11 Best Places to Retire in the World in 2023: International Living

We have a new No. 1 and No. 2 in this year’s rankings of the best, most affordable places for Americans to retire abroad

As every new year dawns, International Living releases its updated rankings of the best countries for Americans considering retiring abroad to provide the latest information to help them make such an important decision.

For more than three decades, International Living’s scouts have scoured every corner of the globe many times over. The result is a much bigger and ever-growing selection of outstanding destinations where retirees can live a healthy and happy life, spend a lot less money, and get a whole lot more.

The 2023 Annual Global Retirement Index is the most comprehensive and in-depth survey of its kind, helping aspiring expats sift through the wealth of opportunity the world offers, bring some order, and help pinpoint the best destination for their particular wants and needs.

What we like International Living’s retirement index is that the sources are living in the places where they’re gathering their intelligence, and they’re not beholden to relocation service providers, real estate agents, tourism boards or economic development organizations.

What has their research revealed about the 10 best retirement havens in 2023? Read on for a brief summary of the top countries, and for a more detailed look, be sure to check out International Living’s complete 2023 Annual Global Retirement Index…

10. Colombia

Imagine a place where you step off the airplane and simply choose the climate which best suits you and the city size where you feel the most comfortable. Add a few lifestyle activities and your retirement abroad has now been perfectly customized to suit your interests.

IL correspondent Erin Donaldson says Colombia is that kind of place.

A country characterized by microclimates and lower costs of living, current residents are seeing a massive uptick in expat arrivals as more people consider living overseas. Americans especially are seeing once-in-a-lifetime opportunities thanks to a robust dollar exchange rate.

With one of the top 25 healthcare systems in the world, residents can enjoy low-cost subsidized health insurance for as low as $35 per person each month. It is not unusual to see co-pays that are less than $10 for doctor visits and generic medications.

Most major cities like Bogota, Medellin, and Pereira have their own medical systems with specializations. In recent years, alt-medicine clinics for preventive care have also opened their doors offering treatments that cost two or three times less than in the U.S.

Under new visa standards, foreign residents can get visas for their basic social security retirement incomes, rent received for pensions or rental homes, and now a digital nomad visa which incentivizes people who work from home to enjoy a cheaper life in a more pleasant climate.

The good news about visas is that they are now easier than ever to get and thanks to a favorable exchange rate—even cheaper. Under the current situation, people who get a social security benefit of at least $700 per month can qualify for the pension visa.

While the cost of living has risen considerably in recent years, foreign residents can still live quite comfortably in upper-class areas starting at $1,000 per month for small cities like Manizales and Pereira, and $2,000 per month for larger cities like Bogota and Medellin.

NEXT PAGE: Tie for No. 9

9. Thailand (tie)

There is no doubt that the allure of Thailand begins with its sun drenched, warm climate and appeals to those who have a keen sense of adventure and an eye for natural and cultural beauty, writes IL Thailand correspondent Rachel Devlin. Thailand is the heart of Southeast Asia and is hugged by Cambodia, Laos, and Myanmar in the north and shares a border with Malaysia in the south.

Thailand is the only country in Southeast Asia that wasn’t colonized by any European countries and therefore maintains a culture untouched by any other influences. Culturally, the Thais place great emphasis on ‘sanuk’ or ‘fun’ which impacts on all aspects of the lifestyle in Thailand. Thais are community minded and love to meet each other and eat out which drives an enormous restaurant and cafe culture across the entire country.

Thailand has been a popular destination for retirees for decades and provides long term visas for people over 50. Although Americans are the largest expat cohort in Thailand, it is also a popular destination for the British, Canadian, French and Swiss. Thailand’s expat appeal is that it offers an affordable cost of living yet manifests an enriched way of life. Its diverse natural beauty means that expats are spread from islands surrounded by emerald waters, the high-rise metropolis of Bangkok or the rice fields and laidback lifestyle of Northern Thailand.

Probably the best deals to be had in Thailand are in real estate. Foreigners are able to buy condos very easily and there are bargains everywhere. It is possible to buy a two-bedroom condo for under $30,000 and rentals can be as cheap as $180 per month if you need something small and quaint. Most expats believe that $2,500 per month equates to a good life in Thailand, however I know many that live off less than that.

