{"id":8063,"date":"2016-12-02T15:00:09","date_gmt":"2016-12-02T20:00:09","guid":{"rendered":"http:\/\/www.escapeartist.com\/?p=8063"},"modified":"2020-10-24T10:58:56","modified_gmt":"2020-10-24T15:58:56","slug":"worlds-best-city-expats","status":"publish","type":"post","link":"https:\/\/www.escapeartist.com\/blog\/worlds-best-city-expats\/","title":{"rendered":"World\u2019s Best City for Expats"},"content":{"rendered":"<h2><strong>World\u2019s Best City for Expats<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">I\u2019m often asked which is the world\u2019s best city for expats? After 15 years of research, and travelling the globe (sacrificing for this article), I\u2019ve narrowed it down to two cities, one for pensioners and one for business owners. Here are the world\u2019s best cities for expats. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">I place expats into two categories: retirees who want to <a href=\"http:\/\/www.escapeartist.com\/retire\/\" target=\"_blank\" rel=\"noopener noreferrer\">retire abroad<\/a> and entrepreneurs who want to <a href=\"http:\/\/www.escapeartist.com\/work\/\" target=\"_blank\" rel=\"noopener noreferrer\">work abroad<\/a>. The world\u2019s best city for retired expats is very different from the best city for expats operating a business. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you\u2019re retired, managing your own portfolio or living off of Social Security and retirement distributions, then the tax situation in your country of residence matters little. Because you won\u2019t pay tax to your new country, you can afford to focus on the quality of life, culture, climate, and the beauty of a place. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you\u2019re a business owner with employees and an office, then you have a number of additional decision points. For example, whether your country of residence will tax your foreign source income, the cost and quality of labor, availability of English speaking workers, payroll and other taxes, costs of office space and equipment, and the list goes on. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">In between the retiree and the is the perpetual traveller or location independent web mogul running a one man shop. Most of our mobile clients are bloggers, affiliate marketers, and Amazon book or product sellers. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">These <\/span><a href=\"http:\/\/www.escapeartist.com\/blog\/perpetual-traveler-us-tax-code\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">perpetual travellers<\/span><\/a><span style=\"font-weight: 400;\"> have an advantage over traditional business operators. They can keep moving, never spending more than 183 days in any one country, and not considered tax residents of any nation. In most cases, this means their income is not taxable by any State. <\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">U.S. citizens are taxed on their worldwide income. If you\u2019re a U.S. citizen, a perpetual traveller, and out of the U.S. for 330 of 365 days, your first $102,100 is tax-free in 2018 using the <\/span><a href=\"https:\/\/www.escapeartist.com\/blog\/foreign-earned-income-exclusion-2018\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">Foreign Earned Income Exclusion<\/span><span style=\"font-weight: 400;\">. <\/span><\/a><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">In an ideal world, a travelling internet pro would spend time in both of my top pics for the world\u2019s best city for expats. This is what I do, which is how I came to the conclusion that these are the best of the many cities I\u2019ve lived in and worked from. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">So, let\u2019s get to it. <\/span><b>The world\u2019s best city for retired expats is Guanajuato, Mexico. <\/b><\/p>\n<p><span style=\"font-weight: 400;\">If you want to <a href=\"http:\/\/www.escapeartist.com\/mexico\/retire\/\" target=\"_blank\" rel=\"noopener noreferrer\">retire in Mexico<\/a> I chose Guanajuato, Mexico as my top pick because it\u2019s the most beautiful city I\u2019ve been to outside of Europe. The city was founded in 1548, shortly after it\u2019s better-known sister city, San Miguel de Allende, which is about one hour away by car. It\u2019s oldest neighbourhoods date from the 16th and 17th centuries and its narrow streets were designed for horses, not cars.