Best Countries for Americans to Retire in 2025: Top 10 US Expat Picks

Retirement today is about more than simply slowing down. It’s about choosing a lifestyle that delivers comfort, financial stability, and rewarding new experiences. For many U.S. retirees, moving abroad offers the opportunity to stretch savings further while enjoying better weather, gain access to world-class healthcare, and integrate into a vibrant cultural scene. Affordable living costs, tax-friendly structures, and retirement visas have made it easier than ever to settle overseas.

In this guide to the best countries for Americans to retire, we draw on insights from the 2025 Global Retirement Report by the Global Intelligence Unit (GIU). This comprehensive ranking evaluates destinations across affordability, healthcare access, quality of life, safety, and ease of settling in.

• How We Ranked the Best U.S. Expat Retirement Countries
• 10 Best Countries for Americans to Retire
• Choosing the Right Country for Your Retirement
• US Tax and Compliance Considerations for Retirees Abroad
• Frequently Asked Questions

How We Ranked the Best U.S. Expat Retirement Countries

To identify the best foreign countries for Americans to retire, we used the data-driven methodology of the 2025 Global Retirement Report by the Global Intelligence Unit. This study evaluates 44 retirement destinations worldwide, focusing on the factors that matter most to U.S. retirees.

Each country is assessed across six key pillars:

• Procedure: How simple and transparent is the application process for a retirement or long-stay visa?
• Citizenship and mobility: Does the country offer strong travel freedoms, dual citizenship options, or a path to long-term settlement?
• Economics: Affordability of daily expenses, housing, and utilities, with data from the Cost of Living Index.
• Taxes: How tax-friendly is the country for retirees, including any U.S. tax treaty benefits, foreign income exemptions, or incentives?
• Quality of Life: Availability of healthcare, climate, cultural offerings, and overall comfort.
• Safety and integration: Personal security, political stability, and ease of adapting to local communities.

According to the 2025 Global Retirement Report, more than 40 countries now offer dedicated retiree or passive income visa options, giving American retirees more flexibility than ever before. As the Global Intelligence Unit’s research notes, “Passive income visas like Portugal’s D7 or Spain’s Non-Lucrative Visa are among the most accessible pathways to residency, requiring modest monthly income levels while offering the stability of long-term legal stay and a clear route to citizenship.”

These rankings ensure that our top 10 countries to retire abroad for Americans are not only affordable but also secure, welcoming, and practical for long-term living.

10 Best Countries for Americans to Retire

Finding the best country for Americans to retire means balancing affordability, healthcare access, lifestyle perks, and ease of integration. Using the GIU’s annual global retirement index as our benchmark, we’ve compiled a list of destinations that consistently rank high in quality of life, safety, and expat-friendliness.

These best foreign countries for Americans to retire offer diverse climates and cultures — from sun-soaked European coastlines to affordable tropical havens. Most provide retirement-specific visas, favorable tax laws, and strong expat communities to make settling in easier.

At-a-glance comparison of retirement countries for U.S. citizens

1. Portugal (best European country for Americans to retire)

GIU Global Retirement Report ranking: #1

Portugal continues to be one of the best countries in the Global Retirement Index, attracting American retirees with its Mediterranean climate, stunning coastlines, and welcoming communities. Known for its rich culture, low crime rates, and affordable living, this European nation offers both modern amenities and a relaxed pace.

Portugal’s healthcare for foreigners is excellent and one of the main reasons it’s attractive for retirees. Housing is affordable and, compared to other Western countries, has a relatively low cost of living — about 15–20% lower than the EU average, according to the 2025 Global Retirement Report by the Global Intelligence Unit. Foreign retirees enjoy easy access to public transportation, fresh seafood, and friendly locals in the vibrant capital city of Lisbon as well as in the smaller towns in the Algarve.

The Portugal D7 Visa is particularly appealing, requiring a modest passive income of €870 per month and offering a renewable residency permit with a minimum stay requirement of just seven days per year. It grants access to Portugal’s public healthcare system, visa-free travel in the Schengen Area, and the possibility of citizenship after five years of legal residence. Applicants can also include spouses, dependent children, and parents, making it a flexible choice for family relocation.

• Costs: $2,200 to $2,800/month for a couple, with one-bedroom apartments outside Lisbon costing far less.
• Healthcare: Excellent care in the public system (SNS) plus private health insurance (€400 to €1,000/year) with shorter wait times.
• Visa: Portugal D7 visa for retirees with sufficient monthly income or savings; possible citizenship after five years.
• Who it suits: US citizens seeking quality of life, tax advantages, and easy access to other countries in Europe.

