Tropical Retirement: Retire in Mexico, Central America or the Caribbean

By far, the most popular tropical retirement places are in Mexico and Central America; however, many of the Caribbean islands are great tropical places to retire, as are a few places in South America.

After Mexico, the two countries most often mentioned for tropical retirement are Panama and Costa Rica. They are often compared to each other because of their similarities: beautiful, rugged mountain rainforests; plenty of first-rate hiking, birding, surfing, diving, snorkeling, kayaking, and other popular adventure options; and friendly Spanish-speaking people. Most locations in both countries are less than an hour from either the Caribbean Sea or Pacific Ocean. Add to this that the two countries happen to be next-door neighbors, and neither has a military, relying instead on national and local police for safety and enforcement.

Costa Rica Beach

Differences abound as well. Both unemployment and the poverty rate are lower in Costa Rica. Costa Rica's economy is more diversified, with strong growth in tourism and technology sectors. Panama relies on agriculture and construction sectors, and benefits from being a major international business center. The expansion of the Canal represents a staggering investment for Panama, but should provide significant revenue for decades to come. Completion is scheduled for 2014. Due to Panama's unique geologic history, volcanic activity is almost non-existent and earthquakes are rare. Costa Rica has some 100 volcanoes, several of which are very active, although rarely violent. Costa Rica is more focused on environmental issues, and is striving to become the first carbon-neutral country. Panama has protected vast interior watershed areas on both sides of the canal, primarily for economic reasons, including to provide fresh water vital for the operation of the canal lock system. Costa Rica has a longer history of political stability and has elected the region's first female head of state. Panama has arguably the greater potential for growth and opportunity, as it has just recently entered an era of political stability and economic diversification. Find out more about Panama on our Retire in Panama page.

Additional retirement choices are many: in addition to Mexico, Costa Rica, and Panama, you can choose from Roatan (Honduras), Belize, Nicaragua, Guatemala, Venezuela, or one of the islands of the Caribbean. To decide which one, you'll need to first understand what you can expect when moving to a tropical land far from home. No matter where you contemplate retiring abroad, you will encounter cultural differences and challenges that may alter your notion of retiring in an exotic foreign country. Much to the surprise of many Americans, as well as Canadians and Europeans, the rest of the world is not our playground and is not an extension of our culture and values. Too often the countries and people in these tropical paradises are expected to be reflections of life in the resorts. The number one rule for retiring overseas is: "It's their country; leave your North American standards and expectations behind." The second rule derives from the first: "If you want everything the same as at home, don't leave." Many people who abandon retirement in tropical Latin America do so because they are unable, or unwilling, to accept the compromises or follow the rules necessary to live in another culture. Other common reasons include health and family.

Customer service: Our cultural expectations about customer service are focused on promptness and efficiency. I have learned that customer service in tropical Latin American countries is based on politeness, deference, and focusing on your specific task. In countries where jobs are harder to find, employment is highly valued, not taken for granted. It may be frustrating to an American to select an item at a store and be assisted by several people; one to fold the clothing, another to gather the items together for the cashier to ring up, a third to ring up the sale, and another to place the purchase in a bag. To us it is slow and inefficient; to them it is employment. If an employee tries to be fast and efficient, someone else's job could be in jeopardy. Another store clerk behavior that may seem annoying is to be followed around the store by an employee who is like your shadow; always there to answer a question or provide assistance. In Central American countries, the culture of shopping has been defined by the few wealthy people who could afford to shop. Store employees were trained to be virtual servants to customers. Of course, these customs are changing, especially in modern stores in urban areas, but the mindset endures.

Promptness: Have you heard someone on vacation refer to "island time?" Life is far more laid back and relaxed in the tropics. What we might label laziness or incompetence is a way of life long lost to Europeans and North Americans. You will find the people of tropical Latin America to be the nicest, friendliest people. Maybe they are living life a little more sanely than we are. So, if you are accustomed to things happening on a timely basis, you might be in for a shock. "I'll take care of that right away" could mean next week, or even next month. You must be prepared to accept the fact that things take a lot longer to get done than you are accustomed to. Deal with it.

Language: You've read that "everyone speaks English there." Don't believe it. Even in countries where English is the official language (thanks to the colonial past), the citizens speak dialects like Creole, with lots of local color, slang, and accent. So, unless you plan to buy everything from a hotel manager or real estate agent while living in a tropical retirement country, learn the language. Even more important, get to know the people. Keeping to yourself, which has become part of the culture in much of our native country, will make the adjustment much more difficult in a new tropical home.

Laws: There is not much to say here except it's their country, you are subject to their laws, and you are expected to behave in a lawful manner. Some infractions that may seem minor to you could result in severe penalties; know the laws in a foreign country. Don't expect the laws in another country to provide the same protections afforded you in your country of origin, either. Laws concerning disclosure are conspicuously absent in many countries; always rely on an attorney who speaks your language when purchasing property or investments in another country.

