Best Countries for Americans to Retire to

Why Retire Abroad as an American?

Americans may choose to move abroad during their retirement for a variety of reasons. Moving overseas offers a range of new options to people who are ready for their next step, including rich new cultures, exciting areas of natural beauty, warmer climates, and a different pace of life.

The US dollar is a strong currency which often allows for a higher quality of life overseas. Living abroad on a foreign income means that US citizens can often enjoy a far more comfortable retirement and stretch their income further. This is a primary benefit for many Americans looking to retire away from the US.

The US also has strong cultural connections to many exciting global destinations, meaning that many US citizens are able to find a thriving community in their new destination. Additionally, the US has strong travel connections to many other global destinations, including Canada, Mexico, and Europe, meaning that it is possible to move abroad and still frequently visit friends and family based in the US or have them visit you in your new home.

When deciding which country is the best fit for you, it is important to pay attention to your particular preferences and budget. To learn more about which countries are best-suited to your needs, contact IAS today on +44 (0)333 414 9244.

Top 10 countries to retire to from USA

US citizens can choose between numerous exciting global destinations when picking their country of retirement. According to the Annual Global Retirement Index, the 10 best global retirement locations are as follows:

1. Panama
2. Portugal
3. Costa Rica
4. Mexico
5. France
6. Spain
7. Malaysia
8. Greece
9. Italy
10. Thailand

In the following sections, these 10 locations will be explored in more detail.

Overall, these 10 countries all offer their own unique benefits, whether excellent food, a thriving cultural scene, a warm climate, or excellent travel connections to other appealing global destinations.

When choosing which country is right for you, you will need to decide which factors are most important to your quality of life. You should consider climate, culture, cuisine, and lifestyle, for example, to ensure that you pick the destination which is best-suited to this next stage of your life.

Panama

Panama is a popular choice amongst many US retirees. It has numerous benefits, including not taxing foreign income, cheaper healthcare, and clear visa routes for US retirees. If you meet the monthly income threshold then you will be able to apply for the Panama Retirement visa.

Panama itself is a beautiful country which offers a range of benefits, including a consistently warm climate, low transportation costs, and a welcoming community. It also has convenient transport connections to the US, making it easier to visit home and receive visits from friends and family.

Portugal

Many US retirees choose Portugal as their destination of choice. Many Americans choose the Retirement (D7) visa route, which allows you to live in Portugal if you have a sufficient annual income.

Portugal also offers a Golden visa, providing a route to residency via investment, although this programme was recently reduced and no longer provides a property investment route.

Portugal boasts many benefits, including a sunny climate, exciting city locations like Lisbon, and more affordable healthcare. It also has a more affordable cost of living, although accommodation costs can be expensive.

Additionally, Portugal has strong travel connections to the US and to the rest of Europe, making it easier for you to explore new destinations and visit friends and family in the US.

Costa Rica

Costa Rica offers a fantastic retirement location to many Americans.

If you have a sufficient monthly income, you may be eligible for the Costa Rica Retirement visa, which provides a route to permanent residency after 3 years and to eventual citizenship.

Costa Rica offers a relaxed way of life and a strong sense of community. It also offers a wide range of beautiful destinations, including beaches and rainforests.

Healthcare in Costa Rica is also more affordable than in the US, making it an excellent retirement choice.

In general, Costa Rica offers many benefits for the American retiree, making it a popular retirement destination.

Mexico

Mexico is a popular choice amongst American retirees, owing to its convenient proximity to the US, warm climate, and thriving cultural scene. It also offers a retirement route to US citizens, via its Permanent Resident visa. This allows applicants with a sufficient monthly income or savings value to apply for indefinite leave to remain in Mexico and provides an eventual route to citizenship.

Mexico itself is an exciting and culturally rich country which offers excellent food, a choice of coast and city locations, and a warm climate. It also has strong transport connections to the US, making it easier to visit friends and family, in addition to strong transport connections to much of Latin America, allowing you to see more of the region during your retirement.

Mexico also boasts significantly cheaper healthcare than the US, making it a strong choice for retirement.

