Antigua Guatemala: A retirement paradise for locals and foreigners.

If the time has come to consider your retirement options, we highly recommend Guatemala as a first choice. More specifically, Antigua, Guatemala!

Of course we have a vested interested in your decision to move here, as we certainly hope to be your contact to fulfill your Real Estate needs, so now that we have made our intentions clear, we feel it’s only fair to tell you why.

Topics:

The Weather

The Cost of Living

Security

Transportation

Shopping

Dining Out

Communications

Things to do (passive or active)

Health Services

Taxes

Residency requirements

Buying a home

Financing the purchase of a home

Wills and the other things we don’t like to talk about

The Weather

The first thing that comes to mind is that we have never seen anyone shoveling snow from a driveway in Guatemala. If perfect weather is an incentive, Guatemala just can’t be beat.

Temperatures average in the mid 60’s in the evenings, and the mid 70’s during the day We don’t want to abuse an old phrase, but whoever coined the expression that Guatemala is "The Land of Eternal Spring" hit the nail on the head. The weather is fantastic!

Then we go to one of the most important areas for most newcomers.

The Cost of Living

For an average couple, on a monthly basis, exclusive of housing, you can expect the following:

Electricity for an average household Q 650.00
Water Q 30.00
Waste removal Q 35.00
Telephone, not including LD calls Q 50.00
High speed Internet connection Q 400.00
Food, not including dining out Q 2400.00
Local transportation Q 120.00
Furnished home of decent quality Q 5600.00
Once a week local entertainment Q 960.00
A few good dinners out Q 1000.00
This will provide you with a
very good life for: Q11,245.00
Converting to USD (today’s rate Q8.2=$1.00 US) $ 1,372.00

We are told your can rent a closet space in New York for somewhere around the same price. Welcome to Guatemala!

Security

This has always been a major concern for first time visitors to Guatemala, and rightly so. Now, you can’t compare Antigua to Guatemala City. The city is a place most people visit out of necessity, not out of desire. The city does have its attractions as well as its ability to provide things we may need that are not readily available in a small town like Antigua.

If you visit the city, the daytime is the most secure time to do so. There are several zones in Guatemala City
that would not be recommended regardless of the time of day, but it won’t take long to discover which ones to avoid. On the other hand, Antigua is relatively crime free. Certainly, it has it’s bouts with petty crime such as the odd purse snatching and the odd pick pocket, but generally you can travel the town with no fear for your personal safety or possessions. The times that create the most petty crimes are associated with major events such as Samana Santa, where the crowds swell to a few hundred thousand people who want to witness the annual spectacle.

Transportation

This can take many forms. Local busses, shuttle service, trips to the city, flying to the States or any other country. Take your pick, as it’s all available, and normally, just around the corner.

A local bus will cost you just over .18 cents.

A bus to the city is only $1.00

A private shuttle to the city or the airport is generally $35.00 US

The international airport in the center of Guatemala City has several airlines providing daily direct or connecting flights to anywhere in the world.

Shopping

Granted, Antigua is not a shopper’s paradise when it comes to large department stores, but everything is available if you know where to go. The central market provides first class produce all year round, with the major market days being Thursday and Saturday.

If you need to "Hit the shopping trail", then a trip to the city is in order. Lots of malls and grocery stores to keep you entertained for hours. Since the opening of the US based Price Smart chain, you can now wander the isles and find all the things you thought you may miss by being here. Those of us that just can’t get by without Heinz ketchup or Vlasic pickles will be in heaven once they visit Price Smart.

Antigua offers several boutique deli style food shops that generally will handle all of your needs as well.

Dining out

Antigua probably has more restaurants per capita than any other city in the world.

You pick your favorite, anything from Thai to Italian, and it’s here to enjoy. As with all restaurants in the world, some are better than others, but it only takes a couple of questions to be directed to the right places.

Average dinner at a "High Class" restaurant can run around $16.00 per entrée. Add a bit of wine and dessert, and your just about on the $25.00 to $30.00 mark.

Favorite places to eat and enjoy a pleasant evening would be The Meson Panza Verde for first class dining and atmosphere. If your more of a sports buff, be sure to visit the Mono Loco.

For the fast food fanatic, there is Subway, Burger King, McDonalds, and even Dominos Pizza with 2 for one days.

Communications

Keeping in touch is a concern that many people express. Will I have good communication with friends and family by telephone and Internet?

Antigua has several options to choose from. If you’re an Internet buff, it’s available in 3 forms. One would be using the local Internet cafe’s that charge a very minimal fee for anywhere from a 15 minute connection to as long as you need. As another option, you can bring your laptop computer and use the WIFI connection in most restaurants and hotels for free. For the more sophisticated user, you can install high speed "Turbonet" to keep you connected 24/7 for as little as $25.00 a month.

Telephone service is good, with quick connections to anywhere in the world. Cell phones are as common as "T" shirts. Simple to acquire, and very inexpensive to use. Currently, a call to the US or Canada is only .10 cents per minute by Cell phone.

Things to do (passive or active)

Depending on you "activity" level, Antigua offers several outlets to keep you amused, and also in shape.

