See You in Paradise: 10 Best Countries for US Expats to Retire in 2026

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 2026, 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.]

10 Best Countries for Americans to Retire in 2026

Like the over 700,000 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:

One piece of advice that comes up again and again from retirees who have already made the move: visit your shortlist before committing, and check the practical details like whether your US bank will keep your account open with a foreign address and how local healthcare actually works day to day. A great ranking on paper still has to fit your real life.

Best Countries to Retire: Visa and Budget Comparison Table

Before you dive into each country in detail, here’s a side-by-side look at the numbers that matter most: what a retirement visa actually asks for, and what a couple typically spends per month. Treat the visa figures as a starting point, not a guarantee. Income thresholds move with local minimum wage and inflation, so confirm the current number with the country’s consulate or immigration office before you apply.

Country	Retirement Visa Minimum Income (or Deposit)	Comfortable Monthly Budget, Couple
Costa Rica	US$1,000/month (Pensionado)	US$2,500 to US$3,500
Mexico	Around US$4,400/month (temporary) or US$7,200/month (permanent)	US$2,000 to US$2,500
Portugal	€920/month, tied to the national minimum wage (D7 visa)	US$2,500 or more (higher in Lisbon)
Panama	US$1,000/month, or US$750 with a qualifying property purchase (Pensionado)	US$2,000 to US$3,000
Spain	Around €2,400/month, 400% of the IPREM (non-lucrative visa)	US$2,500 to US$3,000
Thailand	Varies by visa type and age; see our full Thailand retirement guide	Around US$2,000
Malaysia	US$150,000 fixed deposit plus RM600,000 in property (MM2H, Silver tier)	Under US$2,000 to US$2,500
Colombia	Around US$1,380 to US$1,410/month, 3x the minimum wage (Visa M Pensionado)	US$1,500 to US$2,000
Philippines	US$1,500 to US$50,000 deposit, depending on age and pension status (SRRV)	US$1,500
Italy	Roughly €31,000 to €38,000/year in passive income; varies by consulate (Elective Residency Visa)	US$2,000 to US$3,000

Two patterns jump out. Costa Rica and Panama ask for the lowest guaranteed income, just US$1,000 a month, while Mexico’s permanent residency and Spain’s non-lucrative visa expect several times that in verifiable passive income. Living costs tell almost the opposite story: the Philippines and Colombia are the cheapest places to actually live day to day, even though their visa math looks stricter on paper.

Costa Rica: A Retiree’s Tropical Paradise 

Costa Rica, a 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 2026’s best country to retire. 

The country 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.”

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The verdict: If you’re ready to embrace the country’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 20% 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 US$2500 to US$3500 for singles and US$2500 to US$3500 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. 

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

• Luxury homes sell at US$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:

• No minimum age requirement, so you don’t have to wait until 65 to apply

• Proof of a minimum monthly income of only US$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

One thing recent applicants flag: residency processing at the immigration department (DGME) has slowed to around four months in early 2026. Start your paperwork well before you plan to move.

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 US$1400 for singles and US$2000 to US$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 US$100,000 to US$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:

Expats and immigration lawyers say consulates turned noticeably stricter in 2026. Some applicants have been turned away for missing the income line by as little as US$10 after an exchange-rate swing, so aim to show income comfortably above the minimum. Mexico’s residency income requirements changed in 2026, and consulates now base the math on the UMA index rather than the minimum wage.

Temporary resident visa (valid up to four years):

• Around US$4,400 monthly income or 300 x daily minimum wage, or

• Proof of around US$74,000 in savings or 5,000 x daily minimum wage

Permanent resident visa:

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

• Proof of around US$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 US$1,500 per month. For couples that’s about US$2,500 or more. Want to retire in Lisbon? Add at least US$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 US$6,000 per square meter on average

• Homes in Porto, the country’s second-largest city, go for US$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 €920 per month, matched to Portugal’s 2026 minimum wage

• At least €11,040 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 used to come with a big tax perk called the NHR regime, which taxed foreign pensions at a low flat rate. That door has closed. Portugal stopped accepting new NHR applicants at the end of 2023, and the final transition window shut in early 2025. Its replacement, the IFICI regime, is aimed at certain professionals and does not cover pension income. If you move now, plan for regular Portuguese tax rates on your pension.

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. 

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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 US$2,000 to US$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 US$2,500 to US$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 US$2,000 monthly budget – even less if 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 US$2000 to US$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 US$150,000 and purchase property worth RM600,000. 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 US$1,500 to US$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 US$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.

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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 US$2,000 to US$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. Italy also offers a retiree-friendly 7% flat tax on foreign pension income, but it is not a nationwide benefit. It runs for the year you transfer your residence plus nine following tax periods, about 10 years in total rather than 15, and it applies only if you move your official residence to a qualifying municipality of 30,000 or fewer residents in one of eight southern regions: Sicily, Calabria, Sardinia, Campania, Basilicata, Abruzzo, Molise, or Puglia. 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.

