10 of the Cheapest Countries to Retire Around the World

• Best tourist destination: Mexico
• Underrated hidden gem: Montenegro
• Best for foodies: Vietnam
• Best for art and history lovers: Portugal
• Best for outdoor adventurers: Costa Rica

Retirement can mean many things—a career change, having more time to devote to a hobby or family, or moving to another country, whether for adventure, a change of scenery, or a reduction in living expenses. And while living outside the U.S. can certainly keep costs down, your budget will depend largely on your location, lifestyle, and personal needs.

Thankfully, from Latin America to Asia and Europe, retirees are finding more affordable options overseas. When choosing a new country, it’s worth considering important factors like language barriers, access to health care, and income requirements related to its visa qualifications. Financial advisers, experienced travelers, and other expat retirees can help make the process easier. The Social Security Administration, Internal Revenue Service, and U.S. Department of State’s websites provide a wealth of resources regarding any official U.S. tax or policy questions that may arise. Check your desired country’s immigration website for up-to-date details on rules and fees.

To help narrow your search, here’s a look at 10 of the cheapest countries to retire abroad, with data from Numbeo, updated as of May 2025, providing current cost-of-living comparisons.

Mexico

Just south of the U.S. with warm weather, miles of coastline, and heaps of vibrant, beautiful cities, Mexico is a popular spot for American retirees and tourists alike. But staying at a resort on vacation can be a very different experience compared to living in a place full-time. If you’re planning to retire here—or in any of the other countries we’re suggesting—you should try doing a lengthy stay beforehand so you can get a better feel for it as a home.

Compared to the U.S., the cost of living in Mexico is about 43 percent lower, while rent is around 63 percent lower, though it’s important to consider individual cities. In Cancún, for instance, the cost of living is roughly 56 percent lower than in New York, while rent is nearly 85 percent lower. In San Miguel de Allende, a charming city in Mexico’s interior that’s popular among American expats, the cost of living is about 61 percent lower than in New York, while rent is around 73 percent lower.

Health care is available through government programs that cover low-income residents or require a payment of premiums. Even so, private hospitals and specialists offer high-quality care at relatively low cost, and many retirees maintain private insurance or pay cash for medical services.

There are a few income requirements to be aware of if you want to retire in Mexico. Those applying for the Temporary Resident Visa will need to prove they make $4,393 in income per month, while those seeking a Permanent Resident Visa through pension or retirement must show they can bring in $7,323 per month. Bank account minimum requirements are $73,215 and $292,941 for each visa, respectively. Applications for visas and residence permits are handled through the Mexican Consulate.

Montenegro

A popular tourist destination known for its Adriatic coastline and stunning beachfront resorts, Montenegro has been recognized in recent years as an emerging retirement destination. Its beautiful scenery, welcoming populace, and low cost of living make it an attractive place to retire. The average cost of living is roughly 39 percent lower than in the United States, and rents are about 61 percent lower. The capital and largest city of Podgorica runs roughly 60 percent lower than New York, while rents are about 85 percent lower.

Visas of various types can be obtained via the Government of Montenegro’s website, and there are provisions for becoming a permanent resident. Investment in the country is encouraged, too, with a variety of incentives available, and unlike in many countries, foreigners are allowed to purchase property. Montenegro is also a member of NATO and is expected to join the European Union by 2028.

Private and public health care are both available in Montenegro. Retirees and expats will generally purchase private coverage, including medical evacuation, which provides the option of receiving medical treatment in another country if needed.

Vietnam

Vietnam’s cost of living is very affordable compared to the U.S., especially for retirees who appreciate the country’s foodie scene, history, culture, scenery, and beaches. The cost of living overall is nearly 60 percent lower than in the U.S., while rents are generally about 78 percent lower. In Ho Chi Minh City, home to a large expat community, the cost of living is about 72 percent lower than in New York, while rents are nearly 88 percent lower.

Since the Vietnamese government owns all the land and foreigners are restricted from purchasing property, most expats and retirees rent. While obtaining a visa is not as straightforward in Vietnam as in many other countries, you can still apply for long-term stays or business visas.

High-quality health care is very affordable, with both public and private systems available, though most expats and retirees carry international health insurance and take advantage of private hospitals. The Hoan My Medical Corporation has hospitals and clinics throughout the country. City International Hospital in Ho Chi Minh City caters to foreigners, and most of its medical staff speaks English.

