Establishing Residency – What You Must Know Before Deciding Where to Retire
Establishing residency overseas is one thing. To establish citizenship is another. You do not need to be a citizen of a country to reside there. Residency only means that you have a right to live in that country. And sooner or later, you must decide whether to stick with a tourist visa or choose between applying for temporary residency or permanent residency. Just make sure the decision you make is right for you.
Even if you establish residency overseas, you still continue to be a citizen of your own country. It only means you are no longer a resident. If you are originally from the United States and continue to file your tax returns every year, your citizenship is not affected. Therefore, establishing residency is not an issue for receiving your social security check. Just be aware of issues regarding your tax obligation to your home country and local taxes when retiring abroad Ki Residences.
A visa is a sticker or stamp affixed to your passport. It grants you the right to enter a country, either as a one-time entry, multiple entries, or for a specific length of time. Visas vary from country to country.
A tourist visa is required in some countries if your stay is longer than 3 days. Normally you can remain up to several months with this type of visa.
Temporary visas vary. Usually renewable, they are sometimes issued for work or school and may require proof of a minimum monthly deposit in a bank account.
You may be granted permanent residency by residing legally for a number of years as a temporary resident or upon marrying a citizen of that country. Some good retirement spots such as Belize or Panama make it very attractive to become a permanent resident by offering tax breaks for retirees.
How to Avoid Permanent Residency
If you want to stay away from becoming a permanent resident of any country, avoid remaining more than 5-6 months out of a year in one country. Divide your time between 3 or 4 places instead. That way, you can avoid any legal obligations.
What are your retirement plans? To hang out under a palm tree with a steady supply of Mimosas? To open a sandwich shop in a South American beach town? What is it that you really want to do?
Find out what your needs are regarding residency and citizenship before deciding on a move. You could always become a permanent tourist and taste what other shores have to offer. Then you could do away with the hassles of establishing residency.