An enormous advantage to living in Thailand is the healthcare. Being a popular place for dental and health tourism says it all. Expats report being very happy with the healthcare and there are a range of hospitals to choose from. The infrastructures of the country are also outstanding. The utilities are very cheap, an average monthly water bill is less than $5.

9. Italy (tie)

This year’s Retirement Index actually features a “top 11” countries, as Italy and Thailand as both listed as No. 9 on the list.

Italy makes itself an ideal retirement location with an incredible diversity of climate, topography, beaches, food, wine, sports, community, healthcare, and a lifestyle that has the average Italian living one to five years longer than its Western European neighbors, and the average American. Its list of world-famous historical and cultural attractions is too numerous to mention, notes IL Italy correspondent Chip Stites.

For these reasons and more, retirement in Italy is unique for those desiring a longer, fuller life, a sense of adventure and pleasure at a leisurely pace matched by few countries anywhere. The biggest surprise is how much lower living expenses are in a country that is protective of its lifestyle, its economy, and its heritage.

Healthcare is ranked number two in the world according to the World Health Organization. After only six months of living in Italy, you can enter the public health system with proof of your permanent Visa and Permisso de Soggiorno. Each region has its own method of accessing costs but in general, the further north you go the more expensive, and the further south the less expensive the healthcare and the cost of living.

Italy offers excellent infrastructure via trains, buses, airlines, and senior discounts in most areas. Infrastructure includes excellent countrywide internet, fresh drinkable water, continuous electricity, and regular trash pickup across even small villages. WiFi, TV (local and satellite), and telephones are surprisingly inexpensive. Stites said he spends about half of what he spent in the U.S. on all his phone, WiFi, and satellite services.

But the best thing about Italy may be the cost of living. The average Italian lives on less than half of what the average American lives on, Stites says, adding he and his wife live on a budget of about $3,500 per month.

NEXT PAGE: France

8. France

Retirees will find that French culture takes a firm stance on fine living, writes IL correspondent Tuula Rampont. While many may talk about the benefits of a balanced life—taking time for yourself and your loved ones, focusing on your health and well-being, and appreciating the beauty of everyday things—France has elevated these ideals to an art form. The French concept of art de vivre, the art of living, is ingrained in society. It includes a keen appreciation for the pleasure of food and wine, and the rituals that go into the sharing of a gourmet meal.

With all this decadence, and flair for the good life, France can appear deceptively expensive and out of reach for many budget-conscious retirees. Happily, that’s not the case. While you will pay similar prices for certain foodstuffs as you would in the U.S., and although some daily costs are lower, the real cost-cutting comes from real estate prices. Housing costs are, on average, around 34% less than that of the U.S. Of course, if you’re looking at big-ticket places like Paris and certain resort towns on the French Riviera, you’ll pay the same prices as you would in the heart of Manhattan or Silicon Valley. Outside of these high-end addresses, the rest of the country is surprisingly affordable.

A thriving American expat community currently exists around the medieval hamlet of Sarlat-la-Caneda—a culturally rich and dynamic town, with one of the prettiest farmers’ markets in all of France.

Not only are the regions of Normandy, Brittany, Lorraine, and Alsace, culturally and historically intriguing, they also offer the best value for money in all of the country. While prices have increased over the last two to three years, it’s still possible to find one- and two-bedroom homes starting at $200,000, or less.

One of the main reasons to choose to move to France is the country’s exceptional healthcare regime. France operates under a universal healthcare system in which everyone is entitled to receive medical services. There are no age restrictions, pre-existing condition limitations, or networks to join. You can see any doctor, anywhere, at basically any time they are available. A standard visit costs €25, and when you enter the healthcare system, you are reimbursed 70% of that fee—which makes the charge roughly $9.

Expats only need to obtain a long-stay visa, and they can access the healthcare system after three months of living in the country. France must be a primary residence for six months of the year.

NEXT PAGE: Greece

7. Greece

It should come as no surprise that Greece is ranked as one of the top places to retire as this sunny Mediterranean country offers stunning natural beauty, warm hospitality, an affordable cost of living, some of the best food in the world, and a rich, deep history.

