# Mexico's Poor Cousins



## vantexan (Sep 4, 2011)

Didn't have the chance to respond to the previous thread, now locked, on is Mexico no longer your choice. Someone was pointing out problems in Ecuador, but some of it has recently been addressed. Ecuador has recently streamlined the retiree residency process. Also the country's Harvard educated president has been greatly improving the infrastructure, especially highways. I say this not to tout Ecuador, but to point out for those who can't afford Mexico's new financial requirements there are alternatives. For those quick to rise to Mexico's defense this isn't to denigrate Mexico. A number of Latin American countries have created incentives to attract retirees, but they are, as my title states, poor cousins to Mexico. But that's ok, there was a time when Mexico was very poor and Americans lived well on little. Maybe with increased trade and interaction with more developed countries these small countries can also develop into places with a future for their own citizens. But pointing out their problems and how much better Mexico is doesn't change the reality that many of us need to find a place where we can meet the entry requirements to an affordable, safe, enjoyable retirement.


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## PanamaJack (Apr 1, 2013)

vantexan said:


> Didn't have the chance to respond to the previous thread, now locked, on is Mexico no longer your choice. Someone was pointing out problems in Ecuador, but some of it has recently been addressed. Ecuador has recently streamlined the retiree residency process. Also the country's Harvard educated president has been greatly improving the infrastructure, especially highways. I say this not to tout Ecuador, but to point out for those who can't afford Mexico's new financial requirements there are alternatives. For those quick to rise to Mexico's defense this isn't to denigrate Mexico. A number of Latin American countries have created incentives to attract retirees, but they are, as my title states, poor cousins to Mexico. But that's ok, there was a time when Mexico was very poor and Americans lived well on little. Maybe with increased trade and interaction with more developed countries these small countries can also develop into places with a future for their own citizens. But pointing out their problems and how much better Mexico is doesn't change the reality that many of us need to find a place where we can meet the entry requirements to an affordable, safe, enjoyable retirement.


VERY WELL SAID!!! While at the university in Boston I had to write a paper about Central America and its attraction or lack thereof to Americans. Weeding through the small countries I quickly found reasons where Belize would be attractions because of its beautiful beaches and official language. Panama as well was easy since the Balboa and dollar are interchangeable, Panamanians cater to retirees and the infrastructure is very good thanks to the Panama Canal. 

However, finding reasons for the other five countries was in general harder than Panama and Belize BUT nevertheless possible. I know these countries very well having lived in Mexico for 40 years and traveling with my dad through much of the isthmus. 

Starting north to south Guatemala is first. A great culture, centuries old traditions, stable currency (since 1996 it has been between 6 and 8 to 1 versus the dollar, currently 7.80 to 1 U.S. dollar), very good medical services and safe pockets for expats to live in. Drawbacks are violence, corruption and road infrastructure can be suspect in the interior of the country. Cost of living is less than in Mexico.

El Salvador – the official currency is the U.S. dollar, medicine is the best in Central America and the coastline is wonderful. Drawbacks too much violence not many spots for expats to settle and feel secure. Inexpensive rents are a plus. Most fruits and vegetables are more expensive than Guatemala since they are transported from Guatemala to El Salvador.

Honduras – Bay Islands is a great destination, English is widely spoken there. Drawback – way too much violence. San Pedro Sula is the most violent city per capita in the world, I think.

Nicaragua – Granada, Bluefields, Corn Islands. I lived for six months in Granada. Very secure, but too hot for me. Many expats live there. It is inexpensive and US$1,000 will give a couple of two a nice lifestyle per month including renting a home or apartment.

Costa Rica – Stable government, NO ARMY, no illiteracy to speak of, less poverty, good infrastructure, not too much crime and lots of choices on the coast to live as well as inland. Currency is horribly devalued and is trading at 499 colons for US$1.00. Prices are more expensive in Costa Rica, not too many fruits or vegetables grown there. Crime is increasing and large pockets of expats of course that is a plus for some and a minus for others.

