Best Countries to Retire Abroad in 2025

Here is the truth that most retirement planning guides leave out: retiring abroad is no longer a fringe idea reserved for the adventurous few. Over 700,000 Americans already receive Social Security checks outside the United States, and that number climbs every year. Millions more from Canada, the UK, and Western Europe have made the same leap. They are not fleeing — they are upgrading. They are trading overpriced healthcare, stagnant retirement savings, and a rising cost of living for countries where their pension buys a genuinely better life.

The real question is not whether you can afford to retire abroad. It is where you will thrive. That depends on your priorities — affordable healthcare, safety, visa accessibility, a welcoming expat community, or simply warm weather and a lower grocery bill. We scored ten proven retirement destinations across every dimension that matters and distilled it into the data-backed ranking below.

Every score in this article comes from WhereNext's country evaluation system, drawing on institutional sources including the WHO, World Bank, Numbeo, and Global Peace Index. You can read the full details on our methodology page.

The Top 10 Best Countries to Retire Abroad in 2025

Our retirement ranking weighs healthcare quality and affordability, cost of living on a fixed income, personal safety, visa accessibility for retirees, English accessibility, and quality of daily life. These are not hypothetical picks — they are countries where tens of thousands of retirees are already living well.

Now let us take a closer look at each country — what retirees actually experience on the ground, how to qualify for a visa, and what to budget for monthly.

1. Portugal — The Gold Standard for Retiring Abroad

Portugal has become the benchmark against which every other retirement destination is measured. The Algarve coast offers 300 days of sunshine a year. Lisbon buzzes with cafes, trams, and a thriving cultural scene. And smaller cities like Braga, Coimbra, and Aveiro deliver old-world charm at a fraction of the capital's cost. The combination of first-world European infrastructure, safety, healthcare, and affordability is genuinely hard to match anywhere else on the planet.

Portugal's D7 Passive Income Visa is tailor-made for retirees. You need to demonstrate a stable income of roughly EUR 760 per month from pensions, Social Security, or investments. After five years of residency, you can apply for permanent residency or even Portuguese — and by extension EU — citizenship. The public healthcare system (SNS) is accessible to legal residents, and private health insurance runs EUR 100 to 200 per month for comprehensive coverage. A couple can live comfortably on USD 2,000 to 2,800 per month including rent.

Explore Portugal's full country profile

2. Panama — The Retiree's Best Friend

Panama has courted retirees more aggressively than perhaps any other country on earth. Its famous Pensionado Visa is one of the most generous retiree programs anywhere, granting permanent residency with just USD 1,000 per month in pension income — Social Security qualifies. On top of that, pensionado holders receive legally mandated discounts: 25% off airline tickets, 25% off restaurant meals, 15% off hospital bills, 20% off medical consultations, and more.

Panama uses the US dollar as its currency, which eliminates exchange-rate risk entirely for American retirees. Panama City has world-class hospitals including Johns Hopkins-affiliated Punta Pacifica Hospital. Private insurance typically runs USD 100 to 300 per month depending on age. A couple can live well on USD 1,800 to 2,500 per month.

Explore Panama's full country profile

3. Costa Rica — Pura Vida Retirement

Costa Rica checks every emotional box for retirees: lush rainforests, Pacific and Caribbean coastlines, a stable democracy that abolished its military in 1948, and one of the most welcoming cultures in the Americas. The expat community in the Central Valley is well-established, English-friendly, and particularly strong among American and Canadian retirees.

The Pensionado Visa requires just USD 1,000 per month in pension income. The Rentista Visa requires USD 2,500 per month for two years, or a USD 60,000 deposit. Both lead to permanent residency after three years. Costa Rica's public healthcare system (the Caja) is available to legal residents for a monthly fee based on income. Private healthcare is excellent, with many doctors trained in the US or Europe. Budget USD 2,200 to 3,000 per month for a couple.

