For several years, when we talk about expatriation, the subject of taxation has often been the essential subject that turns heads. But in reality, it is a secondary or even tertiary subject, especially when it comes to retirement.
Retiring abroadis not a new phenomenon. To make such a decision, there are obviously reasons and parameters that are unavoidable. These are the reasons that commit you financially, physically and psychologically to a new life.
Herceg-Novi
The reasons that push us to go abroad for retirement are numerous. They can be economic, social and family. To succeed in your expatriation as part of retirement, you will have to analyze all the important parameters. Here, I am thinking about the cost of living, the social climate, access to care, the distance from your country of origin..
It is absolutely necessary to compare all these parameters and put them into perspective between the target country and your current country of residence. “The analysis will be effective if you do this work seriously with criticism”
The important thing is not to be disappointed with your choice, and for this, your analysis must be carried out with the greatest seriousness.
The desire to retire abroad often results from a particular and current context in the country of residence.
1- Terrorism
In Europe, it is mainly Western European countries that have suffered from terrorist attacks on a regular basis for several decades. The countries that come back most often: the United Kingdom, Germany, Belgium, Spain and especially France. In this area, France is the European championand the reasons for this are multiple but obvious.
Whether through its foreign policy or its domestic policy, France has clearly adopted a dangerous line for its own citizens, and this in a lasting manner. One of the fundamentals of a developed country is the security of citizens throughout its territory. This is unfortunately no longer the case and has not been the case for a long time in France. The insecurity is such,that the French are taking the lead and leaving cities that have become out of control in order to escape this problem of insecurity. They often choose seaside resorts or provincial towns deemed less dangerous. So, I see Parisians “invading” coastal towns in France like Pornic, Saint-Brévin but also the countryside. This is how the demographics of Pays-de-la-Loire are constantly increasing. They also settle in these places before even arriving on retreat. They prioritize quality of life over salary, which I think is a good approach to living happily. This is a method to save time. Unfortunately, there are no internal borders that can really protect people from this violence. Nowadays, security is becoming a luxury.
This migration from point A to point B in France is ultimately a procedure which logistically resembles a little bit like expatriation. We are on the same qualitative approach.
Unfortunately, there are no internal borders that can really protect people from this violence. Nowadays, security is becoming a luxury. Many people have understood that there will be no improvements in the future and that the worst is clearly yet to come. Moreover, we can see the very impact of ethnic conflicts in France which are already daily occurrences and which will develop massive insecurity. When we see the impact of a news item in the United States on France thanks to or “because of” community solidarity between France and the USA, it’s scary when we see the damage in the streets…
I don’t remember seeing the same mobilization when Christians were being killedin the Middle East or even in Europe… And it seems clear that no positive change will come from the political class. So French citizens are left to their own devices.
In this blog article, I do not spit on France, the country where I was born and where I met exceptional people. I’m just talking about a context, facts, a mechanic, a system over which we have no control.
2- Is the grass greener in Montenegro?
Montenegro border post
Even if the picture of France or Belgium for example may seem gloomy, the question that naturally arises is: Can we find a much higher quality of life abroad compared to what the we currently know?
To answer this question, it is necessary to analyze and compare countries on the social climate. Personally, if I move to a new country, it is primarily for its social climate. In this case, the social climate of Montenegro convinced me. If you have a family with whom you have good relationships, a large social network, here I am not talking about Facebook but real friends who are close to you. Upright, valuable people. If the people around you are honest at first. Friendly, reliable, serious relationships are what I call a favorable social climate.
A homogeneity of local inhabitants who share common values and traditions. Being surrounded by caring people all corresponds to a favorable social climate. This social climate can already be appreciated on vacation if you make the effort to interact with the locals. I traveled to the United States and much of Europe, experiencing different social climates.
So what is the social climate like in Montenegro? To talk to you about it, I will highlight 4 points. Safety, population, environment and comfort.
2.1- Security
It is true that in terms of security Montenegro has nothing to prove, as the country is so safe. This applies to individual and collective security. Several obvious parameters allow you to maintain this security. First of all, control of its borders. Montenegro is not part of the Schengen area countries, which does not prevent the country from welcoming many tourists from all over the world. Controlling the flow of people entering and leaving while remaining connected to the world is possible.