Customs: To North Americans and Europeans, casual dress is acceptable in a variety of situations. Some customs in tropical Latin America are far more conservative than might be expected. In Panama City, women wear dresses and men wear long pants, collared shirts, and even jackets routinely while at work or out for a night on the town. In nearly all of those countries, swimwear is appropriate only at the beach. The only people who you will see wearing flowery tropical shirts on the streets of Panama City or San Jose are conspicuous North American tourists. Do you want to reduce the possibility of becoming a crime victim in a foreign country? Try blending in; the more you look like the locals, the less you look like a tourist. Duh. People in these socially conservative countries believe in politeness and courtesy. Failure to return a friendly greeting is considered rude. Addressing others in a respectful manner is the norm; too bad it's not like that in America.

Infrastructure and utilities: We take reliable electricity for granted in our country. Throughout tropical Latin America and the Caribbean, electrical power is less robust and subject to occasional or even frequent outages. The locals don't get excited about it and you shouldn't either. Water supply is not inexhaustible and shortages happen. Much of the public water supply is safe to drink, especially in Panama and most of Costa Rica. Elsewhere, inquire, and if you're not sure, stick to filtered or bottled water. Recycling is virtually non-existant. Trash collection may not happened for weeks because of equipment problems. Public sewage systems are the norm only in larger modern cities. Roads are generally not very good, with the exception of some urban areas and tourist zones. This varies from country to country, region to region.

In summary, enjoy the astounding beauty, serenity, and friendliness of a future tropical home. Don't apply any of your native country's expectations to life in the tropics. Instead, get to know the people, their culture, language, customs, laws, and way of life. Remember why you left the rat-race back home, and CHILL OUT!

Copywrite 2010 David Manley

[Acknowledgement: My profound gratitude goes to Becky Thormahlen for her invaluable insights into ex-pat expectations and cultural differences.]

If you want to comment on this article, there is a blog entry about Panama and Tropical Retirement.

Why Should You Consider Living in Latin America?

In a complex and changing world, Latin America is an ideal destination, which offers an endless number of possibilities.

The economics and the sustainable growth the whole region has experienced over the last few years, show us again a region full of commercial opportunities for productive activities, as well as commerce and services. Sustained growth, stable democracies and a growing investor-friendly atmosphere and low-prices are the main options for many expats how decide to buy real estate to retire, live a life-time experience and make a profitable investment.

Latin America is an unusual blend of pacific coexistence of different communities that live there, unusual when compared in contrast with the often turbulent international scene. Latin America has always been a home for European migratory flows (especially Italian, Spanish, English, Welsh and Polish) as well as Asian immigrants (mainly Japanese, but also Koreans). It is also home to the numerous indigenous and native towns that still preserve their languages and customs (such as Kollas, Mapuches and Guaranies, just to name a few). The entire continent offers a huge cultural diversity, where cosmopolitan cities such as Buenos Aires, Rio de Janeiro or Santiago de Chile, coexist with the charming rural interior of the more isolated areas.

And, of course, we must not forget the amazing landscapes.

The options are endless: from the woods, lakes and glaciers of the Patagonia area, with their exclusive skiing centers, to the isolated and beautiful white sand beaches of Brazil surrounded by forests, jungles, rivers and mountains. Given the huge variety of choice, tourists often need more than just one trip to have enough time to explore all the beauty and wonders nature has to offer.

The countries

Argentina

Argentina is favoured by ample and varied natural wonders (made possible by its geographical extension), by its cultural offer, and (since the devaluation of the Argentine peso after the 2001 crash) by its high exchange rate to foreign currencies.

Buenos Aires

Buenos Aires, once considered by travellers the "Paris of the Southern Hemisphere", offers a broad range of cultural activities. Visitors may choose to visit a tango show, or an estancia in the Province of Buenos Aires, or to enjoy traditional asado. Lately new tourist circuits have evolved, devoted to famous Argentineans such as Carlos Gardel, Eva Peron or Jorge Luis Borges. Due to the favourable exchange rate, its shopping centres, such as Alto Palermo, Paseo Alcorta, Patio Bullrich, Abasto de Buenos Aires and Galerias Pacifico, are frequently visited by foreigners.

Belize

An adventurer's paradise: Belize is a peaceful, English-speaking country just two hours away from 3 major U.S. Gateways. With a diversity of adventure opportunities unmatched by any other country, the Belizean people have protected over 40% of the country as parks and natural reserves.

Belize is on the Caribbean coast, nestled between Mexico and Guatemala and offers an intriguing mix of tropical forests rich with wildlife, majestic mountains, mysterious Maya temples, and diving and fishing experiences beyond comparison. In a single day, one can go from tropical forest to the longest barrier reef in the Western Hemisphere.

And the people are as warm and friendly as the climate.

Bolivia

Bolivia is rich in natural resources, and has been called a "donkey sitting on a gold mine" because of this. Apart from famous mines, which were known by the Incas and later exploited by the Spaniards, Bolivia owns the second largest natural gas field of South America after Venezuela. Furthermore, El Mutn in the Santa Cruz department represents 70% of the world's iron and magnesium.

