Best Places to Retire in Nicaragua
Nicaragua is a small, poor, and developing country in Central America that offers more inexpensive retirement opportunities than the U.S. or Europe. The climate is warm year round and there are several towns and cities where you could join other expatriate retirees. Granada, the 4th largest city in the country, is an interesting place to retire. So is San Juan del Sur, a small fishing village popular with retirees.
Residency. Becoming a legal resident will be easier than in most countries. In most cases you need to apply and provide proof that you can support yourself, a current passport, photos, and (sometimes) with a medical certificate. You can probably get a visa for 90 days.
Crime and Security. The U.S. State Department rates Nicaragua as "critical" for crime and residential security. There are pickpockets and robberies of tourists. Driving at night is considered very hazardous.
Taxes. If you live in Nicaragua you can be taxed on the income you earn there. Investment income such as dividends are taxed at a lower rate (10%). Out of country income is generally not taxed for foreign retirees. There is a VAT tax of 15%
Medical. US Medicare is not honored in Nicaragua, nor is Medicare. However medical care is good in the larger cities and relatively inexpensive. Almost everyone should have some kind of medical insurance. It is advisable to speak some Spanish in order to make sure you get the best care.
Cost of Living. Nicaragua is a very inexpensive place for North Americans and Europeans to live. The numbeo.com price comparison (CPI plus rent) shows Nicaragua with an index of 52, vs. the U.S. with 57 and UK at 60. The Local Purchasing Power Index shows 32 for Nicaragua vs. 120 for the UK and 139 for the U.S.