France

France is an appealing retirement destination amongst US retirees. It offers a Long-Stay Visitor visa for stays of up to a year, after which point you can apply for a Residence permit. In order to be eligible, you will need to satisfy the minimum income requirements.

France boasts numerous appealing benefits for retirees, including a rich food and wine scene, a thriving history and culture, numerous areas of natural beauty, exciting global destinations like Paris and Cannes, and excellent travel connections to other EU countries.

Retirees can also generally access France’s national health insurance, though they will need to pay in order to do so and may also choose to obtain their own private health insurance. In either case, healthcare in France is generally cheaper than in the US, another appealing benefit.

Spain

Spain is a popular choice amongst many US retirees. It offers a Non-Lucrative visa, through which US citizens can move to Spain through demonstrating that they have sufficient funds to support themselves during their stay.

Spain offers numerous appealing retirement benefits, such as affordable accommodation, excellent food, a thriving cultural scene, and a warm climate. Healthcare in Spain is also generally more affordable than in the US.

For retirees looking for a warm climate, a European lifestyle, and a rich culture, Spain is likely to be a good fit.

Malaysia

Malaysia is a popular choice for many US retirees. In most cases, Americans choose the Malaysia My Second Home program as their route to retiring in Malaysia, which allows them to live in Malaysia long-term. It lasts for 10 years and can be renewed as required.

Malaysia offers many exciting benefits, including a rich culture, excellent food, and a warm climate. Healthcare is also significantly cheaper than in the US, making it a strong choice for retirees. Additionally, Malaysia has strong travel links to countries like Singapore, Thailand, and Indonesia, making it an excellent destination for further travel.

Greece

Greece boasts numerous benefits for the American retiree. Its Financially Independent Person visa is a popular route for American citizens looking to retire in Greece. This visa allows you to live in Greece provided that you have sufficient passive income and so do not need to work within Greece itself.

Greece is an exciting global destination, boasting a rich intellectual history and culture, world-renowned cities like Athens, and numerous beautiful islands. It also offers affordable healthcare and housing as compared to the US.

Italy

Italy is a popular choice for many US retirees. Its Elective Residency visa is the most common Retirement visa route, allowing US individuals with sufficient income to live in Italy.

Italy boasts numerous appealing benefits, including culturally rich cities like Rome, beautiful beaches, and world-famous food. Additionally, its comparatively generous Ancestry visa route means that many Americans with an Italian grandparent are able to obtain Italian citizenship, easing the path to Italian retirement.

Thailand

Many US retirees choose Thailand as their destination of choice. It offers two main retirement routes: the Non-Immigrant visa O-A and the Non-Immigrant visa O-X. The former allows stays of 1 year at a time and the latter offers longer stays, generally 5 years at a time. Both visa types are renewable and require the applicant to satisfy minimum income requirements.

Thailand is a retirement destination which offers numerous exciting benefits, such as excellent food, a strong sense of community, and travel connections to countries such as Malaysia and Indonesia. It is a good fit for Americans looking for an affordable way of life in a new cultural environment.

Benefits of Retiring Abroad for US Citizens

There are numerous benefits to retiring abroad for US citizens. For one, many overseas destinations have favorable tax policies, meaning you can live in that country on a US income and not pay tax.

Another benefit is the quality of life you can access by retiring abroad. Annual salaries in the US far exceed salaries in most other countries, such as Portugal and Mexico, meaning that US retirees can often unlock a far higher quality of life by retiring overseas. This could mean nicer accommodation, better travel opportunities, and more disposable income, for example.

Additionally, the US has higher healthcare costs than many other global destinations, meaning that spending your retirement years in the US can often be expensive. According to the Health System Tracker, US annual healthcare costs were an average of $13,000 per person in 2023, whereas they were approximately $7000 in France. This means that moving overseas often removes significant healthcare anxiety for American citizens, and ensures that all medical needs can be met far more affordably.

Another benefit is the change of culture offered by moving to an overseas destination. Retirees to countries such as Mexico, Thailand, Spain, and Costa Rica gain access to new and lively cultures, where they can experience great food, numerous cultural hotspots, and thriving local communities.

