Where to Retire Abroad in 2025

Retirement opens the door to a new chapter of life—one where travel and adventure are no longer limited to a few weeks a year. With the cost of living rising and healthcare expenses continuing to climb, retiring abroad has become an increasingly attractive option.  

Retiring abroad embraces a new lifestyle, one that offers affordability without sacrificing quality. Whether it’s waking up to ocean views, enjoying world-class healthcare at a fraction of U.S. prices, or immersing yourself in a culture that values relaxation and community, the right destination can make all the difference. 

For retirees considering an extended stay or even a permanent move, Panama, Portugal, and Costa Rica are three of the best international destinations. 

Panama

If you’re looking for a retirement destination that offers modern infrastructure, warm weather year-round, and easy access back to the U.S., Panama is an excellent choice. According to International Living, Panama is the best destination of 2025 to retire in. 

Panama’s Pensionado Visa is one of the best retirement visa programs in the world. To qualify, you need to show proof of a minimum monthly pension income of $1,000 which can reduce to $750 per month if you purchase a house in Panama that is valued at a minimum of $100,000 USD. Once approved, the program grants immediate permanent residency.  

In most areas, you can live comfortably on $2,500-$3,000 per month, including rent, groceries, and healthcare. The country has a mix of modern city living and relaxed beach and mountain towns. If you prefer a more urban setting, Panama City offers world-class restaurants, shopping, and hospitals with U.S.-trained doctors. If you’re looking for a quieter lifestyle, Boquete, a safe and charming highland town that is home to one of the largest American retiree communities alongside the locals. For those who want to retire by the beach, Coronado provides the perfect upscale coastal lifestyle that is affordable. 

While the official language of Panama is Spanish, English is widely spoken as well. 

Portugal

If you’ve always dreamed of a European retirement, Portugal should be at the top of your list. This country offers everything you could look for, from beautiful architecture to sun-kissed beaches. The warm climate, relaxed pace of life, and friendly locals make it an ideal destination for retirees.  

Portugal’s D7 Visa, also known as the Passive Income Visa, is a great option if you are looking to relocate. To qualify, you need to show proof of a stable income of at least €870 (under $1000 USD) per month. Once you have residency, you’ll gain access to Portugal’s highly rated public healthcare system which costs a fraction of U.S. medical expenses. You can also opt for private healthcare, which remains relatively affordable and offers shorter wait times. 

A few key benefits of the D7 Visa are that you get visa-free entry to the Schengen area, you can work, and you can apply for permanent residency or citizenship after 5 years. 

The Algarve, with its stunning coastlines and mild climate, is one of the most popular regions for retirees, offering beautiful ocean views, golf courses, and a large English-speaking community. If you prefer a more cultural and city-focused lifestyle, Lisbon offers a mix of history, fantastic food, and easy access to the rest of Europe. 

Related: Why Cash Is Still King When Traveling Abroad

Costa Rica

If you dream of waking up to the sound of tropical birds, spending your mornings strolling along the beaches, and ending the day with fresh, locally grown food, Costa Rica might be your perfect retirement destination. Known for its Pura Vida lifestyle, this country offers a relaxed pace of life alongside stunning natural beauty and a low cost of living. 

Costa Rica’s Pensionado Visa is one of the easiest for retirees to obtain. You need a minimum monthly income of $1,000 and once approved, the visa grants residency rights, access to Costa Rica’s public healthcare system, and discounts on essential services. Many retirees choose to buy private insurance as it is quite affordable compared to the United States. While this visa does not permit employment, you are allowed to work remotely from Costa Rica. 

Unlike the seasonal chill of the U.S., Costa Rica offers year-round warmth, with two main climates to choose from: the cooler, spring-like weather of the Central Valley and the sun-drenched beach lifestyle of the Pacific and Caribbean coasts. If you love the idea of lush greenery, fresh air, and a climate that allows for outdoor living every day of the year, then consider settling down in places like Atenas, known for having one of the best climates in the world, or Tamarindo, a lively beach town with a mix of expats and locals. If you prefer a more off-the-grid experience, areas like Puerto Viejo offer a relaxed lifestyle where nature is your closest neighbor.  

Imagine spending your days exploring waterfalls, practicing yoga by the ocean, and enjoying the sunset with a fresh plate of ceviche, that’s Costa Rica. 

Smart Currency Tips for Retiring Abroad

Here are key tips to avoid unnecessary fees and get the best value when living or traveling abroad:

• Exchange Before You Go: Arriving with local cash ensures you can pay for essentials like taxis, tips, and small purchases right away.

• Always Have Local Cash on Hand: Many restaurants, markets, and transportation services in these countries still operate on cash, especially in smaller towns and beachside communities.

Make sure to order foreign currency before you leave for a stress-free journey!

ORDER FOREIGN CURRENCY

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