Seven Great Countries to Live in as a Retiree

It’s no surprise that more and more retirees are moving around the world and redefining their roots. What may be surprising is that, in addition to traditional factors such as the cost of living, medical services, and tax advantages, less obvious aspects such as the presence or absence of expat communities in the country can make all the difference in the final choice.

That’s why, for those who want to enjoy their golden years abroad without falling into bureaucratic and tax traps, we’ve put together an article with essential information on the best countries to live in as a retiree. Here are some of our suggestions for enjoying this new stage of life with peace of mind.

Retiring in El Salvador

For cryptocurrency investors or those looking to live on US dollars, El Salvador is an unbeatable option. This modestly sized Central American country not only adopts Bitcoin as its official currency alongside the US dollar, but also has its own cryptocurrency, the Salvadoran Crypto Initiative.

But there’s more to it than cryptocurrencies: a pleasant tropical climate all year round, stunning beaches, a hospitable population, and currently the lowest homicide rate in the Americas, leaving behind its former reputation as a dangerous country.

Furthermore, for individuals, income tax in El Salvador only applies to locally sourced income, meaning your global earnings can remain untouched. And you will only be considered a tax resident if you spend an uninterrupted period of at least 200 days in the country.

In terms of the cost of living, it is considered an affordable country, especially when compared to Western countries. For example, according to Numbeo, the cost of living in the capital, San Salvador, is significantly lower than in cities such as Madrid, with a difference of 29.4%, and Lisbon, with a difference of 23.1%.

Renting a one-bedroom apartment in the city center costs around $718 per month. Monthly expenses for a single person, excluding rent, are around $644.8, while for a family of four, these expenses reach $2,287.

Residence visa for retirees in El Salvador

For retirees seeking refuge in El Salvador, the Pensionado Program is the main gateway. It offers the opportunity to obtain temporary residence for one to two years, renewable indefinitely, with the benefit of bringing your spouse and children, provided you can prove a regular income of at least three times the Salvadoran minimum wage, which in May 2024 is equivalent to around $1,100.

To obtain permanent residence, you will need to live in the country for three years and meet the requirement of being physically present for at least eight months each year. After that, you will only need to make a quick visit every two years to maintain your resident status in the country.

For those seeking Salvadoran nationality, the path is relatively straightforward: after five years of residence in the country, you can apply for citizenship. However, there is a shortcut for Spanish or Latin American citizens, who can obtain it after only one year of residence.

And, of course, if your case does not fall under the Pensionado Program, we also offer support for other types of visas, such as the investor visa in El Salvador.

Residing in Portugal as a retiree

Residing in Portugal means having the opportunity to live in a European Union member country, with all the benefits that Portuguese citizenship can offer, such as access to European markets and free movement within the EU.

In addition, Portugal offers the tranquility of a stable and democratic community with a high-quality healthcare system, factors that undoubtedly place the country at the top of our list.

Ranked as the 7th most peaceful country in the Global Peace Index, it is one of the safest places in the world, with low crime and violence rates. It is also one of the most beautiful countries in Europe and one of the cheapest.

With all this, there is no shortage of incredible places to settle down. With options to suit all tastes, the Portuguese regions offer a peaceful and pleasant lifestyle, with a mild Mediterranean climate for most of the year.

Another advantage of Portugal is its location, with easy access to the rest of Europe and a large community of expats from all over the world, which is an advantage for global social interactions. In addition, the country has modern, well-equipped hospitals, easy access to public healthcare, and private clinics that offer quality care at affordable prices.

Fiscally, Portugal is no longer as attractive: the Non-Habitual Resident regime, which exempted pension income, has unfortunately been closed. It has been replaced by the IFPCI, which at least grants exemption for income from abroad, such as rents, dividends, capital gains, and interest.

To qualify for this new program, you must be part of a select group of innovative professions, participate in a start-up, or reside in Madeira or the Azores. The exact definition of who is eligible for residency on the islands is still to be defined in a regional decree, but both regions have already expressed their interest in keeping the program accessible.

This means that for retirees seeking the best tax situation in Portugal, moving to the islands is the ideal option.

Residence visa for retirees in Portugal

In addition to the investment options offered by the Portuguese Golden Visa, there is also the D7 visa, an alternative for retirees seeking temporary and renewable residence in Portugal through proof of income.

The D7 visa is intended for non-EU citizens who plan to move to Portugal and can prove a minimum annual income of €8,460, plus 50% of this amount for their spouse and 30% for each dependent child.

