By AIO Financial – fee only Financial Advisors for U.S. Expats

Thinking about retiring abroad? Whether you’re dreaming of beachfront bliss, mountain serenity, or a walkable European town, the 2025 Global Retirement Index ranks the world’s top destinations for a better, more affordable retirement. These aren’t just guesses—they’re based on real stories from expats who live there and on-the-ground research into cost of living, healthcare, infrastructure, and more.

Here’s an in-depth look at the Top 10 Retirement Havens for 2025, with pros and cons to help you decide which one fits your goals.

Why it ranks high: Panama combines modern infrastructure with attractive visa options and major tax advantages. Expats enjoy high-speed internet, clean water, a strong banking system, and affordable healthcare.

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Why it ranks high: Portugal’s D7 visa is popular among retirees with passive income. The country has affordable healthcare, low crime, and a warm culture. Many regions offer a Mediterranean climate and relaxed lifestyle.

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Why it ranks high: Costa Rica offers abundant natural beauty, friendly locals, and a slower pace. It’s known for its eco-conscious culture, biodiversity, and wellness-oriented lifestyle.

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Why it ranks high: Mexico is affordable, diverse, and easily accessible from the U.S. Whether you love mountains, beaches, or colonial towns, there’s a perfect spot for you.

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Why it ranks high: France blends romantic charm, a focus on wellness, and exceptional healthcare. With its Long-Stay Visa, retirees can easily settle in and enjoy a slower pace.

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Why it ranks high: Spain offers a rich lifestyle at a surprisingly low cost. With warm weather, amazing food, and affordable private healthcare, it’s a favorite among U.S. retirees.

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Why it ranks high: Malaysia is a cost-effective, expat-friendly destination with excellent healthcare and infrastructure. It’s a multicultural blend of East and West with English widely spoken.

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Why it ranks high: Greece offers affordable Mediterranean living, gorgeous scenery, and a strong sense of community. Ideal for those who want a slower, meaningful lifestyle.

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Why it ranks high: Italy combines beauty, culture, and affordability in many smaller towns and southern regions. The 7% flat tax for retirees in select areas is a financial bonus.

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Why it ranks high: Thailand offers incredible value for money, a warm climate, and vibrant culture. Healthcare is world-class, and long-stay visas are accessible for retirees.

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The best country for you depends on your priorities—whether it’s healthcare, lifestyle, taxes, or proximity to home. The Global Retirement Index is a helpful starting point, but working with a financial advisor who understands international living can help you plan with confidence.

Need help preparing your finances for an international move? Let’s talk. I specialize in helping Americans retire overseas—handling taxes, healthcare transitions, and investments so you can enjoy the life you’ve worked hard for. https://aiofinancial.com/

