Top Countries for Older Americans Seeking Retirement Abroad: A Guide to New Zealand and Spain

Are you over 50 and looking for a new chapter in life where you can enjoy the fruits of your savings and Social Security? If you’re considering leaving the United States to live in a country with a high quality of life, both New Zealand and Spain offer excellent opportunities. This article will guide you through the processes and requirements of these countries to help you make an informed decision.

New Zealand and the Investment Visa

New Zealand is a highly desirable destination for retirees due to its excellent healthcare system and overall quality of life. One of the best ways to settle there is through the investment visa program. This visa allows you to bring your savings to the country and invest them.

Eligibility for the Investment Visa

At least NZ$3 million (approximately US$2 million) to invest Under the age of 65 Good health to avoid excessive healthcare costs

With this visa, you are required to invest the NZ$3 million for four years. After that period, you can use the funds to support your living expenses. If you are not a young person, you should still meet the health criteria to prevent unnecessary strain on the healthcare system.

Spain and the Resident Visa for Retirees

Spain also offers an attractive option for retirees, particularly for those who are no longer based in the European Union. The requirements for a residence visa for retirees can vary, but the basic principle is that you need to demonstrate sufficient income to sustain yourself.

Requirements for the Resident Visa in Spain

Provide evidence of sufficient income Purchase additional private health insurance (which is relatively inexpensive by American standards) Interact with your local Spanish consulate for detailed and up-to-date information

Spain recently passed legislation to restore universal healthcare to all its residents. While you will qualify for public healthcare, it is advisable to cover any potential gaps with private healthcare insurance. This is a smart move, given that you will be contributing to the public healthcare system through your taxes, which are expected to be above the Spanish average based on the visa income requirements.

Tax Considerations

Retractors from the United States and Spain face a complex tax situation. Both countries have a double tax treaty, which means you won't have to pay taxes on the same income twice. In most cases, your Spanish tax obligations are higher, and it is recommended that you use a tax consultant to handle the process. Paying a tax consultant can save you money and ensure you don't overpay either in the US or Spain.

Tax Tips

File US taxes in April and Spanish taxes in June Set aside some savings to handle unexpected tax due dates Pick up a tax consultant to navigate the complexities of cross-border taxation

Additional Pathways to Permanent Residency

For those who are not interested in the investment visa in New Zealand or the resident visa in Spain, there are other options. One potential path in Spain is the property investment visa. This visa allows you to invest in property in Spain and gain residence without going through the usual immigration process. The minimum investment was historically €500,000, but this may have changed, so check with your local consulate for the most current information.

Cost of Living

It's important to note that the cost of living in Spain can vary significantly. Your retirement income may be enough to live comfortably in smaller towns or coastal regions but may not be sufficient for larger cities like Madrid or Barcelona. Research the cost of living in your desired area thoroughly before making a decision.

Contacts and Resources

The best course of action is always to contact your nearest Spanish or New Zealand consulate for up-to-date and specific information. Additionally, there are reputable services catering to expatriates, but be wary of for-profit organizations that prey on the retiree market.

Final Thoughts

The process of retiring abroad can be complex, but with the right information and guidance, it can be a rewarding and fulfilling experience. Whether you choose New Zealand or Spain, ensure you have all the necessary information and support to make the best decision for your future.