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-8064\" src=\"http:\/\/www.escapeartist.com\/wp-content\/uploads\/2016\/11\/image00-8-1024x685.jpg\" alt=\"image00\" width=\"659\" height=\"441\" srcset=\"https:\/\/www.escapeartist.com\/wp-content\/uploads\/2016\/11\/image00-8-1024x685.jpg 1024w, https:\/\/www.escapeartist.com\/wp-content\/uploads\/2016\/11\/image00-8-300x201.jpg 300w, https:\/\/www.escapeartist.com\/wp-content\/uploads\/2016\/11\/image00-8-768x514.jpg 768w, https:\/\/www.escapeartist.com\/wp-content\/uploads\/2016\/11\/image00-8-1170x783.jpg 1170w, https:\/\/www.escapeartist.com\/wp-content\/uploads\/2016\/11\/image00-8-585x392.jpg 585w, https:\/\/www.escapeartist.com\/wp-content\/uploads\/2016\/11\/image00-8.jpg 1300w\" sizes=\"(max-width: 659px) 100vw, 659px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">If you\u2019ve grown up in a cultural wasteland as I have in Southern California, Guanajuato and San Miguel de Allende will have you on sensory overload. It\u2019s history and beauty are incredible, it\u2019s climate near perfect (like my San Diego), and it\u2019s people welcoming. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Mexico has become a mecca for American and Canadian expats over the years. The strength of the dollar (about 18 to 1 post-Trump), have made living here on dollars very cost-effective, and brought in gringos by the planeload. It\u2019s estimated that Mexico is home to over 1 million expats from around the world.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-8066\" src=\"http:\/\/www.escapeartist.com\/wp-content\/uploads\/2016\/11\/image02-2.jpg\" alt=\"image02\" width=\"500\" height=\"389\" srcset=\"https:\/\/www.escapeartist.com\/wp-content\/uploads\/2016\/11\/image02-2.jpg 500w, https:\/\/www.escapeartist.com\/wp-content\/uploads\/2016\/11\/image02-2-300x233.jpg 300w\" sizes=\"(max-width: 500px) 100vw, 500px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">You\u2019ll also find it cheap and easy to gain temporary and then a permanent residency in Mexico. Once you have that stamp in your passport, you can open bank accounts at most large Mexican banks.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Of course, it\u2019s Mexico\u2019s proximity to North America that makes it a top choice for American and Canadian expats. A direct flight might have you in San Miguel de Allende in 2 hours, and a stopover in Mexico City might mean travel time of 3 to 6 hours depending on your starting point. This makes visiting friends and family in the States easy and cheap. Round trip flights can be less than $300 from some U.S. cities. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">When booking travel, note that San Miguel de Allende and Leon are the major cities in the Guanajuato prefecture. <\/span><b>The city I am recommending as the world\u2019s best for expats is Guanajuato City within the Guanajuato region<\/b><span style=\"font-weight: 400;\">. Life\u2019s cheap throughout, hotels are plentiful, and all three cities are cool places to spend some time.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But you\u2019ll find there are some major drawbacks operating a traditional business from Mexico. This is why Guanajuato is my top pick for pensioners and not business owners. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Office space and English speaking workers are difficult to find, labor laws and government oversight is a real pain in the rear, and the \u201cmanana mindset\u201d will drive gringo\u2019s crazy. And the rules, regulation, and tax compliance in Mexico can we worse than the United States.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Most importantly, Mexico will tax you and your business on your worldwide income. Only countries that tax local source, but not <\/span><span style=\"font-weight: 400;\">foreign source<\/span><span style=\"font-weight: 400;\">, income are efficient offshore centers. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Remember that perpetual travelers can live and work anywhere in the world. So long as you don\u2019t spend more than 183 days a year in Mexico, and don\u2019t file for permanent residency, you\u2019ll avoid their tax laws. A temporary visa lasts for 3 months, which is what I use while in Mexico, even though I\u2019m eligible for citizenship and a passport from the country. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">For these reasons, <\/span><b>the world\u2019s best city for expat entrepreneurs is Panama City, Panama.<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Panama City is the cultural, historical, climate, and quality of life antithesis of Guanajuato. These cities are about 3 hours by air, but absolute opposites in terms of culture and climate, with Panama City being nearly devoid of history. Panama is all about new, big, fancy, and fast while Guanajuato is all about history and class.