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Can you live in Costa Rica on $20K/year ?

Can you live in Costa Rica on $20K/year ?

Dear Miss Move Abroad,

I want to thank you. I read your book [Living Abroad in Costa Rica]  in December of 09. At the time I was going through some rough times (death and divorce), and I decided to travel to Costa Rica to just get some relief. I was dazzled by it. I was there seven days, the Central Valley (San José and the Arenal area), and the mid-Pacific area (Jacó, Quepos, Manual Antonio), and you’re right, it’s a little bit of paradise.

I truly want to live there or try it. I live in Minnesota and except for summer cannot stand it. At present I work as a metal worker. I am a shop foreman in a steel/aluminum plant with 30 men under me. I have always been a man of the left (social democrat, democratic socialist, trade union type). I want to simplify my life, I am done with the rat race, and I just cannot do it any more. I want to live intentionally. If you know any community or communal style living, like a religious or spiritual group, I may be interested.

I am 58, and have about 4 years before I can get Social Security, but have a bit of money in my 401k plan (I lost a fair amount in the stock exchange). How much would I need a year to live, renting a house somewhere in a town outside San Jose or around La Fortuna? I have in mind a smaller two-bedroom home with a small yard for my Collies. Could I find something for $500 – $600 a month? I would also need to buy into the national health insurance; would that be about $60.00 a month? I own two motorcycles–I would ship both to Costa Rica, also mountain and racing bicycles.

Could I do it all on $1,600 a month, or about $20,000 a year?

Thanks,

Dan

To read my detailed answer to Dan, and to see the added suggestions of many expats living in Costa Rica, head on over to my Costa Rica blog.

Photo of footbridge on Costa Rica’s Osa Peninsula by David W. Smith.

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Seven steps to moving abroad

Seven steps to moving abroad

by Rhiannon Davies

A global survey conducted by Gallup between 2008 and 2010 (which interviewed adults from 146 countries housing more than 93% of the world’s population) reveals that 630 million people from around the world would love to move abroad if they had the chance.

That’s quite some statistic!

It proves that the world has become a much smaller place, and one so many more of us really want to explore in-depth.

So, if you have a yearning, burning desire to move abroad and explore new horizons, here’s how to realise your dream in 7 easy steps.

Step One – Identify Your Country Choice Carefully

You may have been seduced by the sunshine in your latest holiday haunt, but fine weather is not sufficient reason to commit to a brand new life living in a given nation.

Your chosen country needs to tick many boxes – can you legally live (and work) there, is it safe, is it affordable, is it culturally and linguistically accessible?

Research a chosen nation very carefully before you commit to calling it your new home abroad.

Step Two – Tie Up All Loose Ends

Don’t just jet off at the drop of a hat.  For one thing it will make it much more likely that you’ll have to return at a later date to tidy up your affairs.

It’s much better if you plan carefully before leaving your current country.  Cancel services and rental contracts, inform the tax authorities of your decision, say proper goodbyes to family and friends and make sure you won’t have to return home in a hurry to cancel something silly like a newspaper subscription!

Step Three – Remember That Money Matters!

Money makes the world go round – what’s more, money is the key enabler to ensuring your success living abroad in a new nation.

You need to be able to afford the transportation costs overseas, you then need to be able to afford to set up a new home.  Going forward you need to ensure you can afford to live a decent lifestyle based on the local economy in your new country.

Think about how much you have saved up, how you have your money invested, whether you can work locally and if local wages will be sufficient to enable you to live at least a decent quality lifestyle abroad.

Do NOT ignore the many financial aspects of relocation – getting money matters wrong accounts for the majority of expats who have to give up their dream and head home.

Step Four – Don’t Burn Your Bridges

No matter how happy you will be to tell your boss to stick his job, and no matter how glad you will be when you never have to see your neighbour/ex-spouse/work colleague again…keep in mind that you may one day decide to return home!

Even the most dedicated expats can sometimes change (or be forced to change) their mind about their permanent relocation overseas.  So, don’t burn your bridges back home…just in case.  [Read more about not burning bridges as you plan your escape.]

