Affordable countries to live in
I’ve been talking with a few people who are looking for countries to move to that are affordable. Places where your Social Security or pension check will pay the bills and let you live a decent live.
Here are a few to consider (and one that doesn’t look so good any more). These aren’t the only possibilities, but they are countries where it’s relatively easy and inexpensive to live permanently.
If you’ve been to other countries that you think are good options, please share your thoughts in the comments below.
Paraguay
This is where I’m currently living. Even though I plan to do more traveling (that’s just the kind of person I am), I’m happy here.
The permanent residency process is simple and takes about 6 months to complete. You only need to deposit US$ 5000 in a bank during the application time, to prove you are financially solvent. The money is held in a CD, and you get it all back with interest. Other costs, including hiring a local residency assistant will run you around $1200-1500.
As far as the cost of living, it’s great deal here. I spend $500 a month to rent my half of a big apartment in a good neighborhood. That includes all utilities. I probably spend $400-500 a month on food and miscellaneous things – and that’s with dining out very often.
Philippines
This is another popular destination, especially for people from the US. You can live nicely there on a Social Security or pension check.
You do need to watch out in the big cities. Foreigners are sometimes seen as walking ATMs. In some places, you can’t walk a block without being approached by children begging or trying to sell you gum, or women who want to be your “friend” for a while.
If you get out of the larger cities, not only will your costs drop, but also you’ll probably find more of a relaxing atmosphere. Just remember that you’re in a tropical country, and it gets hot and humid there.
El Salvador
One reader suggested El Salvador as a possible retirement destination. A friend of his is from there and told him it might be a good place to consider.
I don’t know anyone who’s been there (if you have, please write your thoughts about it as a comment below). However, after looking into it some, it sounds like a good, and affordable, country.
They have a retiree visa program, and you only need to prove US$ 1000 a month payments for one person, $1500 for a couple (along with, of course, your legalized birth certificate, police background check, etc.).
The cost of living in El Salvador is reasonable, and you should be able to get by on your retirement check.
In general, I’m a big fan of Latin American countries. There is a wide variety of cultures available in Central and South America, so you should be able to find one you like. In addition, once you learn some Spanish, you have many places you can go.
No longer recommended
Ecuador
Ecuador used to be an easy country to get permanent residency. However, there have recently been changes to the policies and everything is uncertain right now.
There have been several new heads of the Immigration department and the requirements to gain residency have changed. In the past, you didn’t need to have a criminal background check, and if you married a citizen of Ecuador, you got immediate (well, at least as “immediate” as any government agency moves) citizenship.
However, these lax policies let in some people that the government didn’t really want there. So now, the pendulum has swung the other way and the permanent residency process is becoming difficult again.
This type of change happens frequently. There used to be several Caribbean and Latin American countries that had economic citizenship programs. Now they no longer exist.
So, if you’re thinking about getting residency or citizenship somewhere that has a simple process, you should start as soon as possible. Otherwise, you may find that the program no longer exists.
Overview
When you’re gathering information about a country, remember that everyone has his or her own views. I was e-mailing someone this week about possible countries to move to, and mentioned that I felt a few were unsafe, based on what I’ve been told by friends who’ve been there.
However, remember that each person has his or her own concerns for safety. If you’re afraid of poisonous snakes, you’ll think Australia is dangerous. If you think all street food in unsanitary, then you might be afraid of Singapore. However, if you’re concerns are about crime, then both of those countries are places you’d probably consider to be safe.
We all like different things, and no one country will be perfect for everyone. You can do all the online research you want, but you won’t know how you truly feel about a country until you’ve spent time living there.
{ 13 comments… read them below or add one }
If you’ve visited a country you think is an affordable place to live, please leave a comment about it, so the other readers can discover it.
Thanks!
Nice, helpful article, Scott.
I really liked Peru when I visited there in late 2006/early 2007 and would have stayed there if I could have found an affordable place by the beach in Pacasmayo or Mancora. I had calculated a ridiculously low cost of living there at the time, and I found the people to be extremely warm, laid back and friendly, for the most part. (I never did find even one affordable beachfront property for sale while I was there, but at the time everything seemed to be sold via word of mouth or via a very occasional ad in the local newspaper.)
I did hear about a number of horror stories that occurred mostly in Lima or during travel on the highways from expats and some of the locals who I got to know. I prayed, and God kept me safe, and I thoroughly enjoyed my stay.
I do not think that most people would appreciate Peru, since it is an extremely poor country, and there are a lot of aesthetically displeasing sites (including lots of trash), most everywhere. Also, it is very difficult to tell via doing research online, but there seems to have been an incredible run up on real estate prices in Peru, in which case it might not make sense, at all.
