Best Places to Retire in 2025: The Annual Global Retirement Index

Panama is the Best Place to Retire in 2025
Affordable living and adventure await in the best places to retire in 2025.

Retiring overseas is an exciting adventure, but it comes with its challenges. You’ll need a wealth of information to make the right choice—and, more importantly, guidance to help you interpret it all. That’s why we created the 2025 Annual Global Retirement Index: your essential roadmap for finding the retirement destination that best suits your lifestyle, priorities, and dreams.

When we first launched the Index, it was our way of addressing a pleasant dilemma: an abundance of incredible options. After over a decade of scouring the globe for dream destinations, we found ourselves with an overwhelming variety of opportunities. Fast-forward to 2025.

Over the past three decades, our scouts have scoured every corner of the globe many times over. The result is a much bigger and ever-growing selection of outstanding destinations where you can live a healthier and happier life, spend a lot less money, and get a whole lot more.

But with so many excellent options, how do you decide?

What is the Annual Global Retirement Index?

The Global Retirement Index is the most comprehensive and practical tool of its kind. It cuts through the noise and helps you make sense of the world’s best retirement opportunities. Think of it as your personalized guide—designed to simplify your decision-making process by offering a clear, easy way to compare and contrast your top options.

Our Index draws from the first-hand experiences of our correspondents and contributors who live in these retirement havens. They’re not tourists or casual observers—they’re embedded in the communities they report on. Their insights come from years of on-the-ground experience, helping us build a reliable, insider’s perspective.

Unlike generic lists or data dumps you might find online, our Index prioritizes real-world insights. Our correspondents are independent. They’re not beholden to tourism boards, real estate agents, or relocation services. Their only priority is you—the retiree looking for honest, actionable advice.

A Practical Tool, Not Just Numbers

Our Index isn’t a rigid, one-size-fits-all formula. It’s a dynamic, user-friendly resource, designed to provide more than just data points. We combine real-world costs, healthcare quality, climate, and lifestyle options with expert opinions and nuanced perspectives.

For instance, if our contributors say healthcare is excellent, you can trust that assessment. When they tell us a couple can enjoy a meal at a quality restaurant for $20, that’s real, on-the-ground pricing.

We don’t aim for a purely scientific analysis. Instead, our focus is on practicality and usability. The 2025 Global Retirement Index is a tool to help you visualize and prioritize your options, offering valuable context you won’t find in a quick internet search.

This isn’t just about numbers; it’s about helping you take the first step toward a new chapter of life abroad.

So, what do our experts say about the best places to retire in 2025? Read on to find out...

10. Thailand

Explore Thailand’s warm smiles, rich culture, and affordable retirement options.
Explore Thailand’s warm smiles, rich culture, and affordable retirement options.|©iStock/Siraj Ahmad

By Bart Walters

Do you want to really get away? For Americans, Thailand is as far as you can go without starting to come back. Intrepid souls who take that long flight in search of a kinder, gentler world to live in are generously rewarded with an exotic habitat they only dreamed existed.

Thailand is the heartbeat of sparkling Southeast Asia, seamlessly blending ancient temples with colossal skyscrapers, high-speed trains with longtail boats, and Michelin-starred restaurants with food carts.

The amazing Thai people manage to do it all while displaying the most genuine and warm smiles I’ve ever witnessed. Even after 25 years, it still amazes me how I’ve been accepted here.

What most folks don’t understand about Thailand is how diverse it is and how spoiled for choice expats are when they move here.

The capital city of Bangkok is a frenetic and modern beehive of activity that’s been voted “Most Livable City in Asia” so many times I’ve lost count. With the Skytrain whistling overhead and the street food sizzling below, I feel like I’m living my Blade Runner fantasy every time I visit.

I lived in the capital for six years, invested in property, and enjoyed incredible returns. These days, you could rent a swanky studio in the heart of the city for $600, be well-fed on $15 a day, and spend less than $100 a month on transportation all over a city of ten million people—without ever getting behind the wheel.

Hidden away in the misty mountains of the north is the city of Chiang Mai, with its cooler temperatures, iconic Buddhist temples, and laid-back, second-city vibe. Many expats who say they want to experience the “real Thailand” gravitate to the northern capital for the slower pace of life, unique cuisine, and affordable living.

A spacious one-bedroom apartment can be rented for less than $500 a month. Dinner at the famous “Night Market” might cost you $12 for two people. A café Americano made from freshly roasted local coffee beans will set you back $1.20 in any of Chiang Mai’s funky little coffee shops.

For a “saltwater human” like me, Thailand is paradise on Earth. I lived on the sugar-sand beaches of Phuket for three years, swam with whale sharks just off Koh Samui, and was charmed by the pink dolphins I saw near Nakhon Si Thammarat. I finally washed ashore on the golden sands of Thailand’s Eastern Seaboard in Jomtien Beach, where I found the perfect “city-by-the-sea” situation. I’ve lived in all of these idyllic locations for less than half of what I would pay in my home state of Florida.

Living a healthy and active lifestyle in Thailand is much easier as well. Thai cuisine is legendary for its variety, piquant flavors, and fresh ingredients. Everyone I know who comes here improves their diet simply because fresh, healthy food is available and affordable.

Mangoes are less than a dollar a pound. A big plate of delicious chicken and rice is less than $2. A seafood feast for four would cost less than $60. I eat fresh meat, poultry, fish, crisp veggies, juicy fruit, and as much foreign food as I want for about $300 per month.

When I want to burn off those mango-and-sticky-rice calories, I use my state-of-the-art gym membership that costs about a dollar a day. Or I can get my 10,000 steps down a long stretch of beach on a paved footpath in the shade of coconut trees—for free. (That’s the same beach where my girlfriend attends sunrise yoga classes—also free.) Golf, tennis, badminton on the beach … staying active and fit in Thailand is easy and affordable.

Maintaining your vitality is wallet-friendly, too, as healthcare in Thailand isn’t just good—it’s a thriving industry. People from all over the globe come here for high-quality and affordable treatment. The “medical tourism” business ensures that expats have access to world-class hospitals and doctors.

I’ve had two hip replacement surgeries in the past five years. The first was in the U.S.; the second was at a private hospital near Bangkok. The U.S. hospital did a good job and had me in and out in one night. The Thai hospital put me in a sea-view private room and hovered over me for three days.

Both surgeries were successful, but the bill for the operation in Thailand was less than a third of the cost of the same procedure in the U.S. Cancer screening, annual checkups, and dental reconstruction … on average, high-quality medical care costs about 30% of what you’d pay in the U.S.

When it comes to attracting expats, Thailand is quite progressive in its immigration approach. Several types of long-stay visas are available, including a basic retirement visa like I have, a new 10-year LTR (Long Term Resident) visa that requires significant income or investment, and now a Digital Nomad Visa for expats who want to work remotely from Thailand. Visa laws here are quite fluid and constantly change to accommodate expats more.