Can You Retire Abroad on Social Security Alone?

For a lot of soon-to-be retirees, this is the real question behind “best country to retire”: can my Social Security check actually cover my life there? The average monthly Social Security retirement benefit ran about US$2,071 to US$2,086 in 2026, depending on which month’s data you check, according to the Social Security Administration.

Match that number against the comfortable-couple budgets in the table above and a pattern shows up:

• Where a single check stretches furthest: the Philippines, Colombia, and Malaysia, where couples report comfortable budgets at or below the average individual Social Security benefit.
• Where two checks make more sense: Mexico, Panama, and Thailand, where couples typically need somewhat more than one average benefit, but well within reach of two.
• Where Social Security alone rarely covers it: Costa Rica, Spain, and Italy, where comfortable couple budgets run US$2,500 to US$3,500. Expect to need a pension, savings, or a working spouse on top of a single benefit.

None of this is a guarantee. Exchange rates move, local inflation runs hotter in some of these countries than in the US, and “comfortable” is subjective. But if Social Security is most of your retirement income, the math favors Latin America and Southeast Asia over Western Europe.

Do You Still Pay US Taxes When You Retire Abroad?

Yes, and this trips up more retirees than any visa rule does. The US taxes citizens on worldwide income no matter where they live, so moving abroad doesn’t end your filing obligation to the IRS.

A few things retirees get wrong:

• The Foreign Earned Income Exclusion (US$132,900 per person in 2026) only applies to earned income from work. It does not cover Social Security, pensions, or annuity payments, so retirees usually can’t use it to shelter retirement income.
• If your combined foreign bank accounts exceed US$10,000 at any point in the year, you have to file an FBAR (FinCEN Form 114), even if you owe no US tax on the money.
• Whether your new country also taxes your Social Security or pension depends on whether the US has a tax treaty or totalization agreement with it. Some countries tax it, some don’t. Check before you assume either way.
• You still have to file a US federal return every year, and possibly a state return too, depending on which state you last lived in.

None of this should scare you off retiring abroad. It just means budgeting for a tax preparer who understands expat filing, and not assuming that leaving the country means leaving the IRS behind. For the full mechanics, see our guide on how to file US taxes as an American expat.

Expatden’s Best Country to Retire: The Rankings

Compiling our list of the top 10 retirement destinations for Americans in 2026, 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 2026. 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.

Frequently Asked Questions

Which country on this list is cheapest for a US retiree?

Colombia, according to Numbeo’s cost of living comparisons, at 67.6% lower than the United States including rent. The Philippines and Malaysia are close behind, both over 60% lower. Costa Rica is the most expensive country on this list, at around 20% lower than the US.

Which retirement visa is easiest to qualify for?

Costa Rica’s Pensionado Program and Panama’s Pensionado visa both ask for the lowest verifiable income on this list, just US$1,000 a month, with no minimum age and a straightforward application. Mexico’s permanent residency and Spain’s non-lucrative visa sit at the other end, both requiring several times that amount in documented passive income.

Does Medicare cover me if I retire abroad?

Almost never. Medicare generally doesn’t pay for healthcare outside the United States, with a small number of exceptions tied to specific cross-border situations. Retirees abroad typically rely on the local public health system, private local insurance, or an international health insurance plan instead.

Do I lose my Social Security or US citizenship if I retire in another country?

No. Retiring abroad doesn’t affect your citizenship or your right to Social Security. The Social Security Administration can deposit payments to a bank account in many countries, or you can keep a US bank account and have it deposited there instead. A small number of countries have restrictions on Social Security payments, so check your specific destination before you move.

Can I own property as a foreign retiree?

It depends entirely on the country. Mexico and Panama both allow foreigners to buy property directly, with some restrictions near coastlines and borders in Mexico. The Philippines generally doesn’t allow foreigners to own land outright, and Thailand works similarly, so retirees there typically lease long-term or hold property through a local company instead. Confirm current property law with a local attorney before you commit to buying anywhere.

How much money do I need saved to retire abroad?

There’s no single number. It depends on the country and your lifestyle, but the visa income requirements in the comparison table above are a reasonable floor. Beyond meeting the visa, most financial planners suggest keeping enough savings or guaranteed income to cover 12 months of living expenses as a buffer, plus extra for healthcare costs the local public system doesn’t cover.

Is it safe for Americans to retire abroad?

Generally yes, though safety varies by country and even by neighborhood within a country. Every destination on this list has areas well-established with retirees and considered safe, alongside regions best avoided, as noted in the country sections above. Check the US State Department’s travel advisories for your destination before you move, and again before any extended trip.

Sources Cited

• Costa Rica Dirección General de Migración y Extranjería, Pensionado category
• Panama Servicio Nacional de Migración, Pensionado/Jubilado visa requirements
• Colombia Ministerio de Relaciones Exteriores, Visa M Pensionado
• Philippine Retirement Authority, SRRV deposit requirements
• US Social Security Administration, average monthly retirement benefit
• IRS, Foreign Earned Income Exclusion