| The World's Top Retirement Havens in 2007
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| | Monday morning and your expenses are
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| By Laura Sheridan
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| | covered for the week. In fact, we ranked
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| Whether your retirement is fast
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| | Ecuador as the world's best retirement
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| approaching or just something you find
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| | haven in 1999, after it weathered the
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| yourself often dreaming about, you've
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| | earlier economic, political, and natural
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| probably imagined spending it in some
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| | problems of the previous two years, and
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| far-flung tropical haven. But moving to a
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| | went on to prosper.
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| country that you know little about is a
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| | Of course, low prices alone do not make
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| lot of hassle, right? It's probably not
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| | for an ideal retirement or investment
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| worth the time and effort, you think.
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| | destination. There are plenty of places
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| Besides, all your family and friends are
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| | the world over where you can buy cheap
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| here.
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| | land, but where you wouldn't want to
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| Take it from us: it's worth it. If you
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| | live; not so in Ecuador.
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| look beyond your own shores you'll find
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| | It's hard to pinpoint the best reason for
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| that many countries around the world
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| | retiring to Ecuador, but one thing's for
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| offer far greater benefits and advantages
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| | sure: this is an affordable-and
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| for retirees than those offered at home.
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| | beautiful-retirement destination. Ecuador
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| One of the simplest ways to improve your
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| | also offers a high quality of life. This
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| retirement lifestyle is to choose the
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| | is no isolated backwater. It's a land of
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| retirement destination offering you more
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| | opportunity, where a middle class is
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| of what you want at the best price. It's
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| | forming. After waking from a long
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| a question of priorities. What's
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| | economic slumber, Ecuador is preparing to
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| important to you? Is cost of living
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| | join the global economy.
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| Number One on your priority list?
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| | Retirees aged 65 or older have an extra
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| Maybe for you weather is the key
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| | incentive to consider Ecuador: airfares
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| consideration.
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| | to North America and Europe are
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| Are your must-haves telecommunications
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| | half-price on several airlines; all
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| and infrastructure? Proximity to the
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| | in-country transportation costs are 50%
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| States and Canada may also be a factor.
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| | lower, and big discounts apply to a
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| Maybe you aren't anywhere close to
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| | variety of other expenses such as taxes,
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| retirement. Nevertheless, it's important
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| | utilities, and entertainment.
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| to think about and plan for your future.
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| | And remember: Ecuador is one place where
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| Like every phase in your life, you'll be
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| | the U.S. dollar is not losing value,
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| surprised how fast retirement creeps up
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| | which makes an Ecuadorian retirement
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| on you.
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| | especially appealing. Following the
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| That's why, once a year, in our Global
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| | late-1990s' debt default, Ecuador decided
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| Retirement Index, we look closely,
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| | to adopt the U.S. dollar as its official
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| specifically, at the best opportunities
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| | currency, which eliminates currency risk.
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| worldwide for retirement living. Where
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| | Inflation is less than 3% and most
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| will the pensioner's dollars go furthest?
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| | economic indicators are positive.
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| Which country is the safest? Where is the
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| | Top for Europe
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| health care best? We give top priority to
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| | Italy comes third in our Index this year
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| those things that matter most to anyone
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| | with high scores across the board. It's
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| planning for retirement, including
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| | difficult to figure out whereabouts in
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| programs of special benefits for retirees
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| | Italy you picture yourself living-there
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| (tax breaks, discounts, and freebies, for
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| | is probably more beauty per square mile
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| example, that various governments proffer
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| | here than in any other corner of Europe.
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| to residents, sometimes specifically to
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| | It's no simple matter to hit on the ideal
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| foreign residents in an effort to attract
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| | location, even if you know for sure that
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| investment and retirement dollars).
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| | you prefer big city life to the
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| We can show you the opportunities and
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| | tranquility of the countryside. Right
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| possibilities, the winners of our top
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| | now, International Living recommends two
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| retirement countries, but it's up to you
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| | places: Umbria in central Italy, and
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| to decide what your main priorities are
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| | Calabria-situated in the toe of Italy.
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| before you find your ideal retirement
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| | "The green heart of Italy," Umbria is
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| haven. The aim of our Index is to give
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| | just as alluring as its more famous
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| you a good starting guide.
