Best countries for Americans to retire, by region

Jameson Rader

30 Oct 2024 — 16 min read

Retiring abroad is becoming more popular among Americans, and for good reason! Moving to another country can offer lower living costs, great healthcare, and a new lifestyle. Whether you’re dreaming of a sunny beach, a bustling city, or a peaceful village, there are fantastic options worldwide.

This article is here to help you explore some of the best retirement destinations by region. Before you decide, we’ll go over the basics, like affordability, healthcare, lifestyle, and a few practical things to consider. So, let’s dive into the options for your dream retirement spot!

Factors to consider when choosing a retirement destination

Before picking your ideal retirement destination, there are a few key factors to think about. Each country has its unique charm, but finding the right fit will depend on your preferences and priorities. Here are some things to keep in mind as you explore options:

Cost of living

One of the main reasons people retire abroad is to stretch their retirement savings further. Look for places where everyday expenses—like housing, groceries, and transportation—are affordable. Just remember, some popular areas within countries can be as pricey as big U.S. cities, so it’s worth researching different neighborhoods to get a sense of what fits your budget.

When evaluating retirement destinations, it’s essential to understand how Totalization Agreements between the U.S. and various countries impact the taxation of Social Security benefits.

These agreements help avoid double taxation, ensuring that American retirees only pay taxes on their Social Security income in one country, typically the U.S.

This means that in many countries with a Totalization Agreement, Social Security benefits are exempt from local income taxes, leading to significant tax savings for retirees.

Healthcare quality and accessibility

Access to good healthcare is crucial. Many countries offer high-quality healthcare at a fraction of U.S. prices, but it’s important to know what’s available in the area you’re considering. Some expats even opt for private health insurance or international plans to ensure they have the best coverage.

Visa and residency requirements

Moving abroad for an extended period often requires a retirement or long-term visa. These visas usually have specific requirements, such as minimum income, health insurance, or investment in the country. Some countries even offer special programs just for retirees, making it easier to get settled.

Climate and lifestyle

Think about the kind of climate and lifestyle that suits you best. Do you prefer warm weather all year round, or are you looking for cooler seasons? Beyond the weather, consider the pace of life—whether you enjoy bustling cities, peaceful villages, or something in between. Choosing the right environment can make a huge difference in how enjoyable your retirement feels.

Community and language

For many retirees, having a supportive community is essential. Some places have large expat communities where it’s easy to make friends and get settled, while others might require you to learn the local language to connect with people. Consider how important social integration is for you and whether you want to live in a place where English is widely spoken.

Best countries in Central America and Caribbean to retire

The Central America and Caribbean regions offer appealing retirement destinations, with warm climates, proximity to the U.S., and generally lower living costs compared to American cities. Here’s a deeper look into some of the best options for U.S. retirees, considering factors like community, language, healthcare, and quality of life.

Mexico

Community and language: Mexico’s expat-friendly areas, such as San Miguel de Allende and Lake Chapala, are home to large American communities. English is commonly spoken in these regions, especially within expat circles, making social integration easier.
Healthcare: Mexico has a well-regarded healthcare system, with affordable private care and access to public healthcare after gaining residency. International hospitals, especially in popular regions like Puerto Vallarta and Mexico City, offer high-quality medical services at lower costs than in the U.S.
Cost of living and lifestyle: Mexico remains affordable in many areas, though popular coastal spots like Puerto Vallarta can have higher living costs similar to urban areas in the U.S. Retirees often enjoy Mexico’s rich cultural offerings, diverse cuisine, and warm weather, while staying within a budget.
Taxation of Social Security benefits: The U.S.-Mexico Totalization Agreement exempts Social Security benefits from Mexican taxation, allowing retirees to receive this income tax-free while residing in Mexico.

Costa Rica

Community and language: Costa Rica is welcoming to expats, especially in regions like the Central Valley and the coastal towns of Guanacaste. English is widely spoken in expat areas, and the country has a significant American retiree community.
Healthcare: Costa Rica’s healthcare system is highly rated, offering both public and private care options. The public healthcare system (Caja) is accessible to legal residents at an affordable monthly cost, though many retirees opt for private insurance or international health plans to supplement their care. International hospitals in cities like San José offer excellent services for retirees.
Cost of living and lifestyle: Costa Rica can be affordable, especially outside the main tourist hubs. However, popular areas like Guanacaste tend to come with higher price tags. Retirees who enjoy outdoor activities, nature, and a more relaxed lifestyle find Costa Rica an ideal destination, with options for both peaceful mountain towns and vibrant beach communities.
Taxation of Social Security benefits: Thanks to the U.S.-Costa Rica Totalization Agreement, Social Security income is exempt from local taxes, making Costa Rica an attractive tax-friendly option for American retirees.