If you’re considering Thailand for retirement, it’s important to keep this in mind: When you step off the plane, you aren’t just entering another country—you’re entering another world. Thai World. It’s warm, affordable, full of friendly, smiling people, and as far away as you can get.

9. Italy

By Chip Stites

Italy offers a slower pace, rich history, and affordable Mediterranean living
Italy offers a slower pace, rich history, and affordable Mediterranean living|©iStock/Eloi_Omella

Italy is, without a doubt, one of the world’s best places to retire, offering a diverse range of experiences that reflect the country’s rich history and culture. While iconic cities like Rome, Milan, Venice, Florence, and Naples often come to mind, the true essence of Italy lies in its smaller, more inviting locales where life is simpler and more rewarding.

Italians are naturally welcoming and inclusive, a trait honed over four thousand years of cultural exchange with Greeks, Turks, Spanish, Moors, French, Phoenicians, Germans, and others. This blend of influences is evident in everything from Italy’s architecture and art to its music, food, and festivals. For anyone dreaming of embracing this culture, it’s best to approach the journey thoughtfully, savoring each moment as you explore this wonderfully diverse land.

Italy’s climate is often described as Mediterranean, characterized by warm days, cool mornings, and abundant sunshine. Yet the country offers a surprising variety of climates. In the northwest, Valle D’Aosta and the Dolomite Mountains experience cold winters, while the southern regions enjoy hot, dry summers and mild winters. Depending on your preferences, you can find climates ranging from four distinct seasons to nearly endless summer. Beyond climate, Italy’s topography adds another layer of appeal. With over 4,700 miles of coastline, the country offers stunning beaches alongside breathtaking mountain ranges like the Dolomites and the Apennines, making it a haven for outdoor enthusiasts.

The cost of living in Italy is another significant draw, often about half of what you’d expect in the United States. As with anywhere, where you choose to live matters. Smaller towns and non-tourist areas tend to be more affordable, with costs decreasing further south. Additionally, new arrivals in southern and parts of central Italy can benefit from a flat 7% tax rate for ten years, dramatically reducing tax burdens.

Perhaps most compelling is the Italian lifestyle itself. Life here is slower and less hurried, revolving around family, friends, and community. Money takes a backseat, and the pace of life reflects a deep appreciation for time spent with loved ones. Community events are cherished, and everyone participates. Food plays a central role in gatherings, where bringing wine, treats, or a small gift is customary. The Italian concept of “Dolce Far Niente,” or “idleness for no reason,” underscores a philosophy of savoring life without constant productivity. Italians, on average, live five years longer than Americans, a testament to their focus on well-being, universal healthcare, and the health benefits of the Mediterranean Diet.

For those looking to settle down, Italy’s real estate market offers enticing opportunities. Properties are often reasonably priced, with homes in some areas selling for as little as €130,000. These homes might require some refurbishment but often come fully furnished. The Italian housing market differs greatly from that of the U.S.; homes are typically passed down through generations and only sold when heirs decide not to keep them. This means that houses can remain on the market for years without reflecting poor quality or value. Engaging a knowledgeable lawyer can simplify the process of navigating Italy’s unique real estate system, and many find that renting initially helps ensure they choose the right location before committing to a purchase.

Securing a long-term visa to live in Italy is manageable, though it requires preparation and patience. Applicants must demonstrate financial stability, explain their reasons for moving, and verify their identity through a face-to-face meeting at the consulate assigned to their state or county. While this process can be time-consuming, it ensures that Italy preserves its culture, history, and traditions by carefully managing immigration.

The dream of living in Italy is vibrant and attainable. It may take some effort to transition into this idyllic lifestyle, but the rewards of embracing Italy’s warmth, culture, and slower pace of life make the journey worthwhile. With some research, exploration, and an open heart, you’ll find your own Italian paradise waiting for you.

8. Greece

Retire in Greece with stunning coastlines, a relaxed pace, and warm communities.
Retire in Greece with stunning coastlines, a relaxed pace, and warm communities.|©iStock/Aleh Varanishcha

By Leena Horner

Living in Greece as an expat has been a dream come true. I settled in Corfu, where breathtaking landscapes and sparkling turquoise waters seem to leap straight out of a postcard. Life moves at a gentler, more relaxed pace, inviting me to slow down and savor every moment.

Each morning, I start my day with a simple breakfast on the terrace, gazing at the rugged mountains of Albania and Corfu’s beautiful coastline. It’s a peaceful moment that encourages me to breathe deeply and live mindfully. Corfu Town’s charming streets are another delight. Venetian architecture merges seamlessly with the vibrant colors of bougainvillea climbing old stone walls. I often find myself meandering through these streets, stopping at cozy tavernas for a plate of moussaka or fresh seafood paired with a glass of local wine. It’s one of those small pleasures that feels both casual and utterly luxurious.

Living here, I’ve discovered that community is at the heart of life in Greece. My neighbors have become friends, and there’s a comforting sense of belonging among the local expat community. One of my favorite rituals is our Saturday potluck dinners, where we gather around a long table covered in tasty dishes with an international flair. I usually bring an Indian curry, while others might contribute pasta, salads, or soups. One friend always provides something sweet for dessert, often a decadent treat that perfectly caps off the meal. Laughter, deep conversations, and a wonderful mix of flavors and cultures make these evenings unforgettable.

Fridays are another special occasion, filled with board games and friends. I’ve grown particularly fond of Tac, a clever German game that combines strategy with fun competition. With snacks spread across the table, it feels like a family gathering. It’s easy to lose track of time as we strategize, laugh, and revel in each other’s company. These small gatherings have become essential to life here, reminding me of how meaningful community connections are.

Retiring in Corfu has been one of the best decisions I’ve ever made. Whether exploring ancient ruins, hiking through olive groves, or watching the sunset over the sea, I feel like I’ve found the perfect place to thrive. It’s no wonder Greece is becoming a top retirement destination for 2025—it offers a luxurious yet simple lifestyle.

Another significant advantage of living here is the affordable cost of living. Outside of popular tourist spots like Athens and Santorini, places like Corfu make living comfortably on a modest budget entirely possible. For example, I spend around €60–€80 at the local market each week, picking up fresh vegetables, fruits, meat, and cheeses for wholesome meals. Dining out is equally affordable; a meal at a local taverna with appetizers, a main dish, and wine usually costs around €15–€20. One taverna we frequent even brings chocolates with the bill, remembering that my husband prefers dark chocolate.

Housing is another highlight. The real estate market here offers an appealing range of options, from traditional stone houses in quiet villages to modern apartments with sea views. Rentals are affordable, too; a one-bedroom apartment typically costs between €400 and €600 per month, depending on location and amenities. Small homes in Greece’s countryside are surprisingly affordable, ranging between €80,000 and €160,000, making the dream of owning a piece of paradise a reality.