Explore Costa Rica's full country profile

4. Spain — Mediterranean Healthcare and Lifestyle

Spain combines the best healthcare system in Europe with a Mediterranean lifestyle that practically demands you slow down and savor every meal, every sunset, every afternoon paseo. The food is extraordinary. The climate in southern Spain rivals anything in the Caribbean. And the cost of living outside Madrid and Barcelona is surprisingly low for Western Europe.

The Non-Lucrative Visa is Spain's primary path for retirees, requiring roughly EUR 2,400 per month in financial means and comprehensive private health insurance. Spain's public healthcare system is consistently ranked among the best in the world by the WHO. Cities like Valencia, Malaga, and Alicante offer a wonderful balance of culture, coastline, and affordability. A couple can live well for USD 2,200 to 3,200 per month.

Explore Spain's full country profile

5. Mexico — The Proximity Play

Proximity is Mexico's superpower for American retirees. You can fly home in a few hours, stay in the same time zones, and maintain close ties with family — all while living on a fraction of what you would spend north of the border. Lake Chapala hosts one of the largest American retiree communities in the world. San Miguel de Allende and the Riviera Maya are equally thriving.

Mexico's Temporary Resident Visa requires roughly USD 2,800 per month in income or USD 47,000 in savings. Private health insurance is remarkably affordable — often USD 80 to 200 per month for comprehensive coverage. Many retirees use a combination of Mexican private insurance and cross-border care for complex procedures. A couple can live well on USD 1,500 to 2,500 per month depending on location.

Explore Mexico's full country profile

6. France — The Best Healthcare on Earth

France may not be the first country that comes to mind when you think "affordable retirement," but the case is stronger than you expect. Outside of Paris, the cost of living drops significantly — especially in the south, Brittany, and the Dordogne. And what you get in return is unmatched: the best healthcare system in the world according to the WHO, extraordinary food and wine, and a quality of daily life that few countries can replicate.

France offers a Long-Stay Visa (Visa de Long Sejour) for retirees, requiring proof of income, health insurance, and accommodation. As a legal resident, you can enroll in the public healthcare system (Protection Universelle Maladie) after three months. Many expats also carry a top-up private policy (mutuelle) for EUR 50 to 150 per month. A couple can live in southern France for USD 2,500 to 3,500 per month.

Explore France's full country profile

7. Malaysia — Southeast Asia's Best-Kept Retirement Secret

Malaysia flies under the radar compared to Thailand, but the data suggests it should not. English is widely spoken thanks to the British colonial legacy and a multilingual education system. Kuala Lumpur is a genuinely modern city with fast internet, world-class hospitals, and international amenities. Penang offers a more laid-back island lifestyle with legendary street food.

The Malaysia My Second Home (MM2H) program is one of the most established long-term residency options in Asia, though requirements have tightened. Healthcare is a standout: private hospitals in KL and Penang meet international standards, and a knee replacement that might cost USD 40,000 in the US runs about USD 4,000 to 6,000 in Malaysia. Comprehensive private insurance costs USD 50 to 150 per month. A couple can live very comfortably on USD 1,500 to 2,200 per month.

Explore Malaysia's full country profile

8. Ecuador — Dollar-Denominated Retirement on a Budget

Ecuador uses the US dollar as its official currency, eliminating exchange-rate anxiety entirely. The colonial city of Cuenca, nestled in the Andean highlands at a spring-like 5,000 feet, hosts one of the largest English-speaking retiree communities in Latin America. The climate is eternal spring. The scenery is stunning. And the cost of living is among the lowest on this list.

Ecuador's Pensioner Visa (Jubilado) requires just USD 1,275 per month in pension or Social Security income — one of the lowest thresholds in the world. It grants immediate residency and leads to citizenship after three years. The public healthcare system (IESS) is available to residents for a modest monthly fee, and private insurance runs USD 50 to 150 per month. A couple can live comfortably on USD 1,400 to 2,000 per month.

