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.

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