See You in Paradise: 10 Best Countries for US Expats to Retire in 2025

From Panama to Portugal, join us on a permanent holiday to the 10 best countries to retire for US expats.

Retirement is an exercise in the art of fine living. These are your golden years – why spend them in a toxic political environment with skyrocketing living expenses, when you could be gorging on gastronomy in Europe or sipping poolside margaritas in some Central American beach town? 

You want to nail your retirement destination and move to the best country to retire in 2025, yet are wondering how to retire overseas and have questions about:

• Retirement visas and permanent residency 

• Healthcare and social security for retiring expats

• Cost of living and where your pension will afford a good quality of life 

Don’t worry, we cover all that. So what’s the best country to retire in? 

Honestly, that depends on many details. Real estate prices, safety walking the streets at night, getting around speaking only English, and so on. 

All of these add to quality of life for expats. And while quality of life is ultimately a subjective measure, we know a thing or two about what makes great retirement destinations. 

From Australia to Zanzibar, we looked at the data and covered the ABC of international living to give you an expert-based ranking of the 10 best countries for Americans to retire. So are you ready to find the best country to retire in for your pension and personal likes? 

Read on for the top 10 retirement destinations for U.S. citizens, backed by research and expert opinions. 

[Looking to make the big move abroad? ExpatDen has helped thousands of retired U.S. citizens find and settle into their new country with specialist advice on travel insurance, healthcare, and more.]

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10 Best Countries for Americans to Retire in 2025

Like the 704,000 American pension beneficiaries who are living abroad, you’re thinking of spending your retirement elsewhere – but what are the best foreign countries to retire in? For that, you’ll need a thorough breakdown of the best countries to retire, including cost of living, real estate, retirement visas and benefits, healthcare, safety, culture, lifestyle, and the climate.  

We took exactly these things into consideration while compiling our list of retirement destinations. Below is a detailed ranking of the 10 best countries to retire:

Costa Rica: A Retiree’s Tropical Paradise 

Costa Rica, an island paradise bobbing between the Caribbean Sea and the Pacific Ocean, has long been a loved destination for retirees. Offering expats a convincing combination of natural beauty, affordable living, and laid-back lifestyle in a tropical climate with year-round warm temperatures, Costa Rica is 2025’s best country to retire. 

The island nation offers a relaxed, nature-oriented lifestyle that many retirees find appealing. Besides, it’s considered one of the safest countries in Central America, with a stable democracy and no standing army. Last and certainly not unimportant, well-established US expat communities provide a social life and support.

Karsten Airchholz, an experienced expat and founder of ExpatDen, sees that “Costa Rica is a clear favorite.” And why is it so popular? 

For starters, it’s popular because… well, it’s already popular among expats. “What’s driving this is a lot of existing infrastructure. People of every nation are more likely to move where others have gone before,” Aichholz tells us. 

“Safety and cost of living are big drivers,” he adds. “Latin America is very popular because it’s very close to the US, making it easy to visit family; the weather is pleasant and it’s a well-trodden path where people hear from others who have done it before and where the infrastructure exists to cater specifically to American retirees.”

The verdict: If you’re ready to embrace the island’s “Pura Vida” philosophy of slowing down to enjoy the simple things in life, of happiness and gratitude, then Costa Rica is the country to retire. 

Costa Rica’s Cost of Living is a Third Lower

At around 35% lower cost of living (including rent) compared to the US, numbeo statistics suggest, Costa Rica is relatively affordable. Retirees can stretch their savings and enjoy life on an average pension. And how much do you need to live comfortably? 

Monthly living expenses for a comfortable life typically range between $1600 to $2000 for singles and $2000 to $3000 for couples.

Housing cost is especially low compared to the States – around 56% less. For expats looking to own tropical property, now might be the time to buy, according to analysis from broker Coldwell Banker. 