Bite your tongue and just be quietly satisfied that you’re in pursuit of your dreams whilst all those around you remain stuck in one place.

Step Five – Become a List Maker

There is an awful lot to practically organise ahead of your relocation; it pays to draw up a checklist so that no element of the relocation is overlooked.

List what you need to do in order to gain permission to relocate, assuming you need to apply for a visa to move to your chosen nation.

Detail all the loose ends you have to tie up at home such as handing in your notice at work and on your home rental contract, amending insurance policies, applying for a new passport for the family pet, and getting inoculations done perhaps.

List down the elements of your new life that you have to get sorted in advance of your move – such as finding a home to rent overseas, if only for the short-term while you settle in.

In spending a considerable amount of time dedicated to making your unique list, you will ultimately save yourself time and perhaps even money and delays, because you will be able to walk easily along the path to emigration by following the demarked stepping stones on your checklist.

Step Six – Be Adaptable

The people who find it easiest to settle in overseas have the most adaptable personalities!  No matter how well you plan your move, no matter how clearly you can visualise your new life, elements of your plan will change, and you will come across surprises and even challenges as you integrate overseas.

Roll with the changes and embrace the challenges; become adaptable and flexible if you want to thrive in your new environment.

Step Seven – Set Your Sights and Commit

With your checklist written and your mind clear about the country you want to live in, set your sights firmly on achieving your dream of moving abroad.

Those who set goals in life are statistically far more likely to achieve their ambitions – fact!

So, see moving abroad as your goal, set your sights on making it happen, and marvel at how the elements of your life will stack up and come together thanks to your concerted efforts.

In no time at all you will have moved abroad and be living the lifestyle of your dreams.

Rhiannon Davies  is the editor of www.ShelterOffshore.com, a website dedicated to those living abroad.

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Panama expert on pets, Walmart, & traveling as a single woman

Panama expert on pets, Walmart, & traveling as a single woman

An aspiring expat asks Miriam Butterman, author of Living Abroad in Panama, about fast food, small dogs, and relocating as a single woman.

Q: I have been talking my mother into retiring in Panama . I just bought your book and received it yesterday. I am through half of it and already and skimmed the rest so far… but still have questions.  Are there any fast food chains there such as McDonald’s or KFC?  And for shopping I didn’t see any names of stores I have heard of for basic shopping. I see they have a mall, but what about maybe a WalMart?

I read about pets but have heard many horrific stories contrary to what you wrote about… so for the record, would our dogs be in quarantine or taken from us at any time? We have small dogs would they be in danger in the yard with snakes and large birds?

Also I really love your book so far and am very excited about finishing it. I am ecstatic about moving to Panama and plan a scouting trip next Spring.  I will be traveling alone (female)– how safe is it there to travel alone and do you have any connections for me?

Miriam Butterman answers:

First of all, congratulations for asking some pretty significant questions with relation to your daily life, as this could be your everyday life soon and you will want to be comfortable at every minor level.

I think the first thing you have to understand about moving to Panama is that you are not so much moving to the “sticks” as you think you are. There are plenty of good restaurants that serve American fare, without even having to go to the fast food option (I’m a health nut). If you feel safer with familiar food, there are American chains such as TGIF’s and Benniganns in Panama City. There are  also a lot of McDonald’s and KFC;  Wendy’s is a local favorite and Taco Bell arrived  in 2009. Still, Panama has some great original burger joints, and many other options for all kinds of ethnic fare, including delicious Panamanian food, which is usually grilled fish or meat, (they love chorizos — sausages). The El Rey, Super 99 and Riba Smith grocery stores have plenty of U.S products available. You can stock your kitchen with all the foods you love from home, and you won’t blink an eyelash to being abroad. (Still, be adventurous and shop for some local stuff, Panamanian food is delicious!)

As for shopping, you won’t be at a loss for anything. The malls have a lot of WalMartesque stores. It’s almost overwhelming.  Price Costcos (Price Smart in Panama) has a big presence around Panama City and other major cities in the country. Do-It Center has a big chain of hardware stores in Panama too. Novey and Rodelag are two more big hardware/home stores.

