More Americans Are Eyeing Retirement Abroad — Here’s Where (and How) to Do It in 2025

Why moving overseas is on more retirees’ radar

Sunshine, lower daily costs, and a lifestyle that fits fixed budgets are drawing growing numbers of Americans to consider retiring outside the United States. Organizations that help people relocate abroad say interest has jumped dramatically in recent months, and the questions they’re getting are far more practical than dreamy: Which countries make residency realistic? What would taxes look like? How does health care work? That shift suggests a real movement taking shape rather than a short-lived spike in curiosity.

Money remains a big driver. Housing, rent, and medical bills are eating into nest eggs faster than they did for prior generations, and almost half of U.S. families don’t have retirement account savings at all. About one in three Americans age 65 and older falls into the “economically insecure” category, meaning their income sits at or below 200% of the federal poverty level. For many, relocating to a country with a lower cost of living is a way to flip the budget script—spending less on essentials like transportation or housing so more cash is free for experiences and everyday comfort.

What to figure out before you go

Residency and visas. Start by confirming whether you can legally live in your target country and on what terms. Look closely at the minimum income or asset requirements, renewal rules, and any path to permanent residency.

Health care and insurance. Learn the local system and the cost of private insurance if you’ll need it. Several countries require proof of health insurance to issue a visa. In general, you’ll find medical care and premiums are far less expensive than in the U.S., but details vary by destination.

Medicare realities. Medicare typically does not cover care outside the United States. Many experts suggest keeping Medicare if you can, which preserves the option to return stateside for a major procedure or long-term treatment without hurdles.

Taxes and budgeting. Read up on tax treaties, how retirement accounts are treated, and whether the country taxes worldwide income. Then map those rules to your budget so you know exactly what your monthly life would cost.

Lifestyle fit. Beyond numbers, think about language, climate, urban versus small-town living, and how easy it is to form a community. The right neighborhood inside the right country often matters as much as the country itself.

Five retiree-friendly countries to consider in 2025

Panama

Panama regularly tops retirement rankings for its mix of value, modern infrastructure, and an unusually friendly visa program for retirees. The country makes it simple to qualify and renew, and it piles on tangible perks for residents of pensioner age, from discounts on airfare and entertainment to reduced prices on everyday needs. Health care is modern and comparatively affordable, and legal residents who qualify as pensioners receive 20% off prescription medications. Day-to-day costs are reasonable, especially outside the most central districts of Panama City, and the country offers both cosmopolitan living and slower-paced beach or mountain towns.

Key considerations: To qualify for the classic Pensionado visa, you’ll need a guaranteed income of at least US $1,000 per month from a government program like Social Security or from a qualifying private source, plus an additional $250 per dependent. English is not widely spoken outside major hubs, so even a basic grasp of Spanish helps a lot.

How to make the move: Applications are filed in Panama and must be handled by a Panamanian attorney. Gather proof of income, background checks, and required health documents before you go to streamline the process.

France

France offers an enviable blend of culture, countryside, and high-quality, government-subsidized health care for residents. Many Americans are surprised at how affordable life can be outside Paris, with reasonable rents in smaller cities and manageable costs for groceries and public transport. Even Paris can be more attainable than people expect if you research neighborhoods with care. Another major plus: thanks to the U.S.–France tax treaty, Americans living in France can keep contributing to U.S. retirement accounts like 401(k)s and IRAs, and those accounts are taxed under U.S. rules rather than potentially higher French rates.

Key considerations: France has inheritance-tax rules that apply per beneficiary and “forced heirship” provisions that earmark portions of an estate for legal heirs. Paperwork can be dense, and English isn’t as widely spoken outside big cities, so plan for some bureaucracy and, ideally, brush up on French.