Explore Ecuador's full country profile

9. Colombia — The Comeback Story

Colombia has undergone a remarkable transformation over the past two decades. Medellin's eternal spring climate, Cartagena's Caribbean charm, and Bogota's cultural depth have made Colombia one of the fastest-growing expat destinations in the Americas. Safety has improved dramatically since the 2016 peace agreement, and the cost of living is exceptionally low.

Colombia offers a dedicated Retirement Visa (Visa M - Jubilado) requiring pension income of approximately USD 750 per month — one of the lowest requirements anywhere. Healthcare in major cities is high quality, with comprehensive private insurance plans costing USD 80 to 250 per month. A couple can live comfortably in Medellin on USD 1,300 to 2,000 per month.

Explore Colombia's full country profile

10. Thailand — Tropical Retirement, Unbeatable Value

Thailand has been welcoming retirees for decades, and the formula is simple: ultra-low costs, tropical beaches, world-class food, and genuinely affordable healthcare. Chiang Mai in the north and the islands of the south offer very different but equally appealing lifestyles. The infrastructure for expat retirees is well-developed, with English-speaking hospitals, international banking, and established communities.

Thailand's Retirement Visa (Non-Immigrant O-A) is available to anyone aged 50 or older, requiring THB 800,000 (roughly USD 22,000) in a Thai bank account or monthly income of at least THB 65,000 (roughly USD 1,800). Thailand is a global leader in medical tourism — Bumrungrad Hospital in Bangkok is internationally accredited and serves patients from around the world. A couple can live comfortably in Chiang Mai on USD 1,200 to 1,800 per month.

Explore Thailand's full country profile

Best Healthcare for Retirees Abroad

Healthcare is the single most important factor for most retirees choosing where to live abroad, and for good reason: Medicare does not work outside the United States. If you retire abroad, you need a separate healthcare strategy. The good news is that many countries on this list offer healthcare systems that rival or surpass what most Americans experience at home — at a fraction of the cost.

Practical steps to secure healthcare abroad as a retiree:

• Keep Medicare Part A if eligible — it is premium-free for most Americans and gives you a safety net if you return to the US for care.
• Purchase international health insurance — providers like Cigna Global, Allianz Care, and IMG offer plans specifically for expat retirees. Expect USD 150 to 500 per month depending on age, coverage, and whether you include US coverage.
• Enroll in the local public system where available — in Portugal, Spain, France, Costa Rica, and Ecuador, residency entitles you to public healthcare, often for free or a modest contribution.
• Consider medical evacuation insurance — plans from providers like Medjet cost USD 300 to 500 per year and cover transport back to your home country for treatment.

Portugal vs Panama: A Head-to-Head Comparison for Retirees

Portugal and Panama are the two most popular retirement destinations on this list, and they represent fundamentally different approaches to retiring abroad. Portugal offers European culture, EU access, and a world-class public healthcare system. Panama offers dollar-denominated simplicity, aggressive retiree incentives, and tropical living. Here is how they compare across the metrics that matter most to retirees.

The verdict: Portugal wins on healthcare, safety, and the extraordinary value of eventual EU citizenship. Panama wins on cost, dollar simplicity, retiree-specific perks, and proximity to the United States. If your priority is the best possible healthcare and long-term residency value, Portugal edges ahead. If you want the lowest hassle, dollar-denominated lifestyle with built-in discounts, Panama is hard to beat.

Retirement Visas: Your Path to Legal Residency

One of the most reassuring developments for prospective retirees is that many countries now offer visa programs designed specifically for you. These are not tourist visas with shaky legal standing — they are legitimate, renewable residency permits that recognize retirees as valuable, stable community members.

• Lowest income requirements: Colombia (roughly USD 750/month), Portugal (EUR 760/month), Panama (USD 1,000/month), Ecuador (USD 1,275/month)
• Best retiree perks: Panama's Pensionado program stands alone with legally mandated discounts on dining, medical care, flights, and utilities
• Fastest path to citizenship: Ecuador (3 years), Portugal (5 years, EU passport), Panama (5 years)
• Easiest application process: Mexico, Ecuador, and Colombia have streamlined processes taking 30 to 90 days
• Most established for retirees: Panama, Costa Rica, and Thailand have decades of experience welcoming retirees

Taxes and Social Security When You Retire Abroad

American citizens are required to file US tax returns regardless of where they live. However, the Social Security Administration will deposit your benefits into a US bank account from almost anywhere in the world. You can then transfer funds internationally using services like Wise, which typically offer far better exchange rates than traditional banks.