Greece’s healthcare system is a significant benefit, especially for retirees. Expats can pay a small monthly fee for public healthcare, which covers essential services and hospitalization. Private healthcare is also affordable, offering shorter wait times and more personalized service. For instance, when my husband needed to see a cardiologist, he was able to get an appointment within two days. The doctor spent a full hour with him and performed an EKG and echocardiogram, all for just €100. My own visits to the local doctor cost about €30, and prescription medications are heavily subsidized and inexpensive. Many expats also carry private insurance for additional peace of mind, with comprehensive annual plans starting at around €600.

The Mediterranean climate is another incredible aspect of life here. Corfu, with its unique microclimate, experiences mild winters and warm, pleasant summers. Winters rarely dip below 10 C (50 F), while summers bring plenty of sunshine without the scorching heat found on the mainland. Corfu’s lush, green landscapes add to the island’s charm and beauty, thanks to a bit more rainfall than other parts of Greece.

Finally, Greece has made it easier for retirees to stay long-term by offering flexible visa options. The Greek “Digital Nomad Visa” allows non-EU citizens to live here for up to two years, and the “Golden Visa” provides residency to those who invest in property. The Retirement Visa is another excellent option for those with social security or pensions. With these options, Greece warmly welcomes retirees looking to build a new chapter in this peaceful, culturally rich country.

In the end, Greece isn’t just a place to retire; it’s a lifestyle that embraces simplicity, warmth, and a deep connection to nature and history. The cost of living is low enough to make retirement comfortable, housing options are diverse, and the healthcare system is supportive. From its favorable climate to its active expat community and retiree-friendly visa options, Greece offers a uniquely fulfilling life for those seeking to slow down and savor each day. For anyone considering a change of pace, Greece is hard to beat.

7. Malaysia

Malaysia blends culture, affordability, and top-tier healthcare for retirees.
Malaysia blends culture, affordability, and top-tier healthcare for retirees.|©iStock/nazar_ab

By Keith Hockton

Malaysia is a dynamic and colorful Southeast Asian nation celebrated for its rich cultural tapestry, breathtaking landscapes, and fascinating history. At the heart of ancient trade routes, Malaysia has evolved into a melting pot of Malay, Chinese, Indian, and indigenous influences. This diversity is woven into its vibrant food scene, festive celebrations, and deeply rooted traditions. Whether it’s the iconic skyline of Kuala Lumpur, the pristine beaches of Langkawi, or the lush rainforests of Borneo, Malaysia seamlessly blends tradition and modernity, offering something special for everyone.

For retirees, Malaysia’s affordability is a major draw, making it possible to live well without overspending. In Kuala Lumpur, a one-bedroom apartment typically rents for MYR 1,500–2,500 (USD 300–500) per month, with utilities costing around MYR 200–300 (USD 40–60). Dining out is refreshingly inexpensive, with local meals priced as low as MYR 10–15 (USD 2–3). This combination of affordable housing and low daily expenses allows retirees to stretch their savings while enjoying a high quality of life. Beyond Kuala Lumpur, other cities like Penang and Malacca also offer excellent value, with slightly lower rental prices and a slower, more relaxed pace of life that appeals to many retirees.

Housing options are plentiful and varied. In city centers like Kuala Lumpur, apartments are reasonably priced, ranging from MYR 1,500 to 2,500 (USD 300 to 500) for a one-bedroom unit. Outside the city center, similar units are even more affordable at MYR 1,000 to 1,500 (USD 200 to 300). For retirees who prefer the charm of historical architecture, towns like George Town in Penang provide options to rent or purchase colonial-era homes. For those considering property investment, Malaysia’s real estate market is on the rise. In the first half of 2024, the property market grew by 23.8%, making Malaysia an attractive option for both renters and buyers.

Healthcare in Malaysia is another reason retirees feel at ease. The country’s private hospitals are world-class, offering modern facilities and skilled English-speaking doctors at costs far below those in Western countries. A visit to a specialist in a private hospital might cost between MYR 50–250 (USD 10–50), and procedures such as cataract surgery or dental work are significantly more affordable. Retirees frequently praise the efficiency and accessibility of Malaysia’s healthcare, with minimal wait times and excellent service. The country’s growing reputation as a medical tourism hub underscores its appeal for quality and affordability in healthcare.

One significant advantage for retirees in Malaysia is the availability of specialized care for aging individuals. Many private facilities cater to elderly patients with services ranging from routine health checkups to long-term care for chronic conditions. Additionally, home care services are widely available and affordable, enabling retirees to receive medical assistance in the comfort of their own homes. The blend of top-notch medical services and competitive pricing provides retirees with peace of mind about their healthcare needs.

Malaysia’s tropical climate, with its year-round warmth and temperatures between 77 F and 95 F (25 C to 35 C), is another draw. Whether you prefer the cooler highlands of Cameron Highlands or the sunny shores of Langkawi and Penang, there’s a perfect spot for every lifestyle. Malaysia’s diverse geography caters to both bustling city lovers and those seeking a tranquil rural pace. The highlands, with their tea plantations and cooler temperatures, attract those who enjoy scenic landscapes and a milder climate, while coastal towns are ideal for beach lovers and water sports enthusiasts. The variety of natural environments ensures that retirees can find a location that aligns with their preferences.

Expat communities thrive in cities like Kuala Lumpur, Penang, and Johor Bahru, offering social clubs and networking groups that make it easy to forge connections. These groups frequently organize events, workshops, and excursions, providing a sense of community and belonging. Activities range from wandering through lively markets and exploring historic sites to enjoying rainforest hikes, scuba diving, or a round of golf. Combined with the warmth of local hospitality and the richness of its culture, Malaysia offers a fulfilling and relaxed lifestyle for retirees.

Another appealing aspect of life in Malaysia is its culinary scene. The country’s diverse heritage is reflected in its food, with dishes like nasi lemak, char kway teow, and roti canai available at local eateries for just a few dollars. The abundance of fresh tropical fruits and vibrant street markets further enhances the dining experience. Retirees often find themselves delighting in Malaysia’s food culture, which combines affordability with incredible variety.

For those looking to stay long-term, Malaysia provides several visa options tailored to retirees and digital nomads. The Malaysia My Second Home (MM2H) program offers a renewable multiple-entry visa. The Sarawak–Malaysia My Second Home (S-MM2H) program, exclusive to Sarawak, offers a 5+5 year visa for those aged 50 and above. Digital nomads have their own option with the DE Rantau Nomad Pass, introduced in 2022. This visa allows remote professionals in fields like IT, digital marketing, or content creation to reside in Malaysia for three to 12 months, with the possibility of a 12-month renewal. These visa programs reflect Malaysia’s proactive approach to welcoming foreign residents and creating flexible pathways for long-term living.

