Tax Retirement Planning
and Paying Taxes

(Overseas or Close to Home)


With a little thought to tax retirement planning you can say goodbye to higher taxes whether you retire overseas or in your own backyard.

If you are a U.S. citizen and receiving social security income, you must file a tax return. Does that mean you also owe taxes to the IRS? Not exactly. Paying taxes will depend on where your income comes from.

Taxable Social Security and Retiring Overseas or in the U.S.
Are you a retiree? Then you probably receive your income from different sources like Social Security, Pensions, 401ks, IRAs, or similar retirement plans.

The amount you actually pay in taxes will depend on your circumstances and where you retire.


Establishing Residency Overseas
Even if you decide to establish residency overseas you still continue to be a citizen of your own country. Even if you are no longer a resident there. Find out the different types of residency options here.


Downside of Retiring Overseas
You have a tax obligation to Uncle Sam wherever you live. You also have local taxes you must pay in your new retirement country.

Roatan Secluded Beach


Upside of Retiring Overseas
If Social Security is your only income, you probably won't have to pay income taxes. This applies whether you live in the U.S. or overseas.

And you will not pay local taxes on your social security income when retiring overseas.


Choosing a Retirement Location
Of course, depending on your choice of retirement locations income tax will only apply to money earned locally.


Your tax burden could improve enormously, depending on where you choose to retire. By retiring overseas, your expat taxes could be considerably reduced.


Retiring in Belize and Paying Taxes
If you retire in Belize import your car and all your personal goods TAX FREE. You are also eligible for a foreign-earned income exclusion from the U.S. by working in Belize.


Retiring in Panama and Paying Taxes
If you retire in Panama and earn a minimum of $1250 you will receive a tax exemption of $10,000 on the importation of your household goods. Plus a tax-free import of a car every two years.


U.S. Tax Retirement Planning Resources


Cheapest Places to Retire
To find the cheapest places to retire search in smaller towns. The closer you get to a large metropolis, the higher the prices. College towns offer great medical facilities and affordable entertainment.


Tax Friendly States
Some states are more affordable than others. Several do not tax social security. Find out which tax friendly states are more beneficial for you.


Saving for Retirement
In order to secure a comfortable retirement you must accumulate capital. This is not about working more. It's about funneling your money so it will work for you during retirement.


Retirement Planning Tips
Find out how you to take control of your golden years at whatever age with simple to follow retirement planning tips...even without an IRA or 401K. You can still retire secure with these simple tips.


Overseas Tax Retirement Planning Tips


Overseas Retirement Tips
Be prepared before you go...Whether your plan is to retire on a cruise ship or retire overseas. Little things like stocking up on medications and emailing important documents to yourself could mean the difference between retirement paradise and a retirement nightmare.


Opening a Business Overseas or Working Abroad
Found a potential market you can dominate overseas? Or maybe you're just looking for a change.

Either way, find out about how to pay the least amount of taxes in your new venture. Use the following tips to reduce your expat taxes...


  • Foreign Earned Income Exclusion
    As a American citizen living overseas (retired or otherwise) you can exclude up to $91,400 (as of 2009) of your foreign earned wages.
    In other words, you owe ZERO in taxes to the IRS up to that amount. This is useful if you plan to retire overseas, work overseas, or your job requires frequent travel overseas.There are certain requirements that you must meet, though. Make sure you qualify first.
  • Itinerant's Tax Home
    This is a tax deduction for citizens who work from their home or whose job includes frequent travel (used by travel writers and other similar occupations). Again, there are specific qualifications you must meet.


Early Retirement Plan
Decide on a retirement target date. It should be within five years. Smart tax retirement planning is about devising an early retirement plan and sticking to it.


Tips for Retiring Early
If you are serious about retiring early take a good look at where your hard earned money goes. What do you spend on over and over again? Follow these steps and leave the rat race behind.


Investing During Retirement
Look for retirement places where tourists regularly visit. When hunting for the best places to invest search for a stable government and signs of foreign investment. Keep in mind that investing and tax retirement planning go hand in hand.


How to Discover Retirement Paradise Overseas
Retiring overseas means savoring new experiences. Extend your boundaries and have the time of your life. Discover the wonders of a new shore. Depending on your budget and where you choose to live, retiring overseas can be much more affordable than you can imagine.


Affordable Places to Retire Overseas


Retire overseas and you will discover a variety of affordable havens. You can couple tax retirement planning with affordable places to retire. From the best beaches and ski resorts of Chile to the charming colonial city of Antigua, Guatemala. Research health care overseas and establishing residency before taking the plunge.


Retire in Chile
The best places for warm retirement paradise in Chile are located in the north. Serena is one of the best retirement locations in Chile. Although there are many other ideal retirement spots to choose from.


Retire in Ecuador
It is no secret that Ecuador is one of the cheapest places to retire overseas. What you may not have known is that it is also one of the most picturesque.


Retire in Guatemala
Antigua, Guatemala is one of the best preserved colonial cities in the world. The weather is Spring-like all the time and the humidity is one of the lowest.


Popular Expat Retirement Havens

  • Located in Central America, Costa Rica is a land of breathtaking valleys, towering volcanoes, and 800 miles of dazzling coastline.
  • Twice the size of New Hampshire, the Dominican Republic boasts 1000 miles of white sandy beaches...Most of which are devoid of tourists.


Bahamas Beach and Palm

Return to Cheap Places to Retire

Whatever you choose to do during retirement depends on how far you want to go. There really is no limit.

Whether it is to live the simple life of a local or start a new business overseas. You will be a lot happier knowing tax retirement planning means more money in your pocket.


Return to Home from Tax Retirement Planning





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