13 Countries with Easy Citizenship for Retirement
In this article, we will take a look at 13 Countries with Easy Citizenship for Retirement. You can skip our detailed analysis and go directly to the 5 Countries with Easy Citizenship for Retirement.
Over the years, you have studied hard, worked exhaustively, paid your societal dues, and now you find that you have some time for yourself. How should these golden retirement years be spent, then? There might be practical reasons for a move abroad, including the need for a low cost of living, better healthcare, and other financial considerations such as low taxes. Alternatively, this could simply be an opportunity to seize the day and plan the next years with nothing but beautiful surroundings and novel experiences. With fast and easy access to this vast world, why not? Many exciting places are open for exploration, and numerous countries offer easy citizenship for retirement as well.
Older Persons Migration
Defined by the United Nations as individuals aged 60 or 65 and above, migration among older persons has gained significance over the years. Out of the 281 million international migrants, 12% fall into the category of 65 and over. Countries in oceania are estimated to have the highest share of senior migrants, accounting for 18.2%. Following closely are Europe (16.2%), Northern America (15.7%), Asia (8.2%), Latin America and the Caribbean (7.6%), and Africa (4.7%).
Many US residents are choosing to move abroad after retirement, citing various reasons such as the cost of living, healthcare expenses, and a desire for a diverse culture. According to the Social Security Administration, approximately 450,000 people were receiving their benefits outside of the US by the end of 2021. Among them, 38% opted for Europe as their destination. Several European nations offer a high quality of life at affordable prices, making them attractive to US retirees.
The increasing living costs in the US are putting pressure on savings accounts, prompting concerns about securing a larger nest egg for retirement. However, the idea of moving abroad has emerged as a solution to this problem, leading to a surge in US residents exploring countries that offer easy citizenship for retirees. This trend is not exclusive to the US; three-quarters of UK residents are also contemplating relocation due to rising costs in their country. A retired UK couple, for instance, needs about £43,100 annually, to maintain a moderate lifestyle in their home country.
Securing Your Nest Egg
While moving to countries with easy citizenship for retirement can be a great idea, having a healthy savings account and proper management is also highly desirable. Companies like Principal Financial Group, Inc. (NASDAQ: PFG), The Charles Schwab Corporation (NYSE: SCHW) and Wells Fargo & Company (NYSE: WFC) offer financial services, including retirement planning to assist individuals in securing their financial future.
Principal Financial Group, Inc. (NASDAQ: PFG) provides financial services and products to businesses, individuals, and institutions, including retirement planning. It stands out as one of the best-performing companies that can help many retirees manage their income more lucratively. Below are some comments from Principal Financial Group, Inc.'s (NASDAQ: PFG) earning’s call for the fourth quarter of 2023:
“We delivered on our ambitious outlook for the enterprise despite a wide range of macro issues, including significant geopolitical events and global inflation. These factors resulted in elevated market and interest rate volatility, which impacted investor risk appetite and increased allocations to cash and cash equivalents. Our diversified and integrated business model continued to prove resilient despite these challenges and generated robust fourth quarter and full year results. Starting on slide three, we reported $1.6 billion of full year 2023 non-GAAP operating earnings or $6.55 per diluted share. Excluding significant variances, earnings per share increased 6% over 2022, at the top end of our 2023 outlook. Our strong capital position and full year free capital flow enabled us to deliver on our capital deployment strategy. We invested for growth in our businesses and returned more than $1.3 billion of capital to shareholders through share repurchase and common stock dividends, nearly 90% of net income excluding exited businesses. As shown on slide four, we reported $441 million of non-GAAP operating earnings or $1.83 per diluted share in the fourth quarter.”
The Charles Schwab Corporation (NYSE: SCHW) is an American multinational financial services company that offers a range of services, including banking, commercial banking, investing as well as other related services like consulting and wealth management advisory services. Schwab Retirement Plan Services, a division of Charles Schwab Corp (NYSE: SCHW) has entered into partnerships with retirement solution providers Newport, an Ascensus LLC company, and Conduent Inc. This collaboration aims to expand their offerings in non-qualified deferred compensation and defined benefit plan services, potentially providing significant benefits for future retirees.
