12 Best Places to Retire Around the World

As global travel has increased throughout the years, many seniors want to continue the adventure of exploring the world by retiring abroad. Others dream of settling in locations with a low cost of living to make their retirement income go further. Data from the Social Security Administration shows that more than 500,000 Americans receive their payments abroad.

Health care, visa requirements, local culture, taxes, and living costs are all part of the decision to retire in another country. With so many considerations, it's wise to consult with a financial planner, tax specialist, or immigration lawyer and spend at least several months in a potential retirement destination before moving. Here are 12 of the best places to retire in the world.

Panama

This Central American country has become a retirement destination, partially due to its proximity to the U.S., warm climate, and welcoming atmosphere. The cost of living can fit most budgets, depending on the location and style of housing.

The government has made retirement in Panama especially attractive with the pensionado visa — a plan that requires pension income of at least $1,000 a month — and offers benefits, including discounts on services and a tax exemption on imported household goods. With a valid passport, visitors can stay for three months, but for permanent residency, a local immigration attorney must handle the details.

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.

Portugal

Portugal has become one of the most popular retirement destinations in recent years. Mild weather, gorgeous scenery, and welcoming citizens are a few of the reasons. Housing and the general cost of living are reasonable, with variations depending on the city. Porto is slightly less expensive than Lisbon.

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. Health insurance is required as a condition of receiving a residence permit, along with a passport and proof of income. Retirees need to apply at a local consulate for a residence permit, which is valid for five years, and then they'll need to apply for a permanent permit when that expires.

Uruguay

Often called the “Switzerland of Latin America,” Uruguay has become a popular retirement spot thanks to its low crime rates, friendly residents, and mild climate. The country is home to a beautiful coastline and a vibrant capital city, Montevideo, with trendy restaurants, art galleries, and public parks.

At the time of writing, the cost of living is about 19 percent lower than in the U.S., and rent is about 66 percent cheaper. But one of the most significant benefits of retiring in Uruguay is that your U.S. pension and social security will not be taxed. Another bonus is the health care system — everyone, including expats, can access affordable, high-quality medical care. Residents can choose to become a member at a high-end private hospital for around $50 to $100 a month, which covers routine appointments, surgeries, emergency care, and more.

To become a legal resident, you’ll need a monthly pension of about $1,500 and a criminal background check. The process can take up to a year, but you can enter the country on a tourist visa and apply in person in Montevideo.

Dominican Republic

For a tropical island retirement, the Dominican Republic is one of the least expensive Latin American countries for retirees. In Santo Domingo, the capital, rent is about 80 percent lower than in New York City, and consumer prices are about 49 percent lower. Just two hours from Miami, its location is another advantage for some retirees.

Most retirees purchase private health care insurance, as they are not eligible for government programs, and quality health care in private hospitals is available at reasonable prices. The Dominican Republic offers a retirement visa or pensionado with proof of at least $1,500 in monthly income, a background check, and a birth certificate. Retirees can enter the country on a tourist visa and then apply for a retirement visa, a process that takes several months.

Most expats live in the cities of Santo Domingo and Santiago, and there are charming tourist towns like Punta Cana, Puerto Plata, and Boca Chica. Certain areas are not considered safe, so it is advisable to research in advance of relocating.

Spain

Warm weather, a fascinating culture, and environments from coastal beach towns to sophisticated cities make Spain a desirable retirement destination. The country's highly rated health care system includes public health care for citizens and residents who contribute to social security. Most expats opt for private health care covered by insurance.

Several types of visas are available, but most retirees from outside European Union countries choose the residence visa. The first permit is for one year, with renewals up to five years, at which time retirees can apply for a residence visa.

The cost of living varies among the major cities of Spain, and settling outside cities is generally more budget-friendly. For example, in the coastal city of Alicante, consumer prices are about 50 percent lower than in New York City, and rent is about 80 percent cheaper. Grocery stores and restaurants serving Spain's traditional cuisine are generally reasonable.

Costa Rica

This Central American country, where "pura vida" (pure life) is a greeting and description of the culture, stretches from the Caribbean to the Pacific, with rain forests, jungles, and beaches. Costs vary as widely as environments, but, in general, the cost of living in Costa Rica is reasonable. For example, in the city of San José, the cost of housing is about 79 percent lower than in New York City, and consumer prices are around 44 percent lower.

A few ways to become a resident include the Pensionado Program, which requires a monthly income of at least $1,000. Those funds must be transferred to a Costa Rican bank to be withdrawn for expenses. The Rentista Program, for those without a monthly pension, requires a minimum of $60,000 or a monthly income of $2,500 for at least two years.