I haven’t shipped my dog to Panama, only from Panama, but I have heard that all animals coming from the US  do have to be quarantined, and often times this can be a home quarantine. I don’t want to give you misinformation, so I highly suggest calling Panama Pet Relocation when you are there, or emailing them. Your dog will not be with any wild snakes or birds.

Traveling alone is okay, as long as you are smart and prepared with your transportation arrangements and your arrival info on hand. In the interior, you might want to be a little more careful (women especially), but if you have your destination known and a trusted person to contact when you get there you should be fine.

You really need to know what you want and where you are going before you get there. In Panama, you can be adventurous, but I don’t know how experienced a traveler you are. If you rent a car and drive towards the Pacific beaches, you’ll be fine. Start with locations such as the Santa Clara beach just off the Pan American Highway, the road is one long highway and you can’t get lost. The entrance to the beach is clearly marked about one hour and 25 minutes west of Panama City.   You can’t miss it and it is always populated. From there you’ll begin talking to others and you’ll start to get your bearings and probably some great recommendations while on the road. .

Scout out carefully where you want to be and what kind of a community you are looking to be around. Do you want a gated community, with a lot of expat presence, or do you want to get to know other Panamanians and /or live more freely in nature, along the beach or in the mountains? These are questions you have to ask yourself before, during, and after your scouting trip.

I think my book does a pretty good job of detailing each of the prime areas to live in for expats and how you might go about doing that. As for contacts, I think the best thing you can do is to contact a realtor and from there you will start to unravel some connections. In Panama City, it is a good idea to start off at the NY Bagel Cafe  just off Via Argentina, as a lot of expats hang out there.

If you are looking to settle in the mountains or the interior within two hours of Panama City, you might want to stop at a bed and breakfast called Los Nances in El Valle. It’s a cute hotel on the side of the valley and the owners (Bill and Adam Brunner, father and son) also have a lot of real estate knowledge. The hotel has been under renovation for a while, and their website is not up, but the telephone is (507) 983-6126. Also see  Living Abroad in Panama.

Best of luck on your scouting trip.

Photo of hammock by Miriam Butterman

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Shipping stuff to Panama

Shipping stuff to Panama

If you’re moving to Panama (or anywhere), it makes sense to pare down. But if after the garage sale and the dump run and donating your clunker to your nephew, you’ve still got stuff to ship, here’s some firsthand advice from Our Man in Boquete, who relocated to Panama in late 2009. Scroll to the bottom for advice on shipping cars, though Our Man’s basic advice is: Don’t Do It!

“First, if you already have a pensionado visa granting you residency in Panama, you may import US$10,000 worth of used household goods duty-free. If you don’t have residency, you’ll have to pay customs duty on everything. Basically it’s 5% as far as I know. It depends, however, on the discretion of the customs guys to appraise the value of the goods, so it’s an open field (and subject to how much you’re willing to bribe). It doesn’t help to show receipts from where you bought the stuff; they are free to appraise whatever they want.”

Heading for Chiriqui? Arrange for customs clearance in David

“Try to avoid having customs clearance done in Balboa harbor (that’s the harbor at the Pacific end of the Panama Canal) or in Colon (at the Caribbean end of the canal). If you’re intending to live anywhere in the province of Chiriqui [like the expat haven of Boquete], ask the shipping agent to have the container dispatched to David [after it goes through the canal] for customs clearance. To achieve this it is very important to have the destination in the Bill of Loading read: “To____(the place where you’re going to live) via David” Insist on this with your U.S. shipping agent and/or the local agent contracted by the U.S. shipper.

“There’s a very small customs office near the David airport, and it’s much easier to get the stuff through customs here. There’s a lady named Juana who’s in charge of imports (Spanish speaking only), and a small “regalo” (gift) passed discretely via handshake helps smooth the procedure considerably.”

