The 10 Best Countries for Americans to Retire in 2025

Retirees from the United States are increasingly exploring the best countries to retire abroad to improve their post-work lifestyle. According to the Retirement Index for U.S. Citizens developed by the Global Intelligence Unit (GIU), American retirees are drawn to destinations that offer a relatively low cost of living, high-quality healthcare, pleasant weather, and a relaxed pace of life.

From Portugal and Spain to Costa Rica and Mexico, there is a wide range of countries providing ideal lifestyles for U.S. retirees. However, with so many excellent choices, finding the right place to retire abroad can feel overwhelming.

This guide will highlight the top countries for Americans to retire based on the GIU’s Retirement Index and share insights into what makes these destinations appealing, including affordable living expenses, healthcare systems, and retirement visa options.

• Why do Americans choose to retire abroad?
• 10 Best Countries for Americans to Retire
• Best Countries for Americans to Retire Abroad Comparison
• Best Countries for Americans to Aquire Second Citizenship
• Things to Consider Before Retiring Abroad

Why do Americans choose to retire abroad?

The Global Citizen Solutions Retirement Guide for U.S. Citizens shows that more Americans are choosing to retire abroad to take advantage of lower living costs, favorable tax environments, political stability, and the opportunity to immerse themselves in a rich culture abroad.

This comprehensive guide ranks the top 16 countries for U.S. retirees by evaluating a combination of factors, including cost of living, rental affordability, climate, access to high-quality healthcare, safety, and the level of English proficiency in each retirement destination.

In addition to these practical considerations, the guide highlights that many foreign retirees are also motivated by the prospect of obtaining second citizenship or long-term residency. Having a second passport can offer easier travel across borders, improved financial planning options, and added peace of mind during periods of political or economic uncertainty.

While retiring overseas does involve navigating challenges, such as U.S. global income tax obligations, currency exchange risks, and occasional banking restrictions, many foreign retirees find that the lifestyle and financial advantages far outweigh the drawbacks.

Advantages of retiring abroad for Americans

One of the main benefits is more affordable living expenses. In many of the best countries for Americans to retire, such as Portugal, Mexico, Costa Rica and Panama, day-to-day costs can be 30 to 50% lower than in the United States. More affordable housing prices, low-cost and high-quality healthcare systems, and reduced taxation on foreign-sourced income help foreign retirees stretch their savings further.

Another major advantage is the enhanced quality of life. Many retirees enjoy a slower, more relaxed pace, pleasant climates year-round, and vibrant local communities with established expatriate networks. Access to universal healthcare or high-quality private care at a fraction of U.S. prices further contributes to peace of mind and well-being.

10 Best Countries for Americans to Retire

1. Spain

• Retirement Index ranking: 1
• Average cost of living: $2,000 – $2,500

Spain ranks as the top country for retirement, scoring 100 in the GIU’s US Retirement Trend report. Though petty theft can occur in tourist areas like Barcelona and Madrid, it has low crime rates and remains one of the best countries for Americans to retire abroad.

Madrid is one of the best places to work and live for expats, well-known for its rich culture, history, and vibrant expatriate communities. Living costs for a single person average $2,000 to $2,500 per month, making it an affordable option for those looking to retire abroad. Rent for a one-bedroom apartment is around $1,322.50 in central areas and $968.05 in outer areas.

The country offers Spain’s Non-Lucrative Visa for Americans moving abroad, which is perfect for those who want to live without working. As one of the best countries to retire to from the USA, Spain requires applicants to show a monthly income of over €2,400, proof of accommodation, and private insurance for medical visits to qualify for this visa.

Spain ranks as the top country for retirement, scoring 100 in the GIU’s US Retirement Trend report. Though petty theft can occur in tourist areas like Barcelona and Madrid, it has low crime rates.

2. Portugal

• Retirement Index ranking: 2
• Average cost of living: $1,900 – $2,600

Portugal is a popular destination for U.S. retirees, offering a warm climate, affordability, and excellent healthcare. Retirees can access the public healthcare system or opt for private insurance with English-speaking providers, especially in Lisbon and Porto. The country is also ranked the 7th safest in the world according to the Global Peace Index, making it one of the best countries for Americans to retire abroad.

>Living costs range from $1,900 to $2,600 per month, and a one-bedroom apartment in Lisbon costs around €1,441, significantly lower than in major U.S. cities like New York.