Health care is available through public and private systems. For residents, the national medical program (with no co-pays or exclusions) is available, along with the option of private care with out-of-pocket costs that can be self-insured or paid through a private insurance policy.

Malta

This tiny Mediterranean country's population is nearly 15 percent expats, mostly from mainland Europe, Australia, and the U.K. Malta's attractions include weather, location, beaches, and architectural beauty. English is widely spoken; Malta was once part of the British Empire. The cost of living is around 20 percent lower than in the United States, and housing costs are about 43 percent lower. Groceries and restaurant dining are reasonably priced.

Private health care is recommended as expats do not have access to national health insurance. Permanent residency through a "self-sufficiency" visa requires around $60,000 in assets, proof of medical insurance, and an annual 15 percent tax. The Permanent Residence program requires about $600,000 in assets, financial contributions to the government, and a real estate purchase.

Ecuador

Located in northwest South America, Ecuador is home to the Galápagos Islands, rain forest, and miles of Pacific Ocean shoreline. Its low cost of living attracts retirees, especially those who enjoy adventure and appreciate nature.

In the city of Cuenca, a popular locale for expats, consumer prices are about 64 percent less expensive than in New York City, and rents are about 88 percent lower. Ecuador uses the U.S. dollar as its currency, and many people in the major cities speak English.

All citizens and visitors are guaranteed health care. The quality of services is high and costs are about 25 percent lower. Foreign retirees can join the government system for less than $100 monthly for full coverage, or they can provide proof of private health insurance. Permanent residency visas are available once an individual has lived in Ecuador for at least 21 months under a temporary visa. Minimum income requirements, investments in real estate, or bank deposits are required as part of the temporary visa application.

Mexico

Mexico's low cost of living and proximity to the U.S. attracts many retirees. In addition, as a tourist destination, Mexico is familiar to many visitors who have vacationed there over the years. The country offers diverse landscapes, climates, and locations, making it the top retirement destination for Americans who choose to leave the U.S.

Health care is available through two government-run programs that cover low-income residents or require a premium. Private hospitals and specialists offer low-cost, high-quality care, and many retirees simply pay cash for services or maintain private insurance.

Becoming a resident is relatively easy, with income requirements of around $2,400 to $2,700 a month for temporary residence and $4,300 to $4,500 for permanent residence. Bank account requirements are about $45,000 and $180,000, respectively. Temporary residency is up to four years, with provisions to re-apply after that point, and applications are processed through the Mexican Consulate in the United States (or country of residence).

Thailand

With its picturesque islands, tropical climate, and affordable housing, Thailand is an ideal retirement spot for anyone looking to spend their golden years on the beach. The Southeast Asian country’s cost of living is about 47 percent lower than the U.S., while rent is, on average, 72 percent cheaper. With destinations ranging from the metropolis of Bangkok to the cultural hub of Chiang Mai to islands like Koh Samui and Phuket, retirees have plenty of options.

Thailand offers long-term visas for people over 50. Applicants must meet a few requirements, including having 800,000 baht (about $23,100) in savings. Visas must be renewed annually but the process is straightforward. Thailand boasts excellent private and public hospitals and English-speaking doctors and nurses. Although expats cannot access public health insurance, they can obtain private health care insurance to cover their medical costs.

Colombia

This South American country on the continent's northwest coast offers beaches, rain forests, mountains, and cities. Colombia has increasingly become a popular tourist destination, and many retirees have discovered its attractions.

Consumer prices in Bogotá are about 70 percent lower than in New York City, and rent is about 89 percent less expensive. Costs vary among cities and inland communities, and a variety of housing is available. Colombia's health care system features modern public and private hospitals, with high-quality, affordable care. The public health plan is accessible to citizens and holders of a national ID card, including expats, with payment of premiums. Private insurance is also available.

Several visa categories include the pensionado visa, most commonly used by retirees. To obtain the visa, applicants must prove a minimum monthly income of at least three times the minimum salary in Colombia. Income can come from pensions, social security, or savings. After five years, retirees can apply for a resident visa. Visa holders can also apply for a foreign ID card, which provides access to the health care system and other benefits.

United States

In the United States, Florida's cities are favorite retirement havens, with warm weather, miles of coastline, and no state income tax. Cities on the Atlantic and Gulf shores offer something for every budget and lifestyle, making Florida ideal for those who want to relocate but stay within the U.S. Throughout the United States, golf destinations, ski resort cities, and small towns are all desirable options for retirees.