Don’t sit on your hands

“It is also very important and helpful to be present in person a couple of days before the shipment is due to arrive in port [Balboa or Colon], and to contact the local agent directly. Get involved — don’t leave it to the discretion of your agent! There may be many kinds of problems showing up anytime…and for every day the container stays in the harbor they’ll charge you an additional $125. Again, having the container shipped to David for customs clearance avoids this possible storage problem since the container will only stay in port for the minimum required time before going on to David. Also, David customs most likely won’t charge you exotic fees like “Quarantine exemption fee for wooden furniture” or “Fee for unusually extensive customs inspection” that might (and did, for people I know) occur at those other customs offices. It goes without saying that one should be also present at the customs office where clearance will take place.”

(Not) importing cars into Panama

Our Man in Boquete strongly advises not importing cars to Panama. “From everything I’ve heard,” he writes, “it’s a nerve-wracking and costly procedure. There’s the appraisal problem, where they don’t give a damn about what you paid for your car in the U.S. They will also keep your car(s) in custody for as long as all the necessary paperwork needs to be finished, and that can take months!

“And they’ll charge you storage costs for each and every day.

“If you’re willing to cough up a couple of grand it may speed up the procedure but why do this? Cars in Panama are reasonably priced and readily available, so unless you’ve hung your heart on a very special car it really doesn’t make sense to import a car here.

“One more note: Although by law you’re entitled to import a car duty-free every two years if you’ve got a pensionado visa, hardly anybody is doing it. Why not? Well, although you won’t have to pay customs duty, they’ll charge you a 5% “sales tax” based (again) on their free-ranging appraisal of the car’s value, plus storage fees and the whole shebang.”

Parting advice

“Basically, I’d advise to scale down the amount of stuff to be shipped. Moving to another country also is some kind of a new beginning, so why carry all that old baggage with you?”

Miss Move Abroad agrees.

Posted in before you go7 Comments

Leaving your job and country: Don’t burn bridges

Leaving your job and country: Don’t burn bridges

When you decide to move abroad, it’s tempting to do a little bridge burning before you go. It can be satisfying (if childish) to say the equivalent of “Take this job/relationship/country and shove it.” But remember, you may want to come back to your job, or, even better, to freelance for your former employer while abroad. Think of the job you’re leaving not just as something you’re giddy to be rid of, but a source of invaluable contacts (among your peers if not your bosses).

Lifehacker has a short article on how to leave a job gracefully, with an interesting thread of comments from people who’ve left jobs well and (more commonly) with some clumsiness. I know I’ve been guilty of clumsiness and bridge-burning—it seems to go hand-in-hand with being a serial relocator. Most of us tend towards one of two poles: the smoother-over, who never wants to make any kind of break or change, and the bridge burner, who’s always itching to strike that match.

Over the years I could have used some of the following tips, adapted from Sandra Naiman’s book “The High Achiever’s Secret Codebook: The Unwritten Rules for Success at Work”:

  1. Give two weeks’ notice. Both your past and future employer will consider it a plus.
  2. Explain that you are leaving because of growth opportunities, not due to dissatisfaction, even if it’s not true.
  3. On your last day, write your boss and colleagues a thank you note about how much you enjoyed working with them.
  4. Offer to train your replacement, and if possible, be available after you leave to answer questions.
  5. Make sure your work is caught up before you leave and write notes, when relevant, to guide and inform your replacement.
  6. If you have external customers or colleagues outside of your company or organization, work with your boss on how to transition them to your replacement.
  7. When telling customers or external colleagues you are leaving, say only good things about the company and your experience there.
  8. Let people know you only want to leave the job, not the relationships you have built.

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Shopping for a new life on a two-week vacation

Shopping for a new life on a two-week vacation

It’s the last day of your vacation. Far from being ready to go, you find yourself wondering: What if the flight home leaves and I don’t?

If you seriously consider what it would be like to stay behind every time you travel, you may be a closet expatriate for whom a week at the beach or 10 days in Europe just don’t cut it anymore.

You find yourself dreaming longer-term dreams: a top-floor apartment in an old-world capital. An open-ended stay in a ramshackle village on some forgotten coast. Opening a bed-and-breakfast in a mountain town.