Panama

Community and language: Panama is very welcoming to U.S. retirees, with established expat communities in places like Panama City and Boquete. English is commonly spoken, especially in expat areas, which simplifies daily interactions and social integration.
Healthcare: Panama’s healthcare is modern and affordable, especially in Panama City, where retirees can find high-quality private hospitals. The Pensionado program offers discounts on healthcare and other services for retirees, making medical expenses even more manageable.
Cost of living and lifestyle: With a mix of urban and rural options, Panama provides flexibility in living costs. Panama City offers a more metropolitan experience, while areas like Boquete offer a slower pace in a cooler mountain setting. The U.S. dollar is the official currency, making finances easier for many Americans to manage.
Taxation of Social Security benefits: Panama’s Totalization Agreement with the U.S. means Social Security benefits are not taxed by the Panamanian government, ensuring this income remains untaxed for American retirees.

Belize

Community and language: Belize’s official language is English, making it especially attractive for American retirees. Expats are drawn to places like Ambergris Caye and Corozal, which offer beach life and a friendly community feel.
Healthcare: While healthcare options in Belize are more limited compared to Costa Rica or Mexico, retirees can still access affordable basic care. Many expats choose to go to nearby Mexico for more extensive medical needs.
Cost of living and lifestyle: Belize offers a relaxed Caribbean lifestyle with warm weather and beautiful beaches, especially in areas like Ambergris Caye. Living costs can be moderate to high in popular tourist regions, but inland areas and smaller towns can be more affordable.
Taxation of Social Security benefits: Belize does not have a Totalization Agreement with the United States. As a result, Social Security benefits may be subject to Belizean income tax, and retirees should consider this when assessing Belize for retirement.

Best countries in South America to retire

South America offers retirees a mix of affordability, culture, and diverse landscapes. Here’s a look at some top retirement destinations in this region, each with unique lifestyles, safety levels, and communities.

Uruguay

Community and language: Uruguay has a stable, welcoming environment with significant expat communities in Montevideo and Punta del Este. English is less commonly spoken outside expat areas, so learning basic Spanish is beneficial.
Healthcare: Uruguay provides both public and private healthcare options, especially in Montevideo. Private insurance is common for retirees who want added flexibility and coverage. The quality of healthcare is high, and services are affordable compared to those in the U.S.
Cost of living and lifestyle: While Uruguay’s costs are slightly higher than in other South American countries, it provides a safe, comfortable lifestyle. Montevideo has an urban, coastal atmosphere, while Punta del Este offers a more tranquil beach environment. Uruguay’s stable economy and peaceful atmosphere make it ideal for those prioritizing safety and quality of life.
Taxation of Social Security benefits: Uruguay has a Totalization Agreement with the United States, which means that Social Security benefits are generally protected from double taxation. American retirees in Uruguay can receive their Social Security income without additional local tax burdens.

Colombia

Community and language: Colombia is home to large expat communities, particularly in cities like Medellín and Cartagena. English is commonly spoken within expat circles, although basic Spanish skills are useful for daily interactions.
Healthcare: Colombia’s healthcare system ranks among the best in Latin America, especially in Medellín, which has modern hospitals and well-trained professionals. Private healthcare is affordable, providing quality services comparable to U.S. healthcare.
Safety considerations: While Colombia has improved in safety, some areas may still experience higher crime rates. Retirees often find safe neighborhoods in major cities, but thorough research is recommended when selecting a location.
Taxation of Social Security benefits: The United States does not have a Totalization Agreement with Colombia, so Social Security benefits received by American retirees may be subject to Colombian taxation.

Brazil

Community and language: Brazil’s expat communities thrive in cities like São Paulo and Fortaleza, although English is not widely spoken outside tourist areas. Learning Portuguese is beneficial for social integration.
Healthcare: Brazil offers public and private healthcare, with the latter providing quality care in larger cities. Private insurance is advisable to ensure access to higher-quality services and English-speaking providers in major hubs.
Safety considerations: Safety in Brazil varies by city and neighborhood. Fortaleza offers a relaxed beach lifestyle, while cities like Rio de Janeiro require more caution due to higher crime rates in certain areas.
Taxation of Social Security benefits: Brazil has a Totalization Agreement with the United States, ensuring that Social Security benefits are not taxed twice. This can make Brazil more attractive to retirees relying on Social Security income.

