Best Places to Retire in the World: 2026 Rankings and Costs

The best places to retire in the world look different in 2026 than they did two years ago. Rankings have shifted. Greece climbed to the top of the global retirement index for the first time in 35 years. Portugal’s visa rules changed in ways that redirected demand across Southern Europe. And the number of Americans planning to retire abroad hit levels polling hasn’t captured before.

This guide covers what changed and where the rankings stand, what destinations cost in real terms, and six under-the-radar spots that are worth a close look.

More Americans Are Retiring Abroad Than Ever Before

In 2025, the U.S. recorded net negative migration for the first time since the Great Depression, according to the Wall Street Journal. A 2025 Harris Poll found that 44% of U.S. adults have seriously considered retiring abroad. Some 14 percent are planning to do so within two years.

The motivations are consistent across surveys: lower cost of living, better healthcare value, and the ability to retire earlier than the same savings would allow at home. Stretch $800,000 in rural Portugal instead of suburban California and the retirement math changes in meaningful ways.

How the Best Places to Retire in the World Are Determined

Two organizations produce the most-cited global retirement indexes each year.

International Living scores countries on healthcare, cost of living, climate, infrastructure, visa access, and real-world expat experience. Their 2026 Global Retirement Index placed Greece at #1 for the first time in the index’s 35-year history. The full 2026 rankings are available at internationalliving.com.

Live and Invest Overseas rates 12 categories: climate, cost of living, English spoken, entertainment, environmental quality, expat community size, healthcare, infrastructure, real estate, residency options, safety, and taxes.

Both indexes draw on in-country reporting. Use them as a starting point. Then verify visa requirements and current healthcare specifics with government sources before making any decisions.

Greece Is the #1 Place to Retire in the World for 2026

International Living’s 2026 Global Retirement Index ranked Greece first. It’s the country’s first #1 ranking in the history of the index, up from 7th place the year before. Greece scored 90.1, with marks for affordable private healthcare, a Mediterranean cost of living, accessible visa options, and climate.

Housing in Greece can run 60 to 75% less than comparable U.S. properties. A couple can live well across much of the country for €1,800 to €2,500 per month.

The Golden Visa program remains open through real estate investment. Standard residential purchases start at €400,000 across most of Greece. In high-demand areas — Athens, Thessaloniki, Mykonos, Santorini, and islands with populations above 3,100 — the threshold is €800,000. The €250,000 entry point applies only to conversion of commercial properties into residential use, or restoration of listed heritage buildings.

Portugal Remains Popular, but Its Rules Have Changed

Over 20,000 U.S. citizens already live in Portugal. The country offers a range of terrain, a strong healthcare system, and an established expat community in Lisbon, Porto, and the Algarve.

Two things have changed in recent years. The real estate pathway was removed from Portugal’s Golden Visa program. And Portugal extended its citizenship residency requirement from five to 10 years, signed into law in May 2026. Those shifts have sent retirees toward Spain, Italy, and Greece instead.

The D7 Passive Income Visa remains open to retirees who can show sufficient monthly income. Braga, in Portugal’s northwest, is also worth a close look. It runs 25 to 30% cheaper than Lisbon, with two-bedroom apartments from €150,000.

Learn more about current visa pathways at Expatica’s Portugal retirement guide.

Italy’s Flat 7% Tax Rate Is Attracting American Retirees

Qualifying small towns in southern Italy, those with fewer than 30,000 residents, allow retirees to pay a flat 7% annual tax rate on all foreign-sourced income. That covers Social Security, pensions, and investment income. The benefit runs for up to ten years. Applying requires registering with Italy’s tax authority, the Agenzia delle Entrate, and meeting residency requirements.

About 15,465 American Social Security recipients already live in Italy. According to Get Golden Visa, Golden Visa applications from Americans jumped 27% in Q1 2026. Italy is now the fourth most sought-after European retirement destination for U.S. citizens.

The Abruzzo coast offers sea-view rentals from €800 a month. That’s 50 to 60% below comparable Tuscany prices. The €1 Sicilian homes that made headlines a few years back are real, but each one carries substantial renovation costs before it’s livable.

Spain Is Where Portugal Demand Is Going

Retirees who planned on Portugal are landing in Spain instead. Popular destinations for American expats include Málaga, Alicante, Valencia, and Barcelona. Each has a different cost profile.

Spain’s Non-Lucrative Visa is the standard retiree pathway. It requires proof of passive income, around €2,160 per month for a single applicant, plus private health insurance. The application goes through a Spanish consulate in the U.S. A couple can live in most Spanish cities for $2,500 to $3,500 a month. Coastal resort towns sit at the top of that range. Inland cities run lower.

