Author:  Maria Alfano

Everyone knows about Costa Rica and Panama but did you know about these 3 affordable places to retire in Central America?  There are more than just two countries to consider when planning your retirement abroad.

When retiring in another country, ex-pats need to keep in mind that they are going to a foreign place, with foreign laws, and foreign customs.  Things will not be as they were in your home country.  There will be a period of adaptation.  For example, when booking an appointment for service in your home, the appointment may not happen at the expected time, if it happens at all.  Becoming acclimated to their way of life can be a little challenging if you don’t keep an open mind.

3 Affordable Places To Retire in Central America

Central America is made up of 7 countries.  Two are already pretty popular with ex-pats but there are 3 other countries that are up-and-coming places to retire to.

Honduras

Honduras has a population of 10.1 million people of which 90% are Mestizo (European and Amerindian ancestry) and is the 2nd largest country in Central America.  It is flanked on 3 sides by Guatemala, El Salvador, and Nicaragua. The amazing coastline of the Caribbean Sea makes this a haven for beach lovers.  The mountains provide the landscape with additional beauty.

Honduras is known for its coffee, cotton, and bananas.

Pros of Life in Honduras

• Fresh, organic produce
• Great weather – you can count on 78 to 89 degrees Fahrenheit most of the year.  October through January is considered the cold months.  Temperature can dip as low as 59 degrees Fahrenheit in the mountain regions
• Foreign income is not taxed – working remotely as a digital nomad, writing a blog, or receiving rental income from properties in the US, Canada, and UK (for example) is considered foreign income and is not subject to Honduras taxation
• There are some really safe destinations you can travel to including Copan Ruinas, Gracias Hot Springs, Pulhapanzak Waterfalls near Lake Yojoa, and more.
• Retiring in Honduras is relatively simple.  The whole process will cost about $2,500 USD and you must show proof of a minimum income of $1,500 per person per month

Cons of Living in Honduras

• Health care is lacking – compared to other countries in Central America, the health care system in Honduras is not the best.  You would b required to travel back to your homeland to take care of major health issues
• Tap water is not potable – you will be drinking bottled water
• Using a credit card for making purchases will add 5-10% extra to the cost of goods purchased
• High crime rate – robberies and assaults on tourists is quite common.

Belize

What was once a hidden gem is now booming with tourists.  Belize is growing in leaps and bounds mostly because of its beautiful beaches. Don’t be surprised if you find yourself rubbing elbows with high society or celebrities.  Ex-pats are retiring to the island of Ambergris Caye by the dozens each month.

For more than a decade cruise ships have been stopping at this little piece of paradise.  Now it’s your turn.  Less than half a million people call Belize home.  Makes sense since this is the 2nd smallest of all the Central American countries.

Enjoy some ceviche or tamales with a rum punch as you stroll the beach or visit the Great Bue Hole. Other must-sees in Belize are the Barrier Reef (2nd largest in the world), Mayan Ruins, a pyramid built in 1200 BC, and so much more.

Pros of Living in Belize

• Gorgeous scenery
• Low cost of housing
• Great weather year-round from 70 – 85 degrees all the time
• Fresh produce is locally grown including sugar cane, bananas, citrus, and corn
• English is commonly spoken
• Getting an ex-pat visa is easy.  For the first 12 months, you must leave the country to renew the 30-day tourist visa.  After 12 months, your $2,000 fee will get you a permanent residency
• No tax is paid on foreign income

Cons of Life in Belize

• Crime is quite high.  The murder rate is higher than that of the US
• Health care is adequate but you will need to purchase insurance as an ex-pat
• The price of filling up at the tank is quite expensive at approximately $7 per gallon
• Tap water is not drinkable

Nicaragua

Nicaragua is growing in popularity, partly because of its beauty, partly because of the welcoming culture, and partly because it is the second safest country in Latin America.

You will eat the freshest produce picked daily.  Choose from rice, beans, plantain, and cassava.

6.8 million Mestizo, Amerindians, and other cultures call Nicaragua home.  This number is increasing steadily each year as more and more ex-pats make this amazing country their new home.

Take time to visit one of the many natural lakes, volcanos, or Granada Islet.

Pros of Retiring in Nicaragua

• Can easily purchase real estate as an American, Canadian, or British citizen which gives you a leg up on gaining residency
• Retiring in Nicaragua requires proof of monthly income – $600 USD in pension or $750 non-pension + an additional $150 per person as long as you are 45+ years old
• Super friendly people
• Beautiful beaches
• Decent healthcare system
• No car is needed because public transportation is so inexpensive
• No tax on foreign income

Cons of retirement life in Nicaragua

• It can get really hot and muggy with temperatures ranging from 71 to 96 degrees
• Politically, the country can be unstable
• Bottled water is recommended although some major cities have potable water
• This is one of the poorest nations

Cost of Living in Central America

Considered affordable places to retire in Central America, below is a comparison of how much you will need to support yourself financially in each of the above countries.  How much you need to retire in any of these three countries is really dependent on you and your lifestyle.  If you can forgo the expensive imported goods and immerse yourself in the culture and foods of the locals, then you can live comfortably with the budget below.

safest Central American Country

Besides Costa Rica, Nicaragua is one of the safest countries to retire in.

While no country is immune to crime, Nicaragua has the lowest violent crime rate in all of Latin America.

Cheapest Central American Country 

Finding affordable places to retire in Central America is not difficult.  Of the 3 countries we explored, Nicaragua is not only the safest, it’s the cheapest.

The proof of income is also the lowest of the three countries, making this an obvious choice for retirement.

Where Do Most Ex-Pats Live in Central America

Nicaragua is 3rd behind Costa Rica and Panama.

Costa Rica is considered the most politically stable of all the Latin American countries hence why it is at the top of the list for retirees.

in Summary

Central America is a good place to retire.  As more and more folks discover countries like Honduras, Belize, and Nicaragua, the more that will be offered to the ex-pat communities.  You don’t need to struggle with a low income, or with harsh winters at home when you can live the rest of your life comfortably in Central America.

We would love to hear from you.  Are you living in any of these countries?  Please share what life is like for you there.  Let us know your pros and cons of these affordable places to retire in Central America.

 

Other Posts You Might Enjoy:

• Best Affordable Places To Retire Around The World – Mauritius Edition
• 11 Retirement Mistakes You Can Avoid By Planning

 

 

All images from Shutterstock