Malaysia also offers excellent connectivity, making it easy for retirees to travel both within the country and internationally. Modern infrastructure ensures smooth domestic travel, whether by road, rail, or air. Kuala Lumpur International Airport serves as a major hub in Southeast Asia, offering affordable flights to neighboring countries, making it convenient for retirees who enjoy exploring the region.

With its low costs, welcoming communities, and a wide array of lifestyle options, Malaysia stands out as a top choice for retirees and long-term expatriates seeking a vibrant and affordable place to call home. Whether you’re drawn by the culture, the cuisine, the natural beauty, or simply the warmth of its people, Malaysia offers a lifestyle that is as enriching as it is accessible. It’s no wonder that so many retirees find this country to be the perfect place to enjoy their golden years.

6. Spain

Spain delivers safety, rich culture, and world-class healthcare at great value.
Spain delivers safety, rich culture, and world-class healthcare at great value.|©iStock/MEDITERRANEAN

By Marsha Scarbrough

Seven years later, I marvel at the brilliant decision I made when I moved to Spain alone at age 70. Today, I am living my best life in the vibrant European capital of Madrid, but I can jump on a fast train and be on sunny Mediterranean shores in two and a half hours. Likewise, Granada’s romantic streets or Barcelona’s bohemian beauty are just a fast train ride away. I share evenings of wine, tapas, and convivial conversation with Spanish friends—without fear of gun violence, anxiety induced by divisive political rhetoric, or the burden of owning a car.

I can enjoy all this for a fraction of what it would cost me to live in the U.S. I live modestly in a studio apartment in an upscale neighborhood. I eat most of my meals at home, use public transportation, and regularly go out to films, theater, and art exhibitions. I spend evenings socializing over drinks or dancing for hours. My monthly budget is around $2,200, plus another $400 saved for Spanish taxes. Life without a car probably saves me $1,000 a month.

I live in one of the most expensive cities in Spain. I pay €850 ($911) a month for my studio apartment, plus utilities of around €100 ($107). Rents are rising fast in Madrid. You will find lower housing costs in smaller cities and even in some towns along the Mediterranean coast, although rents in Malaga are also escalating. In the small seaside city of Alicante on the Costa Blanca, furnished studio apartments start at €750 ($804). Seaview studios in nearby Albufereta Beach rent for €850 ($911). You can buy a small studio apartment in Playa San Juan for €135,000 ($144,730). Near Almeria, a studio with a view of the Aguadulce marina rents for €400 ($429) a month, and a studio with a golf course and sea views is on sale for €49,500 ($53,068).

Healthcare in Spain has been a revelation for me. At 77 years old, my private Spanish health insurance costs €217 ($233) a month. It covers everything with no deductibles and tiny co-pays. A healthy 64-year-old couple could be covered by Sanitas, Spain’s largest private healthcare provider, for €297 ($318) a month, with no deductibles and no co-pays, including basic dental coverage. That’s for two people. Most Spanish residency visas require expats to purchase private Spanish health insurance, which does not cover prescriptions—but these are so cheap it’s laughable. Blood pressure medication (30 doses of Amlodipine 5 mg) costs €1.5 ($1.60). One hundred doses of the equivalent of Synthroid are €4 ($4.28). Basic dental care is covered, so cleanings, x-rays, and extractions are free. Fillings cost about €60 ($64), and I had an implant for €1,000 ($1,072).

Spain also has a public healthcare system ranked #6 in the world and #2 in Europe. For tax-paying Spanish citizens, healthcare is free. After living in Spain for a year (less time in some provinces), expats can buy into the public system. The cost is €60 ($64) per month if you are under 65 and €157 ($168) per month for those aged 65 and older. As good as Spain’s public healthcare is, waiting times can be frustrating. Many Spaniards use both the public and private systems, and some employers provide private coverage as a benefit. For me, the slightly higher cost of private insurance is well worth the added convenience, and I can request appointments with English-speaking doctors.

Spain offers diverse climates and lifestyles. The Mediterranean and Atlantic coasts promise beach life with 300 days of sunshine a year. Madrid’s high plateau provides dry, hot summers, mild winters, and a city that throbs with culture and nightlife. Barcelona, situated on the beach, seduces with the juxtaposition of medieval antiquities and the daring modernismo of Gaudí. White pueblos ooze peace and charm, Granada weaves a dream of Moorish romance, and Valencia mixes golden beaches, a historic old town, and Calatrava’s post-modern architecture. Basque Country excels at gastronomy and scenery, while northern Spain, known as Green Spain, beckons with wild rocky coasts, rugged mountains, and rainy days.

North Americans who want to live in Spain need residency visas. I came to Spain on a non-lucrative visa. After five years, I switched to a permanent residency visa. The non-lucrative visa is a retirement visa that does not allow you to work at all, anywhere in the world. Its financial requirement is about $32,000 a year in passive income (pensions, investments, rents) and/or savings. You must apply for this visa from the U.S. or Canada. The permanent residency visa allows you to work and is automatically issued within Spain after five years of residency.

If you move quickly, the golden visa may be an option. It allows residency in exchange for purchasing €500,000 ($536,025) of real estate in Spain for cash (no mortgages). It permits work for the visa holder, their spouse, and dependent children. The property must be purchased no more than 90 days before the visa application. However, Spanish lawmakers have proposed ending this visa sometime in 2025.

A new addition in the past year is the telework visa, also known as the digital nomad visa. You can apply for this visa from the U.S. or Spain. The application requires documentation of a history of income as a digital nomad and contracts from current employers. If approved, it is valid for up to three years.

Before I moved to Spain, I scouted other countries. As a Southern Californian, I know Mexico well, and it was high on my list. I also searched across Central and South America. My main concern was affordability, as I’d lost my nest egg in the housing crash of 2008. I knew I could never afford to retire in the U.S., so I needed to find a place where I could live on my pensions. Spain’s low cost of living was a pleasant surprise, but Spain offers so much more than that. Besides beautiful weather, amazing culture, delicious food, and excellent wine, Spain has first-world infrastructure. You can drink the water out of the tap, trash is collected every night, electricity is reliable, and public transportation is cheap, clean, and convenient. Fast trains whisk you across the country at affordable fares.

Spain also seduces with intangible benefits. Chief among these are the friendly, helpful people. Spaniards are curious about American culture and enthusiastic about practicing English. Spanish culture is relaxed and social. Spending time with family and friends is far more important than work. However, the benefit that sealed the deal for me was Spain’s extraordinary personal safety. Violent crime is nearly non-existent. There are some skilled pickpockets, but that’s it. I can walk alone anywhere, any time of day or night, without fear. That cultural difference is priceless.

