Vietnam has long been known as a bustling and affordable place to live, but for many Americans, the idea of moving to Western Europe is often deemed too expensive. However, it may come as a surprise that most European countries are actually cheaper to live in than the United States. In fact, moving to certain European countries can allow you to optimize your taxes, lower your cost of living, and maintain your current lifestyle without having to downgrade. Today, we will discuss some of these countries that offer a soft-landing destination for those who want to live abroad without experiencing too many cultural differences.
While we highly recommend Vietnam as a fantastic place to live, we recognize that it’s not for everyone. Some people may find the culture and lifestyle too different to adjust, and the lack of a retirement visa may deter them from moving there. For those who prefer to stay closer to the United States, find Asia or Latin America intimidating, or Eastern Europe unappealing, there are still great alternatives that provide a similar lifestyle, values, and culture.
Want to know more about ways to lower your cost of living, maintaining a good lifestyle? Check out the latest video that we made about moving outside the United States to get more for your bucks. In this video, we review different countries you can go to where the cost of living is more affordable. We also provide information on how to do it and lower your taxes at the same time.
Before we dive into these alternatives, let’s review the cost of living in the United States. The average cost of living for a family of four in the United States is around $3,500. While this cost can vary depending on whether you live in expensive cities like New York or San Francisco, it’s still a considerable amount. So why spend your money to live in a place that is very expensive, pays higher taxes, and has safety concerns?
Portugal: A Soft-Landing Destination for Americans
One of the best alternatives to the United States is Portugal. Portugal is a very popular place for Americans and people from all around the world. The average cost of living for a family of four in Portugal is about €2,000, which is almost half the cost of the United States. Of course, the cost of living may be higher in big cities like Lisbon or Porto, but it is also cheaper in smaller towns and rural areas. According to Forbes Magazine, Portugal is ranked #1 in the cheapest countries to live in, with an average cost of living for a single person of about $1,700 per month.
Cost of Living in Portugal: Lower Taxes and Affordable Lifestyle
Apart from the low cost of living, Portugal is also ranked #3 among the safest countries in the world by Global Finance magazine, with a low crime rate and safe environment for families. Additionally, Portugal has a popular golden visa program that allows you to live in Portugal and the Schengen area for as long as you want, with only a requirement of one week per year. You can work towards citizenship while doing that and move your tax base to Portugal.
Portugal Golden Visa Program: Benefits and Requirements
Portugal is also a member of the European Union and is well connected to other parts of Europe by air, road, and sea, making it easy to travel, work and potentially live in other Schengen countries while under the Portugal Golden Visa. Furthermore, Portugal has a tax program that can significantly lower your taxes to a single-digit rate in many cases, or even tax-exempt in some instances. The Non-Habitual Residence (NHR) tax status is available to Golden Visa holders, which offers a flat tax rate of 20% to 0% on certain types of income. This program is ideal for high net worth individuals who want to optimize their taxes and potentially save a considerable amount of money.
NHR Tax Status: Ideal for High Net Worth Individuals
To qualify for the NHR program, you must not have been a tax resident in Portugal in the previous five years and need to become a tax resident in Portugal under the Golden Visa program, even if you don’t live in Portugal full time. If you need help planning your tax and cost in Portugal, our team of experts can advise you on that. With experience working on citizenship, we can confidently advise you on the tax and cost details to help reduce your budget.
Finding the Perfect Country to Fit Your Lifestyle and Budget
There are many affordable and safe countries to live in outside of the United States. Portugal and Mexico are just two examples of countries that offer a lower cost of living, great healthcare, and a high quality of life. With the right planning and research, you can find the perfect country to fit your lifestyle and budget.