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">And the weather in Panama sucks. Panama City has two seasons, rainy and rainier with temps always at 85 F and humidity at 150% (feels like it, anyway). At 6,000 feet, Guanajuato is near perfect for a region without a beach. Lows in winter are 60F and highs, in summary, are 75F. <\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Note that I\u2019m speaking of Panama City only, not the more temperate climates of the north popular with retirees.<\/span><\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-8068\" src=\"http:\/\/www.escapeartist.com\/wp-content\/uploads\/2016\/11\/image04-2-1024x768.jpg\" alt=\"image04\" width=\"635\" height=\"477\" srcset=\"https:\/\/www.escapeartist.com\/wp-content\/uploads\/2016\/11\/image04-2.jpg 1024w, https:\/\/www.escapeartist.com\/wp-content\/uploads\/2016\/11\/image04-2-300x225.jpg 300w, https:\/\/www.escapeartist.com\/wp-content\/uploads\/2016\/11\/image04-2-768x576.jpg 768w, https:\/\/www.escapeartist.com\/wp-content\/uploads\/2016\/11\/image04-2-585x439.jpg 585w\" sizes=\"(max-width: 635px) 100vw, 635px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">What makes Panama City the world\u2019s best city for expat entrepreneurs is it\u2019s business-friendly environment, efficient tax laws, asset protection within <\/span><a href=\"https:\/\/www.escapeartist.com\/blog\/offshore-trust-panama-foundation\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">Panama Foundation<\/span><\/a><span style=\"font-weight: 400;\"><a href=\"https:\/\/www.escapeartist.com\/blog\/offshore-trust-panama-foundation\" target=\"_blank\" rel=\"noopener noreferrer\">s<\/a>, solid banking, low-cost labour, and world-class office and internet services. Basically everything you need to operate a business with employees and facilities while paying zero in worldwide taxes. And <a href=\"http:\/\/www.escapeartist.com\/realestate\/city\/panama-city\/\" target=\"_blank\" rel=\"noopener noreferrer\">Panama City real estate<\/a> is very reasonable to either buy or rent.<br \/>\n<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This business-friendly environment starts with Panama\u2019s tax laws. They will tax your local source income but not foreign-source profits. That means you will pay tax on sales to Panamanians, but not on sales to people and businesses outside of Panama. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you set up a business in Panama that offers products and online services to people outside the country, you\u2019ll pay no local taxes (except payroll taxes as applicable). When combined with U.S. or Canadian tax laws, Panama can help you to live <\/span><a href=\"https:\/\/www.escapeartist.com\/blog\/panama-special-nations-visa\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">completely tax-free<\/span><\/a><span style=\"font-weight: 400;\">, depending on your business model, net profits, and how or when you take distributions.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-8067\" src=\"http:\/\/www.escapeartist.com\/wp-content\/uploads\/2016\/11\/image03-2-1024x587.jpg\" alt=\"image03\" width=\"604\" height=\"346\" srcset=\"https:\/\/www.escapeartist.com\/wp-content\/uploads\/2016\/11\/image03-2-1024x587.jpg 1024w, https:\/\/www.escapeartist.com\/wp-content\/uploads\/2016\/11\/image03-2-300x172.jpg 300w, https:\/\/www.escapeartist.com\/wp-content\/uploads\/2016\/11\/image03-2-768x440.jpg 768w, https:\/\/www.escapeartist.com\/wp-content\/uploads\/2016\/11\/image03-2-1170x671.jpg 1170w, https:\/\/www.escapeartist.com\/wp-content\/uploads\/2016\/11\/image03-2-585x335.jpg 585w, https:\/\/www.escapeartist.com\/wp-content\/uploads\/2016\/11\/image03-2.jpg 1265w\" sizes=\"(max-width: 604px) 100vw, 604px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">Another reason Panama City is my choice as the world\u2019s best city for expat business owners is that residency is easy to get. If you\u2019re from the U.S., Canada, or any of the other 50 \u201c<\/span><a href=\"https:\/\/www.escapeartist.com\/blog\/what-is-the-panama-friendly-nations-visa\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">friendly nations<\/span><\/a><span style=\"font-weight: 400;\"><a href=\"https:\/\/www.escapeartist.com\/blog\/what-is-the-panama-friendly-nations-visa\" target=\"_blank\" rel=\"noopener noreferrer\">,<\/a>\u201d you can become a legal resident of Panama with an investment of $20,000. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">And this residency visa is an important component of the <\/span><span style=\"font-weight: 400;\">Foreign Earned Income Exclusion<\/span><span style=\"font-weight: 400;\"> for Americans. If you\u2019re a perpetual traveller without residency, you must be out of the U.S. for 330 days a year. If you are a legal resident of Panama, you can spend 3 or 4 months a year in America (but never more than 6 months or you\u2019ll lose the Exclusion in its entirety).