Retiring in Europe

[vicente solano]

The upside of moving to Europe as a retiree is the lower cost of medical care, the better public services and public transportation.

Very true. And haven´t you heard that Spain is said to be one of the coumtries in the world where people are happier and lead a more laidback lifestyle, despite the ubiquitous economic crisis?

Never miss a chance to promote my country!!

 

[haha]

Very true. And haven´t you heard that Spain is said to be one of the coumtries in the world where people are happier and lead a more laidback lifestyle, despite the ubiquitous economic crisis?

Might that not at least in part depend on being Spanish, and having the family and other connections that a Spaniard would have but an expat would not?

Ha

 

[bbbamI]

Very true. And haven´t you heard that Spain is said to be one of the coumtries in the world where people are happier and lead a more laidback lifestyle, despite the ubiquitous economic crisis?

Never miss a chance to promote my country!!

Scoot over Vicente and make some room....I want to be your new houseguest....

 

[vicente solano]

Scoot over Vicente and make some room....I want to be your new houseguest....[/QUOTE

You are wellcome. It´ll be a pleasure. Just make sure you bring along a choice selection of your notorious boots!

 

[vicente solano]

Might that not at least in part depend on being Spanish, and having the family and other connections that a Spaniard would have but an expat would not?

Ha

Ha: I partially agree, but, if you- US people- when here, try to mix and socialize with us in a friendly and open way in no time at all you´ll be considered one of us. You have the advantage of already having us culturally colonized in a subtle way

 

[bbbamI]

You are wellcome. It´ll be a pleasure. Just make sure you bring along a choice selection of your notorious boots!

Thank you Vicente....

mmmm...well, I will bring my boots, but I don't think they would fit you..

 

[vicente solano]

Thank you Vicente....

mmmm...well, I will bring my boots, but I don't think they would fit you..

Hey! you are talking to a very manly Spaniard! On second thoughts.... what´s your boot/shoe size?

 

[Tractor guy]

I lived in the UK in a wonderful little village in the Midlands for 5 years. I strongly advise anybody considering retiring in Europe to try it fo 6-12 months before making any major financial commitments. I learned more about living there in the first month than I had in 10 years of business trips. You won't know if you can afford it and/or be happy until you've figured out what your prefered lifestyle costs and after you find out how to deal with the local shops, handymen, etc. Its all different and can be stressful.

We found;
*The cost of living in the UK was higher than the U.S. by about the exchange rate. The rule of thumb was that anything in rural Britain (not London which is higher) would cost the same in pounds that a a similar item would cost in $ in the U.S.
* The differences between the U.S. and the UK that we loved are an irritant now that we are back here. I am trying but still haven't found anything like the British local pub to go to on a weeknight. The differences that irritated us when we arrived in the UK still irritated us 5 years later. The biggest ones were: Zero work ethic in the service industry and some missing foods. For example, you can't get peanut butter (American), pancake syrup (French) or good sausage (German). Despite its reputation, there are many good UK foods but they don't have the global melting pot that you can find in the U.S. (Except for Indian which is to die for).

I loved my 5 years in Britain but I wouldn't consider retiring there because it's too far from my family. If I was going that far, I'd consider Australia or New Zealand. (same culture but better climate and much more room).

Lorne

 

[FIREd]

For example, you can't get peanut butter (American)

That's hilarious because, when I lived in France, I could only find peanut butter at British retailer Marks & Spencer.

 

[brett]

We will be selling our house in the spring summer. It is a downsize issue and a chance for us to consider a condo or townhouse...something that we can lock up and walk away from for a few months.

Once the house is sold, we are hoping to go to Southern Spain for 6-8 months. We plan to rent a furnished apartment and use it as a base for travel. We have no plans to move to Europe at this time but it seems to us that doing this in between selling and buying an new place makes sense. Has anyone elso done something similar or considered it

 

[Texas Proud]

That's hilarious because, when I lived in France, I could only find peanut butter at British retailer Marks & Spencer.

WAY late to this thread.... but I found a lot of penut butter when I was there... what I could not find (except at one store and they cost a LOT) was Reeces peanut butter cups... every time I came home I would bring back maybe 10 to 15 pounds of it...

Loved my time in London, but I could not afford to live there with the livestyle that I would want... did not live in any of the smaller towns, but some looked pretty nice... and you could take the train to London...