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• Condos sell at an average sell price of $446,000, 5% down from last year 

• Luxury homes sell at $1.16 million average, 42% below last year’s average

• Residential lots have seen a slight increase of 2%

Retirement Visas with Low Income Requirements

Costa Rica offers a straightforward path to residency for retirees through its Pensionado Program. Pretty much any American retiree can obtain residency. Visa requirements are in Costa Rica are:

• Minimum age is 65 years old

• Proof of a minimum monthly income of only  $1,000 from a pension or other retirement source

Additionally, senior expats moving to Costa Rica enjoy benefits like:

• 30% off public transportation

• 25% off airline tickets and hotels

• Exemption from import tax on household goods

• Exemption from sales tax on residential utility services

Universal Healthcare for Expats

Costa Rica’s public healthcare system is among the best in Latin America. As a retiree, you can use public or private healthcare – though many expats opt for a health insurance that combines both for comprehensive coverage. 

Public Healthcare (CCSS or “Caja” offers universal coverage for legal residents with monthly premiums of up to 12% depending on your income. Healthcare quality is good overall but can depend on local availability. 

Private healthcare, on the other hand, has shorter waiting times and more specialized care at affordable rates compared to those in the USA. Plus, you’ll have English-speaking staff.

Mexico: An Expat Haven Close to Home

Grab your sombrero and pack your bags. Sunny Mexico, with its colonial charm and low cost of living, is calling. The North American country is another long-time favorite retirement destination for Americans. 

“According to social security data, the number of American retirees in Mexico has nearly doubled since 2016, up from 36,000 to 62,000 retirees in 2023,” said Chet Kittleson when interviewed by travel magazine Travel + Leisure.

Kittleson, who is co-founder and CEO of international real estate marketplace Far Homes, sees how “These folks are drawn to the quality of life, incredible weather, beautiful beaches, lower cost of living, more affordable health care, and the list goes on.”

And that list goes beyond the lifestyle, much-loved cuisine (tacos!), affordable living, and reliable Mexico’s healthcare (outside of rural areas). Mexico is also beloved because the country shares its border with California. “Many Americans drive to Mexico,” expat retirees Shannon and Debbie, who run RetiresGreat.com, commented. 

“One thing we’ve noticed is most retirees want to stay in touch with family and friends. Keeping close to home is important,” they continued.

So as much as retiring abroad promises a dream life, you might still have something to come home to. Grandchildren, old friends, or a medicare appointment – whatever keeps you coming back to the States, it’s a lot easier to get to if you don’t have to cross continents.

The verdict: Mexico has everything a retiree could want. It’s affordable, too. Crime can be an issue, but there’s no need to worry about your safety if you move to the right place. A bonus: Mexico is close to home. 

Living Expenses in Mexico are Much Lower

It goes without saying that the cost of living in Mexico is much lower than in the United States. Including rent, your living expenses are less than half of what you’d need back home, according to Numbeo. But did you know that Mexico is 28.6% cheaper compared to Costa Rica, too? 

This means you can have a higher quality of life on a modest pension. Monthly living expenses for a comfortable retirement are at least $1400 for singles and $2000 to $2500 for couples. 

Rent can be very cheap in Mexico, depending on where you move. Real estate comes at a bargain compared to the US market. Expats buy a house in Mexico for $100,000 to $120,000 on average.

Various Paths to Permanent Residency

Retirees can move to a Spanish-speaking country on a temporary or permanent retirement visa that requires either a minimum monthly income or proof of savings. However, the exact amount depends on the consulate you apply at. Here’s an overview of the requirements:

Temporary resident visa (valid up to four years):

• Around $4,150 monthly income or 300 x daily minimum wage, or

• Proof of around $72,000 in savings or 5,000 x daily minimum wage

Permanent resident visa:

• Around $7,200 monthly income or 500 x daily minimum wage, or

• Proof of around $280,000 in savings or 20,000 x daily minimum wage

There’s another way to apply for residency in Mexico if you don’t meet the economic solvency requirements. A special RNE program (Registro Nacional de Extranjeros) allows visitors whose visitor permit (FMM) has expired to apply for temporary residency that can be turned into permanent residency after four years. All without proof of income.   

