales tax and property taxes are each just 5%. The landscape of Malaysia is as diverse as its people with jungles, vibrant cityscapes, and more all within the country.
You may not realize it, but Uruguay could be your perfect retiree home. The country has a solid infrastructure and very high literacy rate, plus a great deal of culture. Uruguay also features a low cost of living that many say can be as little as $500 a month, and only if you work will you be taxed (30% of your income); retirement income isn’t taxed. As a Latin American country, Uruguay offers beaches, sunny skies and a vibrant culture.
When some retirees think of “paradise,” they think of Panama. Expats have flocked to the country, and it features several communities full of people just like you. The country wants to recruit retirees and once you’ve retired there, you can enjoy benefits like reduced airfare, cheap entertainment, discount bus fare, and more. You only need to pay 30% of your wages if you’re employed in Panama, otherwise you can be worry-free when it comes to saving money in taxes. Although it features a low cost of living, Panama has a world-renowned healthcare system with costs far lower compared to the U.S. You won’t have to pay taxes on retirement income, nor will you have a heavy sales tax; the tax is only 7%.
Just like Malaysia, Thailand is a good place for retirees. You will enjoy a beautiful balmy tropical climate, and it will come at a low cost. Keep your money in a bank located outside Thailand, and it won’t be taxed. You can expect to pay a 37% tax in remittance taxes if you bring it in Thailand, however. You’ll find a low sales tax though of just 7%, and you only need to pay taxes on your property if you rent to another individual. The activities, sights, and culture of Thailand have made it a draw for expats and you can enjoy a vibrant country no matter where you go.
10. The Philippines
The Philippines has a great community of expats because it features a low cost of living and beaches that rival Florida. Popular spots include Laguna, Subic, and Cavite, though there’s plenty to enjoy throughout the Philippines. Indeed, many consider the country a slice of paradise, and it doesn’t come at a cost either. You won’t have your retirement income taxed in the Philippines, and you can purchase property at 1% to 2% in taxes. The capital gains taxes are just 6%, which balances out with a higher sales tax of 12% compared to other spots we’ve listed. If you’re interested in retiring in the Philippines for all of these reasons, be sure you read up on the country’s retirement visa options.