I know US citizens living abroad have a certain amount of slack -- $80k or so -- before they need to pay US income taxes. But does that apply to your earnings on investments too, or is it just for income. If you were to retire in Dominican Republic or Thailand, for instance, would you pay your capital gains and dividends taxes to those local countries, or only to the US?
Also I presume you get your social security checks wherever you are?
I am starting to realize that ERing overseas could solve a lot of long term headaches including paying state income taxes and property taxes for all the state and local employees pensions and healthcare in their retirements, having affordable nursing and healthcare in our old age and using BUPA for affordable health insurance now, dodging these incredible property taxes here... are there some financial gotchas that I am forgetting about?
Maybe its time to start talking to the wife about the pleasures of Costa Rica or Thailand?
Is there going to be a mass exodus of boomers from the US to places like central america and Dominican Republic in about 20 years when other people figure this out, and realize that cell phones and DSL lines and hospitals and so forth all work down there, unlike our impressions from just a few years ago? My friend has been ER in Guatemala now for 4 years and loves it. I wonder if buying up real estate in expat-friendly places is going to be the 'play' over the next few years.
Anybody have relevant experience thinking along these lines?
Also I presume you get your social security checks wherever you are?
I am starting to realize that ERing overseas could solve a lot of long term headaches including paying state income taxes and property taxes for all the state and local employees pensions and healthcare in their retirements, having affordable nursing and healthcare in our old age and using BUPA for affordable health insurance now, dodging these incredible property taxes here... are there some financial gotchas that I am forgetting about?
Maybe its time to start talking to the wife about the pleasures of Costa Rica or Thailand?
Is there going to be a mass exodus of boomers from the US to places like central america and Dominican Republic in about 20 years when other people figure this out, and realize that cell phones and DSL lines and hospitals and so forth all work down there, unlike our impressions from just a few years ago? My friend has been ER in Guatemala now for 4 years and loves it. I wonder if buying up real estate in expat-friendly places is going to be the 'play' over the next few years.
Anybody have relevant experience thinking along these lines?