2025’s Best Places in the World to Retire
Heavy recent interest in moving abroad leads International Living to accelerate the release of its popular Annual Global Retirement Index
A remarkable surge in interest in moving overseas post-election has led International Living to release its Annual Global Retirement Index for 2025 about a month earlier than usual.
The new 2025 rankings of the top destinations for retirees worldwide was released on Thanksgiving this year, as opposed to its traditional release on New Year’s Day.
In the wake of the Nov. 5 U.S. election, International Living reported experiencing a remarkable surge in website traffic, with views on pages like “How to Move Out of the US” skyrocketing by 778%, a 764% increase on the “Move to Costa Rica” page and “Move to Panama” increasing by 528% from Nov. 6-8 compared to the previous few days. As uncertainty looms, IL said in a press release many are actively exploring life abroad as a viable alternative, as evidenced by the spike in page views reflecting a growing demand for actionable guidance on relocating overseas.
“These figures highlight a clear trend: Americans aren’t just daydreaming—they’re taking concrete steps to research life abroad,” said Jennifer Stevens, Executive Editor at International Living. “Whether they’re drawn by the promise of a lower cost of living, better healthcare, worry about the social environment at home, or the chance for a fresh start, more people than ever are seriously considering the benefits of living internationally.”
The Index helps retirees identify destinations where their dollar stretches further, offering great value in real estate, living costs, and quality of life.
“Our goal is to empower retirees to make informed decisions about their best options abroad right now. Stevens said. “This year’s Index showcases safe, welcoming, good-value places where retirees can live better for less—while enjoying an adventure and finding like-minded community in surrounds that suit them.”
The Index evaluates destinations across seven key categories, including healthcare, housing, cost of living, and ease of integration into local society. It is informed by the insights of on-the-ground correspondents and the lived experiences of expats who call these countries home.
So, according to IL’s brand new 2025 rankings, where’s the best place overseas for Americans to retire? It’s Panama, returning to the top position it last held in 2022, and jumping up from fourth in the 2024 rankings. Click to the next page for more on what made Panama the top choice for 2025, and the following pages for details about the rest of the top 10.
NEXT PAGE: Why Panama Stands Out
Why Panama Stands Out
Panama remains a standout retirement destination due to its modern infrastructure, diverse lifestyle options, and unbeatable retiree benefits, IL says. Topping the 2025 Global Retirement Index, Panama offers something for everyone—whether retirees seek cosmopolitan city life, tranquil mountain escapes, or a laid-back beach lifestyle.
One of the biggest draws is Panama’s Pensionado Visa, designed to make life more affordable and enjoyable for retirees. With proof of a verifiable pension of at least $1,000 a month ($1,250 for couples), retirees can gain permanent residency and access to significant government-mandated discounts, including:
• 50% off movie tickets
• 25% off power bills
• 20% off prescription medications
• Substantial savings on plane tickets, hotel stays, and more
This program underscores Panama’s commitment to ensuring retirees not only thrive but also actively participate in the country’s vibrant social life. “The program was designed to help retired Panamanians live active, socially engaged lives,” said Jessica Ramesch, IL Panama Editor. “That same spirit of inclusion extends to foreign retirees.”
Panama’s sophisticated healthcare system is another major appeal. High-quality medical care is widely available, especially in Panama City, where hospitals are equipped with advanced technology and English-speaking staff. Many expats report that healthcare in Panama is not only affordable but also comparable in quality to care in the United States—and often exceeds it.
Geographically, Panama has something for everyone. Mountain towns like Boquete offer cooler temperatures and stunning views, while coastal areas such as Coronado provide relaxed beach living with modern conveniences. Its strategic location outside the hurricane belt ensures year-round peace of mind for those seeking a safe, warm climate.
Retiring in Panama is surprisingly affordable. A couple can live comfortably on $2,500 to $3,000 per month, covering rent, dining, entertainment, and utilities. Even in Panama City, known for its metropolitan charm, retirees find a high quality of life at a fraction of the cost in the U.S.
“Panama’s location, safety, and affordability make it an exceptional choice for retirees looking to maximize their lifestyle without breaking the bank,” says Ramesch. “Whether you want a luxury ocean-view condo or a quiet, lush retreat in the mountains, Panama delivers.”
NEXT PAGE: Rest of the Top 5
2025 Best Places: Rest of Top 5
2. Portugal
Portugal, ranked No. 2 for the second consecutive year, charms retirees with its sunny climate, rich culture, and excellent healthcare. “The D7 visa makes it easy to establish residency,” said contributor Terry Coles, “and the cost of living here remains competitive, even in popular areas like the Algarve.”
International Living also recently published a report highlighting 11 Affordable and Picturesque Small Towns to Live in Portugal where expats can enjoy a slower, more fulfilling lifestyle. From the medieval charm of Óbidos to the coastal beauty of Tavira, these towns offer affordable living, rich culture, and thriving expat communities.
