What is YOUR dream retirement destination? Experts reveal the top five for low tax and great weather… with some unusual winners

Retiring abroad for sunshine, a cheaper cost of living and lower tax is an idea that appeals to many Britons.

But where can you tick as many of those boxes as possible and actually move to?

A new report has revealed the best destinations that are friendly to newcomers, safe and good value, have relaxed bureaucracy and pleasant weather.

Many countries try to lure older expats with a stable independent income or assets as a way to boost their economies.

And after putting dozens of places welcoming visa and residency regimes through a battery of tests, relocation consultancy Global Citizen Solutions has declared the top five.

‘These countries scored highest across all dimensions, making them the most attractive and top five global destinations for retirees in 2025,’ says the firm.

Crucially, it looked not just at where is nice to live but also where welcomes new residents from overseas, with scores dished out for visa application costs, achievable income requirements and longer visas. 

So where are the best places to retire to? The countries are, according to Global Citizen Solutions, Portugal, Mauritius, Spain, Uruguay and Austria.  

Among the 44 countries GCS assessed, nearly two thirds require a monthly income of €2,000 (£1,730) or less, and a slightly higher percentage have application costs of €2,000 or less.

Only moving to one of the top five, Uruguay, sees the UK government freeze the state pension at whatever amount it was set at when you first moved there. 

This is an arcane policy that affects British retired expats living in 150-odd countries around the world, which means they do not get state pension rises while others do. For example, British expats have state pensions uprated in the US and EU but not Australia and Canada.

In the other four countries picked by GCS, older people receive increases every year at the same rate as in the UK, meaning in line with the triple lock. 

You can find a full list of countries where the state pension is frozen here.

Want to retire abroad? How to choose YOUR dream destination

Global Citizen Solutions says countries with a lower tax rate got a higher score in its survey, and the same logic was applied to visa application costs and income requirements. Better scores were also given for longer visas.

It notes that for wealthy people, asset protection and financial optimisation have become increasingly important in recent years.

‘Countries experiencing rising tax burdens, such as the UK, often see an outflow of investors and affluent residents seeking more favourable fiscal environments.

‘Conversely, destinations offering territorial tax systems, zero or low income taxes for retirees, and no wealth or inheritance taxes have become especially attractive.’

But the firm adds: ‘The most attractive retirement destinations are those where retirees can expect high personal safety, supportive local attitudes, and the ability to communicate and participate fully in daily life.

‘Portugal, Spain, Greece, Uruguay, and Costa Rica consistently rise to the top as balanced leaders in these respects.’

Altogether it used 20 indicators to work out the best retirement destinations, which it grouped under six headings: procedure, citizenship and mobility, economics, taxes, quality of life, and safety and integration.

Here’s what GCS says about the countries that came out on top.

Portugal: Affordable and exceptional quality of life

The sunny European destination scores well across many markers, including safety, healthcare, weather, and social attitudes to arrivals.

It has welcoming visa policies, and is especially attractive to high-net-worth individuals and middle-class retirees, according to GCS.

‘Portugal has long stood out in Europe thanks to its Non-Habitual Resident regime, which allowed new residents to benefit from a flat 10 per cent tax on foreign pensions for a decade,’ it says.

‘This regime, widely considered one of the most competitive for international retirees, has recently undergone significant change.

‘The NHR is now closed to new applicants as of 2024, though existing beneficiaries retain their entitlements for the duration of their term.’

GCS adds that Portugal – along with Spain and Greece – is notable as an affordable European destination, offering a lower cost of living compared with neighbours, an exceptional quality of life, diverse cultural experiences, and a high degree of security.

Monthly income required to live comfortably: $2,500-$3,000 (£1,860-£2,230) 

Mauritius: No tax on overseas pensions

Mauritius launched a scheme to attract retirees in 2006, and scores high for migrant acceptance and integration support, with a multicultural, English-speaking environment that eases the transition for newcomers.