Several provisions can reduce your tax burden: the Foreign Earned Income Exclusion (up to approximately USD 126,500 in 2025) applies if you do part-time work abroad. The Foreign Tax Credit prevents double taxation. And tax treaties with countries like France, Spain, and Thailand contain specific provisions for pension income. If you have foreign bank accounts totaling more than USD 10,000, you must file an FBAR. Work with a tax professional who specializes in US expat taxation — the penalties for non-compliance are steep.

Social Life and English Accessibility

The fear of isolation is real, and it is the concern that most retirement guides ignore. Living abroad is only rewarding if you can build genuine social connections. Here is the honest assessment.

English widely spoken: Malaysia stands out among non-English-speaking countries on this list. English is an official language, taught in schools, and used in business. Panama City and Costa Rica's Central Valley also have strong English accessibility thanks to large American communities.

Established expat communities: Portugal's Algarve, Mexico's Lake Chapala, Costa Rica's Central Valley, Panama's Boquete, Ecuador's Cuenca, and Thailand's Chiang Mai all have thriving, organized retiree communities with social clubs, volunteer organizations, and regular meetups. You will not lack for English-speaking friends in any of these places.

Where language is a real barrier: France requires meaningful French for daily life outside major tourist areas. Colombia and Ecuador require functional Spanish for anything beyond the expat bubble. Thailand has a significant language barrier, though the retiree infrastructure in places like Chiang Mai compensates with English-speaking services.

Our advice: even in English-friendly destinations, learning the local language transforms your experience from comfortable to genuinely fulfilling. Budget for language classes in your first year — it is the single best investment in your quality of life abroad.

How to Start Planning Your Retirement Abroad

Reading about retirement destinations is the easy part. Turning that interest into a plan is where most people stall. Here is a practical, step-by-step approach.

• Clarify your priorities. Is it budget above all else? Proximity to family? Top-tier healthcare? Warm weather year-round? Write down your top three non-negotiables. This will narrow your list from ten countries to two or three almost immediately.
• Run the numbers. Calculate your expected retirement income — Social Security, pensions, investment withdrawals — and compare it against cost-of-living estimates for your shortlisted countries. Most retirees find they need 30 to 60% less than they spend in the US.
• Do a test run. Spend one to three months in your top-choice country. Rent an apartment, shop at local markets, visit a local doctor, and live as a resident, not a tourist. This trial period will confirm your research or reveal deal-breakers you never expected.
• Get professional help where it counts. Hire an immigration attorney in your target country and an expat tax specialist in the US. These professionals typically cost a few hundred to a few thousand dollars and can save you from costly mistakes.
• Build your community before you arrive. Join online expat forums, Facebook groups, and subreddits for your target country. Connect with people who have already made the move — their firsthand experience is invaluable.

Not sure which country fits your situation best? Take our 2-minute quiz and get a personalized ranking based on your budget, healthcare needs, climate preferences, and lifestyle priorities.

Final Thoughts

Retiring abroad is one of the most significant lifestyle decisions you will ever make — and one of the most rewarding when it is grounded in real data rather than daydreams. The ten best countries to retire abroad in 2025 are not theoretical options. They are proven destinations where tens of thousands of retirees are already living well, accessing quality healthcare, and enjoying a richness of daily life that their home-country budgets simply could not support.

The window of opportunity is real. Visa programs designed for retirees are more common and more welcoming than they have ever been. Healthcare systems abroad are more accessible. And the tools to research, compare, and plan your move are better than at any point in history.

Your next chapter does not have to be defined by what you can afford at home. It can be defined by the life you choose to build somewhere new.