The Portugal D7 Visa is ideal for retirees who have a stable income from pensions or savings. Alternatively, the Portugal Golden Visa offers residency through investment, starting at €250,000, providing flexibility and potential pathways to European citizenship.

3. Costa Rica

• Retirement Index ranking: 3
• Average cost of living: $1,000 – $2,500

Costa Rica, a country in Central America, ranks third on the Retirement Index with a score of 99.51 points. The Central Valley, including San José, is popular for its mild climate, while coastal areas offer beautiful but warmer and more humid conditions.

Costa Rica’s public healthcare system, CAJA, provides universal coverage to residents, and private healthcare remains affordable, with private insurance plans typically ranging from $70 to $200 per month.

The average monthly cost of living for a single retiree is around $1,500 to $2,000, depending on lifestyle and housing. Consumer prices are approximately 45% lower than in New York City, and rents can be up to 80% cheaper, making it one of the best countries to retire to from the USA on a moderate budget.

Retirees can apply for Costa Rica’s Pensionado Program with a minimum income of $1,000 per month or the Rentista Program if they don’t have a pension, requiring either proof of $60,000 in savings or monthly income of $2,500 for two years.

4. Uruguay

• Retirement Index ranking: 4
• Average cost of living: $1,200 – $2,500

Uruguay offers a mild climate and coastal areas like Punta del Este with cooling sea breezes. The healthcare system combines public and private options, with retirees often choosing the affordable mutualista system, costing about $100 to $200 per month.

Considered South America’s safest country, Uruguay has low crime rates, though petty crime can occur in urban centers. The average cost of living is approximately $1,500 to $2,200 per month, with consumer prices in Montevideo around 40 to 50% lower than in major U.S. cities.

American retirees can apply for the Pensionado Visa, which requires a stable monthly income of around $1,500 or more, proof of health insurance, and a criminal background check. Dependents can also be included in the application.

5. Mexico

• Retirement Index ranking: 5
• Average cost of living:$1,200 – $2,000

Mexico is the fifth most attractive country for American retirees, scoring 97.19 points. Its proximity to the U.S. and diverse climates, from warm summers in the north to milder temperatures in central areas, make it especially appealing.

Healthcare is strong, with both public services and private insurance options. Basic private health insurance typically costs between $1,000 to $2,000 per year, though premium international plans can exceed $5,000 annually.

According to statistics from Numbeo‘s cost of living index, the average monthly cost of living in Mexico City is around $1,500, significantly lower than in most U.S. cities. Rents in smaller towns or coastal areas can be even more affordable, making Mexico one of the best countries for Americans to retire abroad on a budget.

Retirees can apply for a Permanent Resident Visa with a minimum investment of approximately $290,000 USD or a monthly income of ~$3,500 USD over six months. While consulates sometimes vary requirements slightly, applicants typically must be at least 60 years old or demonstrate retirement income, and a criminal background check may be required.

6. New Zealand

• Retirement Index ranking: 6
• Average cost of living: $2,000 – $3,000

New Zealand has a mild climate, with warm summers and cooler winters. In the north, summer temperatures range from 20 to 25 °C (around 68 to 77 °F) and winter temperatures from 12 to 16 °C (53.6 to 60.8 °F).

The healthcare system is universal and government-funded. However, many retirees choose private insurance, which costs between $30 and $150 per month depending on age and coverage.

New Zealand is considered very safe, ranking 4th globally for peace and stability. It is also rated Level 1 by the U.S. Department of State.

For retirees, the Temporary Retirement Visitor Visa allows a stay of up to two years. To qualify, applicants must invest NZD $750,000 (~$460,000 USD), have NZD $500,000 for living expenses, and an annual income of at least NZD $60,000. Applicants must be 66 years or older.

7. Italy

• Retirement Index ranking: 7
• Average cost of living: $1,800 – $3,200

Italy has cold winters and warm summers in the north, with milder winters and hot summers in central and southern regions. Retirees can benefit from Italy’s public healthcare system, funded by taxes, with private insurance available for faster access and costing about $120 to $350 annually.

Italy is safe and ranked 31st globally for peaceful living, though petty theft can occur in tourist areas. The cost of living is considerably lower than in New York City. In Rome, average monthly expenses are around $2,000 to $2,500, with rents for a one-bedroom apartment averaging $1,100 to $1,300. In Milan, expenses are slightly higher, typically between $2,300 to $2,800 per month.

