With more and more Brits keen to spend their golden years soaking up the sun overseas, we reveal the top five retirement hotspots for expats.
Swapping grey skies for golden beaches, cheaper living and lower taxes is a retirement dream for many of us.
However, choosing the right location can feel daunting. Would you prefer Europe or a remote tropical island?
And to make the decision even more difficult, many countries offer generous tax incentives to lure wealthier retirees to their shores.
With this in mind, relocation consultancy Global Citizen Solutions (GCS) has issued a new report, which narrows down the top five most attractive countries for retirees.
According to the findings published in This is Money, each of these locations offers a mix of value, safety, flexible Visa regimes and a decent quality of life.
What makes a great retirement hotspot?
In order to draw up the list, the experts examined conditions in 44 countries, primarily focusing on factors such as income requirements, healthcare and culture.
Perhaps most importantly, they also looked favourably on countries that protect the UK State Pension.
Under this system, retirees living abroad will still benefit from annual increases in payments as they would if they lived in the UK.
So, which regions came out on top? And what makes them so popular?
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1. Portugal
Located on southwest Europe’s Iberian Peninsula, Portugal has long been a favourite with British retirees.
With an affordable lifestyle, excellent healthcare and relaxed Visa requirements, the country is particularly attractive to middle-class and wealthier retirees.
Expats may also appreciate the country’s five-year path to citizenship.
- Monthly income needed to live comfortably: $2,500 to $3,000 (£1,860 to £2,230)
- Other criteria: must be present in the country for seven days a year, with citizenship available after five years. Visas also available to entrepreneurs or those with passive income
Prior to 2024, the country had also offered a Non-Habitual Resident regime, allowing new residents to pay just 10% tax on foreign pensions for a decade.
Note, however, this scheme is now closed to new applicants.
2. Mauritius
If year-round warmth and a low-tax lifestyle top your list of priorities, Mauritius could be your dream retirement destination.
In a major plus point, the island uses a territorial tax system, meaning that its government won’t impose any tax on your UK pension. Unsurprisingly, this makes the region ideal for those with larger retirement pots.
However, you will need to pay tax on any income you earn within the country itself.
According to the researchers, the region is also multicultural and supportive of retirees over 50 – offering residence permits if you can demonstrate a modest regular income.
- Monthly income to live comfortably: $2,500 (£1,860)
- Other criteria: $1,500 (£1,210) monthly income for retirement permit, or $375,000+ (£279,000+) in real estate
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3. Spain
Spain combines a strong healthcare system with pleasant weather, great food and a familiar culture for UK retirees.
Although the researchers found the area is slightly pricier than Portugal, they awarded it near top marks for safety and acceptance of newcomers.
As a potential downside, the country operates what is known as a worldwide tax system. Under this regime, you’ll pay tax on all your income – whether earned in Spain or elsewhere.
That said, it does offer a Non-Lucrative Visa, which allows expats to live in the country without working, as long as they have sufficient means to live on.
- Monthly income to live comfortably: $2,000 to $2,500 (£1,490 to £1,860)
- Other criteria: all global income subject to tax. Non-Lucrative Visas available for those who don’t work
4. Uruguay
If you’re considering a move further afield, the experts found that Uruguay could be a safe, tolerant and tax-friendly destination.
Famed for its lack of bureaucracy, the South American country is particularly popular with retirees from North America and Europe.
Again, it operates a territorial tax system – meaning retirees won’t pay tax on their foreign pensions.
Likewise, Visa and residency processes are relatively low in cost.
Note, however, that you won’t benefit from UK State Pension uprating and the Government will freeze your payments at the level they were when you first moved abroad.
In terms of culture, the researchers scored the country highly for LGBTQ+ friendliness and social inclusion.
- Monthly income to live comfortably: $2,000 (£1,490)
- Other criteria: minimum monthly income of $1,500 (£1,120). Foreign pensions not subject to tax
- State pension warning: UK pensions frozen once you move
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5. Austria
This Western European country could be an excellent choice for retirees, although it may not be for everyone.
While it boasts excellent healthcare and public services, it has a high cost of living, alongside strict Visa and income thresholds.
Again, the country taxes worldwide income, which can bump up costs for retirees.
- Monthly income to live comfortably: $2,600 (£1,933)
- Other criteria: Active business investment of €3 million to €10 million (£2.6 million to £8.7 million). Foreign pensions subject to tax
Have your say
Have you ever dreamed of spending your golden years abroad? If so, do any of the destinations on this list catch your eye or perhaps you have somewhere else in mind?
We’d love to hear your thoughts in the comments below.