More Americans than ever are looking beyond U.S. borders for a better retirement lifestyle — one with lower costs, warmer climates, and a richer sense of adventure.
According to the Expat Network, the number of Americans receiving retirement benefits abroad has grown steadily year after year, climbing from 423,022 in 2018 to 463,480 in 2024.
Whether you dream of a beachside condo in Portugal, a vineyard retreat in Italy, or a cosmopolitan life in Spain, retiring abroad could make your savings stretch 30–50% further. But choosing the right destination requires balancing affordability, healthcare, safety, and residency requirements.
This guide ranks the Top 7 places to retire abroad, compares costs and healthcare, and provides practical tips for planning your international move.
Article Highlights
- Top destinations: Portugal, Mexico, Costa Rica, Spain, Thailand, Italy, and Panama.
- Living costs: Many retirees live comfortably on $1,800–$2,800/month, depending on region.
- Healthcare: Countries like Spain and Portugal offer excellent, affordable universal care.
- Residency: Most nations provide retirement visas with minimum income requirements.
- Safety and community: Expanding expat networks make it easy to adapt and connect abroad.
Why Retire Abroad?
Lower Cost of Living
Compared to retiring in U.S. cities, the biggest draw is financial freedom.
In countries like Portugal and Mexico, your dollar buys significantly more — from dining out to housing and healthcare. A couple who might need $5,000 a month in the U.S. can often live comfortably on $2,500–$3,000 abroad.
This cost advantage also allows retirees to maintain higher lifestyles, travel more, or retire earlier without draining savings.
Adventure and Lifestyle
Beyond finances, retirement abroad is about quality of life.
Picture sunny days, fresh cuisine, slower pace, and cultural exploration. Many expats describe it as “a second youth,” with opportunities to learn languages, meet new friends, and volunteer or teach.
Countries like Thailand and Spain offer a blend of leisure, community, and adventure rarely matched at home.
Access to Expat Communities
Moving overseas is easier when you’re not alone.
Thousands of U.S. and European retirees form vibrant expat communities in places like Chiang Mai (Thailand), Lisbon (Portugal), and San Miguel de Allende (Mexico). These hubs offer English-speaking social circles, healthcare familiarity, and cultural support networks.
How We Ranked the Best Places to Retire Abroad
Data Sources
We analyzed data from the Global Retirement Index, Numbeo, OECD, and World Health Organization, focusing on cost of living, safety, healthcare, visa accessibility, and expat satisfaction.
Ranking Factors
- Affordability – Housing, groceries, transportation, and healthcare.
- Healthcare Quality – Accessibility, cost, and international standards.
- Safety and Stability – Low crime rates, political security, and natural disaster risk.
- Visa and Residency Options – Ease of obtaining retirement residency.
- Lifestyle Appeal – Weather, culture, recreation, and expat integration.
Top 10 Best Places to Retire Abroad in 2025
#1) Portugal
Portugal tops global lists year after year for affordability, safety, and healthcare. Retirees enjoy a mild climate, excellent infrastructure, and a high quality of life.
- Average Monthly Budget: $2,000–$2,800 per couple
- Healthcare: Ranked among Europe’s best; public system accessible to residents
- Visa: D7 Visa requires proof of income (~$1,000/month per person)
- Popular Spots: Lisbon, Porto, and the Algarve coast
HERO Tip: Portugal’s “Non-Habitual Residency” program offers ten years of favorable tax treatment for foreign retirees.
#2) Mexico
Mexico remains one of the most popular and affordable retirement destinations for Americans. You’ll find everything from modern cities to tranquil beach towns.
- Average Monthly Budget: $1,800–$2,400
- Healthcare: Excellent private hospitals at 50–70% lower cost than U.S.
- Visa: Temporary Resident Visa for retirees with ~$2,600 monthly income
- Best Cities: Mérida, San Miguel de Allende, Lake Chapala, Puerto Vallarta
Why it shines: Low cost of living, proximity to the U.S., and large expat communities.
#3) Costa Rica
Known for its “Pura Vida” lifestyle, Costa Rica blends tropical beauty with strong environmental and healthcare systems.
- Average Monthly Budget: $2,200–$2,800
- Healthcare: Universal “Caja” system; affordable and high quality
- Visa: Pensionado Program – $1,000/month income requirement
- Top Areas: Atenas, Tamarindo, and San José suburbs
Fun fact: Over 25% of Costa Rica’s land is protected rainforest — perfect for nature lovers.
#4) Spain
Spain offers everything retirees want: warm weather, modern infrastructure, world-class healthcare, and rich culture.
- Average Monthly Budget: $2,400–$3,000
- Healthcare: Ranked among top 10 globally by WHO
- Visa: Non-Lucrative Visa requires proof of ~$2,400/month income
- Hotspots: Valencia, Málaga, Alicante, Seville
Spain’s Mediterranean lifestyle, tapas culture, and efficient healthcare make it a long-time expat favorite.
#5) Thailand
Thailand combines affordability with tropical beauty and exceptional hospitality.
- Average Monthly Budget: $1,600–$2,200
- Healthcare: Bangkok hospitals meet international standards
- Visa: Retirement Visa for 50+ with $24,000 annual income or $80,000 in savings
- Best Cities: Chiang Mai, Hua Hin, Bangkok suburbs
Bonus: Thai culture prizes respect and community, making expats feel welcome and safe.