Wells Fargo & Company (NYSE: WFC) is an American multinational financial services company with a significant global presence. In the Q3 2023 investor letter from Davis New York Venture Fund, Wells Fargo & Company (NYSE: WFC) received praise for their resilience in withstanding the collapse of other banks:
“In spring 2023, a number of high-profile regional banks, none of which we owned, collapsed over the course of a few weeks. In contrast, the select, large banks we own, including Wells Fargo & Company, actually saw deposit inflows and increasing profits, reinforcing our thesis that high-quality financial services companies remain among the most misunderstood and attractive sectors of the market. This stress test models a dramatic recession—one meaningfully worse than the great financial crisis of 2008-2009. It includes a 3.5% decline in gross domestic product, a 10% unemployment rate, a 37% decline in residential real estate, a 40% decline in commercial real estate and a 55% decline in the stock market. The resilience and strength required to weather such an economic storm combined with proven economies of scale in branding and technology should drive DNYVF market share gains and growth for years to come. Trading at some of the lowest valuations in the market, our financial sector holdings—such as Wells Fargo & Company, deserve to be revalued upwards over time. In the meantime, increasing dividends and a shrinking share base create value while we wait.”
13 Countries with Easy Citizenship for Retirement
Methodology
To compile our list of countries with easy citizenship for retirement, we identified nations offering suitable retirement visas or equivalent visas for retirees to immigrate. Subsequently, we evaluated factors such as income, age requirements, physical presence criteria, and time to citizenship. The ranking was based on the minimum income requirements, representing the easiest path to citizenship after retirement. All income amounts are stated as the monthly minimum in US Dollars ($ USD). Please note that these income requirements have been calculated using exchange rates and are subject to change.
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13. Mauritius
Minimum Monthly Income Requirement: $1,500
Minimum Age Requirement: 50 years
Physical Presence Requirement: None at temporary residency stage (full 12 months after submitting citizenship application)
Time to citizenship: 7 years (5 years for Commonwealth citizens)
With a robust economy and welcoming citizens, Mauritius has gained popularity among expats worldwide. Boasting a warm climate, low cost of living, minimal taxes, English as the official language, and the allowance of dual/multiple citizenship, Mauritius is an enticing destination for retirees, particularly through its retirement visa program.
Upon meeting the 50-year age requirement and maintaining a monthly deposit of $1,500 in a local bank, retirees are granted a 10-year residence permit. Following three years of residency, this permit can be converted into a 20-year residency permit. After seven years of residency (or five for Commonwealth nations), retirees are eligible to apply for citizenship.
12. Chile
Minimum Monthly Income Requirement: $1,500
Minimum Age Requirement: No Age Requirement
Physical Presence Requirement: None at temporary residency stage
Time to citizenship: 5 years
This South American country offers Pensionado (pensioner) visas to retirees who can provide evidence of regular income, including pensions, rental income, dividends, or salaries, sufficient to support themselves and their families. An income of $1,500 per month puts this country in the list for countries with easy citizenship for retirement. Permanent residency can be attained in two years, and after five years of continuous residency in the country, with a substantial portion of that time spent in Chile, applicants become eligible for citizenship. However, it's important to note that a demonstration of Spanish language proficiency and passing a civic exam are also required. It is also one of the fastest and easiest countries to get second citizenship.
11. Mexico
Minimum Monthly Income Requirement: $1,415
Minimum Age Requirement: No Age Requirement
Physical Presence Requirement: None at temporary residency stage (180 days for citizenship)
Time to citizenship: 5 years
For those aspiring to retire in Mexico and enjoy their golden years, the Mexican Retirement Visa or Mexican Permanent Resident Card is the most popular avenue. The only financial requirement is proof of a monthly income of at least $1,415. This program allows expats to obtain citizenship in approximately 5 years. While no physical presence is mandatory during the residency stage, the path to citizenship requires a stay of 180 days a year in the country. An exam testing knowledge related to Mexican culture, history, and culture is required, though retirees above 60 would be exempt from this requirement.