Retirees can apply for Italy’s Golden Visa by investing €250,000 in Italian start-ups. This visa includes family members and offers tax incentives on income once you become a tax resident.

8. Canada

• Retirement Index ranking: 8
• Average cost of living: $2,500 – $3,500

Canada is a popular choice for American retirees, thanks to its excellent public healthcare system, cultural similarities, and proximity to the U.S. New residents typically need private health insurance until they become eligible for provincial coverage, which costs between $4,000 and $6,000 per year.

The cost of living in Vancouver averages about $3,000 per month, with rents significantly lower than in major U.S. cities like New York or San Francisco. Overall expenses range from $2,500 to $3,500 monthly, depending on housing and lifestyle.

American retirees with Canadian family members can apply for permanent residency through family sponsorship. Alternatively, a Visitor Visa allows a stay of up to six months, though it cannot be renewed indefinitely. Another option is the Canada Start-up Visa, which enables entrepreneurs to immigrate by launching a business with support from a designated organization and meeting investment criteria.

9. Ireland

• Retirement Index ranking: 9
• Average cost of living: $3,000 – $4,000 (Dublin specifically)

Ranked ninth for American retirees, Ireland offers warm summers, cool winters, and varying rainfall across regions.

Ireland’s two-tier healthcare system provides public services through the Health Service Executive (HSE), but many retirees choose private insurance for faster access to specialists. Ireland also ranks third globally on the Global Peace Index, ensuring a safe environment for retirees.

The cost of living in Dublin is relatively high, with average monthly expenses ranging from $3,000  to $4,000. Renting a one-bedroom apartment in the city center costs around $2,700 to $2,900 per month. The US–Ireland tax treaty helps prevent double taxation on retirement income.

American retirees can apply for the Irish Retirement Visa by demonstrating an annual income of at least €50,000 (or €100,000 as a couple), securing private health insurance, and proving intent to live long-term in Ireland.

10. France

• Retirement Index ranking: 10
• Average cost of living: $2,700 – $3,200

France is a top 10 destination for American retirees, renowned for its excellent public healthcare system funded by taxes.

The climate varies by region: Paris has cool winters and warm summers, while southern cities like Bordeaux and Nice offer milder winters and hot summers.

Renting a city-center apartment in Paris costs around $1,500 to $1,800 per month, much lower than New York’s average rent of over $4,100. Combined with other living expenses, total monthly costs typically range from $2,700 to $3,200, depending on location and lifestyle.

Retirees can apply for a Long-Stay Visa (Visa de Long Séjour) to remain in France for more than 90 days. This visa is often the first step toward residency. Requirements include proof of adequate financial means, private health insurance covering at least €30,000, and accommodation documentation.

Best Countries for Americans to Retire Abroad Comparison

Best Countries for Americans to Aquire Second Citizenship

As highlighted by the Retirement Guide for U.S. citizens, getting a second citizenship is one of the key motivators for Americans to retire abroad. These are some of the top countries to get a long-term residency and citizenship by investment while enjoying the benefits of visa-free travel.

Important Things to Consider Before Retiring Abroad

Before you retire abroad, there are several important factors to plan for to make your transition smoother and more successful. Here are the key points to consider:

Cost of living

Research the cost of living in your destination, including housing, food, and healthcare. While many countries offer lower expenses, watch for hidden costs like high import taxes or currency fluctuations. A clear monthly budget helps avoid surprises.

Healthcare access

Check if your new country has reliable, affordable healthcare. Some places have excellent public systems, while others require private insurance. Confirm whether you need residency or income qualifications to access care.

Tax rules

Understand tax obligations in the U.S. and abroad. Because the U.S. taxes worldwide income, you must file returns and report foreign accounts under FATCA. Look into tax treaties to avoid double taxation and explore any exemptions for retirees.

Visas and residency

Review retirement visa and long-term residency options early. Many top retirement destinations have special visas for foreign retirees, including a renewable multiple entry visa, but require proof of income, private insurance, or investment. Start gathering documents well before you plan to relocate.

Banking and money management

Find out how to open local bank accounts and handle finances abroad. Some countries limit foreign banking access, and FATCA rules may add reporting requirements. Choose destinations with reliable banking and easy currency exchange.

Social life and support network

Consider the local community and how you’ll build a support network. Connecting with other expats or local groups can make adapting to your new home easier and more enjoyable.

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.