Safety and Where to Retire in Mexico

Like all the best countries to retire in, some regions are better for retirees than others. But unlike other countries on our list, some of Mexico’s areas are best avoided due to crime levels. 

• Cities like Tijuana that are just across the border might be tempting to expats – but crime and kidnappings have increased in border states like Tamaulipas, Coahuila, and Chihuahua.

• Acapulco used to be a top beach resort but the city and wider Guerrero state have seen more violence.

• Cancun is a popular tourist destination but might not be your best bet for retirement. The city has seen increased crime targeting tourists. 

 As a rule of thumb, avoid remote, rural areas. So what are the best places to retire in Mexico?

Many of Mexico’s cities and coastlines are quite safe. Mayan-influenced Merida on the Yucatán Peninsula, San Miguel de Allende with its low cost of living and temperature desert climate, or Mazatlan in the Mexican Riviera. And then there’s Sayulita, Playa del Carmen, Oaxaca, Guadalajara, and many more destinations. 

Portugal: The New Retirement Hub for Americans in Europe

On the far edge of southwestern Europe and overlooking the Atlantic, Portugal attracts a new wave of expats with an old way of European lifestyle. Wondering if it’s hip enough for you to retire? Prince Harry and Meghan Markle just bought real estate along Portugal’s coastline. It’s not just royals that have found Portugal to be attractive – Americans are moving there too.

Gonçalo Roxo, the co-founder of Your Property Advisor, a real-estate consulting company that helps expats buy homes in Portugal, told news outlet Business Insider that Americans are buying property in increasing numbers. “In 2020, maybe out of ten clients, one would be American,” Roxo told Insider. “Now, out of ten, maybe five are Americans.”

As of January 2024, over 14,000 social security beneficiaries called Portugal their home compared to around 13,000 in 2022. While still a modest number, there’s definitely been a trend since Portugal made its border more accessible to expats and retirees in a bid to boost its economy. 

That boost has proved successful to the point that the real estate market is booming and even inaccessible for the Portuguese purchasing power. For Americans, though, Portugal remains very affordable – especially considering you’re buying into an excellent quality of life within one of Europe’s oldest country borders.

The verdict: Portugal offers old-world charm and culture with a touch of international living. It’s the most affordable county in western Europe – though living costs are much higher around the capital Lisbon. Besides, Portugal has one of the world’s best universal healthcare systems. And did we mention the stunning coastlines and medieval villages?

Western Europe’s Lowest Cost of Living

While Portugal’s cost of living has increased in recent years, it still remains 39.2% lower compared to the United States, according to Numbeo. That’s including rent prices, which are 44.6% lower. Cost of living is noticeably lower in rural areas. Doesn’t sound enticing? Know that rural includes picturesque medieval towns and sleepy fishing villages.

And while Portuguese cuisine is top notch, eating out is especially inexpensive for European standards.

Unheard of in the rest of western Europe, retired singles can live comfortably on about $1,500 per month. For couples that’s about $2,500 or more. Want to retire in Lisbon? Add at least $500 to your monthly budget. Rent will cost you double or more in the capital region.

Lisbon’s popularity is reflected in the local housing market, as shown by numbers from investment advisor Chase Buchanan:

• Homes in Lisbon are selling for over $6,000 per square meter on average

• Homes in Porto, the country’s second-largest city, go for $3,600 per square meter

The Portuguese Retirement Visa Scheme and Tax Benefits

Retiring in Portugal is easy through the D7 Visa, also known as the retirement visa or passive income visa. Requirements for this visa are:

• Minimum passive income of €820 per month

• At least €9,840 in savings on a Portuguese bank account, plus 50% for a partner or 30% per child

• Applicants must stay in Portugal for at least 8 months within the year 

The D7 Visa has additional tax benefits through the NHR regime. Under this program, you are exempt from or pay very little taxes. 