However, if you can find a nice, affordable place to live and costs have not increased at a rate greater than that of inflation, then Peru might be something to consider, especially if you plan to dedicate some of your time to helping out the locals while you are there.
Take care,
Darwin
Thanks for the information Darwin!
You’re definitely right about it being difficult to find information online for many of the lower-cost areas.
Most of the real estate listings you do find online are from the people who have budgets to hire web designers, translators, and marketing people. Of course, all those costs will be reflected in the price you have to pay. If you want to find the true local prices, you’ll need to be in the country or find the websites that are for locals (and in the local language), like Clasipar in Paraguay (a free classifieds ad site).
Peru is also a very inexpensive place, even in Lima.
Wife (Peruana) and I pay $78 for a room in an new building, with cable and hot water included. Groceries are ridiculously inexpensive, compared with US, as are restaurants.
Buses take you anywhere for about 75 cents (two people) and a taxi will drive you for an hour or more for $7 (from airport to…)
Most expensive part is the flight, about $1,000 RT to Miami.
Interbank accepts passport, in lieu of other ID.
In USA, my commissions are auto-deposited and I use credit card for store purchases and get a cash advance for cash transactions.
Always looking fro a way to beat the ATM charges and exchange rate. Anyone know anything better?
Thanks for the information! Do you mind saying which city you live in, so we can get an idea of where to find affordable rent like that?
The people I’ve talked with who’ve gone to Peru either love it or really don’t like it at all, nothing in the middle. I may need to check it out if it starts to get too hot here in Paraguay during the summer. The food in Peru is supposed to be amazing.
To save money on credit card foreign exchange fees, there are a few cards you should look at. Capital One doesn’t charge a currency exchange fee. You can also check out cards available from American Express, Chase, and Citi. Some of their premium cards (platinum, prestige, etc.) or their travel-related cards (the airline and hotel points cards through Chase) have eliminated foreign transaction fees.
Belize is also a very nice place to relax and enjoy the rest of ones life .
2bzd to 1 u.s not bad at all .
I find a lot of the settled Andean areas really depressing. First, there is the massive deforestation (I am speaking of livable and settled areas, not the Amazon area or the eastern slopes of the Andes). The sight of endless miles of barren hills and mountains is not a happy one. Mindless cattle raising is the curse of all Latin America (the Pampas excepted, obviously, as these are natural grazing lands). The ecological damage, the erosion, and so on beggars belief. In Ecuador, for example, it is estimated that 98% of the coastal lands have been deforested; same more or less for Brazil. It is really appalling. As for Peru, it is has one of the ugliest coastal lands on earth: barren, constantly cloudy. Good surfing (cold water) though. Aside from wonderful Inca ruins and experiencing the altiplano, I personally don’t see the appeal of Peru for living, but I’d be happy to read any reasoned challenges to this.
Well, let me mitigate that last remark. Of course, every country has its attractions, and as a place to visit the whole Andean region is fascinating. I wasn’t speaking of Peru as a place to visit but to live.
If you’re looking for a change from hot Paraguay and in Peru, there is Cajamarca. It a small city, a university town, but be warned, it’s a jump to 9,000 ft. altitude.
Peru is definitely on my list of places to visit, although I can see myself happily living in Paraguay for many years (taking long vacations during the summer months).
I’ve found that the most important thing for anyone moving abroad is for each person to find a place that helps them live the life they want. A place I don’t like could be the perfect location for someone else.
Vietnam is a very cheap place to live and very friendly, even to Americans although they suffered greatly during the “american” war. Many expats from Australia and Europe and increasingly from America are living in Saigon, HoiAn, Hue and Hanoi. Another welcoming and very cheap country is Cambodia.
I know a few people who have spent time in Vietnam, and they all said they loved it there. Getting permanent residency can be difficult, but the people are very friendly and the economy is growing. I hope to make a trip to Asia sometime next year, and visit several of the countries there.
I have lived in Panama for the past 8 years. Since moving there in 2004 the infrastructure has made drastic improvements. I live in the mountains so no A/c is needed. This saves on utility costs. I own but believe you could rent a 2 br. home for $700/mo. The economy is dollarized and Panam has an excellent retirement program. If you purchase a recently constructed home you get a 20yr. tax exonertion. Food is reasonably priced and a bargain compared to other countries like Ugy. Travel to the US is cheaper than from S. America. Health costs are low and the immigration process although bureaucratic is nevertheless straight forward and much simpler that in other countries.
Good info, Dave!
I’ve always heard that the mountains are very rainy–esp. during the wet season they say it hardly lets up. Moisture-mold problems too. You never know if people are being really accurate or if they are gripers or at the other end, always “positive.” I’v hear land has now gotten quite expensive there too, since IL promoted the place so much.