Uncovering Ideal Retirement Locales: Experts Unveil the Top five Low-Tax, Weather-Friendly Spots, Including a Few Unexpected Picks
In a recent report, Global Citizen Solutions has highlighted the top five countries that offer an ideal combination of low cost of living, favourable taxation, and a welcoming environment for retirees. The list, compiled based on a comprehensive assessment of 20 indicators grouped under six headings, includes Portugal, Mauritius, Spain, Uruguay, and Austria.
- Portugal - Strong across quality of life, healthcare, special tax regimes for retirees, and family inclusion, Portugal takes the top spot. The country scores well for factors such as safety, healthcare, weather, social attitudes to arrivals, and affordability.
- Mauritius - With its low cost of living, tax efficiency, warm climate, and easy integration, Mauritius ranks second. Retirees can enjoy a virtually tax-free existence if they meet the residency requirements, and the monthly cost for a retirement permit for over 50s is $1,500 (£1,120).
- Spain - Known for its excellent healthcare, affordable lifestyle, and preferential tax treatment for retirees, Spain comes in third. While the main program for retirement ended in April 2025, alternatives like the Non-Lucrative Visa are available for those wishing to relocate.
- Uruguay - Tax efficiency, low cost of living, political stability, and a welcoming expat community make Uruguay an attractive choice. Retirees need a monthly income of $2,000 (£1,490) to live comfortably in the country.
- Austria - Despite having a moderate cost of living, Austria scores high on quality of life, excellent healthcare, and robust infrastructure. However, the country has significantly higher minimum income requirements, effectively narrowing its pool of potential applicants to those with considerable financial resources.
Other countries worth mentioning include Italy, Mexico, Panama, and Costa Rica. Italy offers a flat 7% tax rate in some southern regions with good healthcare, making it attractive for retirees seeking tax benefits in Europe. Mexico is favored for its low cost of living, affordable healthcare, expat-friendly tax system, and welcoming culture. Caribbean and Central American countries like Panama and Costa Rica stand out for tax advantages, such as exemption from taxes on foreign income.
Global Citizen Solutions emphasizes that the most attractive retirement destinations are those where retirees can expect high personal safety, supportive local attitudes, and the ability to communicate and participate fully in daily life. The firm notes that countries with a lower tax rate, lower visa application costs, and achievable income requirements got higher scores in its survey.
Whether you're looking for a warm climate, a low cost of living, or a welcoming community, these top five countries offer a balanced approach to retirement living in 2025.
- Italy's southern regions offer a 7% flat tax rate, good healthcare, and attractive conditions for retirees seeking tax benefits in Europe.
- Mexico is a popular choice for retirees due to its low cost of living, affordable healthcare, expat-friendly tax system, and welcoming culture.
- Panama and Costa Rica, Caribbean and Central American countries, stand out for their tax advantages, such as exemption from taxes on foreign income.
- Beyond these top five countries, personal finance management is key. Retirees should consider factors like investing in stocks and bonds, setting up pensions, and effective wealth-management to ensure a financially secure retirement. Additionally, consider the potential impact of taxes on your retirement income, whether you're looking at education-and-self-development opportunities, deciding on a career-development path, or placing sports-betting wagers, proper budgeting and finance planning can make all the difference in your retirement lifestyle.
