Best Countries to Retire in 2025

Annual Global Retirement Index

The Annual Global Retirement Index is a practical and comprehensive tool that analyses and compares the suitability of different locations for retirees. It draws data from expats and retirees living across the globe and analyses them based on factors like cost of living, healthcare, housing, climate, governance, infrastructural development, visa accessibility, community, and ease of integration.

The index serves as a personalised guide for pensioners, enabling retirees to compare and contrast their top options with real-life data. For over three decades, it has helped thousands of retirees make informed decisions when planning their overseas retirement. 

The country rankings have changed over the decades, reflecting shifting economic, social, and political dynamics. However, many of the top 10 destinations have remained the same over the years, with some going up the ranks and others falling to a lower place.

Our list of best countries to retire draws from information on the annual global retirement index, other independent sources, and the experiences of our clients and staff abroad.

Key Factors for Retiring Abroad

Retiring abroad is a significant decision that can affect your financial security and overall well-being. Hence, it’s a move that requires meticulous research and financial planning to avoid finding yourself in an uncomfortable situation.

There are several factors to consider when planning an overseas retirement. These factors will enable you to choose the destination that suits your personal finance goals, lifestyle, healthcare needs, and overall retirement goals.

The key considerations when choosing a destination for retiring abroad include:

Cost of Living

Affordability is a key consideration when choosing a retirement destination. You should research average costs of renting or purchasing a house, utilities, food, taxes, and basic amenities like transportation. Compare the costs with those of your current location and determine which serves you best.

Visa and Residency Requirements

Some countries offer a straightforward path to permanent residency, while others may require a temporary residency period before you qualify for a permanent visa. Access the visa types available and the ease of getting the necessary paperwork and documentation done. 

Healthcare Options

Your healthcare needs may increase as you age, so access to quality and affordable healthcare should be a top consideration when choosing a retirement location. Check the quality of public healthcare and whether your visa will grant you the right to access it. Also, assess the cost and quality of private insurance and medical care.

Climate

This consideration is based on your weather preference. Some countries experience all four seasons in varying lengths across their regions, while some experience year-round cold or warm temperatures. You should also consider the prevalence of extreme weather conditions and vulnerability to natural disasters.

Tax Rate

Some countries do not tax retirees on abroad income (pension payouts) while some have a flat-rate tax for pensioners. A favourable tax system will ensure your retirement savings carry you longer without compromising your lifestyle and retirement goals.

Culture and Ease of Integration

The language and culture of a destination will determine how fast and well you can integrate into the society and start enjoying your retirement. Look out for destinations that are friendly and welcoming to expats. A large expat community is often an indicator of ease of integration. Also, determine your preference, whether you want a small quiet town, a rural village or a bustling city.

Infrastructural Development

You do not want to find yourself in a place where basic amenities like tap water, electricity, and public transportation are unreliable. Ensure your chosen country has all the basic amenities for standard living and ease of movement.

Safety and Security

While affordability is a significant factor in choosing a retirement destination, safety and security are key considerations to ensure you can enjoy your retirement with peace of mind. Avoid places prone to political tensions and civil unrest. No matter how affordable and ideal a place is, you can’t enjoy your stay if you’re constantly fearing for your safety.

10 Best Countries to Retire

Here’s our list of the 10 best countries to retire in 2025.

Spain

Spain is ranked as one of the top countries for a comfortable retirement. It offers a pleasant climate, relaxed living (outside Madrid and Barcelona), friendly locals, and a rich culture, with plenty of sights to keep you busy throughout your stay.

Areas like the Canary Islands, Costa del Sol, and Marbella offer picturesque sunny beaches loved by retirees. Spain has an excellent rail transport system that gets you across the country in a breeze.

Madrid is Spain’s busiest and most expensive city. But even here, you can get by on a monthly budget of about €2,500. An average one-bedroom apartment in the city centre costs $1,050, plus utilities of around €100. It costs €600 to €850 in smaller towns like Almeria.

Private health insurance costs €250 monthly, and Spain’s public healthcare ranks amongst the best in Europe and globally. In some regions, you can qualify for the public healthcare system after 12 months of residence. This will set you back about €60 per month if you’re under 65 and €157 if you’re over 65.

Non-EU nationals can retire in Spain by applying for the Non-lucrative visa. This is ideal for retirees who do not intend to work in Spain. You must apply for the visa in your home country before travelling to Spain. After holding the visa for 5 years, you automatically qualify for permanent residency, which allows you to work.