The minimum stay requirement is 120 days per year, and after five years of residence with the D7, it is possible to apply for Portuguese nationality.

So, if your idea is to enjoy life in Europe, in a beautiful, safe country with a relatively affordable European cost of living, whether you are retired or not, Portuguese residency may be just what you need.

Living in Costa Rica as a retiree

For nature lovers interested in life, gastronomy, culture, and Latin American tropical paradises, Costa Rica can be a dream location, especially with the added advantage of living tax-free on income earned abroad.

With the highest percentage of national parks in the world, the country offers a pleasant tropical climate with mild temperatures even in winter, allowing for outdoor activities throughout the year.

Like Panama, it has abolished its army, transferring resources to healthcare and education, allowing its citizens to live relatively tax-free.

Its population is renowned for its extreme friendliness, the healthcare system is well structured, and the government offers a range of incentives to new residents wishing to invest and settle in the country.

Taxation is relatively low, or even non-existent, as in the case of inheritance, gift and foreign income taxes. So it’s no surprise that the country ranks among the best places to live in retirement, and that its residents are considered among the happiest people in the world.

What sets it apart from El Salvador is that here you will find a stronger expat community, ready to share tips on where to find the best coffee or the most charming beaches, as well as better infrastructure.

In terms of healthcare, there are both public and private systems. The public system, known as La Caja, is available to legal residents with no co-payments, pre-existing exclusions, or age disqualifications. However, residents must pay between 13% and 15% of their declared monthly income to the healthcare system.

The cost of living, on the other hand, is not among the lowest in Latin America and varies depending on location and lifestyle, with urban and tourist areas being more expensive than rural areas, as is the case almost everywhere.

According to Numbeo, the average rent for a one-bedroom apartment in the city center is $674. The estimated monthly costs for a single person are $865, while for a family of four, these costs reach $3,151 per month.

Residence visa for retirees in Costa Rica

If you are thinking of moving to Costa Rica, the good news is that the country remains open to legal immigrants, provided they can support themselves financially in the country.

For pensioners, retirees, and people receiving a fixed lifetime payment of at least $1,000 per month, Costa Rica offers the “pensionado” visa, which guarantees temporary residence. The only additional requirement is to take out local health insurance.

Temporary residence lasts for two years, while permanent residence is valid for four years. In terms of minimum stay, Costa Rica is one of the most flexible countries in Latin America, as it only requires you to be present in the country once every two to four years to maintain your resident status.

But if this pensioner visa is not for you, find out about the most suitable option in our article: Living in Costa Rica.

Furthermore, the country allows dual nationality, which offers the advantage of obtaining a Costa Rican passport, with the possibility of visiting 133 countries without a visa. However, those who wish to obtain Costa Rican nationality must wait seven years after obtaining permanent residence and pass a naturalization exam. For Latin Americans, including Brazilians and Spaniards, the waiting period is reduced to five years after obtaining permanent residence.

Living in the Dominican Republic as a retiree

How would you like to enjoy your retirement with a Caribbean lifestyle? After all, not everywhere will you experience such a warm welcome from the local population while enjoying the warm, crystal-clear waters of the Caribbean.

The combination of a tropical climate, abundant leisure options, a lively nightlife, the possibility of not paying taxes on foreign income, and a relatively affordable cost of living, especially for those earning income in hard currency, make the Dominican Republic (DR) an ideal destination for retirees seeking a comfortable standard of living in the Caribbean.

Like Panama and Paraguay, the DR also adopts the territorial tax system, with some nuances, of course, but in general, retirees with residency through a pensioner visa are exempt from foreign income tax.

Another highlight is the ease of opening secure and discreet Caribbean bank accounts, even for tourists, thanks to the country’s non-participation in the CRS (Common Reporting Standard).

In terms of safety, compared to other destinations in Latin America, the country is generally considered to be quite safe. However, as anywhere else, it is essential to be aware of the risks and take appropriate precautions, such as avoiding unfamiliar areas at night, choosing crowded places, and not displaying valuables in public.

As for the healthcare system, the private sector generally offers a higher level of care, with modern medical technology and highly qualified staff, often surpassing the country’s public institutions.

In terms of the cost of living, the country is not among the cheapest, but it is not considered expensive, especially by European and North American standards. For example, the cost of living in the Dominican Republic is around 22% lower than in Spain, but around 15% higher than in Brazil.

Some examples of average costs, according to Expatistan in 2024:

• Estimated monthly cost for a single person: US$1,161.
• Estimated monthly cost for a family of four: US$2,524.
• Cost of renting a furnished 85 m² apartment in a mid-range area: US$491.

