Oooh, I could live here—it’s a thought that’s crossed many travelers’ minds when abroad. Retirement could be the perfect time to make that passing dream a reality.
Every year, the publication International Living releases its Annual Global Retirement Index, ranking the best countries for people in their postwork years. The 2025 index takes into account firsthand experiences of correspondents and contributors who live there, as well as quantitative costs like housing, living expenses, and health care.
“Europe continues to be a popular choice among would-be expats, in large part because of the quality of life expats enjoy there and, too, because the cost of living is often less (sometimes quite a bit less) than a comparable life would cost back home,” said International Living executive editor Jennifer Stevens in an email to Afar.
Stevens also noted that the trending sentiment toward life abroad goes beyond a desire for a new lifestyle to the potential of economic gains that come from an international footprint.
“You can invest in real estate outside the U.S., often outside the dollar, and move some wealth into a hard asset so those funds aren’t in stocks. Buy right, and you can position yourself for appreciation gains and also rental income,” she said.
Whether leaving the working world is close or a decade away, put these five countries on your radar.
1. Panama
“Here, I live a California lifestyle—only better,” wrote Panama-based reporter Jessica Ramesch in International Living. “I’m on the ocean, just a three-hour flight from Miami, and I don’t have to worry about hurricanes. I’m out in the sunshine almost every day.”
Ramesch isn’t the only expat singing the country’s praises: InterNations, a global community with more than 5 million members, found Panama to be the best country for expats to live abroad in 2024 based on its Expat Insider survey that sourced information from more than 12,500 people.
The country, linking Central and South America, also makes it easy for retirees to test out a life here: Its Panama Pensionado program offers residency for foreigners who have a monthly income or pension of at least $1,000. Thanks to its year-round tropical climate, snowbirds might find this Latin American country a welcome change. While Panama’s well-known canal has brought international influences through its waters for more than a century, the country still has plenty of less-traveled spots to explore like Cambutal, one of Afar’s best places to visit in 2023.
2. Portugal
Portugal has much more than delectable custard tarts and fairy-tale castles. The Iberian country took the second-place spot in International Living’s rankings, with its health care being a big factor. The country has private and public systems, with the former offering personalized care with English-speaking doctors (and a doctor visit can cost as little as $17).
For retirees wanting to enjoy Portugal’s beautiful coastlines and delicious foods full time, Terry Coles explains in International Living that securing resident visa is paramount. “When I first applied for a resident visa six years ago, I was told that after five years, I could apply for citizenship. At the time, it was the furthest thing from my mind, but as the idea grew, we began to see the appeal,” Coles wrote. “I learned that as [American] citizens, foreign government pensions are taxed—something that doesn’t apply to residents.”
Cities like Lisbon may be attractive for those coming from abroad, but this Indiana-size country has other places worth considering. Retirees wanting a slower pace of life might consider the vineyard-filled Minho region or the small town of Óbidos. Plus, exploring the countryside on outdoorsy adventures like road trips is easy: Portugal has more than 5,000 electric vehicle charge points.
3. Costa Rica
Pura vida, Costa Rica’s mantra, means more to locals than its literal translation of “pure life”—it describes an optimistic outlook, which might just be the secret to the country’s high ranking on the 2025 Global Retirement Index. International Living cited Costa Rica’s nature-rich environment as a great reason to move there, with ample opportunities to be active and plenty of accessible fresh foods. (The country covers only 0.03 percent of the globe, yet has more than 5 percent of its biodiversity.)
“Costa Rica has felt like home since my first trip in 1997, when I studied here as an exchange student. After my semester abroad, I cried at the airport, because I didn’t want to leave the country that had captured my heart,” wrote Bekah Bottone in International Living. “I now reside in Villarreal, just 2.5 miles from Playa Tamarindo, and I love where I live. Tropical beaches with bright sun, warm water, and swaying palm trees feel like home to me.”
Costa Rica offers a temporary retirement visa (known as its Pensionado visa) for those who have a monthly income of $1,000. Permanent residency becomes available after three years of legal residency. For shorter stints, Costa Rica’s maximum stay period for foreigners with passports on a visa-exempt status (which includes the United States and Canada) from 90 days to 180 days. Remote workers can extend their 90-day tourist visa to a full year (with the chance to renew for another year) with its digital nomad visa.
From centuries-old churches to archaeological sites of modern Mexico’s Indigenous predecessors, there’s plenty in Mexico for retirees to explore.
Courtesy of Lucas Vallecillos/age fotostock
4. Mexico
South of the United States, Mexico ranked fourth in the Global Retirement Index. The country seems to have it all: fantastic beaches, historical sites, and arguably the best food. (UNESCO even has its traditional Mexican cuisine on its Intangible Cultural Heritage of Humanity list.)
“Mexico has large, friendly expat communities throughout the country that help newcomers navigate their way around,” International Living’s Mexico correspondent Bel Woodhouse wrote. She says that even well-known areas like the Riviera Maya offer great value for their properties, reporting her waterfront, one-bedroom apartment costs only $500 per month.
Mexico City seems to be the best city in the country for expats based on the InterNation’s 2024 Expat City Ranking, but San Miguel de Allende also has a sizable expat population, as does Costalegre, meaning “happy coast.” The 200-mile stretch in the western state of Jalisco is one of Afar’s best places to visit in 2025 thanks to its variety of natural wonders that include protected estuaries and jungle.
You’ll find attractive small villages like Sancerre across France.
Photo by barmalini/Shutterstock
5. France
This European nation ranked fifth in International Living‘s 2025 list of best countries for retirees. The joie de vivre attitude, which includes taking long vacations and enjoying leisurely meals, is part of the appeal.
The country’s long-stay visa option requires proof of a net monthly income of around $1,500 and proof of three months of accommodation (applicants must also purchase visa-specific health insurance.)
“Although the language barrier may seem daunting, don’t let old myths about the French deter you,” wrote Tuula Rampont, International Living’s France correspondent. “Retiring in France reveals a kind and generous people eager to welcome newcomers to la belle vie. You’ll feel healthier, enjoy some of the world’s most extraordinary food and culture, and live in the heart of Europe.” With charming villages and unforgettable meals awaiting, what’s to stop retirees from making this life a reality?
This story was originally published in 2018; it was most recently updated with new information on June 16, 2025.
