Many people envision living their retirement on a tropical island, atop a mountain or perhaps on a farm growing their own organic foods and raising free-range critters. For most people this is a far cry from reality, but not necessarily impossible.Proximity to family and friendsA recent study underwritten by HSBC revealed that, in the United States, 99 percent of those surveyed considered proximity to family and friends as paramount when choosing a home base. If your family and friends live primarily in Bermuda, the opportunities for them to visit, should you move away, will be limited.Tax implicationsTax implications can be extremely complex, and are constantly changing. To clearly understand the tax implications of relocating, you are best served by consulting a tax accountant or tax lawyer. Tax implications can be different depending upon where you intend to live, how long you intend to stay and whether you own or rent your accommodations. In some jurisdictions, expatriates pay a higher land or property tax than citizens of the country. Every country is different, and one mistake can create a financial nightmare that could threaten to ruin you. My recommendation is to do your research, verify your sources and get professional help.Welcoming armsSome countries are actively recruiting retirees and fully recognise the economic value of inviting persons with established sources of income and assets to live in their country. Others will allow you to spend up to a certain amount of time, often up to six months, depending on the relationship with your country of citizenship.During recent decades, Bermudians and others have flocked to Costa Rica taking advantage of incentives such as land tax holidays, reduced import duties, minimal investment requirements to earn citizenship and so on. In recent years, Costa Rica has made some changes to their incentives. Other countries that offer incentives include Panama, Belize, Uruguay and most recently Nicaragua. In 2008 Costa Rica made changes to their incentives and in 2011 Nicaragua redeveloped its retirement incentive package. I strongly suggest that if you are seriously looking at moving that you obtain a copy of the most recent policies and legislation as they apply to retirees.Cultural differencesFor many who vacation in traditional vacation spots, the feeling of manana (literally tomorrow in Spanish) is what makes the place great. It's fun to try and use your Berlitz and attempt to carry on a discussion with a local. It's great that no one is ever in a rush.This stage of visiting a new location is referred to as the cultural honeymoon period, and, unfortunately, many individuals and couples make highly inappropriate decisions while caught up in the often unrealistic lifestyle.During this honeymoon period, you embrace the differences in culture. The language can be a challenge, but you enjoy the art, the relaxed approach to providing certain services, the unique flavours of the food, the good manners shown and charm that the men extend to the women, and so on.The honeymoon period can last for weeks, or even months, depending on your attitude, your needs and your plans. For many, cultural differences can wear thin very quickly.Many become frustrated that they cannot purchase certain food items and other dry goods that were so easily found at home. If you have dietary restrictions, such as a diabetic diet, you may not have appropriate food choices available.The slow service and the unusual hours of business that so enamoured you at first may start to irritate you. Waiting for a year for phone service, as an example, may be completely unacceptable to you. Struggling with the language every day may become disheartening and discouraging. You may start to long for the conveniences and the variety that you enjoyed at home. If you find yourself unhappy in this period of cultural enlightenment, hopefully, you have only rented and not purchased your accommodations.Medical and healthcare servicesNo matter how well you are right now, availability of proper medical services should be a top priority when scoping out a new destination. Here is a checklist for your consideration:n How close is the nearest health services centre?n How qualified is the medical staff?n What is the waiting time for treatment?n What level of care can they provide?n Do they have excellent emergency services?n What kind of ambulatory services are available?n Can you be reached by ambulance should you need one?n Do you have access to any medical specialists that you might need? Is there a local dentist, physiotherapist, chiropractor, dermatologist and so on?n Can you get the prescription medication that you require?n Does your health care insurance cover your potential medical needs?n Can you be air lifted to a larger, better facility?n If you do not have a health insurance plan, can you cover the health care expenses?Cost of livingMany people choose to live in a different jurisdiction because they wish to reduce their cost of living. Couples choose to sell the higher cost residence to purchase a lower cost home in another country. They may be under the perception that the cost of living is much less elsewhere.However, there are often hidden costs that you should consider when comparing locations. Such costs may include retail taxes, service taxes, additional health insurance coverage, different wardrobe requirements, furnishing the new home and so on. You need to also factor in the cost of travel and possibly the need to purchase and operate a car. To truly understand the cost of living in a given area, ideally you should live there for a year or a minimum of six to eight months.CommunicationsIn some places, communications may not be as sophisticated as you might expect. Check that you are able to access adequate cable, satellite, Internet and telephone services to meet your communications needs. And, very importantly, check the cost of those services. Many smaller or more remote areas do not have the benefit of competing service providers and are able to charge the moon for their services.Communications services that we, in developed countries, take for granted may be either completely unavailable or considered luxuries in some areas. Reliability can also be an issue.InfrastructureEnsure you can reach your destination of choice easily, safely and affordably throughout the year, or at least during the seasons that you will visit. Ensure that you have adequate water and sewage service or facilities. Check out any potential environmental issues. Ask what the buildings are sitting on, ie ensure it is not a former landfill site. Are there any undesirable industrial sites in the region that may be polluting the air or water?Personal safetyAll countries have a certain level of safety concern. A great source of information regarding the safety and stability of any given country is the CIA Handbook. Don't flaunt your wealth. Instead, enjoy your surroundings and the natural benefits of the community in which you chose to live. If you are concerned about your personal safety, you should consider living in a gated and well-secured community.Government stabilitySome countries are downright dangerous and should be avoided at all costs. Again, a great, continually updated resource is the CIA Handbook. The last that you want to endure is a regime change in your newly adopted country.