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| | next-door neighbor, Tuscany. With expats
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| Mexico-our new winner
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| | seeking farmhouses and other rural
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| Moving up four places to take our top
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| | properties, prices are catching up fast.
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| spot as the world's top retirement haven
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| | Although Umbria doesn't possess a
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| this year is Mexico. Mexico offers the
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| | coastline, everywhere you look you'll see
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| perfect mix of centuries-old traditions
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| | rumpled hills crowned with fortified
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| and contemporary lifestyles. Moving to
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| | towns and higgledly-piggledly villages.
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| Mexico means you can still have all of
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| | From certain vantage points, you can see
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| the amenities you grew accustomed to
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| | several hill towns at a time.
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| north of the border: cable TV, high-speed
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| | Many parts of the province are within an
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| Internet, and modern home appliances. And
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| | hour's drive of Florence or Siena. Towns
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| if you prefer, when you move to Mexico
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| | like Assisi, Todi, Spoleto, Orvieto, and
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| you can even bring all of your favorite
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| | Norcia are every bit as beautiful and as
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| things with you without paying import
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| | historic as any small town in Tuscany.
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| taxes.
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| | To give you an idea of property prices in
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| Goods and services cost less, so you can
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| | the region, in Monteleone d'Orvieto,
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| afford the kinds of luxuries only the
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| | there's a 968-square-foot apartment in
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| very wealthy enjoy up north: a maid, a
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| | need of restoration. Selling for $85,000,
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| cook, and a gardener for example. In your
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| | it has two bedrooms and one bathroom,
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| retirement here, you'll have time to
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| | plus a ready-made vegetable garden.
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| volunteer at the local school, time to
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| | There's another apartment in the same
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| golf in the mornings, time to relax on
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| | town that's habitable: 807 square feet,
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| the beach…time to savor life.
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| | two bedrooms, and one bathroom. Price:
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| Whether your vision of the ideal
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| | $100,000.
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| retirement involves shopping, fishing,
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| | Calabria's shores are lapped by the
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| sunbathing, diving, biking, mountain
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| | Tyrrhenian Sea on the west, and the
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| climbing, parasailing, collecting crafts,
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| | Ionian Sea on the east. What about
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| visiting archeological sites, partying,
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| | property prices here? In the Calabrian
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| going to concerts, attending the theater,
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| | seaside town of Scalea, an attractive
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| or fine dining, in Mexico you can engage
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| | second-floor apartment of 430 square feet
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| in all of these activities, and many
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| | is selling for $50,000.
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| more.
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| | Why Panama fell from glory?
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| How our Global Retirement Index is scored
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| | Panama won our Retirement Index for six
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| * Real estate. Countries where real
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| | years in a row. But, it's fallen from the
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| estate prices are low and the purchase of
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| | top spot in 2007 and is now in fourth
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| real estate is relatively easy receive
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| | place. Why? Panama still has the same
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| the highest scores. We use our own
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| | great retiree benefits…this hasn't
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| experiences plus reports from our
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| | changed since last year (see the sidebar
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| contributing editors and real estate
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| | on retiree benefits on page XX). Still,
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| contacts around the world to rate each
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| | unless you have a verifiable pension or
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| country. Weight: 15%
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| | pockets deep enough to afford a $40,000
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| * Entertainment, Recreation, and Culture.
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| | investment in a forestry project or a
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| This category considers the number of
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| | $200,000 investment in real estate or a
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| newspapers per 1,000 citizens, the number
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| | government bank CD, it can be difficult
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| of museums and cinemas per capita, the
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| | to get a resident visa in Panama. Since
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| number of university students, the
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| | the government of Panama recently put a
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| literacy rate, and the variety of
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| | 30-day limit on its tourist visa, it has
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| cultural and recreational offerings.
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| | become more difficult for anyone seeking
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| Weight: 10%
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| | to rent a home or apartment and stay in
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| * Cost of living. This score is based on
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| | the country for any length of time.
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| statistics from the Indexes of Living
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| | And it's true that this country's
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| Costs Abroad, Quarter Allowances, and
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| | popularity has driven up real estate
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| Hardship Differentials, published by the
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| | prices. Once plentiful real estate
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| United States Department of State, and on
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| | bargains-from $100,000 apartments in
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| data published by Business International.
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| | Panama City to $40,000 lots in
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| We also use our firsthand experiences
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| | Boquete-are getting harder to find.