Top-Notch Healthcare Comes with Waiting Times

Portugal’s universal healthcare system is among the best and is available to all legal residents. Waiting times can be long, though, and expats often choose to include private health insurance for extended coverage. Premiums range for private healthcare plans from €50 to €100 per month. 

An Accessible Culture and Lifestyle for American Expats

As a European culture, Portugal presents a rich experience while remaining relatively accessible to westerners. English is widely spoken in tourist areas and among younger generations, though you’ll find fewer English speakers in rural areas. 

The pace of life is slower than in the US and with an emphasis on work-life balance, with a prominent café culture and many families eating out on a regular basis. The Portuguese are the biggest wine consumers per capita and their food is excellent. 

Panama: A Popular Yet Peaceful Strip of Expat Paradise

Panama is another favorite among the US expats. Why? It’s a tropical paradise that doesn’t break the bank. At the southern end of Central America, Panama attracts US expats with modern amenities and natural beauty, who can easily obtain residency through the Pensionado Program. 

The country is safe and politically stable, the people are welcoming, and the infrastructure for US expats is abundant. Healthcare in Panama is another pleasant surprise for American retirees, with high-quality public and private care available at lower costs. 

Want more reasons to retire in Panama? How about affordability?

Panama is inexpensive at 38.4% lower cost of living compared to the United States. Expect monthly expenses between $2,000 to $3,000 for couples. Real estate options are plenty, from beachfront condos to mountain retreats, with prices still reasonable compared to many U.S. markets. 

A few things to prepare for: language and bureaucracy can be hurdles, healthcare and public transport can be limited in rural areas, and imported goods are subject to high taxes.

The verdict: It’s Panama’s tropical weather and vibrant expat communities that make a great climate for retirees. Then add safety, political stability, a welcoming local population and, last but not least, relative proximity to the US. For expats who want affordable, tropical living close to home, Panama is a top retirement destination.

Spain: Retiring on Sun-Soaked, Mediterranean Lifestyle 

Retiring in Spain can bring you a serious upgrade in quality of life. Take the Mediterranean diet, both healthy and delicious. Or stunning coastlines and sunny weather, complimented with a laid-back beach culture. And then there’s the bustling cities and gorgeous landscapes. 

Yes, Spain offers a lot to retirees, including a vibrant expat community in popular areas.

The country on the Iberian peninsula is affordable for Americans, with the cost of living being 37.3% lower than in the States and rent prices almost half the price on average, Numbeo shows. This means couples can live well on $2,500 to $3,000 per month, depending on location and lifestyle. Real estate has seen serious inflation in popular cities, noticeably Barcelona, though prices are still more affordable than in the USA.

Public healthcare is ranked high and expats can get additional coverage through private healthcare insurance. The country’s emphasis on preventive care and its excellent specialist services provide peace of mind for seniors managing chronic conditions or concerned about their future health.

If you can deal with the bureaucracy, speak some Spanish, and can afford to buy into inflated real estate, this hot European country offers very little to complain about. 

The verdict: The Spanish lifestyle is the biggest selling point for many retirees. The Spanish emphasize social connection, outdoor living, and gastronomy, with the country offering a quality of life that you could call rejuvenating.

Thailand: An Affordable Adventure in the Tropics

Thailand is deeply rooted in the hearts of the American expat and holiday-goer. It’s an exotic allure, the call of the jungle, the welcoming southeast Asian culture, and low cost of living. Retiring in Thailand is an adventure far from home, presenting many rewards and a few challenges.

Financially, moving to Thailand is a no-brainer for retirees on a budget. Cost of living including rent is 56.4% lower than in the United States. Expat couples can already live off a $2,000 monthly budget – even less is you’re the frugal type – though costs easily ramp up depending on location and lifestyle. 

