What advice do overseas retirees have for others considering retiring abroad?

"To my mind there are many, well known reasons for retiring as an expat in Colombia, but it would be prudent to not overlook some disadvantages that may, sometimes apply.Firstly, whilst your pension incomes when you first arrive in Colombia may make you feel very comfortable in comparison with that you enjoyed in your "home" country. However, beware; this initial advantage may (will?) erode over time. The rates of inflation in your "home" country and Colombia are usually very different so your COP based living costs will increase much faster than your (say) US$ based living costs in the USA. Unfortunately, this differential in inflation rates links directly to your pension incomes which will normally be based on inflation in the USA. Result, your COP living costs are increasing at a faster rate than your pension incomes. In my case, this has been a significant factor over the 20 odd years I have been living in Colombia and my initial "comfort" level has gradually been decimated. Of course, this disadvantage can (will?) be offset by the relative strength of the US$ to the COP, but this can be very variable and, in any event, the US$’s relative strength may be useful in this "costs" context, but it will be prejudicial if you have Colombian tax liabilities arising on your US$ pension incomes.So, the other factor to take into account is your liability to Colombian taxes. If you intend to live in Colombia, the famous 183 day rule on determining where you are deemed a tax resident will apply. This is a very complex and much debated factor which very few people, me included, do not fully understand. What is sure however is that the higher graduated tax rate levels will quickly impact any Colombia tax liabilities. For instance, if you are deemed a resident of Colombia for tax purposes, your USA based incomes will very quickly attain the highest tax rates in Colombia (say 35%) once your USD incomes are converted to COP. You could, very quickly end up being taxed at high rates in Colombia, whereas your equivalent taxes in the USA were nil, or very little. The above is just the darker side of the Pension Rainbow; there are plenty of good factors to add flavor to the overall taste," mentioned another expat when asked about moving to Colombia.

"One idea... I DID discover from the Social Security office is, that IF you are able to keep a US Bank Account & have your SS deposited THERE... you will NOT have to worry about this "Are You Still Alive" document they send out every few years. This was a HUGE concern for me... from reading all the Blogs, I was terrified that I would MISS receiving this document, you only have a month or so to return it & if they don't receive it, YOU'RE DEAD & have fun getting THAT reversed. I guess the last thing I think. I'm thinking that a lot of MY retiring process to Cali, Colombia is easier than the average person in that I have my Colombian husband. I have been able to more easily accomplish things because of our marriage. Good luck & if you decide against Colombia? My advice is to NOT rule out someplace... the rewards are amazing!!," commented one expat who made the move to Cali, Colombia.

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We have over 10 years of experience helping foreigners obtain visas, invest, and do business in Colombia. Take the stress out of immigrating to Colombia by working with an experienced, bilingual immigration attorney.
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