Residence visa for retirees in the Dominican Republic

Along with other options, such as visas for rentiers and investors, which you can read about in our article on the Dominican Republic, this country also offers a residence visa for retirees and pensioners, which could be the key to a relaxed, tax-free Caribbean lifestyle.

Pensioners who can prove a monthly retirement income, public or private, of at least US$1,500 (or the equivalent in Dominican pesos) can acquire temporary residence in the country. This residence can be extended to include spouses and children, provided that the monthly income for each dependent is increased by US$250.

After residing legally in the Dominican Republic with a temporary residence permit for five years, you can become a permanent resident. The permanent residence card is valid for four years.

For those who remain in the country continuously for a period of 10 years, there is a bonus: the right to permanent residence, which only needs to be renewed every 10 years.

The country also allows dual nationality, so those who wish to become naturalized can apply for Dominican nationality after two years of residence, which will give them access to a passport that is not as powerful as European ones, but with the freedom to travel to 70 countries without a visa, including destinations such as Israel, Georgia, Russia, Japan, and Singapore.

Retiring in the Philippines

If you are looking for savings, greater freedom, and tax advantages, the Philippines may be an excellent alternative. Spread over 7,400 islands in Southeast Asia, this country combines a stable climate all year round, exotic beaches with world-class diving sites, and impressive volcanoes.

Add to this a very low cost of living, safety, and quality healthcare services accessible to residents through the Philhealth National Health Service. In other words, a complete package for retirees who want to emigrate to Asia for the long term with English as the official language.

Here, with an income of just $1,000, it is possible to live very well in almost any part of the country. What’s more, foreigners with sources of income outside the Philippines enjoy a number of advantages, including exemption from foreigner income tax.

As almost everywhere, the main cost you are likely to incur is housing. In certain areas of Manila, prices can exceed $1,000 for an apartment in a modern building, but if you are flexible about where you live, you can save a lot.

For example, the cost of living in the Philippines in 2024 according to Expatistan is approximately:

• Estimated monthly cost for a single person: $935.
• Estimated monthly cost for a family of four: $2,102
• Cost of renting a furnished 85 m² apartment in a mid-range area: $498

Residence visa for retirees in the Philippines

Retirees can apply for the SRRV (Special Resident Retiree’s Visa) to obtain residency in the Philippines. This visa has five variants:

1. SRRV Smile: For active and healthy retirees between the ages of 35 and 49 who choose to maintain a deposit of $20,000 in any accredited bank.

SRRV Classic: For active and healthy retirees between the ages of 35 and 49 who make a deposit of $50,000.

1. Or for applicants over 50 years of age, with a deposit of USD 10,000 and a pension of at least USD 800 for a single person or USD 1,000 for a couple. Without a pension, the deposit is USD 20,000.
2. SRRV Human Touch: For pensioners over 50 years of age who need medical care. A monthly pension of at least $1,500, a medical insurance policy accepted in the Philippines, and a deposit of $10,000 are required.
3. SRRV Courtesy: For former Filipinos aged 50 or over. For foreigners over the age of 50 who are retired employees of international organizations recognized by the Department of Foreign Affairs (DFA). An SRR visa deposit of $1,500 is required.
4. SRRV Expanded Courtesy: For foreigners aged 50 or older who are retired officers of the Armed Forces of foreign countries with existing military ties or agreements with the Philippine government. A monthly pension of at least $1,000 and a deposit of $1,500 are required.

The deposit for the SRR visa includes the principal applicant and two dependents. Additional dependents require an additional deposit of $15,000 each (except for former Filipinos).

As a disadvantage, dual citizenship is not recognized in the Philippines. Therefore, to become a Filipino citizen, you will have to renounce your previous nationality. In addition, at least ten years of continuous residence in the country is required to obtain citizenship.

For those who want to make the Philippines their home, but the above options are not enough, there are also other types of visas available, such as for investors and marriage. Check out the options in our article on the Philippines.

Living in Colombia as a retiree

Choosing to retire in Colombia can be a solid and quick plan B for second citizenship, as Colombia has one of the easiest citizenships to obtain in the world.

In general, you will find cities that are well connected internationally, and you can enjoy lush beaches, tropical rainforests, and a multitude of outdoor activities, all with a fairly low cost of living.

Colombia is therefore an attractive option for those embarking on an international journey, as it offers a favorable environment for saving with considerably low costs.

In cities such as Manizales, Bogotá, and Pereira, you can live comfortably on as little as $1,000 per month, while in Medellín and Cartagena, the cost of living ranges from $1,500 to $2,000.