Like in other Asian countries, property ownership is complicated. Retirees can opt for long-term lease or open a Thai company to purchase real estate.

The Asian country has world-class medical facilities in major cities and tourist destinations, with much lower costs than back in the US. But retirees will find (improving) the public healthcare system lacking, requiring a private healthcare insurance to fully access Thailand’s available healthcare.  

Another point of consideration is obtaining the right retirement visa. Thailand’s visa schemes can be confusing and subject to change. Luckily, we wrote a full guide on all rules and requirements for retiree visas in Thailand.

The Verdict: For adventurous Americans looking for an exotic and affordable retirement destination, Thailand is hard to beat. The Land of Smiles draws you in with welcoming locals and an abundance of culture, food, and nature. Solve the puzzle that is visas and property and you’re set for a couple of decades of golden years.

Malaysia: A Melting Pot of Culture and Comfort

Peninsular Malaysia is a multicultural nation where cultures meet to create a welcome environment for expats. Modern amenities and tropical allure add comfort and a permanent holiday feel. 

British rule left its cultural marks and, today, over 60% of Malaysians speak English, according to the language institute EF. That’s why it’s no wonder that the country is becoming more popular as a retirement destination among Americans.

The financials are attractive for budget retirees. Malaysia has 63.2% lower cost of living on average compared to the United States, Numbeo statistics show. Monthly expenses for couples range from less than $2000 to $2500 for a life of luxury. 

Retirees are exempted from taxes and can even own property under the Malaysia My Second Home (MM2H) visa regulations, which gives expats a renewable five to fifteen-year stay depending on their visa tier. 

The caveat is that these retirement visas require substantial investments in the Malaysian economy. Applicants for the MM2H Visa must keep a fixed deposit of RM 500,000 (around $150,000) and purchase property worth RM 600,000. And that’s just for the lowest of three tiers.

The verdict: American retirees are very well off in Malaysia, a tropical country whose kind, multicultural population has great command of the English language. That’s largely because of the country’s breathtaking natural beauty, rich culture, modern amenities, and great healthcare. But it’s also because retirees on an MM2H put down the financial commitment for an above average lifestyle.

Colombia: The South American Gem Climbing the Ranks

Nestled in the northwest corner of South America, Colombia is perhaps the next best retirement destination for Americans. Gone is the bad reputation this beautiful country bordering Ecuador and the Amazon had a few decades ago. 

The country’s safe and its people friendly to foreigners, be it travelers or expats, who are amazed to find a wealth of natural beauty – forests, mountains, deserts, coastlines. And there are colonial towns where living is easy. To top it off, Colombia’s a very affordable country to settle in.  

The cost of living (including rent) in Colombia is 67.6% lower than in the United States, according to Numbeo. That’s cheaper than anywhere else on our list of best countries to retire. Couples can live comfortably on $1,500 to $2,000 per month. 

This affordability extends to housing, where retirees can find modern apartments in bustling cities or serene properties in smaller towns at a fraction of U.S. prices. Colombia’s public healthcare is ranked among the world’s best and retirement visa requirements are easily met. 

What are some of the downsides of retiring in Colombia? Very few, if you speak Spanish. The country is developing rapidly and has become much safer – though it’s not done addressing social issues yet. 

The verdict: Colombia might well boast this list’s best value proposition: modern amenities, old-world charm, high affordability, plus the Andes and the Amazon. For retirees trying to stretch their savings and with a weakness for Latin America, Colombia is a no-brainer. 

The Philippines: Unspoilt Island Retirement on a Budget

Retiring in the Philippines is a taking on a new adventure in the second prime of your life. A tropical escape to an archipelago an ocean away from home. The Philippines are home to friendly people and a culture with traces of Spanish colonialism and American influence. 