Portugal

Portugal has become one of the most popular destinations for retirees who adore its coastal cities, art, history, food, wine, and mild weather. The cost of living is about 30 percent lower than in the U.S., and housing is around 40 percent more affordable. Those margins widen in the capital of Lisbon, where the cost of living is roughly 48 percent less than New York and rents are about 62 percent lower.

Retirees have two options—the D7 Visa or the Golden Visa—and both allow you to freely visit the other Schengen Area countries as long as they’re valid. The D7 Visa requires applicants to prove they make at least $989 (870 euros) in passive income monthly and provide bank statements with at least one year’s worth of Portuguese minimum wages. You’ll also have to show proof of housing in Portugal (via a deed or rental agreement), a criminal record certificate from your home country, and travel insurance that includes health care coverage. After filling out an application and making an appointment with the Portuguese Consulate in the U.S., you’ll still need to visit a local agency office for an interview once you arrive in Portugal to receive your Temporary Residence permit and card. It’s valid for two years and can be renewed for three more. After five years, you can apply for permanent residency or citizenship.

The Golden Visa was created to encourage foreign investment in Portugal. While real estate purchases and capital transfers were removed as eligibility options in 2024, applicants can still pay about $284,000 (250,000 euros) for investments in scientific research, arts and culture, or industries like energy and technology, among other options. You’ll also need to spend a certain amount of time in the country each year, which varies by investment. Once you hit the five-year mark, you can apply for Portuguese citizenship.

Excellent health care is available, and legal residents can register with the National Health Service to access public hospitals and health centers, paying for services as they go. For others, health care is generally covered by private insurance, which is required as a condition of receiving a residency permit.

Costa Rica

Costa Rica stretches from the Pacific to the Caribbean, with jungles, rain forests, volcanoes, vibrant cities, and plenty of beaches. While climate and costs vary throughout the Central American country, the overall cost of living is still 23 percent lower than in the United States, and housing is about 56 percent lower on average, based on May 2025 data from Numbeo. In San Jose, the country’s capital city, the cost of living is around 47 percent lower than in New York, and rents are roughly 82 percent lower. Needless to say, it’s become a popular retirement destination.

Residency programs include the Pensionado (or Pensioner) Visa, which requires evidence of a permanent income source (as in social security or pension benefits) of at least $1,000 per month to be transferred to a Costa Rican bank for expenses. It’s renewable after two years if you’ve spent at least four months in the country (each year) and can still meet requirements.

The Rentista (Person of Independent Means) Visa, for those without a monthly pension, requires proof of a guaranteed source that can provide at least $2,500 per month for two years—you also have the option to transfer $60,000 into a local bank account and submit a letter stating you’ll have access to $2,500 each month. After spending three years on either temporary residency visa, you’re eligible to apply for a permanent residency visa, which must then be renewed every five years.

As for health care, everyone—including expats and retirees—must contribute a portion of their salary, typically 7–11 percent per month, and even if you’re living there on a pension, to the national public health care system, known as the Caja. In addition, retirees and expats can pay extra for private health insurance through a Costa Rican or an international policy, as public services often experience longer wait times. Note, however, that anyone over 70 will need to obtain private international coverage as private Costa Rican coverage ends at that age.

Ecuador

With miles of scenic Pacific coastline, active volcanoes, and several popular expat communities, Ecuador, known for its fabulous Galápagos Islands, attracts retirees from all over the world. The country uses the U.S. dollar as its currency, and many locals, especially those in major cities, speak English. The overall cost of living in Ecuador is about 55 percent lower than in the U.S., with rents roughly 80 percent lower. In Cuenca, a UNESCO World Heritage Site and a popular expat city, the cost of living is about 71 percent less expensive than New York, and rent is around 91 percent lower. Located in Ecuador’s highlands, Cuenca enjoys a moderate climate, reducing costs for both heating and air conditioning.

Ecuador offers retirees the Visa Residencia Temporal Jubilado, a temporary residence visa that lets you stay in the country for two years and can be renewed. Minimum income amounts, real estate investments, or bank deposits are required as part of the application process, as is providing a criminal record certificate from the U.S. and proof of health insurance (from a national or international company). Permanent Residence Visas are also available once you’ve lived in Ecuador for at least 21 months under a temporary visa with a clean criminal record from your time in the country.

High-quality health care is much cheaper than in the U.S., and all citizens and visitors are guaranteed services. Foreign retirees can join the government system for a monthly fee (based on your pension or income listed as part of the visa process) for full coverage or provide proof of private international insurance.