Foreign retirees who want to continue working in Spain can explore the digital nomad visa.

Portugal

Thanks to affordable living costs, historic charm, stunning coastlines, and a pleasant climate, Portugal has remained one of the hottest destinations for retirees for several decades. Whether you prefer bustling cities or quaint towns and villages, Portugal has plenty to offer.

Living in expat hubs like Lisbon, Porto, and the Algarve typically costs between $2,000 and $2,500, including rent. One-bedroom flats in these locations can cost up to €1400, and utilities will set you back another €80 to €150.

Healthcare is also quite affordable in Portugal. The public healthcare system – Servico Nacional de Saude (SNS) – provides universal healthcare for all residents. However, you must still have private insurance coverage when applying for a Portuguese visa. Private health insurance in Portugal costs between €300 and €600 monthly and covers up to 80% of medical expenses.

The D7 Passive Income visa is the most common type of visa foreign nationals use to retire in Portugal. It is designed specifically for retirees who earn only from passive sources like savings, pension, or rental income. Foreign pensions are currently not taxed in Portugal.

France

While France, particularly Paris, is not the cheapest place to retire, it makes up for this in affordable healthcare, world-renowned cuisine, and a laid-back lifestyle ideal for retirees. Plus, it’s still relatively cheaper to retire in France than in most of the U.S and the UK.

The cost of living in France is location-dependent. Retirees can live comfortably on less than €2,000 a month outside of Paris and the coastal towns. A one-bedroom apartment in the small towns and villages costs around €600 per month, while a two-bedroom costs about €850. Food will set you back about €500 a month, and utilities cost €100 on average. 

Affordable quality healthcare is one of the top reasons many senior citizens prefer to retire in France. France’s healthcare is often ranked No.1 globally, is incredibly inexpensive, and available to all residents regardless of age or social status. After three months of residence in France, you qualify for public healthcare – Protection Universelle Maladie (PUMA). Prices are fixed, and you’ll usually get up to 70% reimbursement on medical expenses.

You can retire in France by obtaining a Long-stay visa or a Talent visa. The long-stay visa is issued for 12 months and can be renewed, but does not allow you to work in France. The Talent visa is your best option if you intend to work here.

Greece

With its blue coastlines, picturesque towns, mild climate, rich history, and relaxed lifestyle, Greece is one of the most desirable countries for retirees. From exploring ancient ruins to relaxing on its many beaches to hiking through forest groves, there’s plenty to make your retirement years a dream come true in Greece.

Outside of tourist hotspots like Athens, Santorini, and Thessaloniki, living costs in Greece are very affordable. You can live comfortably on €1500 per month, including rent, utilities, groceries, and entertainment. On average, you can rent a two-bedroom apartment in the countryside and less touristy cities like Corfu for €500. You can even purchase a small countryside home for less than €150,000.

Universal healthcare is available to all legal residents in Greece, including expat retirees. Depending on your needs, you can buy into the public healthcare system, rely on private health insurance, or both. You can access Greece’s national healthcare by enrolling in the Social Security Fund. This will cost you about €55 per month.

There are several visa options for retirees in Greece. Depending on your financial situation, you can opt for the Retirement Visa, Digital Nomad Visa, or the Golden Visa. The Retirement Visa is specifically designed for those who will be living in Greece on a pension.

Italy

Italy is one of the best countries to retire globally for lovers of culture and history. Plus, it offers a variety of regions, landscapes, and climates to choose from, whether you prefer a year-round warm climate or a mix of the four seasons. 

Life in Italy follows a very relaxed pace, contributing to high life expectancy among Italians. Living costs are very affordable outside the bigger cities like Rome, Milan, Bologna, Florence, and Venice. A single person can live comfortably in Italy with about €2,500 per month. Rent outside the cities costs about €700 and up to €1,000 in the city centres. You can even purchase a small home in the southern countryside for about €150,000.

Public healthcare is available to all legal residents in Italy. However, most expats prefer private medical insurance to cut wait times and ensure wider coverage. Italy also offers a 7% flat tax rate for the first 10 years for retirees in central and southern Italy.

You can retire in Italy with an Elective Residence Visa. This visa allows you to retire in Italy based on your passive income from pension, savings or rental income. You must meet a specific financial requirement to qualify. Alternatively, you can opt for the Golden Visa, which grants you residence in exchange for an approved investment in Italy’s economy.