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| living and traveling in these countries.
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| | Panama still has much to offer, though.
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| The lower the score, the higher the cost
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| | Whether you're enticed by the friendly
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| of living. Weight: 20%
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| | people or the tropical climate, Panama is
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| * Safety and stability. This measure of
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| | a great retirement destination (remember,
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| unrest in each country is based primarily
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| | it's still in our top 5).
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| on Interpol data and State Department
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| | We don't have print space here to talk
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| statistics. It also takes into account
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| | about every country in our Index, but you
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| the civil liberties and political rights
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| | can access information on all countries
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| granted by each government. Our own
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| | featured here at our website. In the
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| experiences and reports from expatriates
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| | search engine, type in the name of the
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| living in these countries also influence
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| | country of interest to you to find out
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| the safety scores. Weight: 5%
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| | more.
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| * Health care. Considered in this
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| | NEED TO KNOW
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| category are the cost of a typical visit
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| | Countries with special retiree benefits
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| to a general practitioner and the cost
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| | Mexico
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| and coverage particulars of health
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| | If you've considered retiring to Mexico,
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| insurance. Weight: 20%
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| | you now have another good
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| * Climate. Countries with temperate
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| | reason-foreigners who hold a valid
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| weather throughout the year, moderate
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| | residence visa for Mexico can now take
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| rain fall, and little risk of natural
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| | part in Mexico's senior citizens'
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| disaster come out on top in this
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| | benefits program.
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| category. We use data representing each
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| | The program, for adults aged 60 and over,
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| country as a whole instead of favoring
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| | offers discounts on a wide range of
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| one region over another. Weight: 5%
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| | services. These include discounts on
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| * Special benefits. This category
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| | health-related services (hospitals,
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| considers government provisions that make
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| | doctors' visits, lab tests, medical
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| moving to and living in each country
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| | devices, pharmacies, and dental work);
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| easier and more affordable for
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| | cultural activities like theater tickets
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| foreigners. Taken into account are
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| | and entrance fees to museums and
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| property rights for foreign residents,
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| | archaeological sites; travel-related
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| property tax rates, duty-free imports on
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| | costs, including airline tickets, buses,
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| personal belongings, currency controls,
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| | car rentals and purchase, and hotel
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| employment restrictions, voting rights,
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| | accommodation. Discounts can range up to
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| and transportation discounts for seniors.
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| | 50% off the full price of the good or
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| Weight: 20%
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| | service. Non-Mexicans who wish to take
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| * Infrastructure. This section considers
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| | part in the program must go to a local
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| the number of cars and telephones per
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| | office of INAPAM (Instituto Nacional de
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| 1,000 residents, the length of railroad
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| | las Personas Adultas Mayores) to request
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| track in usable condition, the number of
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| | a membership card. See: for more
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| airports, the quality of the country's
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| | information (in Spanish).
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| road and highway network, and the
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| | Malaysia
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| availability of telecommunications.
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| | Three years ago, the government of
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| Weight: 5%
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| | Malaysia launched "Malaysia-My Second
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| If health care is a concern, you should
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| | Home" (MM2H), replacing the former
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| know that in much of Mexico the health
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| | "Silver Hair" program introduced in 1987.
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| care is first rate. Private clinics and
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| | MM2H provides incentives for foreigners,
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| hospitals are staffed by expert
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| | particularly retirees, to live
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| physicians (many of whom trained in the
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| | permanently in this country. Successful
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| U.S., Europe, or in Mexico's own
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| | applicants initially receive what is, in
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| world-renowned teaching hospitals), and
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| | effect, a five-year visa with unlimited
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| medical care and prescription drugs will
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| | entry/exit privileges. There is no
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| cost you only a fraction of what you
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| | minimum annual residence requirement.
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| would pay in the States. In our Index,
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| | After the first five years, you can apply
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| Mexico scores 79 out of a possible 100
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| | for permanent residency. While you're not
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| points in this category.
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| | guaranteed it will be granted, you can
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| Mexico is such a diverse nation that
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| | expect automatic renewal of your original
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| everybody can find exactly what they
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| | visa if you continue to meet its
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| want. You don't have to choose between
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| | conditions. Within six months of
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| water or mountains; here you can have
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| | approval, MM2H residents may bring in
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| both. And because of geographic
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| | household effects duty-free, and import
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| diversity, you can also choose the
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| | or purchase one vehicle locally, tax
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| climate to enjoy during your Mexican
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| | free. Savings on auto taxes can amount to
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| retirement: from hot and dry in the
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| | thousands of dollars on expensive models.
