Greece's Thessaloniki in the Aegean Sea is one of 96 countries Forbes recommends resigning overseas.
Istock/Getty Images
Having endured Baltimore, Larry Swift already lived abroad and worked as a security contractor in Saudi Arabia. At age 59, he moved with his partner to Thessaloniki, Greece's second largest city, 300 miles north of Athens. He knew the city well from his visits when he was a contract worker with the US Department of State in northern Macedonia. The rent for his large three-bedroom apartment is almost $4,000 a month, but he finds it easy to manage the overall cost of living with views of the Aegean Sea, allowing him to get rid of his car. Plus, he says, “The food is amazing.”
Swift's story has a twist. He has been in the US military for 30 years and is rather obsessed with his work. “I have a hard time going for a cold turkey,” he admits. So he is in Greece on a two-year “digital nomad” visa. This permit could lead to a visa for financially independent individuals used by many foreign retirees in Greece.
Swift fits well with the US growth patterns of “retireers” who have not completely retired. He also carefully considered all angles. This is a good model for those planning to retire to a foreign location.
One place to start is Forbes list of the best places to retire abroad in 2025. It has won 96 recommended spots recommended in 24 countries, four continents and several islands. The country's descriptions include the types of practical information that we consider when making our choices. These include relative living expenses, medical costs and quality, taxes, the risks of natural disasters and climate change, the difficulty of obtaining long-term permission to live there, the connection to travel to the US, and how well you can do without becoming fluent in your native language. (Some of the sources available are quoted at the bottom of this article.)
None of our country's choices have a higher cost of living than the US average. Many people are dramatically less, including Albania, Argentina, Belize, Colombia, Dominican Republic, Indonesia, Marisia, Mexico, Montenegro, Slovenia, Thailand, and more. Even countries similar to the US, such as France and Austria, can save money by leaving the massive, glamorous cities. Just like in the US, there are beautiful areas with low cost.
Big reasons for foreign economic advantages: For most of the countries on our list, quality healthcare and health insurance is available at costs well below US price levels. Some countries, including Italy and Spain, even allow foreigners to participate in national health care at some point under certain circumstances. US Medicare cannot be used overseas. However, enough retirees can benefit from easily driving or flying from some countries on our list, such as Belize, Canada, Costa Rica, Mexico, Panama, and more. And, as Larry Swift learned, the Tricare Health Care program is being reported overseas for the retired US military.
Deny yourself right now the possibility of saving money at foreign tax shelters. Unlike most other countries, the US taxes citizens on income wherever they live, so there is no break there. Foreign countries often have high marginal tax rates and have their own taxes. But everything is not lost. Under US tax laws, US filers can receive a foreign tax credit on US taxes for certain tax payments made to other countries. The United States also has tax treaties with two-thirds of the countries listed, and these treaties provide some degree of protection against double taxation, i.e. taxation of the same income by both the United States and the country of residence. (The Internal Revenue Service website, IRS.GOV provides some guidance and a list of tax treaties.) If US retirees like Larry Swift are permitted and earned income, US foreign earning income exemptions protect up to $130,000 from US tax under certain circumstances.
Some countries on our list, such as Belize, Costa Rica, the Dominican Republic, Malaysia, Panama, and more, do not tax foreign income of foreign retirees. Several others, including Argentina, France and Thailand, do not tax pension or social security payments. Spain and Italy do not tax foreign pensions if they make money from government services. Our advice: Use a competent tax professional and prepare to pay more for tax preparation. This is not a do-it-yourself situation. Also, if you have an account with a foreign institution, don't forget to submit your Foreign Bank Account Report (FBAR) to the US Treasury. If the file fails, there will be severe penalties.
Clearly, the big problem is what you need as an American retiree to acquire the right to live in a foreign country. The assessments used to edit the list are based on existing laws and customs. However, it should be noted that this could change in an age when current US government policies make it difficult for foreigners to move here, or, in some cases, simply making it difficult for visitors to visit. The same official policies that motivate some Americans to retire abroad can also get in the way.
