Central America Wants U.S. Retirees

"Several Central American nations have sought to increase their appeal by passing laws meant to attract retirees, investors and others who can pump cash into the economy.

"Baby boomers are a growing market with disposable income looking for a place to live, and Nicaragua has that," said the country's young minister of tourism, Maria Rivas. She's putting her Harvard-honed business skills to work highlighting the country's safety, its modernizing infrastructure, and the laws enacted to attract foreign investment and retirees.

Rivas said tremendous growth has taken place in recent years under the democratic government.

In Nicaragua, those willing to put money into the country's tourism industry, such as setting up a seaside cafe or resort, qualify for tax breaks of up to 100 percent on everything from construction material to furniture for up to 10 years.

Honduras and Belize have passed similar measures. Panama sweetens the deal by throwing in discounts of up to 50 percent on all the comforts an American abroad could desire: movies, restaurants, airline tickets, even prescription medication and hospital stays.

The number of Social Security checks drawn abroad has risen steadily, from 188,000 in 1992 to 255,000 in 2004.

And a growing number of retirees have been seeking out Central America and the Caribbean. More than 15,000 Americans drew their Social Security checks there in 2004. And the number of people who spend part of the year in the region is probably much greater, experts said." read more

by JULIANA BARBASSA, The Associated Press