2. Spain (Mediterranean lifestyle with excellent healthcare)

GIU Global Retirement Report ranking: #2

Spain continues to attract American retirees with its sunny climate, rich culture, and high quality of life.

From coastal cities like Valencia and Malaga to cosmopolitan hubs such as Barcelona, the country offers an appealing mix of affordability and world-class infrastructure. The strong public healthcare in Spain, adherence to a healthy Mediterranean diet, and vibrant social scene add to the draw.

• Costs: $2,300 to $2,900/month; lower in inland areas.
• Healthcare: Exceptional public healthcare, with private insurance from €50 to €200/month.
• Visa: Spain Non-Lucrative Visa for financially self-sufficient retirees.
• Who it suits: Those wanting cultural richness, excellent transport links, and sunny beaches.

3. Mexico (affordable and close to the US)

GIU Global Retirement Report ranking: #3

Mexico remains one of the most attractive retirement destinations for American retirees, offering affordable living, modern facilities, and rich culture just a short flight from the U.S. Its low cost of living, warm weather, and variety of landscapes, from the beaches of Puerto Vallarta to smaller cities like San Miguel de Allende and Lake Chapala, make it a top choice for foreigners moving abroad.

Many retirees are drawn to the friendly locals, vibrant expat communities, and excellent healthcare options in major cities. Mexico’s private healthcare sector is a medical tourism hub, with English-speaking doctors and costs far lower than in Western countries.

• Costs: $1,800 to $2,400/month for a couple; one-bedroom apartments in city centers are very affordable.
• Healthcare: High-quality private healthcare is available at a relatively low cost; private insurance is budget-friendly.
• Visa: Temporary or Permanent Resident Visa for those who can demonstrate financial stability through income or savings.
• Who it suits: Retirees wanting a shorter flight to the U.S., affordable housing, and a relaxed lifestyle with frequent trips home.

4. Costa Rica (nature-rich with strong expat ties)

GIU Global Retirement Report ranking: #4

Costa Rica is the only Central American country that consistently ranks high in the Annual Global Retirement Index and International Living’s report, offering American retirees a blend of natural beauty, affordable living, and welcoming communities.

Known for its Pura Vida lifestyle, the country’s lush rainforests, beautiful beaches, and eco-friendly policies are a major draw. Many retirees appreciate the low cost of living, quality care in both the public system and private healthcare, and the ease of integrating into expat communities in smaller cities and towns.

• Costs: $2,000 to $2,500/month for a couple, with affordable housing options across the country.
• Healthcare: Strong public system (Caja) and private health insurance from $60 to $150/month; English-speaking doctors available in major cities.
• Visa: Pensionado visa requires just $1,000/month in guaranteed monthly income.
• Who it suits: Retirees looking for affordability, natural beauty, and a relaxed lifestyle in Central America.

5. Panama (tax-friendly with easy residency)

GIU Global Retirement Report ranking: #5

Panama’s capital city, Panama City, combines modern amenities with the charm of nearby tropical beaches, making it one of the most popular retirement destinations in Latin America.

Known for its tax advantages and relatively low cost of living, Panama is a favorite among American retirees seeking to stretch their nest egg. The country’s Pensionado visa program offers discounts on everything from prescription medications to public transportation, adding to its appeal.

• Costs: $2,000 to $2,400/month for a couple, with affordable housing in both urban areas and smaller towns.
• Healthcare: High-quality private healthcare in major cities; private insurance costs around $100 to $250/month.
• Visa: Pensionado visa for retirees with proof of guaranteed income; leads to permanent residency.
• Who it suits: Retirees seeking tax advantages, modern facilities, and easy access to neighboring countries.

6. Thailand (low cost with excellent private healthcare)

GIU Global Retirement Report ranking: #6

Thailand is a Southeast Asia standout for its low cost of living, excellent healthcare, and vibrant cultural scene. From street food in Bangkok to the slower pace of life in Chiang Mai, many retirees are drawn to the variety of experiences and affordable housing options.

It’s also a medical tourism hub, attracting foreign retirees from Western countries who seek world-class medical services at a fraction of the cost.

• Costs: $1,500 to $2,000/month; costs are lower outside major cities.
• Healthcare: Excellent healthcare in the private sector; private health insurance is affordable and widely available.
• Visa: Retirement visa for those over 50 who can meet financial requirements.
• Who it suits: Retirees seeking affordable living, modern amenities, and quality care in Southeast Asia.