 

[Eladio]

We just returned from a month long visit to England visiting my BIL and SIL and their two kids. He's military and doing a rotation with Nato. They live near a small town in the somerset area and we stayed with them for about 2 and a half weeks of the month. It was nice, the old buildings, culture, food was good, etc...

Prices for groceries seemed pretty reasonable at Tesco, Sainsburys, Asda, plus the selection of food was far greater than what you see at home here in Texas. I also noticed that fruit and veges were cheaper, perhaps because they were closer to where they are grown.

Prices at pubs, rest's were more than at home. About $12 to $15 per person, plus drink. Some of that is VAT, and you don't generally tip.

Anyway, I did notice the lack of customer service, my SIL also said that they had many problems with retailers and no one seemed to care much. I guess they haven't got as much competition there and it's an island and they have a captive audience, compared to here in the US.

I saw a two bdrm apt in a beach town for 550 pounds a month. So, like $825 to $850 month. Homes we visited were smaller. But, it looks like everything was set up to be very energy efficient, which would save you some money.

Cars are much smaller. Almost no SUV's. Lots of Sprinter type vans. Public transportation was readily avaliable, and we did see lots of people just walking down the road if there were no sidewalks.

Overall, I would think that someone interested in a simple lifestyle could make it there for what it might cost in a large to medium sized city here if they tried.

It was an interesting experience, and you do realize that you have things pretty good back here in the US despite all the bad news you hear about.

 

[obgyn65]

Please nun could you elaborate a bit on this sentence :

you can exclude a lot of foreign income from US taxes.

I am curious since I also get some interest income from Europe. Thank you.

 

[nun]

Please nun could you elaborate a bit on this sentence :

I am curious since I also get some interest income from Europe. Thank you.

You can exclude Foreign Earned Income up to some amount, it was around $80k a few years ago. If you have interest or gains on foreign accounts you can't get a credit or deduction for that. Also if the account is over $10k you have to report it under FBAR

 

[Alan]

I am curious since I also get some interest income from Europe. Thank you.

I have a private pension and interest income from the UK. I am unaware that you can avoid paying taxes on it. Once I started drawing my pension the UK IRS immediately initiated withholdings and contacted me here in the USA. I had to apply for a certificate from the US IRS stating that I was a US taxpayer, and then file a form with the UK IRS with the certificate to stop the withholding. I pay US taxes on all my UK income - pension and interest.

I don't know about earned income in the UK for US citizens.

 

[Texas Proud]

I don't know about earned income in the UK for US citizens.

They tax the HECK out of it


I still have (or maybe I lost them already) over $42K of foreign income tax credits that were paid to the UK gvmt for my one year overseas... I really do not know how much in taxes were paid as I never saw or signed a return... seems that over there they just kind of 'bill' you someway...

 

[BigNick]

WAY late to this thread.... but I found a lot of penut butter when I was there... what I could not find (except at one store and they cost a LOT) was Reeces peanut butter cups... every time I came home I would bring back maybe 10 to 15 pounds of it...

Yes, peanut butter is now available in most large French supermarkets. US candies are indeed very hard to find.

Loved my time in London, but I could not afford to live there with the livestyle that I would want... did not live in any of the smaller towns, but some looked pretty nice... and you could take the train to London...

The towns round London are not cheap either. A single family home with three not very big bedrooms and one bathroom, perhaps 1300 sq ft on a 5000 sq ft plot, in a town such as Hastings, will run north of $500K. The train trip to London is 1 hour 45 minutes and an annual season ticket for a daily commuter is about $6500. Enjoy.

 

[nun]

They tax the HECK out of it


I still have (or maybe I lost them already) over $42K of foreign income tax credits that were paid to the UK gvmt for my one year overseas... I really do not know how much in taxes were paid as I never saw or signed a return... seems that over there they just kind of 'bill' you someway...

Yep it's called PAYE (Pay as You Earn). US does the same, but the US system is so complex and has so many deductions and credits that it's necessary for everyone to file a return. The UK system is far simpler, captial gains, interest etc are taxed at source and the amount of tax withheld from you pay check is simply calculated according to your earned income level. The upshot is that the vast majority of UK citizens never have to do a tax return.

For a middle income family the level of tax in the UK is similar to that in the US. Remember there's no state tax in the UK and real estate taxes tend to be a lot less too. However, the UK has big consumption taxes ie 20% VAT and big duties on gasoline, alcohol and cigarettes.

