Retire in India and live off interest payments?

Nick-H

So... You've considered it, then?

No, seriously... I was just doing my daily BBC newsread, read that one, and thought what a difference to India!

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capt_mahajan

Those tax havens are for people who need them. People like me don't , no money to hide.

Aishah

Since I didn't get an answer to my rather complicated post, way back (previous page now on my computer) I have assumed it is all too difficult. BUT.. the word 'tax' in Captain's last post is reminding me..an Australian has just told me that I could get a tax exemption under a 'Treaty'? between Oz and India. And then I file a tax report here, and pay taxes here. She says the tax rate would be less. Is this correct?

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capt_mahajan

If there is a tax treaty between Oz and India, yes.

These treaties essentially help mitigate double taxation.

edwardseco

There have been cases of jailing visa offenders over the years. That Oz-India tax treaty would be good as long as residency doesn't come into question. I recall meeting the author of my Marathi text in the IT office in Pune trying to explain the issue. Wish there was the same for the US. Shakti may have the skinny on that..

Aishah

No question with regard to residency. I am now already being classed as non-resident in Australia, and have Permanent Resident
status here. Thanks for replies, fellows and maybe someone with
more knowledge might help clarify if this is a good idea, to file here, otherwise I shall wait till April when I go back for 6 weeks.

BritAsian

This thread is a couple of years old.

With the continued rapid rise in cost of living, how would people answer the first post now?

capt_mahajan

The answer to "How much"?

I would say to live, two people retired, and after having setup a house, car etc, and looking at only replacement costs for everything except the house, and including annual expenses like decent medical insurance and a not too expensive annual Indian holiday et al..

And, most importantly, an Indian middle middle-class living and at today's rates.

in a big city: 40000 per month
smaller cities: <30000
rural areas: <20000

shashank.aggarwal

Captain, you must be really well off to see the Indian middle class with those glasses !!

Even in Delhi middle class lives on 10-15k per month....yes you can survive with a decent flat, 2 wheeler, and other basics.

40K is more of upper middle class.

And 20K in rural area...a person who earns 20K in rural area might be the upper class there...coming to 'Shehar' and earning 7k is a big deal for those guys..

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I'm not exactly sure if this is true; atleast in a city like Hyderabad (which is a big city), where if you already own a house/apartment, car, and your only expenses would be your daily expenditure, then I don't see why you would need more than Rs.20,000 MAX, to live a very GOOD life, not just a middle class life.

A middle class life then, would only be anywhere from 10 - 15k.

(These numbers are based on what my grand parents tell me, who are retired and live in Hyderabad, but at the moment are with us in USA)

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zoltan

> This thread is a couple of years old.
> With the continued rapid rise in cost of living, how would people answer the first post now?

I'm still giving it consideration at this point in time. No debts; own my house & land. If I rent the property out I can get ~AU$220 per week (after agents fees).

I am looking at renting a large room at a hotel or a small apartment somewhere in Rajasthan.

But, there's still a few years to go before retirement is considered & there are many changes which could take place (both here and there) between now and then.

Cheers
Zoltan

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capt_mahajan

Um, middle middle class is what I said, though I guess one could live with 20k

20k would probably not include these (included in my prev. post)

-decent medical insurance (though what is decent? I just paid 27k for 3 of us, yes, annually- premia have jumped)
-an annual holiday in India, and specially abroad. For eg, your grandparents holiday to the US would be difficult on the 10-15k, if not impossible.
-replacement costs for things like refrigerator,tv, car- white goods


But all this is subjective, I guess. The middle class may extend from 10/15k a month to a 100k a month, who knows?

My sense of a middle middle class may be wrong, too.


PS: In my experience, a lot of people ignore annual or periodic expenses when talking about how much they spend, monthly.

Insurances, holidays, cellphone topups, internet periodic payments, charity, replacement of household and other stuff, clothes, presents for family or weddings and such, a holiday--- it all comes from somewhere

Just replacing a cheapish car (not nano ) with another new one can mean about 200,000 every few years- even if you replace it every 7 years, that is about 2400 a month, just for the replacement.

So I guess the real question is: What does an individual's definition of middle class include?

puchoo

Different people , different strokes. I agree with cap'n on the fact that its not easy to pin point even a range with regard to expenditure and class/level of living. Its individual in nature.

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NeeliAankhen

What kind of housing expenses are you including - are you assuming total ownerhsip of a house (no loan to pay off), or of a flat? If it's a flat - what kinds of monthly costs are associated with owning a flat in, say, Mumbai or Delhi?

And what kinds of costs are you htinking of for household help, which I understand is a natural part of middle-clas life in India?

Apologies if all this is included, I've just read recent posts this evening and have forgotten the rest of the thread, pretty sure I read it at some point.

puchoo

Electricity and water could be in the region of 2500-5000 or more depending on your usage.

Normal maintenance costs would dependent he size of the house , for us its approximately between 500-1000 a month which covers bulbs, small plumbing activities etc

Telephone/ Internet - upwards of 500 depending on your 'plan'

House hold help - Full time cooking and cleaning would be around 3000 plus, if you provide accommodation to the servants however then their wages will fall...