3. Costa Rica
Costa Rica, which dropped from the top spot in 2024 to No. 3 for 2025, is renowned for its natural beauty and the welcoming “Pura Vida” lifestyle. “Whether you love the beach, the mountains, or both, Costa Rica offers an incredible quality of life,” said Bekah Bottone, IL Costa Rica Correspondent. Though no larger than West Virginia, IL points out that Costa Rica contains almost 6% of the world’s biodiversity and is a top destination for ecotourism and nature lovers. Some couples live comfortably on $2,500 a month, while others spend double or triple that amount. The flexibility in expenses means there’s a way to make it work for nearly everyone, from frugal retirees to those seeking a more luxurious lifestyle. U.S. and Canadian citizens can stay visa-free for up to 180 days, while temporary residency options include the Pensionado visa (for retirees with a $1,000 monthly income) and the Rentista visa ($60,000 deposit or $2,500 monthly income). Permanent residency becomes available after three years of legal residency.
4. Mexico
Mexico, ranked No. 4 (down one spot from 2024), combines vibrant culture, affordable real estate, and well-established expat communities. “Mexico gives you a taste of adventure with the comfort of familiarity,” said Bel Woodhouse, IL Mexico Correspondent. Mexico has large, friendly expat communities throughout the country that help newcomers navigate their way around. It is also the most popular country for U.S. retirees, with 799,248 U.S. expats. Mexico is affordable, with housing costs typically 50-75% lower than in the U.S.
5. France
France jumped from No. 9 in 2024 up to the fifth spot for 2025. If the gourmet food, world-class arts and entertainment, and stunning natural landscapes don’t grab you, IL says France might just win you over with its top-ranked healthcare system and joie de vivre lifestyle, about slowing down, appreciating the finer things in life, and finding beauty in every moment. France isn’t always considered the most affordable country to retire in, but it provides significant savings in a few key areas—namely housing and healthcare. Rent is, on average, 51% less than in the United States. Buying a home is around 34% cheaper, and property taxes are a fraction of what they are in the U.S.
NEXT PAGE: Rest of the Top 10
2025 Best Places: Rest of Top 10
6. Spain
Spain dropped one spot in the rankings to No. 6 for 2025. Most Spanish residency visas require expats to purchase private Spanish health insurance, which does not cover prescriptions—”but these are so cheap it’s laughable,” said ILSpain Correspondent Marsha Scarbrough. North Americans who want to live in Spain need residency visas. The non-lucrative visa is a retirement visa that does not allow you to work at all, anywhere in the world. Its financial requirement is about $32,000 a year in passive income (pensions, investments, rents) and/or savings. You must apply for this visa from the U.S. or Canada. The permanent residency visa allows you to work and is automatically issued within Spain after five years of residency. If you move quickly, the golden visa may be an option as Spanish lawmakers have proposed ending this visa sometime in 2025.A new addition in the past year is the telework visa, also known as the digital nomad visa.
7. Malaysia
Malaysia moved up one spot in the rankings to seventh for 2025. The dynamic and colorful Southeast Asian nation is celebrated for its rich cultural tapestry, breathtaking landscapes, and fascinating history. A combination of affordable housing and low daily expenses allows retirees to stretch their savings while enjoying a high quality of life. For those looking to stay long-term, Malaysia provides several visa options tailored to retirees and digital nomads.
8. Greece
Greece swapped spots with Malaysia, dropping one to eighth for 2025. A significant advantage of living in Greece is the affordable cost of living. Outside of popular tourist spots like Athens and Santorini, places like Corfu make living comfortably on a modest budget entirely possible. Greece has made it easier for retirees to stay long-term by offering flexible visa options. The Greek “Digital Nomad Visa” allows non-EU citizens to live in Greece for up to two years, and the “Golden Visa” provides residency to those who invest in property. The Retirement Visa is another excellent option for those with Social Security or pensions.
9. Italy
Italy did not make the top 10 in last year’s rankings but comes in at No. 9 for 2025. While iconic cities like Rome, Milan, Venice, Florence, and Naples often come to mind, the true essence of Italy lies in its smaller, more inviting locales where life is simpler and more rewarding. The cost of living in Italy is another significant draw, often about half of what you’d expect in the United States. Securing a long-term visa to live in Italy is manageable, though it requires preparation and patience. Applicants must demonstrate financial stability, explain their reasons for moving, and verify their identity through a face-to-face meeting at the consulate assigned to their state or county.
10. Thailand
Want to really get away? For Americans, Thailand is as far as you can go without starting to come back. Healthcare in Thailand isn’t just good—it’s a thriving industry. People from all over the globe come here for high-quality and affordable treatment. The “medical tourism” business ensures that expats have access to world-class hospitals and doctors. Several types of long-stay visas are available, including a basic retirement visa, a new 10-year LTR (Long Term Resident) visa that requires significant income or investment, and now a Digital Nomad Visa for expats who want to work remotely from Thailand. Visa laws here are quite fluid and constantly change to accommodate expats more.
Read International Living’s Annual Global Retirement Index for 2025 here.
SEE ALSO:
• 5 Best Places to Move if You Don’t Like Election Results
• 2024’s 10 Best Places in the World to Retire
• 10 ‘Wealthiest, Safest’ Retirement Towns