But while its history is rich, IL Greece correspondent Lynn Roulo notes the country is best known for its stunning islands. With three major bodies of water and six distinct island groupings, the Greek islands can keep visitors endlessly interested in exploring. If Greece becomes your home, island hopping becomes a part of your life.

Another positive aspect of Greek culture is the respect and inclusion of elderly people. Statistically, Greece has a large older population, and seniors are a rich piece of the social fabric. Expect to find older men playing cards and chatting at the cafenios during all hours of the day and look for groups of elderly women sitting outside storefronts, catching up on neighborhood gossip and sharing recipes. The older generation is front and center in Greece, and this adds to the country’s charm.

Expect to find high-quality medical care, often for a fraction of the cost in the U.S. The medicine is so good that medical tourism is a growing segment of the Greek economy. Many Greek doctors are trained in the U.S. or the United Kingdom, and most speak very good English. As a retiree, you’ll have the option of public or private insurance. Most expats opt for private insurance as the facilities are more modern, but you can get good care either way.

The relatively low cost of living is what attracts many to Greece, and for people who are not dependent on earning income in the country, the equation is a good one. Greek wages tend to be approximately one third of what you’ll find in the U.S., and this means the cost of living is also dramatically lower. Housing is usually the place you’ll find the most savings, but depending on what your place of comparison is, you can expect overall costs to be as little as half (or even less) than what you’d spend in the U.S.

Because the average salary in Greece equates to about $20,700, there is less focus on consumption and material purchases. The priority moves to socializing and finding ways to have a good time without spending a lot of money. Living on a budget is a way of life for much of the population, so if you are watching your finances, you won’t feel alone.

NEXT PAGE: Spain

6. Spain

Sunny weather all year, a welcoming culture, an incredibly relaxed lifestyle, and a relatively low cost of living. These are just a few of the things that Spain offers, writes IL correspondent Sally Pederson.

All of the above comes at a relatively low-price tag. The cost of living in Spain has increased in the past year and continues to be relatively low. Depending on location, Spain can either be one of the cheapest or priciest locations on the Mediterranean. As of 2022, you can live very comfortably on roughly $2,000 to $2,500 a month, or about $28,000 a year. As with every other country on earth, the price tag depends on location—the closer to the capital and the famous destinations, the more expensive. If you choose a quieter small-town retirement, you can live on $1,900 a month, which totals about $23,000 a year.

Perhaps you love the big city and considering Madrid or Barcelona, the rent could be almost half your monthly pension for just a one-bedroom apartment. They are the two most expensive cities in Spain. Outside these cities, finding a one-bedroom home for only about $800 a month is fairly easy.

The freshness and low prices of food are another key part of the lower living cost. For a fraction of the cost in the U.S., the fruits and vegetables that make up the healthy Mediterranean diet are available all year. The cost of restaurant meals is surprisingly low. A three-course lunch can be found all over Spain for $16 to $20, and even cheaper lunchtime offers are common. A glass of wine or a beer is about $3.50, and there is no local culture of tipping.

Generally, the south is cheaper than the north. Some ex-pats who retire in Spain choose to buy a home—which can be had for as little as $2,000 per square meter in lower-cost areas such as Andalucia, especially outside the city centers, while being more than double that price in Madrid and Barcelona.

As a retired expat, you’ll initially use Spain’s private healthcare system. Both the public and private systems are excellent by European and American standards. As an ex-pat using the non-lucrative visa or the “golden visa,” you’ll be required to buy private health insurance for at least the first year. The private options are far easier, more efficient, and surprisingly affordable by U.S. standards. Even in the year 2022, private medical insurance can cost as little as $100 a month, making Spain an ideal place for retirement. After five years, you become a permanent resident and automatically enter the public system.

There are two main visas for North American retirees: the non-lucrative and the golden visa. The former is a simple visa for those who have the economic means to stay in Spain but have no local income there. As of this year, the non-lucrative visa requires a documented income from being self-employed, pensions, or investments of at least $2,400 a month. To get the golden visa you must buy property in Spain valued at approximately $520,000.

Proof of private health insurance in Spain, a clean criminal record with fingerprints, and a doctor’s statement are also required.

Spain is one of the safest places in Europe. The only widespread crime is pickpocketing in the major cities. Apart from that, crime is nearly non-existent and unseen by expats. Almost no one owns deadly weapons.

