Key Takeaways
- The main draws of retiring abroad include a lower cost of living and the potential to live somewhere with breathtaking landscapes.
- However, there are also practical factors to consider, including reliable healthcare and obtainable visas.
- The best five places to retire abroad, according to various experts and insiders, are Portugal, Spain, Panama, Italy, and Costa Rica.
Many Americans contemplate retiring abroad. The idea of living in an exotic, foreign land full of wonderful ways to enjoy all your newfound free time is appealing, especially when considering that most of these places are also significantly cheaper. Whereas in the U.S., you might struggle to get by on the money you saved for retirement, in another country, that same income could potentially deliver a higher quality of life.
Here are the best five places to retire abroad, considering all of the above as well as other key factors like healthcare and visas.
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Portugal
Portugal is often one of the first names to appear in rankings of the best places for Americans to retire.
This southern European country, located next to Spain on the Atlantic Ocean, ticks many of the right boxes. The weather is great, people are friendly, and they generally speak English. Crime is low, retirees are plentiful, the sea is always nearby, and there’s a lot else to do besides going for a swim or lying on the beach.
Portugal also offers excellent healthcare, including a free public service and very affordable private options, which are highly accessible. Insiders say a couple can live comfortably there on anywhere from $1,800 to $3,000 a month, depending on lifestyle and location, and obtain a visa with a passive income of just €870 ($1,006) per month.
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Spain
Retirees also love Portugal’s neighbor, Spain. Both countries share many similarities, including abundant sunshine, laid-back lifestyles, low crime rates, historical landmarks, stunning natural attractions, extensive coastlines, affordable living costs, and healthcare.
The reason Portugal comes out on top is that it’s slightly cheaper, and there’s less tourism, which means its coastlines have been better preserved, and English-speaking foreigners find that English is widely spoken. Visa requirements are slightly more stringent in Spain. To get residency here, you must have an annual income of roughly $33,290.
That said, Spain also excels in many areas. It’s bigger, more diverse, and more developed, with generally more activities to do.
Important
In many European countries, permanent residency can be acquired after five years of continuous living there, and after 10 years, you can apply for citizenship.
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Panama
If you’re looking for something closer to home, consider Panama. This country, a thin strip of land that connects Central America to South America, is Conde Nast Traveler and International Living’s number one pick for many reasons.
Panama is a beautiful, affordable, and welcoming country. Just a three-hour flight away from Miami, it has a thriving retiree community. It also offers a retirement visa with a minimum monthly pension of $1,000, which carries significant discounts on everything from airfare to movie tickets and medical consultations.
Other bonuses include excellent and affordable healthcare, good roads, high-speed internet, drinkable tap water, low property taxes, no hurricanes, and inexpensive living costs. Retirees say it’s possible to live a comfortable lifestyle in Panama City on just $2,400 a month.
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Italy
Italy is renowned for its stunning cities, including Rome, Venice, and Florence, as well as its exceptional food and wine, rich art and history, and breathtaking scenic landscapes, which stretch along approximately 4,800 miles of coastline, encompass the Alps, and feature rolling hills.
Despite its small size, there’s plenty of variation from region to region to satisfy different tastes. The cost of living is generally quite reasonable, especially if you avoid Milan and Rome. According to Global Citizen Solutions, $2,500 to $3,200 per month should be enough to live on in many mid-sized cities.
Italy offers excellent healthcare at a fraction of the cost of the U.S., too, and a visa to reside there can be secured with a minimum annual income of around $37,000.
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Costa Rica
Costa Rica, a popular retirement destination for Americans, is a friendly country renowned for its stunning beaches, lush forests, and diverse national parks. It’s also inexpensive.
Conde Nast Traveler and International Living, which both rank the country highly, say couples can live comfortably there on between $2,100 and $2,500 and that healthcare is both high quality and inexpensive, even if you go private.
