Thessaloniki, Greece, on the Aegean Sea, is among 96 places in 24 countries that Forbes recommends for retiring abroad.
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Baltimore-reared Larry Swift was already living abroad, working as a security contractor in Saudi Arabia, when he made his retirement move this past March. At age 59, he relocated with a partner to Thessaloniki, the second largest city in Greece, 300 miles north of Athens. He knew the city well from get-away visits when he was a contract worker with the U.S. State Department in North Macedonia, the country just to the north. The rent on his large three-bedroom apartment is almost $4,000 a month, but he has a view of the Aegean Sea, was able to get rid of his car, and finds the overall cost of living manageable. Plus, he says, “The food is great.”
There’s a twist to Swift’s story. He’d been in the U.S. military for 30 years and is rather addicted to work. “I have a hard time going cold turkey” into retirement, he admits. So he’s in Greece on a two-year “digital nomad” visa, which allows him to work remotely for pay for foreign employers, in his case back in Saudi Arabia. This permission could lead to the Financially Independent Person Visa, used by many expat retirees in Greece.
Swift fits well into a growing U.S. pattern of “retirees” who aren’t completely retired. He also carefully considered all the angles—a good model for anyone planning a retirement to a foreign location.
One place to start is the Forbes list of the Best Places To Retire Abroad In 2025—featuring 96 recommended spots in 24 countries, on four continents and several islands. Our description of each country includes the kind of practical information we considered in making our picks. These include relative cost of living, healthcare costs and quality, taxes, natural hazard and climate change risk, the difficulty of getting long-term permission to live there, travel connections back to the U.S., and how well you can get by without being fluent in the native language. (Some of our sources, which you can use, too, are cited at the bottom of this article.)
None of our country choices has a cost of living higher than the U.S. average, and many—including Albania, Argentina, Belize, Colombia, Dominican Republic, Indonesia, Malysia, Mexico, Montenegro, Slovenia and Thailand—are dramatically less. Even in countries similar in cost to the U.S.—like France and Austria—money can be saved by staying away from the big glamorous cities. Just as in the U.S., there are beautiful areas that have lower costs.
A big reason for the foreign economic edge: For most of the countries on our list, quality medical care and health insurance is available at a cost so far below U.S. price levels that private insurance or even out-of-pocket payments can replace Medicare without being a big economic burden. Several countries, including Italy and Spain, even allow expats, under certain circumstances, to join their national health care at some point. U.S. Medicare can’t be used in foreign countries. But retirees close enough to easily drive or fly back from some countries on our list, including Belize, Canada, Costa Rica, Mexico and Panama, can still benefit. And, as Larry Swift learned, for retired U.S. military the TRICARE health care program has coverage overseas.
Disabuse yourself right now of the possibility of saving money in some foreign tax haven. Unlike most other countries, the U.S. taxes its citizens on their income no matter where they live, so there’s no break there. The country of foreign residence will have its own taxes, often at higher marginal rates. But all is not lost. U.S. tax law allows U.S. filers to take a foreign tax credit against U.S. taxes for certain tax payments made to other countries. The U.S. also has tax treaties with two-thirds of the countries on the list and these treaties provide some protection against double taxation—that is, taxation of the same income by both the U.S. and the country of residence. (The Internal Revenue Service website, irs.gov, provides some guidance as well as a list of tax treaties in effect.) If a U.S. retiree like Larry Swift is allowed to work abroad and has earned income, the U.S. Foreign Earned Income Exclusion under certain circumstances shields up to $130,000 from U.S. taxation.
A few countries on our list, including Belize, Costa Rica, Dominican Republic, Malaysia and Panama, don’t tax any foreign income of expat retirees. Several others, including Argentina, France and Thailand, don’t tax pension and Social Security payments. Spain and Italy don’t tax foreign pensions if they were earned in government service. Our advice: Use competent tax professionals, and prepare to pay more for tax preparation—this isn’t a do-it-yourself situation. And don’t forget the requirement to submit Foreign Bank Account Reports (FBARs) to the U.S. Treasury if you have an account in a foreign institution. There are severe penalties for failure to file.
Obviously, a big issue is what it takes as an American retiree to gain the right to live in a foreign country. The assessments we used in compiling our list are based on existing law and customs. But we have to caution this could change, and maybe quickly, in an era in which current U.S. government policy is making it harder for foreigners to move here or even, in some cases, simply visit as tourists. The same official policies that might be helping motivate some Americans to retire abroad could also get in the way.