Argentina

Community and language: Argentina, especially Buenos Aires, has a European atmosphere and a substantial expat community. Spanish is the primary language, so learning some is beneficial for navigating local culture.
Healthcare: Argentina has accessible healthcare with both public and private options. In Buenos Aires, private healthcare is affordable and of good quality, making it a popular choice for expats.
Cost of living and lifestyle: Argentina offers a relatively affordable lifestyle. Buenos Aires combines cultural vibrancy with modern amenities, while smaller towns like Mendoza offer a quieter, scenic environment, ideal for wine enthusiasts and nature lovers.
Taxation of Social Security benefits: The United States does not have a Totalization Agreement with Argentina, meaning that American retirees might be subject to Argentine tax on their Social Security income.

Peru

Community and language: Peru is increasingly popular among retirees, with expat communities in Cusco and Lima. English is mostly spoken in tourist areas, so basic Spanish can improve the local experience. Cusco has a historic charm, while Lima offers more urban amenities.
Healthcare: Peru’s healthcare quality is best in Lima, where private hospitals offer reliable services at affordable rates. Smaller cities may have more limited options, so retirees often choose private insurance for comprehensive coverage.
Cost of living and lifestyle: Peru is affordable, with options for both urban and relaxed lifestyles. Cusco is ideal for retirees seeking a historic, culturally rich setting, while Lima is suited to those wanting an active social life.
Taxation of Social Security benefits: The United States does not have a Totalization Agreement with Peru. Consequently, American retirees could be subject to Peruvian taxation on their Social Security benefits.

Best countries in Asia to retire

Asia provides U.S. retirees with a range of appealing choices for affordable and enjoyable retirement living. Here’s a look at some top destinations, each with unique lifestyle options, food scenes, and healthcare systems.

Vietnam

Community and language: Vietnam is increasingly popular among expats, with large communities in cities like Ho Chi Minh City and Da Nang. English is spoken in many urban areas, especially among younger people, making communication relatively easy.
Healthcare: Vietnam offers affordable healthcare with high-quality private hospitals, especially in major cities like Ho Chi Minh and Hanoi. Many expats opt for private insurance to access the best care available, with costs significantly lower than in the U.S.
Cost of living and lifestyle: Vietnam is one of the most affordable retirement destinations in Asia. With its vibrant street food scene, beautiful beaches, and lively culture, retirees enjoy a high quality of life at a fraction of U.S. costs. A monthly budget can comfortably cover housing, dining, and entertainment. Vietnam’s simple long-term visa options make it accessible for retirees who wish to stay long-term.
Taxation of Social Security benefits: The United States does not have a Totalization Agreement with Vietnam. As a result, Social Security benefits may be subject to local Vietnamese taxation. Retirees should consider potential tax obligations when planning for a long-term stay.

Malaysia

Community and Language: Malaysia has a strong expat presence, especially in Kuala Lumpur and Penang, and English is widely spoken, making it easy for U.S. retirees to integrate.
Healthcare: Malaysia’s healthcare system is high quality, with top hospitals in Kuala Lumpur and Penang providing affordable private care. Retirees commonly use private insurance plans for added peace of mind.
Cost of Living and Lifestyle: Malaysia’s cost of living is generally low, especially compared to the U.S. The Malaysia My Second Home (MM2H) visa allows retirees to enjoy a long-term stay, with no tax on foreign income. Malaysia offers a variety of lifestyles, from city living in Kuala Lumpur to beachside life in Penang.
Taxation of Social Security benefits: There is no Totalization Agreement between the U.S. and Malaysia. This means that Social Security benefits might be taxed locally, so retirees should consult a tax professional for guidance.

Thailand

Community and Language: Thailand’s vibrant expat communities are concentrated in cities like Bangkok, Chiang Mai, and Phuket, where English is commonly spoken in tourist areas.
Healthcare: Thailand is known for its high-quality, affordable healthcare, especially in Bangkok and Chiang Mai, where many hospitals cater to expats and medical tourists.
Cost of Living and Lifestyle: Thailand is highly affordable, making it possible for retirees to enjoy a comfortable lifestyle on a modest budget. Thailand’s long-stay retirement visa is available to those over 50, adding convenience for long-term stays. Retirees can choose between beach towns, city life, or tranquil northern areas like Chiang Mai.
Taxation of Social Security benefits: The U.S. does not have a Totalization Agreement with Thailand, making Social Security benefits potentially subject to Thai taxation. Retirees may wish to plan accordingly for any local tax obligations.