How to make the move: U.S. citizens typically apply for a Long-Stay Visa for Retirement (visa de long séjour) through a French consulate in the U.S., then obtain a residence permit (carte de séjour visiteur) in France. You’ll need proof of health insurance and sufficient income; a common benchmark cited is at least about $1,073 per month for a single retiree or around $1,666 for a couple, along with documentation showing financial stability.

Malaysia

If you’re stretching a fixed income, Malaysia delivers a lot of life for the money. In Kuala Lumpur, typical one-bedroom rents often fall in the $300–$500 range, with modest monthly utility bills, and second-tier cities like Penang and Malacca offer even better value and thriving expat scenes. Health care ranks highly, with modern facilities, English-speaking staff in many hospitals, and excellent care at prices far below U.S. levels. The country’s cultural mix and widespread English make daily life easy to navigate, and money you bring into Malaysia is tax-exempt.

Key considerations: Malaysia’s climate is tropical and humid year-round, which some may love and others won’t. For frequent trips back to the U.S., the long flight times can be a hurdle.

How to make the move: The Malaysia My Second Home (MM2H) program is the go-to route for many retirees. For applicants age 50 and over, expect to show a bank deposit of roughly $35,883 in a qualifying institution or prove a monthly pension income of around $2,350, among other requirements. The visa is multiple-entry and renewable.

Spain

Spain blends sunny weather, celebrated food culture, excellent public and private health care, and a range of lifestyle settings—from Madrid’s big-city energy to small coastal towns and the green north. Spanish cities frequently score at the top of expat rankings, with Valencia, Málaga, and Alicante standing out for overall quality of life. Costs remain comparatively reasonable outside the most tourist-heavy zones, and the pace of life suits many retirees.

Key considerations: Spain’s tax rules vary by autonomous community, and if you spend more than 183 days a year there, you’re generally considered a tax resident. English proficiency is lower than in some parts of Europe, especially beyond Madrid and Barcelona. Spain also runs on a later schedule; dinner rarely starts before 8:30 p.m.

How to make the move: The Non-Lucrative Visa (NLV) is a popular choice for retirees with passive income and sufficient savings. A commonly cited threshold is roughly $2,600 per month for a single applicant, with additional funds required for dependents. You’ll apply through a Spanish consulate in the U.S., and private Spanish health insurance (not travel insurance) is typically required at the time of application.

Mexico

Close to home, affordable, and familiar in many ways, Mexico remains a top choice for Americans who want to live abroad full-time or split the year. Established expat communities, widespread availability of popular services, and a slower pace of life help many retirees settle in quickly. Mexico also offers notable tax advantages: no inheritance or wealth tax, and tax residency hinges more on your primary home or center of economic interest than on a strict day-count.

Key considerations: Safety varies by region. National homicide figures remain elevated compared with the U.S., and petty crimes such as theft and pickpocketing are the most commonly reported issues in many cities. In some popular areas, a rush of foreign buyers has fueled higher housing costs and occasional tension over gentrification.

How to make the move: Americans can usually stay up to 180 days as visitors with a completed entry form (FMM), at the discretion of the officer at the border. For a long-term life, look into temporary or permanent residency. Both paths are straightforward but require proof of financial stability through income or savings.

Smart next steps

1. Run the numbers. Build a month-by-month budget using local rents, utilities, groceries, transport, and private insurance quotes.
2. Test-drive your top pick. Spend several weeks in the exact neighborhood you’re eyeing, not just the nearest tourist zone.
3. Talk to pros. Consult an immigration attorney in your target country and a U.S. tax professional familiar with cross-border rules.
4. Plan for health. Decide whether to keep Medicare, line up local coverage, and map out what you would do for a major procedure.
5. Prepare the paper trail. Gather apostilled documents, police checks, income letters, and certified translations early so you’re not rushed.

Retiring abroad isn’t only about chasing sunshine; it’s about designing a life that matches your budget, health needs, and sense of home. With clear research and a realistic plan, you can turn that idea into a smooth, sustainable reality.

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This article was written by Hunter and edited with AI Assistance