More and more of us are doing it. Between 1966 and 1996, the number of Americans living abroad grew from 70,000 to 4 million, according to the U.S. State Department. By 2006, the number was an estimated 6.6 million. And those are the official counts. Other expats are living under the radar, having dropped off the map.

If you’re past the dreaming stage and want to check out a place for its long-term potential, here are some tips on how to do it.

Stay put. If you’re thinking of moving to a particular place, you’ve probably been there at least once or twice. This time, choose the town or city you liked best and stay there. Rent a villa, find a cheap hotel with a kitchenette or stay with friends.

If you dash around too much you’ll never get a sense of the country’s rhythm. And rhythm is all. It may be love at first sight, but if the beat of the place doesn’t move you, this affair won’t last.

Do everyday things. Forget the monuments, the guided tours or running those Class IV rapids. Instead, get a haircut. Do your laundry. Go with the woman next door to pay her electric bill. Shop for food and make dinner. Gossip with the man selling fennel root. Take in a church service or go to the all-you-can-eat fundraiser for the town’s fire department.

If these activities are difficult because you don’t speak the language, that tells you what you would be up against if you moved there without some language study.

Sit and watch. Find a good perch at the center of it all, and stay there. Have some props — a drink and a book — to make you feel less conspicuous. Practice the lost art of noticing. Does everything shut down between 2 and 5 p.m.? Does the town consist mostly of older women, the men and younger people having fled to the city in search of work? Is it so hot that people work the edges of the day, leaving the midday for naps in the shade?

Take photos of mundane things. The state of the roads. Highway signage (or the lack of it). The prices on menus. What’s available at the local market. The lines at the bank. The cleanliness of the beaches or streets or fields. The smiles or scowls on locals’ faces. The wildlife and insect populations.

Back home, these shots will remind you of the quality of everyday life in your dream destination. Memory plays tricks on us, and once you get home the trip will soon be shrouded in a fog of generalization. We tell friends the trip was life-altering, but we have forgotten (or altered) the particulars. This will help.

Talk to other expatriates. Find them in the market, at Internet cafes and on that traditional expat perch, the bar stool. Ask them when and why they came to be there and how it’s turning out for them. And then listen.

Try not to let your own excitement amplify their positive comments or mute their complaints. Nod when they say making the move was the best decision they have ever made. But also really hear it when they tell you it has taken three years to get permission to renovate the old castle they bought for a song. Or that they’re so starved for English they go out of their way to use the one bilingual ATM in town, just to savor the words, “Would you like a receipt?”

Wherever you go, do some of the very non-vacationy things listed above and you may come back knowing that, yes, you really do want to make the big move and soon. Or you may return with a newfound appreciation of home. Sometimes all it takes to value what you have is to seriously think about giving it up.

And consider what author Alain de Botton discovered on a trip to Barbados. “A momentous but until then overlooked fact was making itself apparent,” he wrote in “The Art of Travel.” “I had inadvertently brought myself with me to the island.”

This article by Erin Van Rheenen first appeared in the Los Angeles Time.

Photo by Robert Doisneau, 1966

Posted in before you go, news1 Comment

Swine flu & coups: travel alerts vs. travel warnings

Swine flu & coups: travel alerts vs. travel warnings

When the U.S. State Department issues a swine fly alert in Argentina, say, or a warning against travel to Honduras, just what does that mean?  What is a Travel Alert? How does it differ from a Travel Warning? And how should they affect your travel and relocation plans?

Travel Alerts
U.S. State Department Travel Alerts refer to short-term conditions (like flu epidemics) that pose risks to the security of U.S. citizens (and others, of course, but the State Department concerns itself with U.S. citizens). Their web site clarifies the Travel Alert designation further:

“Natural disasters, terrorist attacks, coups, anniversaries of terrorist events, election-related demonstrations or violence, and high-profile events such as international conferences or regional sports events are examples of conditions that might generate a Travel Alert.”