7. Uruguay (safe and stable South American country)

GIU Global Retirement Report ranking: #7

Uruguay is one of the safest South American countries and the most politically stable nations, making it an attractive option for American retirees.

With welcoming communities, affordable housing, and a relaxed pace, it’s ideal for those looking to settle in a secure environment with a European feel. Many retirees choose smaller cities or coastal towns, enjoying fresh vegetables, fresh meat, and modern facilities.

• Costs: $2,200 to $2,700/month for a couple.
• Healthcare: Reliable public system and private healthcare (~$150/month) with English-speaking doctors in major cities.
• Visa: Pensionado visa with low monthly income requirements; pathway to permanent residency.
• Who it suits: Retirees wanting safety, low crime rates, and a slower pace in South America.

8. Greece (sun, sea, and tax perks)

GIU Global Retirement Report ranking: #8

Greece combines rich history, beautiful beaches, and affordable living with attractive tax advantages for foreign retirees. Its Mediterranean climate and friendly locals create an inviting atmosphere, while affordable housing in smaller cities and rural areas offers great value.

Many retirees enjoy the slower pace of life, vibrant markets with fresh seafood, and easy access to other countries in Europe.

• Costs: $2,000 to $2,500/month for a couple.
• Healthcare: Public healthcare improving; private insurance from €50 to €200/month ensures quality care.
• Visa: Financially independent visa requires proof of financial stability; 7% flat tax on foreign income for 15 years. The Greece Golden Visa offers a fast route to residency (and eventual citizenship) through investment.
• Who it suits: Retirees wanting a mix of affordability, tax advantages, and rich culture in Europe.

9. Malta (English-speaking island with EU perks)

GIU Global Retirement Report ranking: #9

Malta’s sunny shores, rich culture, and English-speaking environment make it one of the best countries in Europe for American retirees.

This Mediterranean island nation offers affordable housing compared to other Western countries, along with excellent healthcare in both the public system and private sector. Its remittance-based tax structures and modern facilities makes retiring in Malta an easy choice.

• Costs: $2,500 to $3,000/month; prices drop in smaller towns outside tourist hubs.
• Healthcare: Excellent care in public hospitals and private health insurance from €100 to €200/month.
• Visa: Malta Retirement Program offers tax advantages for foreign income not remitted to Malta.
• Who it suits: Retirees wanting English-speaking doctors, quality of life, and easy access to other countries.

10. Malaysia (affordable and cosmopolitan)

GIU Global Retirement Report ranking: #10

Malaysia is a Southeast Asia retirement destination that offers low cost of living, world-class healthcare, and a melting pot of cultures.

Many retirees choose Kuala Lumpur for urban living or Penang for a slower pace and beautiful beaches. With affordable housing, modern amenities, and friendly locals, it’s an attractive option for those seeking value and variety.

• Costs: $1,800 to $2,200/month for a couple.
• Healthcare: Excellent healthcare in the private sector; popular medical tourism hub for foreigners.
• Visa: Malaysia My Second Home (MM2H) program offers a renewable multiple entry visa for long-term stay.
• Who it suits: Retirees seeking affordability, quality care, and an English-speaking environment in Southeast Asia.

Choosing the Right Country for Your Retirement

Selecting the right retirement destination is about more than picking from a list of the best countries. It’s about finding a place that fits your lifestyle, budget, and long-term plans.

Even the most highly ranked nations in the Global Retirement Index may not be the perfect match unless they align with your healthcare needs, visa requirements, and monthly income.

For many American retirees, factors like affordable housing, access to excellent healthcare, and the opportunity to live in a welcoming community carry as much weight as climate or cultural appeal.

Key factors to consider before moving abroad:

• Cost of living: Look at both daily expenses and larger costs like housing. Consider whether you can find a one-bedroom apartment or fully furnished home within your modest budget.
• Healthcare quality and access: Compare the public system and private healthcare options, including private health insurance premiums, prescription medications, and availability of English-speaking doctors.
• Visa pathways: Research whether the country offers a retirement visa, non-lucrative visa, or renewable multiple entry visa, and check the financial requirements.
• Tax environment: Understand tax advantages, whether foreign income is tax exempt, and if there’s an inheritance tax or tax burdens for foreign retirees.
• Lifestyle fit: Think about whether you want urban living with public transportation, a slower pace in smaller towns, or access to beautiful beaches and natural beauty.
• Safety and stability: Look for countries with low crime rates and strong political stability.
• Language and integration: Consider how widely English is spoken and whether there are active expat communities.
• Proximity to home: For US citizens, closeness to neighboring countries or the U.S. can make frequent trips home easier.