5. France

France offers a mix of charm, gourmet living, and affordable healthcare options.
France offers a mix of charm, gourmet living, and affordable healthcare options.|©iStock/StevanZZ

By Tuula Rampont

If the gourmet food, world-class arts and entertainment, and stunning natural landscapes don’t grab you, France might just win you over with its healthcare system and joie de vivre lifestyle. There’s a reason so many North Americans have decided to retire in the land of exquisite wines and somewhat stinky cheeses—they feel a lot better, mentally and physically. The joie de vivre is about slowing down, appreciating the finer things in life, and finding beauty in every moment. It also helps that the country’s healthcare is incredibly affordable and often ranked number one in the world.

France isn’t always considered the most affordable country to retire in, but it provides significant savings in a few key areas—namely housing and healthcare. Rent is, on average, 51% less than in the United States. Buying a home is around 34% cheaper, and property taxes are a fraction of what they are in the U.S. Healthcare is also incredibly inexpensive. Prices are fixed by the government and haven’t increased since I arrived in 2010. It costs €25 ($26) to see a doctor and €80 ($85) to visit a specialist, with 70% of those costs reimbursed.

Food costs are another area where retirees can save. A couple can expect to spend $600 a month on groceries, and it’s still possible to enjoy a three-course gourmet meal at a restaurant for $36. Lunch specials at local bistros offer excellent value, with dishes of the day priced between $14 and $16. By avoiding expensive cities like Paris, retirees can enjoy the benefits of the French lifestyle without breaking the bank. For a couple, a monthly budget starting at $2,000 (excluding rent) is entirely feasible.

France offers a wide range of housing options to suit every taste and budget. When my husband and I first arrived in Toulon, we rented a long-stay apartment for two years before purchasing a two-bedroom apartment just 10 minutes from the seaside. During that time, I explored southeastern France and discovered cozy maisons de village (village homes) in the heart of Provençal villages. These homes are typically less expensive than stand-alone houses and offer the charm of having bakeries, markets, and cheese shops right at your doorstep. Remodeled apartments in village homes are also an affordable option, with one-bedroom rentals costing around $600.

In southern France, two-bedroom rentals average $950 a month, with higher prices along the coast and lower ones in the countryside. Prices drop further in regions like Dordogne, Alsace, Brittany, and Normandy. Two-bedroom apartments in the south of France start at $200,000, with location being a key factor in cost.

Healthcare in France is a revelation for those familiar with the U.S. system. It’s guaranteed to everyone living in the country, regardless of age, income, or pre-existing conditions. All you need is a Long-Stay visa, which is relatively easy to obtain. After three months of residency, you can access the public healthcare system and visit any doctor, dentist, or specialist without the need to join a network. Although private healthcare exists, the public system offers excellent care.

The government-run system allows doctors to focus solely on practicing medicine, leading to attentive and compassionate care. I have my general practitioner’s direct phone number and can often get same-day appointments. When I sprained my ankle, she prescribed unlimited physical therapy sessions for the duration of my treatment, costing just €6.50 ($6.90) per session. Doctor visits cost €25 ($26.60), with an out-of-pocket expense of €7.50 ($8) after reimbursement. Specialist visits cost €80 ($85), reduced to about $25 after reimbursements. Prescription medications are similarly inexpensive, with 70–100% coverage. Top-up insurance, which covers the remaining fees after reimbursements, starts at $65 a month and provides additional peace of mind.

The southeastern corner of France, which includes the French Riviera and Provence, is particularly appealing to retirees. Known as the “California of France,” the region enjoys an average of 300+ days of sunshine annually. Cities like Nice, Marseille, Toulon, and Montpellier are frequently recognized as the sunniest in the country. Winters are mild, with temperatures rarely dropping below the 40s F, while summers are warm and pleasant.

For those seeking a balance of moderate weather and affordability, the Dordogne region is an excellent choice. Although wetter in fall and winter, the region comes alive in spring and summer with vibrant, wildflower-filled landscapes. Real estate prices are also more attractive than on the French Riviera, drawing an increasing number of Americans to this pastoral setting. It’s also conveniently located near Bordeaux and the university town of Toulouse, offering easy access to cultural and gourmet delights.

France provides one of the easiest visas to obtain in Europe, making it an accessible choice for retirees. The Long-Stay visa, the most common option, requires proof of a net monthly income of $1,521 and evidence of three months of accommodation, such as a short-term rental or hotel booking. Applicants must also purchase visa-specific health insurance with €30,000 worth of coverage for the Schengen Zone. Many policies allow cancellation after three months once you qualify for the French healthcare system.

The Long-Stay visa is valid for 12 months and can be renewed up to four times. After five years, retirees can apply for a 10-year residency or French citizenship. However, the Long-Stay visa does not permit work in France. For those who wish to work independently, the Talent Visa may be a better fit.

Although the language barrier may seem daunting, don’t let old myths about the French deter you. Retiring in France reveals a kind and generous people eager to welcome newcomers to la belle vie. You’ll feel healthier, enjoy some of the world’s most extraordinary food and culture, and live in the heart of Europe. With its joie de vivre lifestyle, excellent healthcare, and diverse housing options, France offers an outstanding choice for retirement.

The World's Best Places to Retire in 2025

4. Mexico

Mexico combines vibrant culture, friendly locals, and a low cost of living.
Mexico combines vibrant culture, friendly locals, and a low cost of living.|©iStock/Jonathan Ross

By Bel Woodhouse

Mexico is a vibrant and diverse retirement destination. From the sandy beaches of the Riviera Maya to the colorful colonial streets of San Miguel de Allende, retirees are spoiled for choice. The country combines affordability, culture, and warm communities, making it a perennial favorite for North American expats.

I initially planned to move to Mexico for a year on my way to Europe. But Mexico far surpassed my expectations, and I’ve been happily living here for eight years. The culture, the warmth of its people, and the richness of the country’s traditions, art, food, and diverse flora and fauna won my heart—most especially the people.

I was welcomed with open arms into my community on Cozumel Island in the Riviera Maya. Even the staff at the Immigration Office were kind and helpful, often going the extra mile during the four years it took to transition from temporary residency to becoming a permanent resident. That decision remains one of the best of my life.

Even now, nearly a decade later, I continue to discover delightful surprises every time I explore a new region of Mexico. Last month, I stumbled upon world-class wine in Guanajuato—wines with walls covered in gold medals—and gourmet cheeses aged in a cheese cave in Querétaro. You might not associate these things with Mexico, but they’re here, and they’re delicious.

No matter where I travel in Mexico—and I travel often, thanks to the lower cost of living—I’m continually enriched by the experience. Even as a single woman relying on buses and public transport, I have never once felt unsafe.

The two questions I get asked most often are, “Is Mexico safe?” and “Can I afford to live there?” The answer to both is a resounding yes—provided you use common sense, of course.