10. Ecuador
Minimum Monthly Income Requirement: $1,350
Minimum Age Requirement: At least 65 years
Physical Presence Requirement: 275 days a year at both permanent and temporary residency stage
Time to citizenship: 4 years
With its low cost of living and recognition of dual citizenship, Ecuador's Temporary Residence Visa for Retired Individuals (Jubilado) has become an attractive option for many retirees. To obtain a residency permit, applicants need to demonstrate a monthly income equivalent to three times that of the Ecuadorian minimum wage, which is around $1,350, making it one of the countries with easy citizenship for retirement.
The path to both permanent residency and citizenship is relatively swift in Ecuador, taking 2 and 4 years, respectively. However, it's important to note that the country has a physical presence policy requiring 275 days a year for both temporary and permanent residency. Additionally, proficiency in the Spanish language and an understanding of the country's culture are also prerequisites.
9. France
Minimum Monthly Income Requirement: $1,300
Minimum Age Requirement: No Age Requirement
Physical Presence Requirement: None at temporary residency stage (183 days to qualify for PR)
Time to citizenship: 5 years
For non-EU residents seeking to settle down in France after retirement, the initial step is to apply for a long-stay visa, as there is no specific retirement visa. Retirees must demonstrate their financial ability to support themselves without the need to work. This requirement can be fulfilled with as little as $1,300, thereby, placing France as one of the countries that provides easy citizenship for retirement.
Following the completion of a legal residency period of five years, during which a physical presence of at least 183 days is required, the applicant becomes eligible for permanent residency. Subsequently, the retiree can apply for citizenship through naturalization. Proficiency in the French language, an understanding of the culture, and de facto legal residency in the country for at least 5 years are necessary prerequisites for obtaining citizenship.
8. Nicaragua
Minimum Monthly Income Requirement: $1,000
Minimum Age Requirement: 45
Physical Presence Requirement: None (183 days a year for permanent residency)
Time to citizenship: 4 years
Similar to Chile, Nicaragua also provides the Pensionado visa, which is renewed annually, serving as a temporary residence permit. Retirees can achieve permanent residency in 3 years and citizenship in 4 years, as long as they can demonstrate their qualification for the required monthly amount through a pension or other means. For citizens of Spanish, Guatemalan, Honduran, and Salvadorian origin, citizenship can be attained after only 2 years of residency. However, it's important to note that dual citizenship is not allowed unless Nicaragua has a treaty with your country of origin.
7. Panama
Minimum Monthly Income Requirement: $1,000
Minimum Age Requirement: 62 for men and 57 for women in Panama. Anyone not if retirement age can apply but will not be eligible for to receive full benefits
Physical Presence Requirement: at least one visit a year
Time to citizenship: 5 years
The Panama retirement visa makes it one of the countries with the easiest citizenship options for retirees. Applicants need only prove their ability to generate a $1,000 monthly income from a guaranteed source, such as a pension, annuity by a foreign government, or insurance company. The good news is that an indefinite residency permit would be granted immediately upon approval. A continuous residency of five years would then make one eligible for citizenship. It's important to note that Panama does not recognize dual citizenship. Certain countries in the Ibero- American community have reduced time period for citizenship.
6. Costa Rica
Minimum Monthly Income Requirement: $1,000
Minimum Age Requirement: No Age Requirement
Physical Presence Requirement: 4 months per year
Time to citizenship: 7 years
Costa Rica is a popular choice for retirees worldwide, particularly due to the tax benefits, where foreign income of residents is not taxable in the country. The Pensionado visa provides a three-year path to permanent residency for individuals who can ensure a lifetime monthly income of more than $1000. This income can come from sources such as a government pension, annuity, private pension plan, or a similar form of guaranteed income. Citizenship can be attained by legally residing in the country for 7 years and becoming proficient in Spanish.
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Disclosure: None. 13 Countries with Easy Citizenship for Retirement is originally published on Insider Monkey.