It is among the countries in the world operating a ‘territorial’ taxation system – meaning it generally imposes taxes only on income generated within the country’s borders.

Others run a ‘worldwide’ tax regime, where residents are taxed on their global income, both locally earned and foreign-sourced.

GCS explains: ‘In Latin America, Africa, and parts of Asia, countries such as Panama, Costa Rica, Uruguay, Malaysia, Mauritius, and Belize simply do not tax foreign-sourced pensions at all.

‘Retirees who draw their income from abroad can enjoy a virtually tax-free existence, provided they meet the residency requirements of their chosen destination.

‘This approach is especially beneficial for those with substantial foreign pensions, offering both financial predictability and administrative simplicity.’

GCS adds regarding Mauritius: ‘The country has rapidly gained recognition as one of Africa’s most attractive destinations for retirees and passive income visa holders.

‘The Mauritian government offers a Retired Non-Citizen Residence Permit, allowing foreign nationals over the age of 50 to reside in the country, provided they can demonstrate a monthly income.

Monthly income required to live comfortably:  $2,500 (£1,860) 

Spain: Attractive for its good value and lifestyle

Offering many of the same benefits as Portugal, it is especially attractive for retirees seeking both value and lifestyle, says GCS.

But it adds that Spain still requires ‘careful budgeting’ and is suitable for retirees with substantial private resources.

It has a traditional worldwide taxation framework, like peers such as France and Austria, which makes them less appealing from that perspective.

But Spain achieves near-maximum scores for both healthcare and weather, as well as high marks for environmental quality, security and migrant acceptance.

‘Southern European nations tend to offer both the tangible – high-quality healthcare – and intangible – pleasant climate – attributes most sought after by retirees,’ it adds.

Monthly income required to live comfortably:  $2,000-$2,500 (£1,490-£1,860) 

Uruguay: Socially open, and low or no taxes

Like Spain and Mauritius, Uruquay combines efficient and transparent administrative procedures with family-friendly policies and reliable pathways to extended residency, according to GCS.

‘Application costs represent an immediate, often overlooked hurdle in the retirement migration journey. Countries that rank highest in the index, such as Panama, El Salvador, Serbia, Albania, Laos, Namibia, and Uruguay, offer exceptionally low or efficient application and renewal fees.

‘These financial savings, when compounded over time, can be especially meaningful for retirees who are budget-conscious or wary of administrative red tape.’

Uruguay has a territorial tax system and does not tax foreign-sourced pensions, as explained above.

GSC says: ‘Latin American countries, such as Uruguay, Argentina, and Costa Rica, are notable for combining moderate-to-high safety levels with strong social openness.

‘Uruguay and Costa Rica, in particular, stand out for their positive attitudes toward migrants and relative safety, making them top choices for North American and European retirees seeking familiar social climates and high levels of acceptance.

Uruguay also has progressive policies, community support, and social acceptance for LGBTQ+ people. Other countries that GCS finds notable for this are Canada, Australia, New Zealand, Costa Rica, Mexico, Thailand, South Africa, Sweden, Spain and France.

Monthly income required to live comfortably:  $2,000 (£1,490) 

Austria: Strong healthcare and a pleasant climate

Austria has cultural and lifestyle attractions, but a significantly higher minimum income bar, effectively narrowing its pool of potential applicants to those with considerable financial resources, says GCS.

‘These thresholds not only influence initial eligibility but can also affect a retiree’s long-term sense of financial security.’

The country also scores lower in affordability due to elevated everyday expenses, which ‘underscores that, for many retirees, the dream of Western European living must be balanced against hard economic realities’.

Austria has a worldwide tax system, which is the standard approach in much of Europe.

But it delivers high scores across all the areas tested for, with strengths in healthcare, pleasant climate, and environmental sustainability.

‘Western European countries – France, Austria, Spain – are global leaders in public healthcare, offering retirees comprehensive coverage and peace of mind for long-term health needs,’ says GSC.

Monthly income required to live comfortably: $2,600 (£1,933)