Thinking about living abroad, but still want to add to your bottom line? Read on to find out which countries to consider—and which you should skip.
Portugal is becoming more and more popular with tourists, thanks in part to well-priced direct flights from cities on the East Coast of the United States. Though this drives some costs up, Don Orban, founder and CEO of Midwest Retirement Advisors, says you might be surprised at how much money you could save by living in this country. Compared to other countries in Europe, Portugal has one of the lowest cost of living including rent, utilities, and food costs. “You can spend the afternoon at a local café for a handful of euros, where in other countries it could cost you twice as much,” he continues. “While Portugal has great infrastructure, its economy isn’t as developed as other places in Europe and also has lower wages, which contribute to the low cost of living. If you move to Portugal, you can expect to save a lot of money without even trying,” he continues. Find out the 10 best places to live for under $40,000 a year.
Worst: The Bahamas
When some people imagine their ideal destination for retirement, the bright, sunny skies and the opaque blue waters of the Bahamas instantly come to mind. But before you head south, Orban warns against how expensive island-living can be. Especially in the Bahamas, since it is one of the wealthiest of Caribbean countries. How come? It’s popular for tourists, which always increases the cost of living for locals. “Like other island countries, a number of goods must be imported; when you factor the cost of transporting the goods and value-added taxes, the price tags quickly rise,” he explains. In fact, according to one survey, the purchasing power of the average salary in the Bahamas is lower than New York City, Orban shares. “This means if you live in the Bahamas, the same amount of goods will cost even more than in one of America’s most expensive cities,” he explains. “It’s also possible that you’ll want to spend more time at the beach than working, which can make it hard to save money.” Find out the 15 top places around the world to retire.
Not only does Peru offer the metropolitan and beautiful city of Lima and ancient Inca wonders, including Machu Picchu, but you can also save a ton of money, according to Orban. “The cost of property is extremely low, so you could buy or rent a house for very reasonable prices,” he explains. And because the cities have reliable public transportation (or Uber!), Orban says most residents choose to go car-less, which can be a huge saving. “If you want to save even more money while living in Peru, perfect the art of haggling,” Orban says. “The traditional markets sell various foods and goods, which you may be able to get for a lower price if you haggle correctly,” he recommends.