Brazil

Brazil is the largest country in Latin America. It spreads across almost half (47.3%) of South America, and occupies a total area of 8,547,403.5 km2. It is the fifth largest country in the world after Canada, the Russian Federation, China and the United States. Except for a small number of islands, Brazil is a single and continuous landmass. The Equator crosses through the Northern region, near Macapa, and the Tropic of Capricorn cuts through the South of the country, near So Paulo.

Brazil's east to west extension (4,319.4 km) is almost equivalent to the distance from north to south (4,394.7 km). The country borders French Guiana, Suriname, Guiana, Venezuela and Colombia, to the north; Uruguay and Argentina, to the south; and Paraguay, Bolivia and Peru, to the west. Ecuador and Chile are the only two countries on the South American continent that do not border Brazil. The Atlantic Ocean extends along the country's entire eastern coast, providing 7,367 km of coastline.

Brazil - a country which greets visitors with a huge smile

The mixture of races has made Brazil a culturally rich and at the same time unique country. This miscegenation began with the Indian, the African and the Portuguese, but soon after, immigrants from around the world began to arrive: Europeans, Asians, Jews and Arabs. The result is a happy people, open to everything new, a people one can only find in Brazil.

Because of this massive diversity, Brazil is one of the last places on Earth where no one is a foreigner, where one can change one's destiny without losing one's identity and where each and every Brazilian has a little of the entire world in his or her blood. This may be the reason why Brazilian's welcome people from another land so openly. According to surveys carried out with foreign tourists who visited the country, 97.2% intend to return soon; 56.5% had their expectations completely satisfied; and, for 31.7%, it exceeded their expectations in every way. As you can see, those who go to Brazil become fans on their first visit.

Chile

Chile, officially the Republic of Chile (Spanish: Repblica de Chile), is a country in South America occupying a long and narrow coastal strip wedged between the Andes mountains and the Pacific Ocean. The Pacific forms the country's entire western border, with Peru to the north, Bolivia to the northeast, Argentina to the east, and the Drake Passage at the country's southernmost tip. Chile claims 1,250,000 km of territory in Antarctica.
Lake, Fjord and Glacier Cruises are not only the most comfortable way to visit southern Chile, they are also, in many regions, the only way. With trans-Andean lakes, the mystical Chilo archipelago, and some 27 million acres of protected fjords, glaciers, and temperate rainforests to discover, the problem is not in deciding whether to go, but where. Silence reigns in these forgotten landscapes, home of dolphins, sea lions and penguins, where the modern world is still but a rumor.

Colombia

Colombia, formally the Republic of Colombia (Spanish: Repblica de Colombia), is a country located in the northwestern region of South America. Colombia is bordered to the east by Venezuela and Brazil; to the south by Ecuador and Peru; to the North by the Atlantic Ocean, through the Caribbean Sea; and to the west by Panama and the Pacific Ocean. Colombia is the only country in South America that borders both the Atlantic Ocean and the Pacific Ocean.

Colombia is the 26th largest nation in the world and the fourth-largest country in South America (after Brazil, Argentina, and Peru), with an area seven times greater than that of New England and more than twice that of France. Its vast territory is made up of diverse physical contrasts ranging from the towering snowcapped peaks of the Andes to the hot and humid plains of the Amazon River Basin, to a vast tropical coastal plain in the north.

Since President Uribe took office in 2002, he has notably increased Colombia's stability and security by significantly boosting its military strength and police presence throughout the country. This apparently has achieved fruitful results for the country's economy, particularly international tourism. In 2006, tourism officials are expecting approximately 1.5 million international visitors to visit Colombia, an astonishing increase of about 50% from the previous year. Even Lonely Planet, a world travel publisher, has picked Colombia as one of their top 10 world destinations for 2006. The World Tourism Organization reported in 2004 that Colombia achieved the third highest percentage increase of tourist arrivals in South America between 2000 and 2004 (9.2%).

Costa Rica

Costa Rica (literally "Rich Coast"), officially the Republic of Costa Rica (Spanish: Costa Rica or Repblica de Costa Rica, is a country in Central America, bordered by Nicaragua to the north, Panama to the south-southeast, the Pacific Ocean to the west and south, and the Caribbean Sea to the east. Costa Rica was the first country in the world to constitutionally abolish its army. It is also the only country in which both the Atlantic and Pacific Oceans can be seen from the same point.

Costa Rica has avoided the violence that has plagued Central America; it is seen as an example of political stability in the region.

Costa Rica is home to a rich variety of plants and animals. While the country has only about 0.1% of the world's landmass, it contains 5% of the world's biodiversity. Over 25% of Costa Rica is composed of protected forests and reserves.

The Costa Rican ideal is that of a very friendly, helpful, laid back, unhurried, educated and environmentally aware people. Visitors from the United States are often referred to as gringos, which is virtually always congenial in nature. The phrase "Pura Vida" (literally "Pure Life") is a ubiquitous motto in Costa Rica. It encapsulates the pervading ideology of living in peace in a calm, unclustered manner, appreciating a life surrounded by nature and family and friends.

About the Author

An investor enjoying life in Rio de Janeiro.

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