Football, basketball, tennis, swimming, hiking, biking, mountain climbing, walking or just plain "sitting in the park and people watching". If you are into theater activities, there are several plays produced locally, and talent is always in demand. If you’re a card player, then there are several Bridge groups looking to add new players. Poker nights can be a lot of fun as well, and there is never a shortage of players willing to lose (or win) Q50.00 for a night of entertainment.

There are several events in Antigua annually that can keep your interests alive as well. There are Jazz festivals, Ballet productions, Opera, and many more seasonal productions that are generally set in the historic parts of this great city.

As they say "Never a dull Moment" if that’s what you’re looking for.

Health Services

Although there is no major hospital in Antigua other than the national IGSS hospital located in San Felipe (2 minutes away), there are several top class clinics and private doctors to serve you. If something major should occur, your 45 minutes to Guatemala City, and some of the finest private hospitals in the world.

Local and international health plans are available at a fraction of the cost you would pay in most parts of the world. Most doctors are US trained and have served their internship abroad.

If you’re concerned about dentistry, look no further. Good examples would be a root canal for $125.00 and a crown would be the same cost. A simple filling would cost $25.00. An annual checkup and cleaning is under $50.00 (X-rays included) Ambulance service is available 24 hours a day, should the need arise.
For those of you that are considering a little “Facial” makeover, $3000.00 will turn you into a new person.

Taxes

We all know that nasty word, don’t we? As far as personal income taxes are concerned, there are
none to pay as long as your retired here and not gainfully employed. Obviously, you will need to file a return in your original country of residence.

Property taxes are shockingly low in Guatemala. Tired of paying $4000.00 or $5000.00 a year just to have a roof over your head? Try somewhere in the range of $200.00 to $300.00 year in Guatemala.

There is a standard sales tax in Guatemala called IVA. This tax is included in everything you purchase, and amounts to 12%. You don’t really see, but it’s there. Major purchases such as a home or automobile (new), have the tax applied as a separate item.

Residency requirements

You have a couple of choices to consider. Under the immigratioimages/n/tourist law currently in effect, you can enter Guatemala for a period of 90 days. At the end of 90 days, you will need to exit the country and then return and do the same thing over again every 90 days. For some, this is just fine, as a quick trip to Mexico or Belize can be a welcome break in your normal routine. (Salvador, Honduras, Nicaragua and Costa Rica are open borders so they are not part of the passport renewal system)

If the thought of driving to the border has no appeal, you can make application for residency. This process is not a 20 minute item. You may spend several months of producing documents that seem to make no sense to the common man, and then find out that suddenly, you need one more that may be impossible to produce, as it relates to something when you were in Kindergarten. You will also need to produce a statement of income to prove you can sustain yourself once the residency status is in process. The best thing to have would be a guaranteed pension from a recognized pension administrator.

Is it worth all the time and effort? That’s a decision you need to make. 90 Days seems to be the simple answer, and hundreds of retired people do it quite happily. There are lawyers available that will do a residency application for you if you desire. This is by far the best thing to do, if you’re sure that you’re going to be a permanent resident.

Buying a home

The first question is, can a foreigner purchase property in Guatemala? The answer is YES. You have all the rights of a Guatemalan citizen when it comes to property. You are granted full, unrestricted title to your property. You will receive a freehold title in your name(s), and you are free to sell, rent, or live in the home as you wish.

All titles are registered in the Central Registry in Guatemala City. All property can be checked for liens and encumbrances prior to purchase. Normally, your lawyer will do all the work as part of their required paperwork.

Financing the purchase of a home

This may be the one big stumbling block in Guatemala. Unless you are a resident of Guatemala (generally for a minimum of 3 years) and can provide proof of income generated within the country, and you have established a credit rating, you’re going to waste your time dealing with the local banks. Risk is not in their vocabulary. How banking survives has been proven that loans for property require the purchaser to have a reasonable amount of equity in the purchase.

Looking at the mortgage crisis around the world, it shows that being prudent in loaning money creates a stable local economy. What we recommend, based on the fact that you may not wish to sell your present home outside the country, is to arrange an equity loan using your current property as collateral with your current bank. Again, under current conditions in other countries, this may not be as easy an option as it was a few years ago.

The next option is to find a seller that is willing to provide private financing. This generally isn’t available, and when it is, most sellers require at least 40% to 50% down payment, and the terms are generally quite short (5 years as a rule).

The current interest rates are around 8.50% in US dollars for private financing. This is equal to local bank rates as well. Full title to the property is only transferred to the buyer once the last payment has been made.

Wills and other things we don’t like to think about

If you’re retired at the standard age of 60 to 65, then a will is something you probably have in place at the moment.

You can create a will that is recognized in Guatemala simply by discussing it with your lawyer.

If you don’t make out a will in the country, then your foreign will is acceptable, as long as you have included your Guatemalan assets. The original will and copies that are certified by the Guatemalan embassy will be required to have your heirs properly claim you property and transfer title as per your wishes.

Century 21 Casa Nova has been representing property in Antigua Guatemala for over 18 years, and their experience and knowledge is available at your request.