Still, most countries on the outlist allow US retirees to settle there, among other things, by showing appropriate income resources. These include pensions, social security, retirement accounts, or documentable net assets. The reason is simple. Other countries do not want Americans to do local jobs, do local jobs, or request support for local resources. But these countries are accepting retirees who bring money from the US. A reasonable income ranges from a minimum of $12,600 per year for two people in Cyprus to a significant $110,000 per year for couples who want to stay in the Republic of Ireland. In some countries, family connections such as grandparents born there are a great help. It can work in Ireland.
Despite the Canada freeze, we have put Canada on the list with our Canadian neighbors, but it is extremely difficult for American retirees who do not live in Canada to move there. Currently, Canada allows American tourists to stay for six months a year, increasing the likelihood of simply splitting retirement times between the US and Canada.
Each country has very different procedures that need to be followed. In many cases, documents must be translated into the official language of the country. Some countries require applications to submit to the country's US embassy or nearest consulate first, whereas others require that the retiree only submit documents after arriving in the country on a tourist visa. The national US Embassy websites often have useful information that explains these details. Many foreigners hold lawyers or experts to handle the process. An initial permit to stay beyond a tourist visa is generally permitted for a limited period of, say, one or two years, the possibility of renewal, and ultimately something close to permanent residency.
The best way to check out your future home is to stay as long as possible using a tourist visa. Most countries allow at least three months. In many cases, you can rent an apartment with a short-term lease. That could lead to long-term rentals as most Americans who have retired abroad will rent rather than buy. In most countries on this list, foreign property ownership is legal, but the purchasing process can present all kinds of complications and costs. Spain quotes, but for one example, there is a housing shortage and is currently considering collecting 100% tax on foreign buyers of real estate. There is also a problem with fraudulent land sales to Americans in certain countries, including Belize and Mexico.
Foreigners retiring abroad generally must provide evidence of medical insurance. This is smart even without a mission. Coverage can be identified from sources such as the Expat Association and Medibroker. Reflecting the low cost of healthcare abroad, fees are generally reasonable, but finding coverage for existing conditions can take some time.
Important warning: Even if you leave overseas, register with Medicare Part A when you turn 65 (unless you are still at work and have insurance through your job). Part A covers hospital care in the US and is free. You will also pay Medicare Part B's premiums, which covers doctors and other outpatient services. (The 2025 Part B Premium starts at $185.00, but it becomes much more steep when the revised adjusted gross income is over $106,000 per person or more than $212,000 for a couple.) Why keep paying for Medicare? You might one day return to the US. If you reject Medicare Part B now and then return, you could be hit with an extended penalty equal to 10% of your annual registration penalty you were paying premiums.
Intensive research is essential to any movement, and thanks to the internet and social media, it has never been easier. In almost every country you may be interested in, multiple groups on platforms like Facebook are dedicated to foreign residents, retirements and daily life. Most are public groups, but if you are private, please ask them to join. Newcomers will post questions and get answers to the most core questions. As mentioned before, actual visits are highly recommended.
Gay couples Jeff Hammerberg and Merlin Parker, who married in Austin, Texas, are ready to retire for years after working in real estate, and have slammed a wide net as they investigated many foreign countries after deciding to retire domestically for some political reasons. They considered the Southeast Asian country of Vietnam and the South American country of Uruguay, but refused. “In the end, commuting back to the US to visit family and friends was a contract killer.” Europe beckoned, and Portugal quickly caught interest by a mix of relative affordability, attractive culture and travel convenience. They visited in 2023 and 2024. In March I moved to a rental apartment in the capital of Lisbon.
From Saudi Arabia, Thessaloniki, Greece and Larry Swift considered other European venues. He was particularly interested in Prague, the lovely capital of the Czech Republic. “To remove Prague from my list is that getting a visa is difficult,” he says.
Looking for more country-specific information? Some of the sources we used in our research are: There are comparative cost data and serious crime rates from numbero.com worldwide. Assessment of natural disasters and climate change risks is drawn from the United Nations World Risk Report. Tax processing and treaty information is from various countries, tax experts and the U.S. Internal Revenue Service websites. I used Google Flight to assess the convenience of returning flights to the US
Forbe details