Overall, there are many benefits to retiring overseas, and the country which is right for you will depend on your particular tastes and circumstances.

Cost of Living in Retirement Destinations

According to Numbeo’s 2025 Cost of Living Index, the following 10 countries currently have the highest cost of living:

1. Cayman Islands
2. Switzerland
3. Iceland
4. Bahamas
5. Singapore
6. Norway
7. Denmark
8. Luxembourg
9. Hong Kong
10. Guernsey

When deciding on whether a country’s cost of living is a good fit for you, you should consider your own budget and expected costs upon arrival in the country. You should also consider any income requirements, depending on the immigration route which you select when moving to that country for your retirement.

If you have citizenship, for example, you are unlikely to face any income requirements, whereas if you select a Golden visa route then you will need to satisfy certain investment criteria.

Climate Considerations for Retiring Americans

Moving to a pleasant climate is often a main priority for many retirees looking to relocate overseas. Living in a warm environment can help reduce health issues, assist with outdoor activities like hiking and gardening, and boost your ability to travel around your country of choice.

In its 2024 index, International Living ranked the following 6 countries as having the best climate for retirees:

1. Portugal: Portugal receives the top place in the ranking, owing to its choice between hot, temperate, and cool climates. Whatever the time of year, you will be able to find a Portuguese climate which is right for you. The south of Portugal is hotter than much of Europe, whereas the center and south tend to be cooler.
2. Colombia: Colombia offers a range of microclimates, including tropical, warm, and cool, ensuring that it should offer a climate option which suits your needs, throughout the year.
3. Ecuador: Ecuador offers 4 distinct climate regions: the coast, mountains, rainforest, and Galapagos islands. It offers a range of tropical, warm, and cooler options, meaning that you should be able to find an option which suits your preferences, even if these change throughout the year.
4. Mexico: Mexico offers a mix of tropical, warm, and cooler climates, and a variety of destinations, meaning you can move between climates, without needing to leave Mexico, and find a location to suit your individual needs.
5. France: France offers a choice between Mediterranean and cooler climates, at different times of the year, meaning you can pick the climate which is best suited to your preferences.
6. Costa Rica: Costa Rica boasts five different climate zones, specifically the North Pacific Coast, Central Pacific Coast, Monteverde Cloud Forest, South Pacific and Southern Zone, Central Valley, Northern Zone Lowlands, and the Caribbean Coast. This means that you can pick the climate which is best for you, including warm and dry, cool, and warm and humid, and move between them according to your needs.

If you are looking for a cooler climate, countries like Canada or Norway might be a better choice. In general, the country which is right for you will depend on your own criteria for a high quality of life and whether you want to experience a consistently warm climate or annual seasons.

Healthcare Accessibility for Retirees

According to US News, the following 10 countries have the most developed healthcare systems:

1. Sweden
2. Denmark
3. Germany
4. Finland
5. Switzerland
6. Norway
7. Canada
8. United Kingdom
9. Netherlands
10. Japan

In terms of accessibility for American citizens in particular, International Living offers the following top 5 countries:

1. Portugal
2. Costa Rica
3. France
4. Spain
5. Italy

In most cases, you will need to obtain private health insurance when retiring overseas. Contact IAS today on +44 (0)333 414 9244 to learn more about the requirements in your chosen country.

How Can IAS Help You?

Retiring abroad is a popular choice amongst American retirees. It offers numerous benefits, including a more affordable cost of living, access to warmer climates, a taste of a new culture and lifestyle, and new travel opportunities. As such, many US retirees choose to take their retirement in a new overseas destination, such as Mexico, Italy, Costa Rica, or Thailand.

However, there are numerous factors to consider when choosing your retirement destination and a country which is a great fit for one retiree may fail to satisfy the requirements of another. At IAS, our experts are adept at advising on situations like this and can help you to identify the country which is right for you. Contact IAS today on +44 (0)333 414 9244 to learn more about our full range of services and to start your retirement relocation journey today.

Call IAS today on +44 (0)333 414 9244 or visit us online to know more about our bespoke services and to discuss your scenario.