#6) Italy
Italy is synonymous with lifestyle—wine, food, art, and history. Southern regions offer surprisingly affordable living.
- Average Monthly Budget: $2,300–$2,900
- Healthcare: Excellent public system (Servizio Sanitario Nazionale)
- Visa: Elective Residency Visa for those with stable income (~$3,500/month)
- Top Picks: Sicily, Puglia, Abruzzo, Tuscany
Retirees enjoy the blend of culture and community in Italy’s smaller towns—where local markets and café life thrive.
#7) Panama
Panama’s Pensionado Program is one of the world’s best retirement incentives.
- Average Monthly Budget: $2,000–$2,600
- Healthcare: Quality care, often by U.S.-trained doctors
- Visa: Pensionado Visa – $1,000/month pension income requirement
- Top Locations: Boquete, Coronado, Panama City
Perks include discounts on entertainment, healthcare, and utilities for retirees.
Cost of Living Comparison (Monthly for Two People)
| Country | Avg Rent & Utilities | Groceries | Healthcare | Total Monthly |
|---|---|---|---|---|
| Portugal | $1,100 | $450 | $150 | $2,200 |
| Mexico | $880 | $400 | $120 | $1,900 |
| Spain | $1,250 | $450 | $160 | $2,500 |
| Thailand | $750 | $300 | $150 | $1,600 |
Sources: Numbeo, OECD, International Living 2025 Index.
Best Countries for Healthcare Access
| Country | Global Rank (WHO) | Avg. Cost (GP Visit) | Universal Coverage |
|---|---|---|---|
| Spain | 7th | $35 | Yes |
| Portugal | 12th | $40 | Yes |
| Thailand | 18th | $30 | Partial |
| Costa Rica | 36th | $25 | Yes |
| Mexico | 61st | $40 | Partial |
Public healthcare abroad is typically 80–90% cheaper than U.S. equivalents, even when using private clinics.
Visa and Residency Considerations
Most retirement visas are income-based, requiring proof of steady funds (usually $1,000–$3,000 per month) and valid health insurance.
| Country | Visa Type | Minimum Income | Duration | Renewal |
|---|---|---|---|---|
| Portugal | D7 | $1,000/month | 1 year | 2-year extensions |
| Mexico | Temporary Resident | $2,600/month | 1–4 years | Renewable |
| Costa Rica | Pensionado | $1,000/month | 2 years | Renewable |
| Thailand | Retirement Visa | $24,000/year | 1 year | Renewable |
| Panama | Pensionado | $1,000/month | Lifetime | Renewable |
Hidden Gem Retirement Destinations
Beyond the top 10, several lesser-known countries are emerging as safe, affordable retiree havens:
- Malaysia – World-class healthcare and diverse expat community in Penang and Kuala Lumpur.
- Uruguay – Political stability and high quality of life with a European feel.
- Colombia – Medellín offers spring-like weather year-round and low living costs.
- Montenegro – Stunning Adriatic coast, easy residency, and low taxes.
These destinations provide outstanding value for retirees seeking new horizons.
How to Plan Your Retirement Abroad
Budgeting for Overseas Living
Estimate living costs conservatively—factor in rent, travel, insurance, and currency fluctuations. Maintain a 3–6 month emergency fund and use local cost-of-living calculators.
Tip: Keep at least one U.S.-based bank account and credit card for easy international transfers.
Managing Taxes and Social Security Abroad
You can collect U.S. Social Security benefits in most foreign countries, with few exceptions. However, tax treaties differ by nation, so consult an international tax advisor to avoid double taxation.
Steps to Relocate
- Research destination lifestyle and healthcare.
- Visit for 1–3 months before moving permanently.
- Secure long-stay visa or residency.
- Open local bank accounts and set up international health insurance.
- Join expat communities for local support and networking.
Conclusion: The World Is Open for Your Retirement
Choosing the best place to retire abroad is about finding your personal balance between comfort, cost, and curiosity. Whether sipping espresso in Lisbon or exploring beaches in Thailand, you can retire better for less by planning wisely.
The key is preparation: understand visa rules, healthcare systems, and community networks before making the move. With the right research and guidance, you can live globally, securely, and happily.
Your next step: Explore destinations firsthand and download our Retirement Abroad Checklist to start planning your journey today.
FAQs
1. What is the best country to retire to abroad?
Portugal ranks #1 for affordability, safety, healthcare, and quality of life. Mexico and Spain follow closely for accessibility and cost-effectiveness.
2. Can Americans get healthcare abroad?
Yes. Many countries provide universal or low-cost healthcare for residents. In countries like Spain and Portugal, public healthcare rivals the U.S. private system.
3. How much do you need to retire overseas?
Most retirees live comfortably on $2,000–$3,000/month, though some regions in Asia and Latin America offer full lifestyles for under $1,800.
4. Can I collect U.S. Social Security while living abroad?
Yes. The Social Security Administration allows payments to retirees in over 180 countries. You’ll still need a U.S. bank account for deposits.
5. Where is the easiest place to retire abroad?
Panama, Portugal, and Costa Rica are considered the easiest due to clear visa rules, tax benefits, and established expat support networks.