Here you’ll find a curious blend of the familiar and the exotic, a place where you can order a hamburger in perfect English and wash it down with a glass of lambanog. English is indeed spoken well throughout much of the archipelago, a point of difference with other exotic destinations in the region. 

Budget retirees do well in the Philippines, where the cost of living is 65.5% lower than in the States, according to Numbeo. A$1,500 budget easily covers a couple’s monthly expenses. Rent is particularly affordable – which comes in handy, considering foreigners can’t own property in the Southeast Asian country. 

The Special Resident Retiree’s Visa (SRRV) program is a standout feature for potential expats. This visa offers an indefinite residency status, allowing retirees to come and go as they please without reapplying for residency. 

What more to expect when moving to the archipelago? Don’t expect the infrastructure to be as developed as back home or life to move at a similar pace. Nor do you want to rely on public healthcare. 

The verdict: The Philippines have become an unlikely island haven for American retirees. Join their ranks for an unspoilt tropical adventure and if you’d like to the golden years on “island time” (including the occasional culture shock).

Italy: La Dolce Vita Still Beckons

Here’s a scene in the movie that is your retirement in Italy: You’re sipping a creamy espresso on a sunny piazza, piaggos zipping past centuries-old architecture. There’s nothing pressing on your mind except for the question of lunch – pasta or pizza? This is life. This is “La Dolce Vita”.

And here’s the kicker – it might be more attainable than you think.

With living costs 32.4% lower than in the United States and 11.6% lower than neighboring France, Italy is a European dream for American retirees. A couple can live comfortably on $2,000 to $3,000 per month, depending on location and lifestyle. 

The south is much more affordable than the north and cities like Milan or towns like Bellagio on the Como Lake. But then again, that’s jetset territory. 

Healthcare and infrastructure are great, even by European standards, as is the retiree-friendly tax regime of a 7% flat tax fee on foreign income for 15 years. In return, Italy’s retirement visa comes with a minimum income requirement. 

So what’s the tradeoff of La Dolce Vita? That you’re willing to trade fast food for slow food,  and English for Italian. And there’s the road rage and high petrol prices. Other than that, niente. 

The verdict: Italy is a place where your golden years can really shine, polished by centuries of culture, warmed by Mediterranean sun, and nourished by some of the world’s best cuisine. If for you the old world beckons, Italy will take the call.

Expatden’s Best Country to Retire: The Rankings

Compiling our list of the top 10 retirement destinations for Americans in 2025, we used a detailed and expert-based scoring system. 

Destinations were assessed across eight key categories that together make or break a retirement dream: cost of living, real estate, retirement visas and benefits, healthcare, safety, culture (fit), lifestyle, and climate. Each category was rated on a scale of 1 to 5, with 5 being the highest possible score.

The following table summarizes the scores:

The ranking combines data analysis with expert insight, reflecting the unique qualities and practical considerations of each destination. 

Karsten Aichholz highlights, for instance, how critical retirement visas are to retirees: “Thailand, the Philippines, Mexico, and Costa Rica really stand out here in terms of the ease, cost, and duration of retirement visas. For a lot of retirees, one hurdle is showing that they meet the income requirements for those visas.”

Debbie and Shannon stress that “the primary considerations seem to be proximity, the ease of entry, and the ability to return home. Other factors include cost of living, healthcare, and safety.”

But while proximity to home is important to U.S. citizens, the idea of a faraway paradise can be tempting, too. “For the more adventurous, Europe or Asia might appeal for retirement destinations. Specifically, Portugal and Spain rank high on the list,” Shannon and Debbie add. “Of course, disadvantages include very long flights and adapting to a different culture and lifestyle.”

By focusing on the criteria experts set, we’ve tailored this list to meet the needs of Americans searching for an ideal retirement destination in 2024. With these rankings in mind, your dream retirement abroad can start to take shape.
Want to retire abroad but are you unsure about how to make it happen? ExpatDen helps expats and retirees find and settle into their new country, with specialist advice on travel insurance, healthcare, and more.