NEXT PAGE: Costa Rica

5. Costa Rica

Ask any new (or established) expat in Costa Rica about their decision to move there and you will most likely hear the word “magical” woven into their response, writes IL correspondent Kathleen Evans.

Foreigners continue to arrive in waves (over 10% of the 5 million+ inhabitants are expats) to find their own mode of magic in Costa Rica. Perhaps it is the tropical climate, the abundance of nature, or the friendly locals. Or the numerous real estate options just about everywhere habitable. With a lower cost of living, ease back and forth to North America, and affordable medical care, it is not surprising that Costa Rica remains firmly near the top of international retirement lists.

For those looking to steer clear from an increasingly divided world, Costa Rica offers stability in an oft-unstable region. This republic is also internationally recognized for its commitment to the environment—with roughly a quarter of its land protected as national parks and wildlife refuges. And operating 98% on renewable energy most years.

When the government abolished its army in 1948 the world took notice—earning Costa Rica the nickname the “Switzerland of Central America.” That military budget was pledged to education and healthcare, resulting in education for all and a First-World literacy rate. Plus, healthcare access for all citizens and legal residents with one of the top-rated public healthcare models in Latin America.

There are two healthcare systems within Costa Rica—public and private. Once you have acquired your residency under one of the typical programs (Pensionado, Rentista, or Inversionista), you pay approximately 13% to 15% of your reported monthly income into the Caja Costarricense de Seguro Social healthcare system (Caja for short). This national medical program is available to legal residents without copays, pre-existing exclusions, or age disqualifications.

A couple can live comfortably, but not necessarily extravagantly, for approximately $2,500 to $3,000 a month. This includes renting a two-bedroom home/condo with North American style amenities, air conditioning, plus groceries, entertainment, transportation, and healthcare. If your monthly budget is over $3,000, you will find an even further enhanced lifestyle.

Perhaps a part of Costa Rica’s magic is living a healthier lifestyle. This diverse country offers endless ways to keep active outdoors—such as fishing, surfing, snorkeling, golfing, hiking, horseback riding, pickleball, and yoga. Healthy diets are also part of the equation with choices of locally grown tropical fruits, vegetables, organic eggs, abundant seafood, and grass-fed beef. It is no surprise to hear reports of expats having shed unwanted weight, lowering their blood pressure, and taking fewer prescription drugs.

Since the pandemic, Costa Rica has created new initiatives to help expats invest, sample life there, and acquire residency including the new digital nomad visa and an updated law to attract retirees.

NEXT PAGE: Ecuador

4. Ecuador

Ecuador, sandwiched between Colombia and Peru, has seen its tourism has grown by 30% over the past five years and the country attracts North Americans, Europeans, gap year backpackers, explorers, and expats from around the world, all whom come to enjoy its perfect combination of climate, culture, and affordability.

Ecuador is still a largely undiscovered country not yet homogenized but still offering the conveniences of modern living, including high-speed fiber-optic internet, American dollar currency, temperate weather, good public transportation, and affordable healthcare and housing, writes IL correspondent Donna Stiteler.

It is a republic on the equator lying on the west coast of South America and is the second smallest country on the continent about the size of Colorado. With 1,200 miles of coastline, one of the world’s highest active volcanoes, and the Galápagos Islands, it is one of the most ecologically diverse places on the planet.

It’s no wonder that Ecuador has consistently placed in the top 10 retirement locations in the world. It’s not just an ecological paradise, it’s a place where you can make friends, stop worrying about money, and enjoy the diversity of a country that is only a four-hour flight from the U.S.

There are few places in the world where the cost of living is as affordable as it is in Ecuador. You can easily live off $1,500 to $1,800 a month depending on location and lifestyle. You can own a home on a Pacific Coast beach or a condo with great views in the Andes for around $150,000. Rentals are plentiful and affordable too, with two-bedroom, two-bathroom condos starting at $500.

Ecuadorians know how to enjoy life. It’s a very family-oriented, mostly Catholic, country where the locals attend services in massive, gold-embossed cathedrals, gather for Sunday dinners, close down their shops to go watch their kids play soccer, and frequently invite expats over for dinner—but be prepared that dinner starts at 8 p.m. with dancing until 2 a.m. (which is most likely why they don’t start their days until 10 a.m.)