Mexico has large, friendly expat communities throughout the country that help newcomers navigate their way around. No matter your preference for climate, elevation, landscape, or lifestyle, there is a place in Mexico to suit your needs.

You can choose to live by the beach, in the mountains, in semi-arid areas, in lush jungles, or forests. My favorite is the Caribbean, where I live. Even here, on an island in the Riviera Maya—a region known as the crown jewel of Mexico’s tourism—it’s still affordable. My one-bedroom apartment, just two blocks from the waterfront, costs only $500 a month. I also have friends living comfortably on pensions of $1,000 a month—and that’s with seven rescue pets!

Of course, if you prefer luxury, you can find that too. Some mansions rent for $2,000 a week on Cozumel. No matter your budget, there’s a place for you in Mexico. From a tropical beachside condo overlooking the bay in Puerto Vallarta to a lakeside home on Lake Chapala, the variety of options is astounding. The natural beauty of these locations encourages a healthier, more active lifestyle, with residents often walking more, participating in activities, and enjoying fresh, wholesome food.

Health improvements are a common theme among expats. One man in Lake Chapala, for example, reduced his medications from six to none within a year simply by walking his dog daily and eating fresh foods. He was diabetic but no longer requires medication. His doctor’s first question to him was, “Why are you on so many medications?”

Doctors in Mexico genuinely care about their patients, not about selling prescriptions. The same goes for dentists. During an emergency visit to my dentist for a crown, the dentist played soft music to soothe my nerves and checked on my comfort every five minutes. When I visited the ER eighteen months ago, the anesthetist held my hand as I lost consciousness, and the surgeon greeted me with a smile as soon as I woke up. The entire ER visit, including X-rays and care, cost only $350 USD.

Granted, my injury wasn’t major—just an elbow that needed realignment—but the affordability was remarkable. This is one reason Mexico’s 180-day visa-free policy is so attractive for those seeking medical and dental care. There’s no visa application or tedious paperwork, just the opportunity to enjoy white sand beaches and quality care for a fraction of the cost. It’s also why digital nomads love spending half the year here to work remotely.

Overall, Mexico ticks all the boxes for me. The abundant natural beauty, warm and friendly people, amazing food, healthier lifestyle, and low cost of living allow me to live the life I always dreamed of.

3. Costa Rica

Costa Rica invites retirees with Pura Vida living, biodiversity, and warm locals.
Costa Rica invites retirees with Pura Vida living, biodiversity, and warm locals.|©iStock/SimonDannhauer

By Bekah Bottone

The Pura Vida vibe flowing through Costa Rica attracts those seeking adventures in nature and a laid-back lifestyle. Costa Rica feels like warm tropical breezes, sounds like howling monkeys (which I hear daily inside my house), and looks like verdant landscapes with breathtaking turquoise waterfalls, brightly colored toucans, and scarlet macaws flying overhead.

Though no larger than West Virginia, Costa Rica contains almost 6% of the world’s biodiversity and is a top destination for ecotourism and nature lovers. Coupled with the warmth of the friendly Ticos (as Costa Ricans call themselves), Costa Rica is a true gem.

This Central American paradise is easily accessible from North America, with two international airports: Juan Santamaría International Airport (SJO) in San José, the country’s capital, and Daniel Oduber Quirós International Airport (LIR) in Liberia, Guanacaste.

I love traveling around Costa Rica and meeting expats who have made their dreams a reality. A common theme echoes in their stories: people often share how, upon arriving at the place they now call home, they felt a deep sense of belonging—a kind of inner knowing.

Costa Rica has felt like home since my first trip in 1997 when I studied here as an exchange student. After my semester abroad, I cried at the airport because I didn’t want to leave the country that had captured my heart. The way my new friends called me “mae,” which translates to “dude,” made me feel like I belonged. The rest is history—my Tico children are proof.

I now reside in Villarreal, just 2.5 miles from Playa Tamarindo, and I love where I live. Tropical beaches with bright sun, warm water, and swaying palm trees feel like home to me.

Your lifestyle heavily influences your cost of living in Costa Rica. Some couples live comfortably on $2,500 a month, while others spend double or triple that amount. The flexibility in expenses means there’s a way to make it work for nearly everyone, from frugal retirees to those seeking a more luxurious lifestyle. To illustrate this variety, let’s look at how two expats have tailored their budgets to fit their lives in Costa Rica.

Karen Lynn Mountain, a 66-year-old retiree, lives in Atenas in the Central Valley on about $2,000 a month. Her monthly expenses include $550 for rent, $110 for socialized healthcare (Caja), $55 for internet, and $500 for entertainment, food, and trips. She appreciates the freedom her car gives her despite the higher costs of owning and maintaining a vehicle in Costa Rica.

Lynda Rice, who relocated to Grecia, also embraces a modest but joyful lifestyle. On a $1,600 monthly budget, she covers rent for a two-bedroom home, food, meals out, entertainment, and transportation. Lynda notes that you don’t need to spend extravagantly to enjoy life in Costa Rica.

Housing prices increased after the borders reopened post-COVID-19, particularly in beach areas. While prices are stabilizing, competition among rentals remains strong. Many retirees begin their home searches with Airbnb rentals, often securing lower monthly rates. Building connections locally is key to finding affordable long-term housing.

The Central Valley is popular for retirees, offering a cooler climate, proximity to quality healthcare, and lower costs than beach towns. For example, homes in Grecia average $900 a month for a furnished rental, while purchasing a house costs around $250,000. Higher-end options in Santa Ana and Escazú range from $350,000 to $800,000.

I recommend exploring various regions before committing to a location. Spend time in different areas to understand the climates, amenities, and communities that suit your preferences. For instance, Tamarindo offers urban conveniences and activities, while Puerto Viejo is more remote and rainy. The Osa Peninsula boasts pristine beauty and a tight-knit expat community but is less developed.

Healthcare in Costa Rica is high-quality and affordable. As a resident, you must pay into the public Caja system, but many expats also use private healthcare for convenience. Private doctor visits cost around $48, and specialists are about $120. Procedures like colonoscopies cost $350, while dermatological exams are $50. Prescription medications and lab work are also reasonably priced.

The public healthcare system provides excellent services, though appointments can require early arrival and long waits. Private doctors often speak English, adding to the ease of care. Having access to both public and private healthcare offers flexibility and affordability.

Life in Costa Rica is laid-back and relaxing. The warm climate encourages outdoor living, from beach days to exploring lush rainforests. The culture’s slower pace may take adjustment, but it fosters a calmer, more enjoyable lifestyle—what Ticos call pura vida.

Costa Rica’s visa and residency processes can be time-consuming but are manageable with patience. U.S. and Canadian citizens can stay visa-free for up to 180 days, while temporary residency options include the Pensionado visa (for retirees with a $1,000 monthly income) and the Rentista visa ($60,000 deposit or $2,500 monthly income). Permanent residency becomes available after three years of legal residency.