Costa Rica

This Central American country is an attractive destination for lots of retirees because of its retirement program and pension benefits for foreign retirees. From warm tropical breezes to turquoise waterfalls to stunning wildlife, Costa Rica is a tropical paradise that offers retirees the opportunity to spend their golden years relaxing in nature.

The cost of living in Costa Rica depends on lifestyle and location, though it is still much more affordable than many European cities. San Jose is Costa Rica’s capital and the most expensive city. Still, you can live comfortably on $2,000 monthly, including rent. In smaller towns like Atenas, the cost of living falls to less than $1,500 per month. Here you can get a 1-bedroom apartment for as low as $400 monthly.

Healthcare in Costa Rica is very affordable. You can pay into the universal healthcare plan or use private medical insurance. The cost of health insurance depends on your age and medical condition. It can be as low as $60 monthly for someone without known health conditions.

There are two main visas for expat retirees in Costa Rica – the Pensionada Visa, which requires a minimum income of $1,000 per month, and the Rentista visa, with a minimum income requirement of $2,500 per month.

Canada

Canada is a great retirement choice for lovers of colder weather. It is a well-developed country with one of the highest living standards worldwide. Canada is home to the world-famous Niagara Falls, amongst many natural wonders.

Like in most countries, living costs depend on lifestyle preference and location. The average cost of living in Canada is about C$3,000 per month. However, it can go as high as C$4,200 per month in large city centres, like Toronto, because of higher housing costs.

Canada’s universal healthcare (Medicare) covers all legal residents, including expat retirees. You can qualify for Medicare after three months of residence in the country. However, the level of coverage depends on your residency status and region of residence. Most expats prefer to supplement Medicare with private health insurance, which costs between C$50 and C$250 per month.

Canada does not have a specific retirement visa, which can make processing retirement here a bit complex. However, there are several visa options you can explore, such as the start-up visa, super visa, and express entry program.

Ireland

The beautiful island of Ireland is another top destination for retirees, especially UK senior citizens who want to settle abroad but remain close to home. Whether you want to retire in a quiet village, a small town, or a medium-sized city, Ireland has the perfect location.

It is home to several world heritage sites and historical scenery. Plus, you can easily visit the UK from Ireland. The cost of living is about €2,800 per month in smaller towns and €3,500 in larger cities like Dublin.

Non-Irish nationals legally residing in Ireland can access free or subsidised public healthcare, depending on their nationality and residency status. Still, having private health insurance is recommended.

EU/EEA and UK nationals do not need a visa to retire in Ireland. Non-EU/EEA nationals can retire in Ireland with a Stamp 0 visa, popularly called the Ireland Retirement visa or D-Reside visa. However, you must have an annual income of at least €50,000 and private insurance to qualify. This visa does not allow you to work in Ireland.

Malta

The Mediterranean island of Malta is a stunning destination for retirement with its rich history, culture, numerous world heritage sites, warm Mediterranean climate, and laid-back lifestyle.

Cost of living and healthcare are relatively lower in Malta than in most European countries. Monthly living expenses cost between €2,000 and €2,300 per month, including rent, utilities, food, transportation, and entertainment. You can get an average 1-bedroom apartment for €800 in non-touristy areas and €1,200 in large cities and popular tourist destinations.

Although Malta has high-quality universal healthcare, it only covers Maltese and EU nationals. You’ll need private health insurance to cover your healthcare in Malta.

The most common retirement route in Malta is the Malta Retirement Programme. The visa is for those who do not intend to earn income in Malta but will rely primarily on foreign retirement payouts and passive income. Malta charges a flat rate of 15% tax on foreign pensions.

Thailand

Thailand is one of the cheapest countries to retire in without compromising living standards. It attracts thousands of expat retirees because of its affordable cost, warm climate, friendly locals, diversity, and a mix of bustling cities and quiet beach towns.

You can live well in Thailand on a monthly budget of about €1,200 per month in Bangkok and other large cities, and about €800 in the smaller towns, including food, rent, insurance, and transportation. Rent in Bangkok’s city centre costs about €550 per month and €275 outside the city.

Public healthcare is not available to non-Thai nationals. However, private medical care is very affordable.

Thailand has two retirement visa plans – the Non-immigrant O Visa and the Non-Immigrant O-X Visa. The non-A visa is for those over 50 years who earn a monthly pension income of at least €1,705 per month and do not intend to work in Thailand. The O-X visa is only available to nationals of select countries.

Choosing the Right Retirement Location

The right retirement location for you depends on your lifestyle preference and financial strength. When choosing a retirement location, consider the place that offers the best for your lifestyle needs and financial goals.