Of course, after having written my paper over twenty years ago, I had to rewrite this part today quickly since so many things have changed since then. In addition, I must say that Mexico is my home and where I shall live out my remaining years, as it is my PARADISE. However, Vantexan has brought up a very important issue about the new immigration laws in Mexico. Because of that, I just wanted to give my two cents about each of the smaller countries in Central America that he alluded to.


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## Howler (Apr 22, 2013)

Very well thought out & said PanamaJack... only thing is, with such a love & long-time residence in Mexico - how or why did you choose the name "Panama" to go with "Jack"...??


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## PanamaJack (Apr 1, 2013)

Howler said:


> Very well thought out & said PanamaJack... only thing is, with such a love & long-time residence in Mexico - how or why did you choose the name "Panama" to go with "Jack"...??


One of my dad's most favorite spots to get away from it all was the San Blas Islands in Panama, where they still today live as though they did centuries ago. He took me there as a youngster and teenage before tourists even knew about it. When I would return to Mexico for school, my school would say I see Panama Jack is back... well it stuck to this day. However, my heart is Tri-color!!!


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## Howler (Apr 22, 2013)

*¡Viva un corazon tricolor!*



PanamaJack said:


> However, my heart is Tri-color!!!


:thumb:


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## Marishka (Feb 1, 2009)

The new Mexico residency visa income requirements have thrown a monkey wrench into the plans of those who don't have enough income to qualify under the new rules, but there are definitely other good Latin American options. I agree with vantexan about opening your mind to other alternatives. 

Here's some info on Ecuador, Panama, Guatemala, and Costa Rica residency visas for those who receive a pension of any type--government pension, Social Security benefits, or private company pension:

*Ecuador 9-1 Visa*

This visa is for retirees who receive a pension of at least US$800 per month, plus an extra US$100 for each dependent. You never have to prove your income after you have qualified for this visa.

Ecuador also offers some nice perks for people over age 65:

-50% off all public transportation (including the Galapagos)
-50% off national and international airfares on Taca, Copa, or AeroGal for round-trip flights
-50% off all cultural, sports, artistic, and recreational events, including movies
-50% off electric and water bills (below certain usage levels) 
-Free domestic landline phone service (doesn't include long distance)
-Special discount on property tax
-Discount on vehicle tax
-Discount on judicial fees
-Refund of Value Added Tax (sales tax)
-No waiting in line at the bank or to pay utility bills, as it is the law that people 65 and over always go to the front of the line in Ecuador.

*Panama Pensionado Visa*

This visa is for people who receive a pension at least US$1,000 per month, plus US$250 per month for each dependent.

The following pensioner visa benefits are for life:

-50% off entertainment anywhere in the country (movies, theaters, concerts, etc.);
-30% off bus, boat, train fares;
-25% off airline tickets;
-50% off hotels stays Monday through Thursday;
-25% off hotels stays Friday through Sunday;
-25% off at sit-down restaurants;
-15% off at fast food restaurants;
-15% off hospital bills (if no insurance applies);
-10% off prescription medications;
-20% off medical consultations;
-15% off dental and eye exams;
-20% off professional and technical services;
-50% off closing costs for home loans.

There is a one-time tax exemption of up to $10,000 on the importation of household goods and a tax rebate on every two years of import duties for the importation of a car.

Guatemala and Costa Rica don't offer the perks that Ecuador and Panama provide, but the income requirements are lower than those of Mexico.

*Guatemala Retirement Visa*

The requirements are a pension of US$1,000 for the primary person and US$200 for each dependent.

*Costa Rica Pensioner Visa*

For this visa you must receive a pension of at least US$1,000 a month. Under that amount you can get legal residency for yourself, spouse, and children of up to 25 years of age.