Japan

Community and Language: Japan offers a rich cultural experience with established expat communities in Tokyo and Osaka. English is more limited outside urban centers, so basic Japanese can benefit daily life.
Healthcare: Japan has one of the world’s most advanced healthcare systems, with affordable public healthcare available for residents. Private care is also high-quality but can be more expensive, especially for non-residents.
Cost of Living and Lifestyle: Japan’s cost of living is higher than in many Asian countries, particularly in Tokyo, though cities like Osaka and Fukuoka are more budget-friendly. Retirees appreciate Japan’s safety, modern infrastructure, and cultural richness, but they must budget carefully if they are planning to stay long-term.
Taxation of Social Security benefits: Japan has a Totalization Agreement with the United States, allowing American retirees to avoid double taxation on Social Security benefits, which makes retirement in Japan more tax-efficient.
Taxation of Social Security Benefits: Japan has a Totalization Agreement with the United States, which helps American retirees avoid double taxation on their Social Security benefits, preserving more income for those living in Japan.

Philippines

Community and language: The Philippines is a top choice for English-speaking retirees, with a welcoming community and established expat areas in Cebu, Manila, and Dumaguete.
Healthcare: While healthcare quality varies, major hospitals in Manila provide good care at lower costs than in the U.S. Private health insurance is recommended for better access to facilities.
Cost of living and lifestyle: The Philippines offers an affordable lifestyle and a straightforward Special Resident Retiree’s Visa (SRRV) for retirees with a minimum pension. Its stunning beaches and warm climate make it a favorite for retirees seeking a tropical lifestyle.
Taxation of Social Security benefits: The United States does not have a Totalization Agreement with the Philippines. This could mean that Social Security benefits are taxable under Philippine law, and retirees should assess potential tax impacts on their income.

Best countries in Europe to retire

Europe offers a diverse mix of retirement options for U.S. expats, each with unique cultural experiences, climates, and standards of living. Here’s a look at some of the best retirement destinations in Europe.

Portugal

Community and language: Portugal has a large expat community, particularly in the Algarve region and Lisbon, where English is widely spoken. Retirees find it easy to connect with locals and fellow expats in these areas, fostering a supportive, welcoming community.
Healthcare: Portugal’s healthcare system is affordable and of high quality, with expats able to access both public and private care. Private insurance is affordable, and many retirees find the healthcare quality comparable to that in the U.S.
Cost of living and lifestyle: Portugal offers an affordable lifestyle, especially outside Lisbon. The Non-Habitual Residency (NHR) tax program provides tax breaks for retirees, making Portugal a financially appealing option. Popular retirement areas include the Algarve, known for its mild climate and beautiful coastline, and Porto, a city rich in culture and history.
Taxation of Social Security benefits: The U.S. and Portugal have a Totalization Agreement, which ensures that American retirees are protected from double taxation on their Social Security benefits, making Portugal a tax-friendly retirement option.

Spain

Community and Language: Spain’s expat communities are vibrant, especially in the Costa del Sol, Valencia, and Barcelona. English is spoken in popular expat regions, though learning some Spanish is beneficial for daily interactions and cultural integration.
Healthcare: Spain offers a high standard of healthcare, with an affordable public healthcare system available to residents. Private healthcare is also popular among expats, particularly in major cities where services are both affordable and accessible.
Cost of Living and Lifestyle: Spain provides a lower cost of living than the U.S., with affordable housing and daily expenses, especially in smaller cities and towns. The country’s Non-Lucrative Visa allows retirees to live in Spain without working, provided they have sufficient funds. Popular areas for retirees include the sunny Costa del Sol, the cultural richness of Valencia, and the city life of Barcelona.
Taxation of Social Security benefits: Spain has a Totalization Agreement with the United States, allowing American retirees to avoid double taxation on Social Security benefits, thus preserving more of their income while living in Spain.