The Alerts have expiration dates. For example, a Mexico alert, which centered around crime and violence (especially along the U.S.-Mexico border), expired August 20, 2009 (though alerts may be renewed at their expiration dates, as this one was).

Just because there’s a Travel Alert in place doesn’t mean you should necessarily cancel your trip. In the case of Mexico, for instance, even the Alert itself allows that

“Millions of U.S. citizens safely visit Mexico each year (including thousands who cross the land border every day for study, tourism or business),” but “violence in the country has increased recently. It is imperative that travelers understand the risks of travel to Mexico, how best to avoid dangerous situations, and whom to contact if one becomes a crime victim.”

In early 2010,  these countries were on the State Department’s Travel Alert list: India, the Philippines, Malaysia, Niger, Germany, Tanzania, and Mexico.

Travel Warnings

Travel Warnings, on the other hand, are more serious, and of special interest to those considering moving to that country. Warnings  “describe long-term, protracted conditions that make a country dangerous or unstable,” according the State Department. The Warning can also mean that the U.S. Government is hindered in helping Americans living or traveling in that country due to the closure of an embassy or consulate or because of a reduction of its staff.

The Warnings are useful in that they often give very specific information about problems and potential problems. In the case of Pakistan, for instance, we learn that

“Since 2007, several American citizens throughout Pakistan have been kidnapped for ransom or for personal reasons. Kidnappings of foreigners are particularly common in the Northwest Frontier Province (NWFP) and Baluchistan. In 2008, one Iranian and two Afghan diplomats, two Chinese engineers, and a Polish engineer were kidnapped in NWFP. In February 2009, an American UNHCR official was kidnapped in Baluchistan. Kidnappings of Pakistanis also increased dramatically across the country, usually for ransom.”

Still, a country being on the Travel Warnings list doesn’t mean that you should never in a million years consider going there. Independent travelers will use the warnings and alerts as starting points, seeking more information from a variety of sources. For example, I was planning a trip to Nepal a year ago (there have been Travel Warnings for Nepal for several years now). I read the State Department’s warning (paying close attention to which parts of the country were highlighted as problematic), sought out books and articles about the country and its politics, and spoke with people who’d been there recently. After all my research I concluded that I still wanted to go. Health problems made me cancel that trip, but I would have gone and still hope to go, Travel Warning or not.

And the director who recently made a movie about Surfing Gaza obviously didn’t let the Gaza and West Bank Travel Warning deter him.

Travel Warnings have no expiration dates—presumably the State Department monitors the situation and removes the warning when conditions improve.

As of early 2010, these countries were on the State Department’s Travel Warning list: Haiti, Pakistan, Sudan, Somalia, Mauritania, Chad, Mali, Sri Lanka, Nepal, Algeria, Colombia, Guinea, Lebanon, Cote d’Ivoire, Philippines, Democratic Republic of the Congo, Eritrea, Central African Republic, Israel, the West Bank and Gaza, Kenya, Afghanistan, Burundi, Nigeria, Haiti, Iran, Yemen, Saudi Arabia, Uzbekistan, Iraq, Georgia, and Syria.

Posted in before you go, travel health & safety0 Comments

10 best places to live in the US

Albuquerque made it onto US News' Top 10 Places to Live list

Albuquerque made it onto US News' Top 10 Places to Live list; photo by Helen Vanderbeck

Sometimes a move across the country can be as energizing (and feel almost as exotic) as a move across the world.

US News & World Report, the master of lists—top colleges, top doctors, top places to get bacon ice cream—just released their Top 10 places to live in the US. Their choices often make you go “huh?” but at least they make you think about how you’d compile your own list.

They say they “looked for affordable communities that have strong economies and plenty of fun things to do.” Here’s their list:

1. Albuquerque, N.M.
2. Auburn, Ala.
3. Austin, Texas
4. Boise, Idaho
5. Durham, N.C.
6. La Crosse, Wis.
7. Loveland, Colo.
8. San Luis Obispo, Calif.
9. St. Augustine, Fla.
10. Upper St. Clair, Pa.

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