Mexico Is the Closest and Cheapest Option for Most Americans

More Americans retire in Mexico than anywhere else outside the U.S. Proximity matters. So does the healthcare access in major expat hubs and the well-established Temporary Resident Visa process.

That visa requires proof of income, around $1,620 per month. It converts to Permanent Residency after four years. Popular destinations include San Miguel de Allende, Puerto Vallarta, Mérida, and Lake Chapala.

A couple can live well in most Mexican cities for $1,500 to $2,500 a month. Private specialists run $30 to $60 per visit without insurance.

Learn more at Mexperience’s guide to retiring in Mexico.

Panama Offers Retiree-Specific Benefits No Other Country Matches

Panama’s Pensionado visa was built for retirees. It requires $1,000 per month in pension or retirement income, one of the lowest income thresholds of any formal retirement visa program in the world.

The benefits are legally mandated: 20 to 50% discounts on hotel stays, airlines, restaurants, healthcare, and entertainment. These are permanent statutory benefits, not promotional offers. Panama City has modern infrastructure, English is common in business settings, and the country uses the U.S. dollar. A couple can retire there for $2,000 to $2,500 per month.

Learn more from International Living’s Panama guide.

Ecuador, Costa Rica, and Peru: Latin America’s Other Strong Contenders

Ecuador is one of the most affordable options in the region. It uses the U.S. dollar, offers a range of climates depending on elevation, and has a healthcare system that ranks well in Latin America. Budget around $1,500 to $2,000 per month as a couple. U.S. News has a detailed guide to retiring in Ecuador.

Costa Rica costs more, closer to $2,500 to $3,000 per month for a couple, but delivers strong quality of life, a stable democracy, and an established expat network. The infrastructure is solid.

Peru is the most affordable of the three. Both Cusco and Lima attract retirees. A couple can live on $1,000 to $1,500 per month.

Southeast Asia: Vietnam, Thailand, and the Philippines for Adventurous Retirees

Southeast Asia offers some of the lowest costs available to retirees anywhere. Vietnam and the Philippines use U.S. dollars in many daily transactions. Expect $1,000 to $1,500 per month as a couple in most cities.

Bangkok and Chiang Mai have Thailand’s strongest healthcare infrastructure, and the country has a long-established expat community. The Non-Immigrant O-A retirement visa is the standard pathway.

Visa rules in this region are more complex than in Europe or Latin America. Most countries don’t have a direct retirement visa. Verify current requirements with a local immigration attorney before committing to anything.

Hidden Gems: Six Destinations Gaining Ground in 2026

The six destinations below offer an optimal balance of affordable living costs and good quality of life, backed by verified pathways to residency. They don’t top the major indexes, but each has something concrete to offer retirees in 2026.

Destination	Monthly Cost (couple)	Why It’s Worth Watching
Braga, Portugal	€1,500–€2,100	25–30% cheaper than Lisbon. Legally accessible via the D7 Visa, requiring a verified, recurring passive income of at least €920/month for the main applicant (+50% for a spouse, totaling €1,380/month for a couple).
Abruzzo coast, Italy	€1,400–€1,900	50–60% cheaper than Tuscany. Accessible via the Elective Residence Visa (~€38,000/year passive income for a couple). Moving to towns with fewer than 30,000 residents (raised from 20,000 via Law 34/2026 on April 7, 2026) unlocks a 7% flat tax on all foreign-source income for up to 10 years.
Galicia (Vigo/Ourense), Spain	€1,600–€2,200	Real estate is up to 40% cheaper than Madrid. Accessible via the Non-Lucrative Visa (NLV), requiring a guaranteed €28,800/year for the main applicant and €7,200 for a spouse. Note: Consulates heavily favor applicants who also show significant lump-sum savings buffers.
Chitré / Las Tablas, Panama	$1,400–$1,900	Safe, low-cost coastal lifestyle. Accessible via the Pensionado Visa, requiring a lifetime pension of $1,000/month (+$250 for a spouse) and granting massive senior discounts. Note: The income threshold drops to $750/month if you purchase local real estate worth $100k+.
Chania (Crete), Greece	€1,500–€2,100	Affordable Mediterranean living. Accessible via the Financially Independent Person (FIP) Visa, requiring €3,500/month net for a single applicant (+20% for a spouse). Once residency is granted, retirees can separately elect a 7% flat tax on foreign pensions for a €500 annual fee.
Pereira, Colombia	€1,300–€1,800	The crown jewel of the Coffee Axis. Highly accessible via the M-11 Pensioner Visa, which requires a guaranteed lifetime pension of 3× the minimum wage (fixed at COP 5,252,715/month for 2026, or roughly ~€1,265 or $1,400 USD/month).