Still, most of the countries on out list allow U.S. citizen retirees to settle there upon, among other things, a showing of adequate income resources. These can include pensions, Social Security and retirement accounts, or documentable overall net worth. The reason is simple. Other countries don’t want Americans to come and take local jobs or to require local resources for support. But these countries do embrace retirees bringing money from the U.S. to spend. Adequate income can range from a minimal amount—e.g. $12,600 a year for two in Cyprus—to a substantial $110,000 a year for a couple that wants to stay in the Republic of Ireland. In some countries, family connections, such as a grandparent born there, are a big help. That can work in Ireland.
We put Canada on the list notwithstanding the frostiness in Canada to its southern neighbor and despite the fact that it’s very hard for an American retiree without close family living in Canada to move there. Currently, Canada allows American tourists to stay for six months a year, raising the possibility of simply splitting retirement time between the U.S. and Canada.
Each country has very different procedures that need to be followed. Paperwork often has to be translated into the official language of the country. Some countries require an application to first be filed with the country’s U.S. embassy or nearest consulate, while others require the paperwork to be filed only after the retiree arrives in the country on a tourist visa. The website of the country’s U.S. embassy often has helpful information laying these details out. Many expats retain a lawyer or specialist to handle the process. The initial permission to stay beyond a tourist visa is generally granted for a limited period of, say, a year or two, with the possibility of renewals and, eventually, something approximating permanent residence.
A great way to check out a future home is to use a tourist visa to stay as long as possible—most countries allow at least three months. It is often possible to rent an apartment on a short-term lease. That could lead to a longer-term rental, since most Americans retiring abroad end up renting rather than buying. Although foreign property ownership is legal in most of the countries on this list, the buying process can present all kinds of complications and costs. Spain, to cite but one example, has a housing shortage and is currently considering levying a 100% tax on foreign buyers of real estate. There’s also a problem with fraudulent land sales to Americans in certain countries, including Belize and Mexico.
Expats retiring to a foreign country generally have to show proof of medical insurance. This is a smart thing to have, even without a mandate. Coverage can be identified from such sources as the Association of Americans Resident Overseas and Medibroker. Reflecting the lower cost of healthcare abroad, rates are generally reasonable, but finding coverage for some pre-existing conditions can take time.
A crucial warning: Even if you’re retiring abroad, make sure you enroll in Medicare Part A when you turn 65 (unless you’re still working and have insurance through your job). Part A covers hospital care in the U.S. and it’s free. But also pay premiums for Medicare Part B, which covers doctors and other outpatient services. (Part B premiums for 2025 start at $185.00 but can be a lot steeper if your modified adjusted gross income is above $106,000 for a single or $212,000 for a couple.) Why keep paying for Medicare? You might come back to the U.S. someday. If you decline Medicare Part B now and later return, you can be hit with a late enrollment penalty equal to 10% for each year you would have been paying premiums.
Intensive research is crucial to any move, and thanks to the Internet and social media, it’s never been easier. Virtually every country you might be interested in has multiple groups on platforms like Facebook devoted to foreign residents, retirement and day-to-day living. Many are public groups, but if private, just ask to join. Newcomers can post questions and get answers to the most nitty-gritty of issues. As we noted earlier, an actual visit is highly advised.
Jeff Hammerberg and Merlin Parker, a married gay couple in Austin, Texas, ready to retire after years working in real estate, cast a wide net as they researched a number of foreign countries after deciding against domestic retirement partly on political grounds. They considered but rejected the Southeast Asia country of Vietnam and the South American country of Uruguay. “Ultimately,” says Hammerberg, “the commute back to the U.S. to visit family and friends was a deal killer.” Europe beckoned, and Portugal quickly drew their interest with its mixture of relative affordability, inviting culture and travel convenience. They visited in 2023 and 2024. In March they made their move to a rented apartment in the capital of Lisbon.
Before his move from Saudi Arabia to Thessaloniki, Greece, Larry Swift considered other European venues. He was especially interested in Prague, the lovely capital of the Czech Republic. “What took Prague off my list,” he says, “is the difficulty getting a visa.”
Looking for more country specific information? Here are some of the sources we used in our research: Comparative cost-of-living data and serious crime rates worldwide come from numbeo.com. Assessments of natural hazard and climate change risk are drawn from the United Nation’s World Risk Report. Tax treatment and treaty information come from websites of various countries, tax professionals and the U.S. Internal Revenue Service. We used Google Flights to assess the convenience of return flights to the U.S.
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