US Tax and Compliance Considerations for Retirees Abroad

Even when living in one of the best countries for retirement, US citizens are still subject to specific tax rules and reporting obligations. Understanding how tax burdens work for foreign retirees can help you avoid surprises and take full advantage of available tax advantages.

• US tax obligations: The U.S. taxes citizens on their worldwide income, so you’ll need to file annual returns regardless of where you live. This includes pensions, investment income, and Social Security benefits.
• Avoiding double taxation: Many countries on our list have tax treaties with the U.S., allowing you to use the Foreign Earned Income Exclusion (FEIE) or the Foreign Tax Credit (FTC) to reduce or eliminate double taxation.
• Local taxes: Some retirement destinations offer tax exempt treatment for certain foreign income, while others apply reduced rates for foreign retirees. For example, Greece’s flat 7% rate on foreign pensions and Panama’s territorial tax system.
• Inheritance tax: Check whether your chosen country has an inheritance tax or estate taxes that could impact your heirs.
• Bank reporting: If your foreign bank accounts exceed certain thresholds, you may need to file an FBAR (Foreign Bank Account Report) with the IRS.
• Health insurance considerations: Remember that Medicare generally doesn’t cover care abroad. Many retirees opt for private health insurance or international health insurance to ensure quality care in their new country.

Planning ahead for taxes and healthcare will help ensure your golden years abroad are free from financial stress and allow you to focus on enjoying your new home.

How Can Global Citizen Solutions Help You?

Global Citizen Solutions is a boutique migration consultancy firm with years of experience delivering bespoke residence and citizenship by investment solutions for international families. With offices worldwide and an experienced, hands-on team, we have helped hundreds of clients worldwide acquire citizenship, residence visas, or homes while diversifying their portfolios with robust investments. 

We guide you from start to finish, taking you beyond your citizenship or residency by investment application. 

Frequently Asked Questions about the Best Countries for Americans to Retire

What countries do not tax US pensions?

Countries like Panama and Costa Rica do not tax foreign-sourced income, which means your US pension is generally not taxed locally. However, Americans must still report global income to the IRS.

Where can Americans retire comfortably on a budget?

Mexico, Portugal, and Malaysia are among the best countries to retire to from the USA if you’re on a budget.

They offer affordable housing, low healthcare costs, and high quality of life. In many of these destinations, you can live comfortably on less than $2,500 per month.

Which countries offer retirement visas for US citizens?

Many popular retirement destinations have dedicated visa options for Americans, such as:

• Panama (Pensionado Visa)
• Portugal (D7 Visa)
• Spain (Non-Lucrative Visa)
• Mexico (Temporary Resident Visa)
• Costa Rica (Pensionado Visa)

What is the best European country for Americans to retire?

Portugal is widely regarded as the best European country for Americans to retire. It offers mild weather, a low cost of living, excellent public healthcare, and a straightforward D7 residence visa.

Spain and Italy are also top choices for retirees who prefer European culture and lifestyle.

Can Americans receive Social Security benefits abroad?

Yes, Americans can collect Social Security benefits while living abroad in most countries. The Social Security Administration allows payments to be sent to over 130 countries. However, there are exceptions, and it’s important to confirm eligibility before relocating.

What are the pros of retiring abroad as an American?

Pros of retiring abroad as an American:

• Lower cost of living.
• Access to better climates and new cultures.
• Potentially more affordable healthcare.
• High quality of life in some destinations.

What are the cons of retiring abroad as an American?

Cons of retiring abroad as an American:

• Navigating foreign tax laws and banking.
• Possible language barriers.
• Distance from family and friends.
• Need to maintain compliance with US tax regulations.

What is the best country in Central America for US retirees?

Costa Rica is widely seen as the best option in Central America. It offers affordable living, good healthcare, a stable democracy, and an easy Pensionado Visa for retirees with at least $1,000 in monthly income.

Which countries are popular for expat retirees?

Panama, Portugal, and Mexico are top choices for affordability, quality healthcare, and favorable visa options.

Other top options include Costa Rica, Spain, and Greece as they offer unique benefits such as warm climates, welcoming communities, and cultural richness.