For those who embrace its relaxed lifestyle, Costa Rica offers unparalleled natural beauty, friendly locals, and a strong sense of community. With its biodiversity, stunning landscapes, and warm climate, Costa Rica is a haven for those seeking a slower, healthier pace of life.

Have you ever seen the hashtag #lovewhereyoulive? I could have invented it! Costa Rica is my paradise—now it’s your turn to explore and decide if it’s yours.

2. Portugal

Portugal’s stunning coastlines and safety make it a top choice for retirees.
Portugal’s stunning coastlines and safety make it a top choice for retirees.|©iStock/Olga_Gavrilova

By Terry Coles

Portugal is an enduring favorite among retirees, known for its stunning coastlines, historic charm, and affordable living. From Lisbon’s bustling neighborhoods to the golden beaches of the Algarve, Portugal offers a diverse range of lifestyle options.

A couple can live comfortably on $2,500 to $3,000 a month, depending on lifestyle and location. While popular expat hubs like Lisbon, Porto, and the Algarve can be pricier, bargains are still available.

The cost of living varies significantly depending on whether you rent or purchase your home outright. Mortgages require a large down payment and must be paid off by the time the homeowner reaches 75, depending on the bank.

To give you a clearer picture, here are some examples from friends and my own experience. Friends in Tavira who paid cash for their apartment live frugally on €1,400 ($1,500) a month. On the Silver Coast, near the walled city of Óbidos, friends who own a townhouse and dine out frequently spend around €2,500. In Porto, a single friend rents an unfurnished, river-view apartment for €1,400 ($1,500) and keeps his total monthly expenses at €2,200 ($2,388). Despite Porto’s higher costs, luxury experiences can still be affordable, such as enjoying happy hour at a five-star hotel with €3 glasses of wine.

Clyde and I spend between €2,500 and €3,000 ($2,700 to $3,200) monthly, including €1,200 ($1,300) in rent. We own a car, maintain a gym membership, and explore the country, though we rarely dine out.

Monthly expenses outside of rent tend to be consistent across the country. Utilities, including electricity, gas, and water, range from €80 to €150 ($87 to $163). A bundle of two cell phones and high-speed fiber internet costs around €65 ($70). Groceries are affordable at around €400 ($434) per month, including toiletries and household items. Private health insurance for the two of us costs €550 ($600). Gym memberships run around €75 monthly, and car-related expenses, including gas and upkeep, vary from zero to €50 ($54) depending on travel.

Owning a car is pricier than in the U.S., with gas costing approximately €6.80 per gallon ($7.39). Yet, for us, the freedom to explore Portugal and access out-of-town appointments is worth it. Full coverage auto insurance ranges from €300 to €600 annually, depending on the car type and driver’s age.

Housing options in Portugal cater to various preferences and budgets, from city-center apartments to country estates with gardens. Renting is recommended for at least the first year to ensure you choose the right location. Rental contracts often include flexible terms, requiring 60 days’ notice to terminate.

Apartments typically come with dishwashers and washing machines but no clothes dryers. Heating systems are uncommon, with most homes relying on portable heaters or wood burners. It’s wise to consider a property’s energy rating, with A being the most efficient.

Healthcare in Portugal is highly ranked, offering both private and public systems. Private healthcare allows for personalized care with English-speaking doctors. Visits to private doctors cost as little as €16 ($17.40), and private insurance, priced at around €550 ($600) monthly, covers 80% of expenses.

The public healthcare system, funded by taxes, provides low-cost services to residents. While excellent for major emergencies, it often involves long waits and limited privacy. However, having both public and private options ensures comprehensive coverage at a fraction of U.S. costs.

Portugal’s climate varies by region. The south enjoys mild winters and hot, dry summers, while the central and northern regions experience more rain and cooler temperatures. Outdoor activities are popular year-round, thanks to the mild weather.

Expats can choose a quiet lifestyle in small villages or embrace the vibrancy of cities like Lisbon and Porto. Activities range from coastal hikes and exploring medieval towns to enjoying Portugal’s renowned wine and cuisine.

For those planning to move, securing a resident visa is necessary. The most common visa, the D7, requires proof of passive income and begins with an application in your home country. After five years of residency, expats can apply for citizenship, though careful consideration of tax implications is essential.

When I first applied for a resident visa six years ago, I was told that after five years, I could apply for citizenship. At the time, it was the furthest thing from my mind, but as the idea grew, we began to see the appeal. With a Portuguese passport, we could live anywhere in Europe without going through another visa process.

However, during a conversation with an American couple in Lisbon, I learned that as citizens, foreign government pensions are taxed—something that doesn’t apply to residents. After consulting tax professionals, Clyde and I decided it was financially wiser to remain residents.

Portugal stands out for its safety, reasonable cost of living, exceptional healthcare, and welcoming culture. From its stunning coastline and historic villages to its vibrant cities and rich gastronomy, Portugal is a gem. The more I’ve learned about this country, the more reasons I’ve found to love it.

Why Portugal? Perhaps the better question is: Why not?

1. Panama

Panama offers modern amenities, easy residency, and retiree-friendly perks.
Panama offers modern amenities, easy residency, and retiree-friendly perks.|©iStock/SimonDannhauer

By Jess Ramesch

“Surprise!”

That’s what I say when friends come to visit me here. As we leave the airport, that incredible city skyline comes into view, mirage-like over the shimmering waters of the warm, tropical Pacific.

I can see it in their faces. They boarded a plane to a little Central American republic, but suddenly they’re wondering: “Did we somehow land in Manhattan?” When their jaws drop, I have to laugh. Call me mischievous—I love to subvert expectations. And Panama is perfect for precisely that.

In the same hemisphere as the US and Canada, completely outside the hurricane zone, and with enviable environmental protections, Panama is a safe, stable, and wealthy country where you can easily live a comfortable lifestyle on $2,400 a month. And with $2,900 a month, you can live a life that feels positively luxurious. I do!

When I say comfortable, I mean in every sense of the word. Here, I enjoy the comforts of a good home and good food, friendship and community—not to mention high-speed internet, potable water from the tap, well-maintained roads, and affordable healthcare.

In Panama, these things give me peace of mind.

Low costs encourage me to be proactive instead of reactive. For example, I recently opted to replace a crown and paid $580 out of pocket. A crown in the States can cost $1,000 to $3,500. And my dentist in Panama is great. He speaks English and takes time to chat with patients, determining whether stress or other issues may affect dental health. He’s also trustworthy—he doesn’t push unnecessary treatments. Quite the opposite.

Panama doesn’t charge tax on foreign-earned income. Property tax is just 0.5% for most primary residences. My car insurance is $57 a month, and maintenance and repairs are inexpensive too. On top of that, Panama is one of the easiest desirable places in the world to gain legal residence.

