Retiring In Bolivia: How Much Money Is Needed?

Bolivia is a great place to retire, with its low cost of living, beautiful landscapes, and diverse culture. The country offers a unique blend of historic architecture, modern conveniences, and natural wonders such as crystal lagoons and rainforests. The cost of living in Bolivia is significantly lower than in the US, with basic expenses being nearly 50% lower and rent being over 70% cheaper. A retired couple can live comfortably on around $1500 per month, while singles can manage on less than $1000. Bolivia also has a small but growing expat community, offering a mix of adventure and a relaxed pace of life.

Renting in Bolivia's capital cities

Bolivia has two capital cities: La Paz and Santa Cruz. Both cities offer affordable rental options, with the average rent in the city centre being $353.61 and $415.37, respectively.

La Paz

La Paz is Bolivia's constitutional capital and has a population of around 1.88 million people. The city offers a mix of historic and modern architecture, with a walkable city centre that houses the main cathedral and several parish churches.

There are several apartment blocks in La Paz that offer rental options, including:

• Almudena Apart Hotel: Located just outside the downtown area, this complex offers modern and spacious 1, 2, and 3-bedroom apartments.
• Alcalá Apart Hotel: A 15-minute drive from the city centre, this hotel offers elegant accommodation with free Wi-Fi and flat-screen cable TV.
• Aparthotel A La Maison: Located 500 metres from 20 de Octubre Avenue, this complex offers 8 luxury self-catering apartments with free Wi-Fi and breakfast.
• La Lodge: Situated above the La Comédie restaurant, La Lodge features 5 stylish apartments with modern amenities, including cable TV, a coffee percolator, a mini fridge, and microwave.

Santa Cruz

Santa Cruz is the second capital city of Bolivia and has a population of around 1.75 million. The city offers a mix of historic and modern attractions, with a vibrant downtown area and well-to-do districts.

Some rental options in Santa Cruz include:

• House Inn Apart Hotel: Located 5 minutes from Ramada Market, this complex offers apartments with separate living and kitchenette areas, cable TV, and free Wi-Fi.
• Aparthotel Premium Suites: Located 100 metres from San Martin Avenue, this complex offers 1 or 2-bedroom self-catering accommodations with free Wi-Fi and city views.
• Terrasol Apartamento: Located 500 metres from the financial centre, Terrasol offers fully furnished self-catering accommodations with free Wi-Fi, kitchen facilities, and flat-screen TVs.

Rental Options and Considerations

When looking for a place to rent in Bolivia, it is important to note that there is no centralised database of listings. Networking, asking friends, looking at online classifieds or Facebook groups, or simply walking around desirable neighbourhoods can be more effective ways to find available rentals.

Additionally, English-language rental listings may be limited, and Spanish-language sites like Inmobiliaria.com may offer a wider range of options. Rental listing sites like ArrangeYourVacation.com, Doplim, Evisos, and Sublet.com can also be useful resources for finding available properties.

When renting in Bolivia, it is common to pay the first and last months' rent upfront, and some landlords may also require a deposit. It is also worth noting that the country has recently improved internet speeds in its larger cities, making it more accessible for expats.

Visas and residence permits

There is no formal retiree visa for Bolivia. Instead, you must apply for a Specific Purpose Visa (Visa de Objeto Determinado) as a prelude to a permanent or definitive resident visa. You can apply for the Specific Purpose Visa at a consulate in your home country. To do so, you must fill out an online form and provide a criminal background check, a medical check, and proof of assets with bank account statements showing you can support yourself (around $500 per month). The fee for this visa is approximately $357.

Once you have received preliminary approval, you must enter Bolivia within 30 days and finish the process at the local immigration office. The term for this temporary residence visa is one or two years, but it is renewable. After two years in the country, you can apply for permanent residence. The cost of the permanent resident or definitive visa is around $560.

One expat in Bolivia, Canadian Janilee Porter, said she paid $290 in fees for her visa. She added that the process involved a little back and forth as her Spanish wasn't perfect and there always seemed to be another form needed. However, she found the immigration officials to be friendly and helpful.

It's important to note that U.S. citizens must obtain a special tourist visa from a Bolivian consulate or embassy before entering the country. This visa costs $160 and the process takes a couple of weeks. You must provide your itinerary, proof of a yellow fever vaccination, bank statements showing sufficient funds for your stay, a photo, etc.

Healthcare

The World Bank partially funds Bolivia’s healthcare system, which is undergoing significant reforms. The number of physicians in Bolivia has doubled in recent years, but there is still a lot of work to be done. Bolivia introduced the Unified Health System (SUS), which covers at least 70% of the Bolivian population who lack any form of insurance. However, this government program has not been adequately funded, and as a result, many facilities are running understaffed and short of supplies.

Public healthcare facilities are subsidized by the government but are typically drastically underfunded and heavily utilized, resulting in long wait times and a sub-par quality of healthcare when compared with western nations. Outside of the major cities, it can be difficult to find any quality healthcare.