Panama

Coming in at number one of the “Best Places to Retire in 2025” on International Living’s annual Global Retirement Index, Panama’s many flight connections, pleasant climate, and low cost of living have certainly captured the attention of retirees. Rents are roughly 44 percent lower than in the U.S., and the overall cost of living is about 33 percent lower. Costs vary depending on location, but in Panama City, for example, the cost of living is around 55 percent lower than in New York, while rents are about 73 percent lower.

The government has made residency especially attractive with the Panama Pensionado visa program, which requires proof of pension income of at least $1,000 per month. Applicants must first enter the country (Americans can visit visa-free for up to 180 days) and use a Panamanian immigration lawyer to complete the process. Health certificates from a local doctor and police records from your home country will also be required, as well as a valid passport. Its benefits include discounts on a variety of in-country health, transportation, and financial services, plus a tax exemption on importing household goods.

Panama has a two-tier health care system with public and private hospitals, clinics, and doctors, both requiring co-payments for services, with lower costs in the public system. Most retirees choose the private system, which offers excellent care and facilities at reasonable prices covered by private insurance or self-pay.

Colombia

This popular South American country is known for its beaches, rain forests, and mountains, including the Colombian Andes. The cost of living in Colombia is about 58 percent lower than in the U.S., and rents are nearly 78 percent lower. In the capital city of Bogotá, the cost of living is around 72 percent lower than in New York, and housing is nearly 90 percent lower.

Several visa categories include the Pensionado, most commonly used by retirees. To obtain it, applicants must prove a minimum monthly income of at least three times the minimum salary in Colombia. That income can come from pensions, Social Security payments, or savings. After five years, retirees can apply for a resident visa. Visa holders can also apply for a Cédula de Extranjería, or Foreign ID Card, which provides access to the health care system and other benefits.

Colombia’s health care system features modern public and private hospitals, and high-quality, affordable care. It’s available to citizens and holders of a national ID card, including expats, with the payment of premiums. Private insurance is also available.

Spain

Whether you prefer a lively city like Madrid or a more laid-back locale like Barcelona, Málaga, or Andalucia, Spain is one of the best and cheapest countries to retire in. You really can’t go wrong—practically every city in Spain is full of art, history, music, and has a thriving foodie scene—so it all comes down to your personal lifestyle preferences. Wherever you go, rest assured that the cost of living is nearly 27 percent lower in Spain compared to the U.S., with housing costs about 44 percent lower. In the capital city of Madrid, for instance, it’s about 46 percent lower than New York, while rents are roughly 66 percent lower.

Similar to Portugal, Spain offers two options for retirees, the Non-lucrative Visa and the Golden Visa, which each come with their own set of requirements and allow you to travel visa-free throughout the Schengen Area. Non-lucrative Visa applicants must prove they have passive income of at least $31,000 annually (from pensions, social security, savings, or other reliable means like rental income), private health coverage, and a clean criminal record. You’ll be rewarded with one year of residency, which can be renewed every two years, with the option to apply for permanent residence once you hit the five-year mark.

Those seeking a Golden Visa must be ready to invest the equivalent amount of 500,000 euros (roughly $569,000) in Spanish real estate, businesses, bank deposits, or government bonds. Once the process is complete, you’ll have access to a residency card for one year, which can be renewed every five years as long as the requirements are still being met.

Health care in Spain is among the best in the world, though both Non-lucrative and Golden Visa holders must provide their own private health insurance for the first year of residency. After that point, for a small monthly fee, you’ll have the option to access the public health care system, though you may want to supplement this with a private insurance plan to receive quicker care by English-speaking doctors.

Argentina

Known for its vibrant tango scene and rich culture, Argentina is an affordable option for retirees who appreciate fine wine and gastronomy. The South American country is also home to incredibly beautiful scenery, particularly in Patagonia, and one of the most beautiful waterfalls in the world, Iguazú. The cost of living in Argentina is nearly 41 percent lower than in the U.S., with rents roughly 73 percent lower. In the bustling capital city of Buenos Aires, it’s about 56 percent lower than New York, while rents are generally around 86 percent lower.

Retirees generally have two options, the Rentista visa, for those with passive income from rentals or other investments back home, or the Pensionado visa, meant for those with a constant monthly source of income from a pension. Either way, you must provide proof of income of at least $2,000 per month, private health insurance, and a criminal background check from your home country. Both grant temporary residency for up to one year and can be renewed. After two years, you can then apply for permanent residency.

When it comes to health care, retirees are able to access the public health care system and self-pay for services, or can purchase a private plan, which grants access to shorter wait times for a reasonable monthly fee (often around $50). It’s also possible for retirees to obtain international health insurance if that’s preferred.