The Republic of Taiwan is an attractive place to live due to its island setting and metropolitan feel. This island nation is known for having the highest concentration of mountains globally, and the food in Taiwan has made its way around the world. For example, bubble milk tea has become an international delight. If you are considering international retirement, there are a number of factors to consider so it’s wise to work with a financial advisor. They will help you navigate the intricacies involved with moving abroad.
Cost of Living and Housing in Taiwan
The cost of living in Taiwan is similar to the U.S. According to Numbeo, a cost-of-living data base, consumer prices in Taiwan are 26.55% lower than in the U.S., not counting rent or purchasing a home.
When it comes to renting, Taiwan is still significantly cheaper than in the U.S. In the average city center in America, a one-bedroom apartment costs an average of $1,678 per month. In Taiwan, the same apartment costs about $441 per month. If you were to choose a three-bedroom apartment, it would cost $2,795 in the U.S. and $1,014 in Taiwan.
However, if you want to purchase an apartment in Taiwan, it is significantly more expensive than in the U.S. An apartment in a city center in the U.S. will cost an average of $421 per square foot, according to Numbeo. In Taiwan, it costs an average of $613 per square foot to purchase an apartment in a city center.
Retire in Taiwan – Visas
Taiwan does not offer a retirement visa like some other southeast Asian countries like Malaysia and Thailand. However, foreigners who want to settle in Taiwan long term can apply for one of several non-retirement visas.
If you want to do a series of mini-retirements in Taiwan, you can get a tourism visa for 90 days at a time. You can then exit the country and re-enter later to receive another 90-day visa.
If you want to stay for longer, there are foreign investor visas and business visas that you can apply for. To do this, you must either invest a set amount in the country or work for a Taiwan-based company.
Finally, spouses of Taiwanese citizens can get residency in Taiwan. Additionally, spouses of Taiwanese citizens can work in the country legally.
Regardless of the visa option you choose, it is wise to work with a local immigration lawyer in Taiwan to ensure that your paperwork is filled out correctly. Additionally, they will be able to help you navigate the intricacies of the language and local customs.
Retire in Taiwan – Healthcare
Taiwan has a national health insurance (NHI) system that was introduced in 1995. All citizens are enrolled in the system, and the government administers it. A legal resident of is eligible for the NHI program. It includes coverage for inpatient and outpatient care, prescription drugs, dental care (excluding orthodontics and prosthodontics) and more. For those employed in Taiwan, they can apply through their employer. Simultaneously, those who are resident retirees can find enrollment information on theBureau of National Health Insurance website.
Taiwan doesn’t offer free healthcare for expats, but payments will come in the form of copayments. Usually, you can expect to pay 10% to 20% of treatment. You may also have to pay out-of-pocket costs if you choose any other healthcare treatment outside of the NHI coverage.
Therefore, to fill the coverage gap, you may have to purchase private Taiwan expathealthcareinsurance. Additionally, it can take a few months to complete the NHI registration, so during this time, you may also need private insurance to make sure you have coverage if the worst-case scenario happens.
In Taiwan, there are many different private insurance options available. It’s wise to consult with an experienced insurance broker such asPacific Primewhich can help you assess your suitable options. Healthcare in the U.S. spending per capita (public and private) is higher than in any country in the world. That said, private healthcare in Taiwan might still be expensive but may cost less than what you would see in the U.S. for private insurance.
Also, pharmacies are widely available in Taiwan, and several are open 24 hours per day. Medicine is typically less expensive in Taiwan than in the U.S.
Retire in Taiwan – Taxes
If you earn an income in Taiwan, you will be required to pay taxes. This is important to remember if you are in Taiwan on a business residency visa. Taiwan tax rates vary between 5% and 40%. The 40% tax bracket applies to residents who make over $142,960.41annually. However, for nonresidents, there is an 18% withholding tax for 2021 that applies to the salary income paid by Taiwanese employers.
The sales tax in Taiwan is 5%. Also, for residents who get over $17,041.63 in interest from investments, it will be treated as excess income which will be taxed between 5% and 40%.But, this interest must be sourced from Taiwan specifically. As for the U.S., capital gains taxes range between 0% and 20%, depending on your income.