I’m gonna go over the top 10 countries
for Americans to retire abroad in
for 2025
this is according to the 2025 Global Retirement Index
they’re looking at affordability
safety healthcare and lifestyle
there we go No. 10 Thailand
affordable and exotic
the pros are extremely low cost of living
good healthcare good visa options
friendly locals the bad thing is it’s far away
there is a language barrier
and changes to visas
you just have to stay on top of that
No. 9 is Italy beauty and benefits
it’s got great history good healthcare
flat tax in some of the areas
depending on what kind of income you have
as a US citizen you’re gonna pay
or you’re gonna have to file your US
taxes on worldwide income
in addition to filing in your new country of residence
good calm lifestyle
the pace is a little slower
cons Italian language
it’s not the most complicated
pretty similar to Spanish
that could be a fun challenge
but that is an issue
especially outside of the metro areas
it’s really good to know some Italian
I guess Khan’s unique property market
you can buy property there
it’s reasonable again
pretty good cost of living compared to the US
citizen residency it is complex paperwork
compared to some of the other EU nations
even investing holding certain accounts
can be a little more complicated
but not
there are barriers but nothing that should stop you
we have had clients with difficulties getting
their Italian residency
Greece at No. 8 affordable homes
a good lifestyle
good cost of living Mediterranean
good climate
similar to it Italy
you have from coastal up into the Alps
Greece you do have a variety of
temperatures
good expat community
it’s actually they’re putting at a con the language
but English is pretty common in Greece
it’s a pretty standard second language
hierocracy healthcare
regional healthcare variations
so those are some of the challenges
but definitely one to consider
I see that’s a reasonable No. 8 7 Malaysia
culture and cost friendly
a very low cost of living
and English and excellent healthcare
really good positives right there
hot climate is a disadvantage
changing visa policies and it is a culture shift
if you’re outside of an expat area
I’d also put it’s far from the US
it’s not gonna be a close short inexpensive flight
as I guess Europe too is gonna be a little bit further
Spain low crime
affordable private health care
great lifestyle just culturally interesting
the history the architecture
variety of climates again
you have the Pyrenees down to the coastal
cons rising rents
especially if you’re in a popular area
visa limitations
you have to be careful on taxes here in Spain too
we have seen that they tax Roth ire distributions
there is a wealth tax in certain areas
Andalusia and Madrid
they don’t have a wealth tax or it’s very minimal
but some of the other near
Barcelona some of the other areas there is a wealth tax
so just be aware of what the tax situation is
maybe it won’t impact you but if it does
you wanna be aware
language
it’s Spain it’s beautiful location to Italy too
just
it would be a great springboard to other adventures
low cost exploring some of the other areas 5
France well right next to Spain France
Italy they have them all here and Greece
Europe is a a nice destination for Americans
France are saying excellent healthcare
it is actually tax wise a little bit better than well
depending on your situation could be better than Spain
uh diverse housing
food culture of course the history Italy Spain
France and Greece
it’s great history architecture
real interesting nice climate
language challenges again
a not a horrible language to learn I think Spanish
Portuguese Italian
French not not sure a challenge
but it’s something you can work at
in Greece again I think English is strong there
we didn’t battle at all being there
higher taxes depending if you’re
in the earning years of your career
or if you’re in just getting
so security or low income
part of your retirement
um administrative complexities I guess with visas
they’re not insurmountable but it’s not trivial
Spain is an easier visa situation same with Portugal
they make it really easy for virtual nomads
or just retirees
Mexico No. 4
low cost of living
that would beat any of the European countries that
we’ve seen so far
lower cost of living great healthcare access
there are private plans you just pay out of pockets
very transparent of course
you can get insurance for emergency
or for other healthcare situations
right next to the US cheap flights same time zones
ultral richness beautiful natural escapes
you have a variety of weather from the higher elevation
central which has nice year round weather
to the coastal regions
that are going to be hot in the summer
depending if you’re going for all year
just part of the year
or how tolerant you are to the weather too
safety concerns
health care disparities in rural areas
I think that’s fair
if you’re near one of the bigger cities
you’ll have great health care access
if you are out a little you may have to travel
residency paperwork I found to be pretty easy
you can get your temporary residency
and then that works right into a permanent resident
and if you want citizenship
so it’s pretty straightforward process
it’s not Spain and Portugal are easier
but not not bad
I wouldn’t put this as a a block
safety I haven’t dealt with much safety
I spent a lot of time in Mexico
but we’re not
I I have a family
so we’re not out late at night or in sketchy areas
mostly we’re just doing family things
so it’s a concern you want to be aware
that would make sure Europe a positive
having Europe a positive
but I love the time zone and the proximity to the US
all right Costa Rica
they’re giving No. 3 natural beauty for sure
friendly locals there is a good expat population
it feels in Central America uh
definitely Costa Rica feels very connected to the US
and we have seen it’s affordable living
but it is more expensive than some of its neighbors
Guatemala would be and Nicaragua would be much cheaper
or or quite a bit cheaper
private and public health care
friendly locals
natural beauty and the animals and it is beautiful
they have the coastal lots of nice areas
nature to explore
inconsistent infrastructure
I guess you’re going to deal with that with internet
roads depending on where you want to be
if you’re in one of the hot areas
that’s I guess what we’ve seen as tourists there
that the prices are not that low in the touristy areas
if you get away then it does become a better
option for climate humid climate
depending on where you’re located but yeah
that’s year round
not gonna be the greatest climate year round for sure
No. 2 Portugal back to Europe
affordable healthcare
low cost of living friendly expat culture and safety
I think there’s a lot of pluses to Portugal
the language isn’t terrible
we actually found that English was No. 2 for Portugal
over Spanish
and it’s not that far of a stretch from Spanish
we could understand quite a bit
and I
think it wouldn’t be a super leap to pick up on that
but that would be a challenge
something you’d want to work on
uh bureaucratic delays
heating issues in winter
keeping your housing warm and language barrier
facias are easy it’s a good
they are encouraging people to move in
I think a lot have left so
they are trying to
encourage the growth of their population
you are over the Atlantic so different
significantly different time zone
well depending on where you are in the US
but six to eight hour difference and a longer
more expensive flight
uh so
depending on if you have family
or if you’re coming back off
and it does become a an issue
but not terrible really a lot of pluses for Portugal
I could see that being a a definitely a good option
Panama Mother pudding No. 1
so we got Central America
Mexico and Europe
is what they’re putting for the top 10 destinations
for US
retirees
so Panama
you have to show just a minimal income
1,000 a month and you can get your visa
no tax on foreign income which is nice
retirees discount dollar accepted
not far from the U S
of course beyond Mexico
not gonna be a direct flight for a lot of us
but in bigger cities sure
but similar time zones and close
it makes sense as a nice option
hot and humid climate
bureaucracy and language barriers in rural areas
those all makes sense if you’re in Panama City
it’ll be easier to adjust um but more expensive
nice natural escapes
and a nice springboard to South America um
and it Mexico and other Central American countries
so interesting list I think it’s a decent list
I think those are are
good countries to choose from
which country is right for you
yeah
they’re different priorities
so how big of an expat community do you want
what kind of climate do you want
what’s your budget healthcare needs
but I mean a lot of these would adapt to most people
you could
depending on where you live within many of those
your budget will be significantly less than the U
S
you can find some climate um varieties these countries
uh and mostly you know list for those
um yeah
that’s it
we are AIO financial fee only financial advisors
we do work with a lot of expats on
comprehensive financial planning
so we help with investments insurance
estate plan taxes is a big one for people living abroad
um and planning just figuring out what you can afford
what makes sense um feel
reach out if you have any questions comments
you can set up a free meeting
we’d be glad to talk to you
um alright for listening
take care yeah
let me know what you think of this list
would you move any of these countries around
have any others you’d add to this list
I’d love to know alright thanks

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