 

[nun]

The towns round London are not cheap either. A single family home with three not very big bedrooms and one bathroom, perhaps 1300 sq ft on a 5000 sq ft plot, in a town such as Hastings, will run north of $500K. The train trip to London is 1 hour 45 minutes and an annual season ticket for a daily commuter is about $6500. Enjoy.

That's why I'm looking at moving back to where I was born where you can get a nice place for between $200k and $300k

3 bedroom house for sale in Meadhope Street, Wolsingham, Bishop Auckland DL13, DL13

 

[Alan]

Yep it's called PAYE (Pay as You Earn). US does the same, but the US system is so complex and has so many deductions and credits that it's necessary for everyone to file a return. The UK system is far simpler, captial gains, interest etc are taxed at source and the amount of tax withheld from you pay check is simply calculated according to your earned income level. The upshot is that the vast majority of UK citizens never have to do a tax return.

Yes, I remember those days. Each year you get a statement from the IRS showing your exemptions and deductions, tax paid and tax owed. Unless it was a lot either way then they simply adjusted your personal "tax code" for the following year to withhold more or less money.

Charities are tax exempt organizations like over here but instead of giving them money and claiming a deduction you give them less money and they claim the refund.

That's why I'm looking at moving back to where I was born where you can get a nice place for between $200k and $300k

3 bedroom house for sale in Meadhope Street, Wolsingham, Bishop Auckland DL13, DL13

Hi there fellow countryman I was also born in County Durham, not far from Wolsingham, in Seaham and still have lots of family living there.

 

[nun]

Charities are tax exempt organizations like over here but instead of giving them money and claiming a deduction you give them less money and they claim the refund.



Hi there fellow countryman I was also born in County Durham, not far from Wolsingham, in Seaham and still have lots of family living there.

Yes I just gave some money to a UK charity and I have no UK paperwork to do. The charity simply claims the tax paid on it back at the basic tax rate which is 20%. So a 10 pound charitable gift is worth 12 pounds to the charity.

I was born in N.Yorks, close to Middlesbrough, but I'm thinking of moving back to either Teesdale and Weardale. Beautiful countryside and not as pricey as the Yorkshire Dales.

 

[Alan]

I was born in N.Yorks, close to Middlesbrough, but I'm thinking of moving back to either Teesdale and Weardale. Beautiful countryside and not as pricey as the Yorkshire Dales.

Both our kids were born in Middlesbrough maternity hospital while we were living in Guisborough. We are planning a 6 month stay in Guisborough starting in April and are hoping to get a furnished 3 bed house, with on-suite bathroom for £600 / month. It is very close to the town center and has a regular bus service as we are planning to live there without a car.

 

[nun]

Both our kids were born in Middlesbrough maternity hospital while we were living in Guisborough. We are planning a 6 month stay in Guisborough starting in April and are hoping to get a furnished 3 bed house, with on-suite bathroom for £600 / month. It is very close to the town center and has a regular bus service as we are planning to live there without a car.

I was born in Guisborough and grew up in Nunthorpe. Used to play rugby against Laurence Jackson.

I've been looking at rentals for around £600 too. My plan is to move back once I ER and rent for a year while I get set and scope out a place to buy.

 

[Alan]

I was born in Guisborough and grew up in Nunthorpe. Used to play rugby against Laurence Jackson

Small world

We lived in Guisborough 79 - 86 and have very fond memories. I have been back many times with work, staying in Guisborough Hall. (Wilton was where the business was). We still have a number of friends in Guisborough itself. (G. Hall was not a hotel while we lived there).

We lived on Hunters Hill and it was a 30 minute walk from the house to the top of Highcliffe so we are looking forward to seeing how difficult that walk is going to be 25 years later.

 

[nun]

Small world

We lived in Guisborough 79 - 86 and have very fond memories. I have been back many times with work, staying in Guisborough Hall. (Wilton was where the business was). We still have a number of friends in Guisborough itself. (G. Hall was not a hotel while we lived there).

We lived on Hunters Hill and it was a 30 minute walk from the house to the top of Highcliffe so we are looking forward to seeing how difficult that walk is going to be 25 years later.

Yes indeed, small world. My dad worked at ICI Wilton and before that he was an apprentice at Dorman Long. I left the area in 1979 to go to college

I was back recently and rode my bike from Malton, over the Moors stopping for lunch at Blakey Rigg. Riding through Westerdale isn't getting any easier!!!!