Then, inMontenegro the police force is very respectedboth by citizens and also by the State. Unlike France, in Montenegro if a person commits a crime, theft or an offense punishable by imprisonment, the police will not only arrest this person, and the justice system will support the police by naturally sanctioning the offense in question. Thus the person responsible for the acts will be punished directly, there will be no second, third or fourteenth chance…
This firm authority allows us to walk in complete safety in Montenegro, in the streets, late at night without any ulterior motive.
2.2- The population
In Montenegro, there is ethnic diversity within the population. Even though the country is made up of Catholic and Muslim ethnic minorities with a majority of Orthodox, Montenegrins all have very similar profiles . The country is small, and its territory, made up of 85% mountains, breeds the same types of individuals. The climate and the Mediterranean lifestyle also obviously play a very positive role.
2.3- The environment
The Montenegrin sea
This natural environment, omnipresent in the country, also plays a role. In such a magnificent, exceptional living environment, people are naturally relaxed. The race against time no longer has any meaning, unlike what people experience in big cities. In Montenegro, it almost feels like time has stopped. The quality of life generously offered by this magnificent nature immerses citizens in a permanent film set. The word magnificent to describe this country comes up again and again. Whether it is the sea, the mountains, the plain, the forest, the rivers, the lakes, the canyons, this environment is an integral part of the favorable climate that reigns in Montenegro.
2.4- The atmosphere
The warm side of Montenegrins is one of the components of the social climate. This warm side is reflected in the shops and activities that you will practice in Montenegro. You will feel a joie de vivre which manifests itself in the local music broadcast here. A mix of influences between East and West which gives an energy that cannot be found in any other music.
The atmosphere in Montenegro is also manifested thanks to the tourist dimension of the country. In 2019, the country broke its historic record by welcoming 2.6 million tourists. Events, shows, concerts take place everywhere to entertain and amuse tourists. So, on sunny days, you can’t get bored in this country as there are so many things to see and do.
This tourism dimension allows the country to remain permanently connected with the world.
2.5 Cost of living
Regarding the cost of living in Montenegro,it is obvious that the country is very well positioned on this criterion. Life is cheaper than in Croatia, Italy or Spain. Generally speaking, prices on everyday consumer products are 40% cheaper than in France for equivalent products. However, there are still certain products that can be the same price as in France. For example, the price of cars, certain materials, electronic products and in general imported products. VAT is 21%.
However, it is on local products that you will benefit from extremely affordable prices. Because the country produces food but so do neighboring countries. So you can find food produced in Serbia, Albania or Bosnia at unbeatable prices. Furthermore, many essential industrial products are manufactured in Bosnia-Herzegovina and Serbia.
Then you save money on locally produced services, naturally.
Finally, the cost of living also translates into very affordable property prices. All these parameters are key criteria for a peaceful retirement in Montenegro.
In addition, the geographical location of Montenegro allows you to stay very close to France, only 2 hours 20 minutes by plane. Perfect for a retiree who wants to stay close to his country.
I would like to remind you in passing that I made a comparison of the cost of living between France, Portugal and Montenegro in my book (only in French)« Why are these French people settling discreetly in Montenegro ? ».
2.6- Taxation
Finally, how can we not talk about taxation, which also remains an important criterion when you want to retire abroad. From this point of view, Montenegro rolls out a real red carpet for French or Belgian retirees. Indeed, the country does not tax the pensions of foreign retirees who opt for tax residence in Montenegro. However, retirement pensions of French civil servants remain taxable in France at the marginal tax rate on which the tax household depends, but will not be taxed in Montenegro.
Unlike Portugal, which had given 10 years without income taxes for French retirees residing in Portugal, in Montenegro it is not 10 years, it is for life!
If we combine all the parameters mentioned above, we can see that retiring in Montenegro offers many advantages that few European countries can compete with.
Conclusion
This can be a really interesting approach when it comes to retiring abroad. This is the “6 months / 6 months” retirement. 6 months in France, 6 months in Montenegro to enjoy the sunny days and take advantage of your network in France and your new friends in Montenegro…