<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><b>Conclusion<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">I hope you\u2019ve found this article on the world\u2019s best city for expats to be helpful. Guanajuato is an amazing city for retirees and perpetual travellers, while Panama City is the place to be for traditional business operators. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">For assistance in setting up your business offshore, <\/span><a href=\"https:\/\/www.escapeartist.com\/blog\/what-investments-can-you-make-with-self-directed-iras\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">moving your IRA abroad<\/span><\/a><span style=\"font-weight: 400;\"><a href=\"https:\/\/www.escapeartist.com\/blog\/what-investments-can-you-make-with-self-directed-iras\" target=\"_blank\" rel=\"noopener noreferrer\">,<\/a> or gaining residency in Panama, please <a href=\"https:\/\/www.escapeartist.com\/contact\/\" target=\"_blank\" rel=\"noopener noreferrer\">contact us HERE<\/a>.<\/span><span style=\"font-weight: 400;\">\u00a0We\u2019ll be happy to work with you to structure your affairs offshore in the most efficient and compliant manner possible.<\/span><\/p>\n<p><b>Here is<\/b> <b>probably the most extensive ebook on <\/b><b><i>Everything You Ever Wanted To Know About Eliminating Your Taxes, Protecting Your Assets And Regaining Privacy Over Your Life And Investments<\/i><\/b><b>. It is called<\/b> <b>The<\/b><a href=\"https:\/\/www.escapeartist.store\/product\/ultimate-guide-to-going-offshore\/\"> <b>Ultimate Guide To Going Offshore<\/b><\/a><b>.\u00a0 Visit our bookstore to purchase it today!<\/b><\/p>\n<p><b>Enjoy these articles by Escape Artist.<\/b><\/p>\n<p><strong><a class=\"post-title post-url\" href=\"https:\/\/www.escapeartist.com\/blog\/buying-property-mexico-step-by-step-guide-expats\/\"> Buying Property In Mexico: A Step-By-Step Guide For Expats <\/a><\/strong><\/p>\n<p><strong><a class=\"post-title post-url\" href=\"https:\/\/www.escapeartist.com\/blog\/retiring-in-panama-8-things-expats-need-to-know\/\"> Retiring In Panama: 8 Things Expats Need to Know <\/a><\/strong><\/p>\n<p><strong><a class=\"post-title post-url\" href=\"https:\/\/www.escapeartist.com\/blog\/9-reasons-why-millennials-are-choosing-to-become-expats\/\"> 9 Reasons Why Millennials Are Choosing to Become Expats<\/a><\/strong><\/p>\n<p><strong><a class=\"post-title post-url\" href=\"https:\/\/www.escapeartist.com\/blog\/the-panama-pensionado-visa\/\"> The Panama Pensionado Visa <\/a><\/strong><\/p>\n<p><strong><a class=\"post-title post-url\" href=\"https:\/\/www.escapeartist.com\/blog\/interested-in-a-panama-residence\/\"> Interested in a Panama Residence? <\/a><\/strong><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>World\u2019s Best City for Expats I\u2019m often asked which is the world\u2019s best city for expats? After 15 years of research, and travelling the globe (sacrificing for this article), I\u2019ve narrowed it down to two cities, one for pensioners and one for business owners. Here are the world\u2019s best cities for expats. I place expats [&hellip;]<\/p>\n","protected":false},"author":686,"featured_media":8068,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","om_disable_all_campaigns":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2],"tags":[56,71,127,1136,233,235,258,442,451],"yst_prominent_words":[21921,21918,21919,21916,21913,21915,1721,21922,21917,21920,3664,6123,1888,2367,6122,2271,21910,21912,21911,21914],"acf":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/www.escapeartist.com\/wp-content\/uploads\/2016\/11\/image04-2.jpg","_links":{"self":[{"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/posts\/8063"}],"collection":[{"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/users\/686"}],"replies":[{"embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/comments?post=8063"}],"version-history":[{"count":12,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/posts\/8063\/revisions"}],"predecessor-version":[{"id":42946,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/posts\/8063\/revisions\/42946"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/media\/8068"}],"wp:attachment":[{"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/media?parent=8063"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/categories?post=8063"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/tags?post=8063"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/yst_prominent_words?post=8063"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}