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## Isla Verde (Oct 19, 2011)

Marishka said:


> The new Mexico residency visa income requirements have thrown a monkey wrench into the plans of those who don't have enough income to qualify under the new rules, but there are definitely other good Latin American options. I agree with vantexan about opening your mind to other alternatives.
> 
> Here's some info on Ecuador, Panama, Guatemala, and Costa Rica residency visas for those who receive a pension of any type--government pension, Social Security benefits, or private company pension:
> 
> ...


Very useful information. It should also be posted on the Rest of the World forum, don't you think, Marishka?


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## Marishka (Feb 1, 2009)

Isla Verde said:


> Very useful information. It should also be posted on the Rest of the World forum, don't you think, Marishka?


That's a good idea, Isla. I added another country to my list and posted it here: Retiring to Latin America on Social Security.


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## vantexan (Sep 4, 2011)

Another country to consider is Argentina. It's expensive, but there's a development recently that could make a big difference. The gov't is mismanaging the country so badly that those with alot of Pesos are buying Dollars to offset inflation. The official exchange rate is a little over 5 to 1 but there's a black market that literally everyone who can are using called the Dolar Blue. Currently the Dolar Blue rate is a little under 10 Pesos to the Dollar and is expected to break 10 and may eventually hit 20. There's a currency exchange company called Xoom that will handle transactions for a small % if you have a U.S. bank account or credit card. You walk into various places where they can receive the money and usually have it in 15 or so minutes. If you have it sent to an Argentine Bank account it could take a week. There's a similar company that handles transactions for British citizens. Back in I believe it was 2002 or 2003 the Peso collapsed and went from 1:1 to 4:1 overnight and for a time Argentina was cheaper than even Bolivia for those with Dollars or Pounds. That's what's driving the Dolar Blue rate up and is making Argentina a better deal daily for foreigners with U.S. currency.


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## TundraGreen (Jul 15, 2010)

vantexan said:


> Another country to consider is Argentina. It's expensive, but there's a development recently that could make a big difference. The gov't is mismanaging the country so badly that those with alot of Pesos are buying Dollars to offset inflation. The official exchange rate is a little over 5 to 1 but there's a black market that literally everyone who can are using called the Dolar Blue. Currently the Dolar Blue rate is a little under 10 Pesos to the Dollar and is expected to break 10 and may eventually hit 20. There's a currency exchange company called Xoom that will handle transactions for a small % if you have a U.S. bank account or credit card. You walk into various places where they can receive the money and usually have it in 15 or so minutes. If you have it sent to an Argentine Bank account it could take a week. There's a similar company that handles transactions for British citizens. Back in I believe it was 2002 or 2003 the Peso collapsed and went from 1:1 to 4:1 overnight and for a time Argentina was cheaper than even Bolivia for those with Dollars or Pounds. That's what's driving the Dolar Blue rate up and is making Argentina a better deal daily for foreigners with U.S. currency.


In my opinion, choosing a place to live based on short term fluctuations in currencies is a dubious strategy.


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## vantexan (Sep 4, 2011)

TundraGreen said:


> In my opinion, choosing a place to live based on short term fluctuations in currencies is a dubious strategy.


OK, how about Argentina is a huge country with some of the world's most spectacular scenery, is close to other interesting countries, has the world's best beef, very good Malbec wine, has near first world infrastructure in it's larger cities, and is home to one of the world's great cultural cities, Buenos Aires? And as long as their government mismanages the country Argentines with money will try to offset potential disaster by buying Dollars. And mismanaging the country is what Argentine gov'ts tend to do so don't see this situation as short term.


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## HolyMole (Jan 3, 2009)

TundraGreen said:


> In my opinion, choosing a place to live based on short term fluctuations in currencies is a dubious strategy.


I agree. As Canadians, we briefly considered Panama, but with their currency tied to the US dollar, we couldn't risk the fluctuations between the Canadian and US dollar, which have run anywhere from $0.85 to $1.10 over the past couple of years.


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