If you are interested in beach living, on the southern coastal tip of Ecuador is Salinas, a modern oceanside town known for its party bars, seafood, and year-round fiestas with a lively expat community. Venture north and you’ll encounter small, sleepy, coastal towns that attract expats wanting to escape the rat race, surfers, and hippies riding bicycles in towns like Montañita or Olon. Manta is a fast-growing mid-size town with long stretches of beaches and modern conveniences that is quickly building an expat following.

Since the land produces excellent food, mostly with year-round growing seasons, prices at local mercados are so low that it is difficult to buy more than $20 worth of fruits and vegetables. Household help is available for $20 for four hours of cleaning, gardeners run $20, and a deep tissue massage will run between $30 to $40 for a 90-minute massage. No need for heating and air-conditioning bills in most of the country because of the temperate weather, and you can live in most places without a car, paying 30 cents for trams, and $2 to $4 for taxi rides to get you almost anywhere in town.

Living in Ecuador can give you a retirement you could only have dreamed about if you had stayed in the U.S. Instead of living paycheck-to-paycheck or having to work well into your retirement, Ecuador will provide a safe, joyful lifestyle, with money left over to travel the world.

NEXT PAGE: Panama

3. Panama

Panama was International Living’s top-ranked retirement destination in 2022, and held the No. 2 spot on the list in both 2021 and 2020.

IL correspondent Jessica Ramesch writes it was the cosmopolitan capital of Panama City that won her over with its great nightlife, restaurants and cafés, museums and galleries, theaters, parks, and more.

“I had access to some of the best doctors and hospitals in Latin America, a brand-new metro line, and I started most mornings with a walk along the Bay of Panama,” Ramesch said. “One weekend, on a whim, I went to see an apartment in Coronado Beach. I wasn’t planning on leaving the city, but when I saw the view and the price tag—$157,500 for just over a thousand square feet—I was sold.”

Where else can you find this kind of value, with mild weather and no hurricanes ever? Panama is in the same hemisphere as the U.S. (no major time differences) and just a three-hour flight from Miami. Panama’s main international airport is one of the best in the Americas, with direct flights to key cities in the U.S., Canada, and Europe.

The country has a well-earned reputation for political and economic stability. It’s maintained friendly relations with the U.S. for decades, and it has used the U.S. dollar for over a hundred years. Best of all, Panama is a welcoming place for foreigners.

This has been an international crossroads since long before the Panama Canal was completed in 1914. Some of its most famous foreign visitors were pirates, but these days you’re more likely to meet retirees or remote workers.

Panama’s Pensionado visa makes it easy to move here if you have a pension of at least $1,000 a month. If you don’t have a pension, but you plan to buy a home here, you can qualify for the Friendly Nations visa with purchase of $200,000 (with or without financing). If you just want to test the waters, stay for up to 18 months via the new temporary telework visa.

“Here, I can afford more of life’s little luxuries,” Ramesch writes. “My monthly expenses are usually less than $2,700. I count nearly every penny I spend, and that includes my mortgage and condo fee.”

NEXT PAGE: Mexico

2. Mexico

Mexico moves up from No. 3 to No. 2 on this year’s Index, and now boasts more than 1.6 million Americans and half a million Canadians who call Mexico home. Even more foreigners live part-time in Mexico to escape the snow and cold weather of northern winters. In terms of total numbers, more U.S. expats live in Mexico than in any other country in the world.

IL correspondent Wendy Justice points to Mexico’s convenient proximity to the U.S. The country hosts many international airports offering direct flights to the U.S. and efficient, modern highways connecting it to its northern neighbor.

The country has reliable internet, electricity, and cell phone service. You’ll find familiar brands, such as AT&T, Amazon, Walmart, Netflix, McDonald’s, and Costco.

“Wherever you live in Mexico, you’re likely to find an expat community,” Justice writes. “If you speak a little Spanish, you’ll find that it adds immensely to your experience, but even if you don’t know a word of it, you’ll usually find someone who speaks English.”

If living well for less is an enticement for moving overseas, you will be pleased by Mexico’s low cost of living. Most goods and services are less expensive in Mexico than in the U.S. or Canada. Everything from rents and real estate to healthcare and groceries are cheaper here. Additional savings are available to legal residents age 60 or older through the INAPAM program, which gives seniors discounts on transportation, medical and prescription costs, utilities, taxes, and more.