You should also check if there’s an expat community. A thriving expat community usually indicates a country is safe and conducive for retirees. 

Depending on your nationality, you can travel to some locations visa-free. If you qualify for visa-free travel, it’s good to visit your chosen country for a short stay to get a first-hand feel of the place and determine if it fits your needs and lifestyle before relocating permanently.

Language is also a major consideration when choosing a retirement location. English is widely spoken in most of the top retirement locations. Still, it’s best to have a basic understanding of the local language to ease integration. 

Most importantly, you should consult retirement advisors and immigration experts for personalised recommendations and assistance with planning your retirement.

Easiest Places to Retire

Certain countries are easier to retire in because of their retirement-friendly environment, affordability, and ease of acquiring visas. The easiest countries for UK retirees, in terms of affordability and ease of getting a visa, include:

• Malaysia – One of the cheapest countries to retire, you can live here on a monthly budget of about €900. You can get a 10-year visa through the Malaysia My Second Home Program (MM2H).
• Bulgaria – It is one of the most affordable EU countries for retirees. Living expenses here cost on average €950 per month. You can apply for the Bulgarian Retirement D visa if you earn a monthly pension of up to €500. 
• Panama – Cheap cost of living and tax breaks for retirees. You can lead a comfortable lifestyle in Panama City on less than $2,500 per month and about $1500 in smaller towns. You can apply for the Pensionado visa if you earn a monthly pension of at least $1,000.
• Mexico – You can retire comfortably in Mexico on a monthly budget of $2,000. However, you must show that you earn at least $4,500 a month to qualify for a permanent resident visa.
• Thailand – Retirees can live comfortably in Thailand on an average monthly income of €1,200. You only need to prove that you’re over 50 and earn a retirement payout of about €1,700 to qualify for a Retirement O visa.
• Greece – Living costs are very affordable in non-tourist hubs in Greece. The average cost of living outside the big cities is about €1,500 per month. You can apply for Greece’s Retirement visa if you earn a monthly income of at least €2,000.
• Cyprus – This is another low-budget destination for retiring abroad. You can live here on a monthly income of about €1,800 per month, and you only need to prove a monthly income of about €800 per month to qualify for the Category F Permanent Residence Permit.

Countries with Favourable Tax Benefits

Some countries offer specific tax reliefs for retirees, whether locals or expats. The countries with the most favourable tax benefits for retirees include:

• Panama – Tax exemption on all foreign income. Multiple discounts for retirees: 20% off medical bills, 25% off electricity bills, flight tickets, and restaurant meals, 30% off public transportation, and 50% off movie and event tickets.
• Malaysia – Tax exemption on foreign passive income.
• Cyprus – 5% tax on gross pension benefits greater than €3,420
• Belize – No foreign income tax.
• Costa Rica – No tax on foreign retirement income.
• Greece – 7% tax on all foreign pension income for the first 15 years
• Italy – 7% tax on overseas income for the first 10 years for residents of southern Italy

Retiring in Countries with the Best Healthcare

Certain countries are more beneficial for retirees in terms of healthcare. Most countries on this list offer universal healthcare that covers all legal residents, which you can supplement with private medical insurance. 

While Thailand does not grant healthcare coverage to foreign nationals, we’ve included it because it has high-quality and very affordable private healthcare. It has a thriving medical industry that attracts people from across the globe for affordable, quality healthcare.

On the other hand, Japan offers universal healthcare for expats and has some of the best doctors globally. However, its healthcare payments are one of the most expensive globally.

The top healthcare destinations for retiring abroad include:

Japan

France

Portugal

Spain

Costa Rica 

Thailand

How Can IAS Help?

Retirement provides an opportunity to travel, gain new experiences, and savour life at a slower pace. However, retiring abroad is a significant step that requires thorough financial and relocation planning for a successful outcome.

It’s best to start planning early if you’re considering retiring abroad. The first step will be consulting with financial and immigration experts to assess your retirement and financial goals and determine the best country for you.

IAS provides bespoke immigration and citizenship services to clients across the globe. Our team of expert immigration lawyers can help analyse your goals and current situation to determine the country that’ll offer you the best life abroad and the most suitable visa route.

We will assist with completing your application, collecting supporting documents, planning your relocation, and shipping and logistics when it’s time to move.

We are always available to help. Contact us today at +44 (0)333 414 9244. via email, or on our website for immediate assistance.