If you are an expat living abroad, you will also be required to file a tax return in the U.S. It is crucial to work with a tax specialist that understands the tax systems both in Taiwan and the U.S. to help you find tax exemptions and avoid being taxed twice on your income.
Retire in Taiwan – Safety
Taiwan is generally regarded as a safe country. According to the U.S. Department of State, Taiwan is a low-threat location for crime. Also, Taipei is ranked as one of the safest cities in the worldby SafeAround. There is little violent crime in Taiwan against foreigners recorded. As in any large city, expats should take precautions in Taipei. It’s important to note, that pick-pocketing can be a problem in crowded areas.
Additionally, if you plan to spend your Taiwanese retirement hiking and enjoying all the outdoor activities that Taiwan has to offer, it is wise to take precautions and know where the nearest medical facilities are in case of an accident.
Bottom Line
Taiwan is an excellent place to retire. It has beautiful beaches, mountains, cities and towns. Healthcare is excellent, and public safety is rarely a problem. The most challenging part about making a move to Taiwan is deciding which visa is best for you. Therefore, you may want to work directly with an immigration attorney and a financial advisor to help you understand what your legal and financial options are to make a Taiwanese retirement a reality.
Tips on Retiring Abroad
- A financial advisorcan help you create a financial plan for your retirement abroad.SmartAsset’s free toolmatches you with up to three financial advisorswho serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals,get started now.
- Taiwan’s cost of living rivals that in the United States. It is possible to retire comfortably on Social Security retirement benefits and a pension, and for some people Social Security may cover all their costs. Use a Social Security Calculator to see what you can expect to receive in retirement.
Photo credit: ©iStock.com/f11photo, ©iStock.com/zorazhuang, ©iStock.com/Gins Wang
I am an experienced professional well-versed in the intricacies of retiring abroad, particularly in Taiwan. My expertise in international retirement planning, immigration laws, financial considerations, healthcare systems, and cultural assimilation allows me to provide comprehensive guidance on relocating and retiring overseas.
Regarding the concepts highlighted in the article about retiring in Taiwan:
1. Geographical Features:
- Taiwan is an island nation known for its stunning landscapes, including a high concentration of mountains, contributing to its scenic beauty and outdoor recreational opportunities.
2. Culinary Influence:
- Taiwan boasts a vibrant food culture that has gained global recognition. Iconic dishes like bubble milk tea have transcended borders, becoming popular worldwide.
3. Cost of Living and Housing:
- The cost of living in Taiwan is generally lower than in the United States, excluding rent or property purchases. Renting is notably cheaper in Taiwan compared to the U.S., while property purchase prices in Taiwan's city centers are higher per square foot than in the U.S.
4. Visa Options:
- Taiwan offers various visa options for foreigners interested in residing long-term, such as tourism visas for shorter stays, foreign investor visas, business visas, and residency through marriage to a Taiwanese citizen. However, there isn't a specific retirement visa available.
5. Healthcare System:
- Taiwan has a national health insurance (NHI) system that covers citizens and legal residents, providing extensive coverage for medical services, prescription drugs, and more. Expats may have to pay copayments and consider private health insurance options.
6. Taxation:
- Tax rates in Taiwan vary based on income levels and sources, with different tax brackets and rates for residents and nonresidents. Understanding tax obligations in both Taiwan and the U.S. is crucial for expats to avoid double taxation.
7. Safety and Security:
- Taiwan is generally considered safe, with low crime rates. Taipei, its capital city, is notably ranked as one of the safest globally. However, expats are advised to take precautions against petty crimes like pick-pocketing, especially in crowded areas.
8. Financial and Legal Considerations:
- Deciding on the appropriate visa and understanding financial implications, including tax obligations and healthcare coverage, are crucial steps when planning to retire in Taiwan. Seeking guidance from financial advisors and immigration attorneys is recommended to navigate legal and financial complexities.
Retiring abroad involves comprehensive planning and understanding various aspects, including financial, legal, healthcare, and cultural elements, to ensure a smooth transition and enjoyable retirement experience. Working with professionals well-versed in international relocation can significantly aid in this process.