Your cost of living will vary, of course, depending on where you live and your lifestyle. It’s possible for a single person to live simply, but comfortably, for around $800 per month. It generally costs more to live in popular tourist destinations or areas with a large, established expat presence, while a more local lifestyle can be affordable for even those with modest means. Most couples find that they can live comfortably for around $2,000 to $2,500 per month even in more popular locales. That amount includes everything—even health insurance through Mexico’s IMSS public health plan.

Healthcare costs are at least 50% lower in Mexico compared to the U.S. Modern hospitals have all the equipment and technology you would need or expect, and doctors are qualified. Besides the IMSS health insurance, which costs between $300 and $800 annually depending on your age and has some pre-existing condition exclusions, legal residents can apply for INSABI, the free public health plan, or carry private insurance.

It’s easy to live long-term in Mexico. As a temporary resident, you can remain in the country for up to four years if you renew your visa annually. At the end of four years, you can either reapply for another temporary resident visa or convert your visa to permanent residency.

Temporary residency applicants must show an income of about $2,550 per month, or $45,000 in the bank or in investments. A permanent residency visa is available for people who can show a minimum income or pension of about $4,400 per month or an average bank balance of about $180,000 over the past year. This visa never expires and there is no minimum amount of time that you must remain in the country.

NEXT PAGE: The No. 1 Best Place to Retire 2023

1. Portugal

And the No. 1 Best Place to Retire in 2023 according to International Living is Portugal, vaulting all the way from the No. 4 spot on last year’s rankings.

So, why is Portugal one of the most popular retirement destinations on the planet?

Despite its compact size, the country offers something for everyone, writes IL correspondent Terry Coles. “From vibrant cities like Lisbon and Porto with buzzing nightlife, culture, history, and culinary delights to coastal havens along the Atlantic Ocean where camel-colored sand meets the turquoise water embellished with jagged rock formations, caves, and grottoes,” she says. “The people of Portugal are some of the kindest and most genuine in the world, and they welcome foreigners with open arms and double-cheeked kisses. Since English is taught in the schools many of the locals, especially the younger generation, have a good grasp of the language.”

Portugal is one of the safest countries in the world, ranked 6th by the Global Peace Index so expats never need to worry about crime. Healthcare in Portugal is both affordable and excellent, ranked 12th by the World Health Organization. Residents of Portugal have access to both the public and private healthcare systems, along with fully accredited Joint Commission International facilities with English-speaking staff.

Infrastructure is on par with the U.S. and Canada with fresh drinkable water from the tap, reliable electricity, and high-speed fiber internet making it easy to work from home or connect with the rest of the world.

Portugal’s highway system is one of the finest in Europe. And unlike some other European countries that require foreigners to take the driver’s test in the local language, in Portugal it’s a straightforward exchange of your current driver’s license for a Portugal one.

With over 500,000 foreigners from around the world living in Portugal, it’s easy to fit in and often impossible to tell the expats from the locals. Making friends is easy, especially in the more popular expat havens like Porto, the Silver Coast, Lisbon, and the Algarve.

In the north is Porto, Portugal’s second largest city. Famous for its production of port wine, and terraced vineyards along the Douro River, with a colorful riverfront area, it sees many tourists so English speakers can be found.

For those who desire big city living without a car Lisbon may be for you. Packed with museums, concerts, restaurants, shopping, cobbled lanes, and historic elegance, the mix of expats and tourists make English speakers abundant. Portugal’s primary international airport is here, a great way to connect with the rest of Europe or most anywhere else in the world.

How much do you need to retire to Portugal? As a general rule, a couple can live comfortably on about $2,500 to $3,000 per month, depending on lifestyle and whether you own or rent. To settle in Lisbon, Porto or the Algarve expect to pay a bit more while inland areas cost less.

Again, check out International Living’s complete 2023 Annual Global Retirement Index for a more detailed look at what led these 11 countries to make the list.

SEE ALSO: 

• 2022 World’s Best Place to Retire Is…

• This Central America Country Reigns #1 Again as Best Place to Retire

• 4 Very Different ‘No. 1 Places to Retire’