If you’ve got a pension of at least $1,000, you can qualify for the pensioner visa in as little as six months. And retiree residents get amazing discounts: 25% off your power bill, 50% off movie and event tickets, 20% off medical consultations and medication, 25% off meals at restaurants—the list goes on.

No pension? No problem. You can qualify for residency via the Friendly Nations visa with a $200,000 investment in real estate. Don’t want to buy property? You can park the money in a three-year fixed-term deposit account—no need to spend it.

You can test-drive life here without a major investment. The new temporary telework visa allows you to live in Panama for up to 18 months with proof of medical insurance and income from a foreign source. And if you’re from the US or Canada, you don’t need any visa at all to spend up to six months here.

You may not want to leave after six months, though. When it comes to true value and honest-to-goodness comfort, Panama is a shining star.

Imagine renting a modern, furnished condo for just over $1,000 a month in a world capital with great weather, New York-style nightlife, and every imaginable convenience. Central America’s only metro line, cheap Ubers, excellent shopping, and a vibrant dining scene await. Or imagine living in a coveted beach town where a golf membership costs $350 a month—that’s what my neighbors pay in Coronado, where I live.

You can play golf, tennis, pickleball, or whatever else you fancy all year long. This is one of the sunniest desirable countries on earth. Temperatures typically hover around 77 F in the evenings, with highs around 88 F. In popular mountain towns, it’s 10 to 15 degrees cooler but never freezing. We get abundant rainfall—mostly between August and December—but we live our lives outdoors in the warmth.

I chose Coronado for the gorgeous breezy weather and the ocean views. I bought my apartment—my happy place—in 2022 for $155,000. It’s 1,130 square feet, and my monthly homeowner’s fee is $262. My building is in a coveted location on a golf course and beautifully maintained. We have a large social area and pool on the ground level, as well as three rooftop levels with more common areas, another pool, a gym, a game room, and a sauna.

Here, I live a California lifestyle—only better. I’m on the ocean, just a three-hour flight from Miami, and I don’t have to worry about hurricanes (or pay expensive hurricane insurance). I’m out in the sunshine almost every day. I don’t worry about hefty property taxes or having my savings wiped out by a trip to the ER. And I’ve made wonderful friends—expats and Panamanians—who’ve become like family.

Like all of Panama’s expat-friendly communities, Coronado is welcoming—one of many soft spots to land if that’s what you’re looking for. Don’t speak Spanish? There are plenty of English speakers who can help, and locals are overwhelmingly kind to foreigners. Fitting in and staying busy is almost ridiculously easy. That’s the nature of a well-established expat destination—where you can live an active, social, comfortable life without reinventing the wheel.

Simply put, that’s Panama. And no other country offers so much.

HOW WE COMPILE THE ANNUAL GLOBAL RETIREMENT INDEX

For our 2025 Annual Global Retirement Index, we’ve used seven categories to carefully determine the best locations in the world for retirement. Our focus is on the destinations that make sense for an overseas retirement—the established expat hubs with a track record for comfortable living. For instance, Roatán is the only place in Honduras we would consider in our ranking, while in Mexico there are easily a half-a-dozen hotspots we’ve homed in on. Each place is then assessed in the following ways:

Housing: This category looks first at the ease of buying and owning property as a foreigner, then the value you’ll receive as a homeowner. We consider factors like the price of housing in expat-friendly locations and property taxes.

We also examine rental values. In many destinations, renting makes better financial sense than buying. We look at long-term leases, the cost of renting a two-bedroom, 900-square-foot furnished apartment in a mid-range area, and whether renters’ rights are well protected by law.

Visas and Benefits: A place isn’t much good as a retirement destination if you can’t live there easily. We begin with an analysis of available tourist visas: how fast/simple it is to obtain a tourist visa, the ease of exploring a country on a tourist visa, the length of a tourist visa, etc.

In 2023, for example, Costa Rica began issuing 180-day tourist visas as standard. That’s almost six months’ worth of hassle-free time in-country, and more than enough time to escape the ravages of the North American winter. For retirees who live overseas part-time, that’s plenty.

But we also investigate the legalities of extending a stay, the ease of becoming a permanent resident, and the availability of special retiree options. We additionally consider retiree benefits and discounts on healthcare, prescription medication, entertainment, eating out, travel, utilities, and local transport.

Cost of Living: Each of our contributors answers an extensive cost-of-living questionnaire, tailored to the needs and wants of an expat retiree, from the cost of rent and utilities to groceries to a flight home to visit family in North America.

The lower the cost of living, the higher the score.

Affinity Rating: This one is where gut feeling comes in. We pride ourselves on being systematic in the way we put the Index together—but the truth is, retiring in a new destination involves the heart as well as the head. So, we ask our experts to rank our destinations according to whether they’d be happy to move there. What’s more, we ask you—our readers—where you would like to move.

For example, how easy will it be to make friends? We find out by evaluating the size and character of the expat community, the number of clubs and activities, and whether or not English is widely spoken. We also rate the range and variety of restaurants, the ease of finding an English-language movie, a concert, a world-class sporting event… essentially, the ability for you to have a thriving social life as an overseas retiree.

Healthcare: We assess healthcare based on both quality and cost. In many of the world’s best retirement destinations—and all of those included in the index—you’ll find worldclass care far cheaper than back home.

The quality and affordability of Portugal’s healthcare system, for example, is one of the biggest draws to life there. It’s one of the reasons this country consistently ranks high on our Index (it comes in at No. 2 for 2025).

Terry Coles and her husband took a housesit in Portugal in 2018, and decided it was the country they wanted to call home. "We have access to both public and private healthcare, along with reasonably priced private insurance," they say. The couple pays around $550 a month total for private insurance, which includes coverage for up to 60 days of travel outside Portugal. "Compared to what we were paying in the US," Terry says, "this is an incredible deal."

Development and Governance: If the roads are good and clean, the public transport excellent, and the internet fast and reliable, then a place will rank highly. We additionally factor in whether your new home offers a stable political environment, well-maintained infrastructure, and an efficient banking system.

Climate: This is our "Goldilocks" category. For some folks the perfect climate is hot and humid, others want spring year round… So, how do we score somewhere like Roatán—a small Caribbean island with a tropical climate—next to, say, Ireland? Apples to oranges, right?

We score a destination based on how many different climate options it offers. Ecuador’s landscape ranges from permanent snowfields, to cool mountain retreats, to tropical rainforest, to arid coastal plains reminiscent of southern California. In the Andes highlands, in Cuenca at 8,000 feet, it’s cool.

Belize, by contrast, has tropical warmth year-round, but that’s all. For that reason, Ecuador scores higher than Belize. (That said, maybe you love tropical warmth year-round… If so, Belize might be just right for you.)

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