Italy

Community and language: Italy offers a rich cultural experience with popular expat areas in Tuscany, Rome, and Sicily. While English is spoken in tourist areas, learning Italian can greatly enhance the experience and help with daily activities.
Healthcare: Italy has a highly ranked public healthcare system, with free or low-cost services for residents. Many expats find that private insurance adds convenience, especially in larger cities like Rome and Milan, where hospitals are more modern.
Cost of living and lifestyle: Italy’s cost varies by region, with rural Tuscany and Sicily being more affordable than Milan or Rome. The Elective Residency Visa is a popular option for retirees with stable incomes who wish to reside long-term in Italy, particularly in culturally rich areas like Florence and Umbria.
Taxation of Social Security benefits: Italy’s Totalization Agreement with the U.S. ensures that Social Security benefits are not taxed twice, providing favorable tax treatment for American retirees.

Greece

Community and language: Greece has a growing expat community, particularly in Athens, Crete, and the Peloponnese. English is widely spoken in urban and tourist areas, making it easier for retirees to adapt and socialize.
Healthcare: Greece offers affordable healthcare, with a mix of public and private services. Private insurance is affordable and provides good coverage, especially in major cities where healthcare facilities are modern and well-staffed.
Cost of living and lifestyle: Greece is one of the more affordable European retirement destinations, especially on the islands and in smaller towns. The Golden Visa program, which requires property investment, is a popular choice for long-term residency. Retirees appreciate Greece’s Mediterranean climate, beautiful landscapes, and rich history.
Taxation of Social Security benefits: The United States and Greece have a Totalization Agreement that exempts Social Security benefits from double taxation, making it easier for retirees to manage their Social Security income in Greece.

France

Community and language: France, especially regions like Provence and Dordogne, has a welcoming expat community. While French is the primary language, many locals in expat areas are accustomed to English speakers, though basic French is helpful.
Healthcare: France’s healthcare system is among the best in the world, with affordable public and private options. Expats can access public healthcare after becoming residents, and many retirees choose private insurance for extra convenience.
Cost of living and lifestyle: France’s cost of living can vary significantly. Rural areas and smaller towns offer affordable living, while cities like Paris are more expensive. Retirees are often attracted to the relaxed lifestyle of the French countryside, particularly in regions like Provence and Brittany.
Taxation of Social Security benefits: The Totalization Agreement between France and the U.S. prevents double taxation on Social Security benefits, allowing American retirees to receive their income without local taxation in France.

Why keep a U.S. domicile and residential address while living abroad?

Maintaining a U.S. address while living abroad is essential for American retirees to meet legal, financial, and personal requirements. Here’s why a U.S. domicile can be invaluable:

Tax and Social Security compliance: A U.S. address simplifies managing IRS and state tax requirements. It also ensures retirees can receive important tax documents and helps secure continued access to social security benefits.
Banking and financial access: Many U.S. financial institutions require an American address to maintain accounts, which is crucial for managing investments, credit, and day-to-day banking.
Personal and professional continuity: Retirees who run businesses or want access to voting, benefits, and even medical services in the U.S. can benefit from keeping a legal U.S. address.

Options for maintaining a U.S. address while abroad

Domicile services: SavvyNomad’s domicile service provides a stable U.S. address for tax-friendly states, legal residency, CPA support, and reliable mail forwarding. This service ensures legal residency for long-term security, especially for frequent travelers and those living abroad.
Friend or family address: Cost-effective but may compromise privacy and reliability.
Virtual mailbox services: Offers mail scanning and forwarding but may have limitations for certain legal and financial needs.

Special considerations for American retirees abroad

For Americans retiring overseas, a few critical considerations can ensure a smoother transition and peace of mind:

Tax implications: U.S. citizens must file taxes no matter where they live. SavvyNomad’s domicile service aids retirees in maintaining a U.S. address in tax-friendly states, simplifying tax management and minimizing state tax burdens.
Banking and financial stability: Many U.S. banks require a U.S. address to keep accounts active. Maintaining a domicile helps retirees access and manage funds, retirement accounts, and investments without disruptions.

Social Security and Medicare: Retirees can generally receive Social Security benefits abroad, but accessing Medicare services may require visits to the U.S. Keeping a U.S. address streamlines document delivery, ensuring no interruptions in receiving essential benefits.
Healthcare options: Health insurance abroad varies, and many expats opt for international or private insurance plans. Understanding healthcare options in the chosen retirement country and securing insurance is essential for ongoing coverage.
Residency and legal considerations: Most retirement-friendly countries offer long-term or retirement visas, but keeping a U.S. domicile maintains a legal U.S. residence, ensuring retirees don’t lose access to essential services or face legal complications in the U.S.

Best countries for Americans to retire, by region

Jameson Rader