An example of this is that, according to Numbeo, in 2024, the estimated monthly expenses for one person in Colombia amount to an incredible $525.2, while the average rent in the city center for a one-bedroom apartment is around $362.94.

The downside is that Colombia is not the ideal destination if tax exemption is a priority. Unlike places such as the Philippines and the Dominican Republic, Colombia does not have tax exemption for income from abroad.

Here, taxation is global and based on residence. In other words, if you stay in the country for more than 183 days, you will be considered a tax resident and will be subject to local taxation.

As a result, income from pensions and retirement benefits is exempt up to an annual limit of around USD 10,000 in 2024; any amount above that figure is subject to progressive taxation ranging from 19% to 39%. In the case of investment income, it is possible to be subject to rates below 20% with proper planning.

However, some other advantages may compensate for the lack of territorial taxation. These include an excellent healthcare system, considered by the WHO to be one of the best in the world, comparable to the US and Canadian systems. In addition, there is a strong expat community throughout the country, which can facilitate social integration.

Alongside this, Colombia has also shown significant improvements in infrastructure and security, making it an increasingly attractive option for retirees seeking a balance between quality of life and affordability.

Residence visa for retirees in Colombia

The process of obtaining temporary residence in Colombia is fairly straightforward and is done through a Retired Migrant Visa (Migrante M11). You must prove a monthly income of at least three times the Colombian minimum wage, which is approximately $1,000 in May 2024. After five years of residence in the country, you can apply for permanent residence.

As for citizenship, it can generally be applied for after five years of permanent residence. However, Latin Americans can apply for naturalization after only one year of permanent residence. For Spanish citizens, spouses of Colombian citizens, or parents of Colombian children, naturalization is possible after two years of permanent residence.

To obtain citizenship, you must pass an exam on Colombian history, geography, and constitution, as well as a Spanish language proficiency test. However, those who have a degree from a Colombian university or are over 65 years of age are exempt from these tests.

Living in Italy as a retiree

Considered one of the most beautiful countries to retire to, Italy attracts not only for its world-renowned cuisine and culture, but also for its Mediterranean climate, breathtaking landscapes, and relaxed lifestyle.

As if all this were not enough, Italy also offers an excellent quality of life, a first-class healthcare system that is consistently ranked highly by the WHO, and a cost of living that, depending on the region you choose, can even be reasonable.

In addition to these advantages, many retirees are attracted by the ease of moving to other European countries and the tax benefits they can obtain for 10 years.

It is granted to those who have foreign retirement income and decide to settle in certain areas in the center or south of the country. For example, in municipalities with fewer than 20,000 inhabitants in the regions of Sicily, Calabria, Campania, Basilicata, Abruzzo, Molise, Sardinia, or Apulia. Also

The incentive aims to revitalize small, depopulated Italian towns by offering a tax exemption with a flat rate of 7% not only on foreign pensions but also on other income.

But if these picturesque towns are not to your taste and you prefer the glamour of other regions, you could face tax rates ranging from 23% to 43%.

Therefore, choosing to live in smaller towns in southern Italy not only offers significant tax advantages, but can also generate substantial savings, as these towns are more affordable than international centers such as Milan and Rome.

According to Expatistan, the cost of living in Milan is 35% higher than in Calabria.

On average, you would need at least €1,891 in Milan to maintain the same standard of living as with €1,400 in Reggio di Calabria.

Residence visa for retirees in Italy

For those who wish to savor the pleasures of la dolce vita, the path is paved thanks to the elective residence visa, which is granted to retired foreigners.

To qualify, you must have an annual income of at least €31,000, which rises to €38,000 if you are accompanied by your spouse. In addition, for each dependent, a supplement of 20% of this amount will be required.

You must also ensure that you have established your roots in Italy with a rented or purchased property.

This visa is valid for one year and can be renewed annually, provided you continue to meet the requirements at the time of renewal. After living in Italy for five years, you can apply for permanent residence and, after 10 years of permanent residence, you can apply for Italian citizenship.

Do you already know which option is right for you?

After this extensive list, which we consider essential when choosing the ideal retirement destination, the question is: which of these countries would be best for you to emigrate to?

If you don’t know yet, we can help you. You can count on our specialized team to guide you on this journey, just book a consultation.

And if you’ve already made up your mind, our network of partners is ready to help you with everything from obtaining visas to opening bank accounts. Get in touch now to take the next step toward realizing your retirement plans in your dream destination.

Because your life is yours!