The majority of expats in the major cities use private clinics, which offer a generally higher level of care and are capable of handling most medical concerns. Private healthcare is considerably more expensive than public healthcare.

It is recommended that expats secure international health insurance that covers the cost of care in Bolivia and other countries. This is especially important for those living outside of the big cities, as they may need to consider medical evacuation to receive care. Local health insurance plans do not cover healthcare outside of Bolivia or offer adequate evacuation coverage.

The cost of an international health insurance plan in Bolivia will differ based on factors including your age, coverage requirements, and nationality.

Expats and foreign visitors to Bolivia are advised to carry their prescription medications and essential medical equipment during their stay. They should also purchase international health insurance that covers air evacuation in case of a medical emergency.

Taxes

Bolivia has a flat income tax rate of 13% for both residents and non-residents. However, non-residents only pay taxes on income earned from Bolivian sources, while residents are taxed on their worldwide income.

Expatriates will also have to make Social Security contributions in Bolivia. These contributions can be transferred to your home country if certain conditions are met.

It is important to note that US citizens with residency in Bolivia are still required to file their annual tax returns and may be subject to additional taxes on income earned in Bolivia. Therefore, it is recommended to consult with a financial professional or accountant to navigate the tax obligations while living abroad.

In addition to income taxes, Bolivia has a value-added tax (VAT) of 13% on the sale of movable goods and services within the country. There is also a property tax on real estate and vehicles, calculated at different rates based on a scale value determined by the municipal government. For individuals with a monthly income of up to 9,000 BOB, there is a VAT reimbursement regime that provides a 5% reimbursement on purchased goods.

Furthermore, Bolivia introduced a wealth tax ('Impuesto a las Grandes Fortunas') in 2020, applicable to resident and non-resident individuals with a net wealth exceeding 30 million BOB as of 31 December each year. The tax rates are progressive, ranging from 1.4% to 2.4%. This law considers both assets located in Bolivia and abroad when determining the taxable wealth for resident individuals.

Safety

Bolivia is somewhat safe to visit, but it does have many dangers. The country has a medium overall risk rating.

According to the U.S. Department of State, safety concerns for foreign expatriates visiting or moving to Bolivia fall into three main categories: theft, travelling alone, and demonstrations.

Theft

Petty crime is a serious issue in Bolivia, and violent crime is on the rise. The country has far lower levels of theft and violent crime than neighbouring Peru and Brazil, but in recent years, crime levels have increased. Most ordinary Bolivians are shocked and outraged by stories of theft or assault.

Theft and pickpocketing most often occur in tourist hotspots, restaurants, shops, and on public transportation. Bag snatching is also common, so it is recommended to keep your bag by your side, or even better, keep your valuables in hidden pockets in your clothing. Do not carry large amounts of cash with you, and keep your money separate from your valuables.

There have also been cases of mugging and kidnapping, where criminals target foreigners, taking them hostage and forcing them to withdraw money from ATMs. These kidnappings most often occur in Plaza Abaroa, Plaza Humbolt, Plaza Isabel La Católica, Plaza del Estudiante, Plaza San Francisco, and the Altiplano, as well as the downtown area of the city.

Travelling Alone

When you travel alone, you may be more vulnerable to pickpocketing, robbery, or scams. Plan your routes in advance and try to travel with a companion. It is also recommended to avoid areas like Coronilla Hill in Cochabamba, where drug addicts and alcoholics gather, and it is dangerous for both foreigners and locals.

Demonstrations

Protests, marches, and demonstrations can occur with little prior notice and can sometimes turn violent. If you encounter a demonstration, move away from the area and stay in a safe place. Stay alert, monitor local media, and follow the advice of local authorities or tour operators.

Other Safety Concerns

• The transportation system in Bolivia is not very safe or reliable. Common strikes affect public transport, making it unreliable.
• There is a high risk of getting scammed. Be wary of people impersonating "non-uniformed policemen" trying to extort money from you. Official policemen will only need to see a copy of your passport and your Bolivian visa.
• Taxi drivers might try to trick you into paying more by giving you wrong information about the price of the ride. It is safer to order a taxi by phone and seek local advice and use established companies.
• Women travelling alone, especially at night, should take precaution measures and avoid dark and empty streets and locations.
• There have been rape and sexual assault incidents at clubs and hostels. Be cautious if you are approached by strangers and always lock your room when you return to your hotel or hostel.
• Bolivia is the world's third-largest producer of cocaine, and there are harsh penalties for those caught trafficking or in possession. The minimum sentence is 8 years, and prison conditions are very poor.
• There have been serious illnesses and even deaths from consuming Ayahuasca, a traditional plant used in 'spiritual cleansing' ceremonies.
• Be careful when travelling with cameras and binoculars in remote areas, particularly in coca-growing areas such as the Chapare and the Yungas, as people can be suspicious of anyone taking photographs.
• Road travel can be dangerous due to poor road conditions, low driving standards, and broken-down vehicles on the road at night.
• Lake and river travel can also be unsafe, as boats are often very basic and lack life jackets.

Frequently asked questions