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| north, to hot and humid in the south, to
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| | Other benefits include exemption from
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| spring-like temperatures all year round
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| | Malaysian income tax on pension and other
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| in the Colonial Highlands.
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| | income remitted into the country, plus
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| You can also own the home of your dreams
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| | that on the interest from any fixed
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| in Mexico-for much less than it would
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| | deposit made under the MM2H program (a
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| cost you most anywhere in the U.S. or
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| | savings of about 29%).
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| Canada. The real estate market offers
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| | In addition, residents may purchase up to
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| endless possibilities for your
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| | two properties with a value of not less
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| retirement. Mexico receives a high score
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| | than $40,000 each. Banks may advance up
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| of 84 in our Real Estate category.
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| | to 60%. For information on cost of living
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| Despite what you may have heard, it's not
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| | and many other useful topics, including
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| too late to buy real estate here.
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| | domestic help, see Registration at
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| You can own beachfront-not just ocean
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| | that website will also bring you updates
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| view property-in Mexico for less than
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| | on MM2H.
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| $100,000.
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| | Panama
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| Once you decide to move to Mexico, it's
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| | If you can document a minimum monthly
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| difficult to know where to go-it's a big
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| | pension of $500 (plus another $100 per
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| country. Below are the 10 places we think
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| | dependent), you are eligible for a long
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| make the most sense for expatriate living
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| | list of perks in Panama, including:
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| in this country, based on criteria such
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| | Import duty exemption for household
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| as health care, climate, infrastructure,
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| | goods; tax exemption to import a new car
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| and housing costs. These are places our
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| | every two years; 50% off entertainment
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| husband-and-wife team in Mexico, Dan
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| | anywhere in the country (movies,
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| Prescher and Suzan Haskins, have
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| | theaters, concerts, sporting events); 30%
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| personally scouted and personally
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| | off in-country bus, boat, and train
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| recommend above other options in this
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| | fares; 25% off in-country airline
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| great big country. They are: Rosarito
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| | tickets; 50% off hotel stays Monday
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| Beach, Puerto Vallarta, Quer?ro,
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| | through Thursday; 15% off hospital bills
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| Mazatlan, M?da, La Paz, Campeche, Playa
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| | (if no insurance applies); 10% off
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| del Carmen/Riviera Maya, Ajijic/Chapala,
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| | prescription medicines; 20% off medical
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| and Sayulita/San Pancho (San Francisco).
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| | consultations; 50% reduction in closing
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| Of course, we're not forgetting San
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| | costs for home loans; 25% discounts on
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| Miguel de Allende, one of Dan and Suzan's
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| | utility bills…and many more.
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| favorite places in Mexico. Suzan recently
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| | Ireland
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| reported of this town: "San Miguel is one
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| | If Ireland is your choice as a retirement
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| of the prettiest towns in all of Mexico.
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| | haven, you can take advantage of the many
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| Stepping into San Miguel's Centro is like
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| | retirement incentives this country has to
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| stepping back in time…but with all of
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| | offer, including free health care, free
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| today's modern conveniences."
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| | public transportation, a fuel allowance,
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| In second place…
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| | and significant discounts on hotel and
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| Ecuador
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| | electricity bills. You're even allowed to
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| Ecuador always does well in our
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| | vote in local elections.
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| Retirement Index, but this year it moves
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| | Belize
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| from 10th position last year to take
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| | Expats can apply for status as a
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| second place this year. If you retire in
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| | Qualified Retired Person (QRP), and, with
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| Ecuador, every clich?ou've heard about
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| | that status, you can avoid Belizean
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| living large on little money-about
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| | income tax and also import your household
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| settling into the lap of luxury on even a
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| | goods tax-free up to a total exemption
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| pensioner's budget-is true. Ecuador gets
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| | amount of $15,000. You can also bring in
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| 85 points in our Cost of Living category,
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| | a vehicle (a car, light aircraft, or
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| making it one of the world's cheapest
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| | boat) tax-free. In fact, every five years
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| places to live. Take $250 out of the ATM
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| | you can import a new vehicle, tax-free.
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