December 29, 2025, 2:56 pm | Read time: 9 minutes
After many years of hard work, quite a few retirees dream of spending their golden years in a country where life is pleasant and relaxed. The “Global Retirement Index” from the U.S. magazine “International Living” annually identifies the best countries for retirees. TRAVELBOOK presents the results for 2026.
Pleasant temperatures, a beach right outside the door, relaxed neighbors—this is how many people envision their retirement. Additionally, there are more practical desires for an affordable standard of living, optimal healthcare, and a straightforward, positive welcoming culture. The “Global Retirement Index” from the U.S. magazine “International Living” offers inspiration for where in the world retirees can live comfortably and beautifully.
Each year, the index identifies the best countries to retire in by surveying expatriates and correspondents on-site. It also analyzes data on living costs, climate, visas, healthcare systems, and other important areas. In 2026, a compact list of ten worthwhile retirement destinations has emerged, five of which are in Europe.
Overview
These Are the Top 5 Countries for Retirement in 2026
Ten countries made it into “International Living’s” ranking of the best countries for retirement this year, half of which are in Europe. Those who have followed the Global Retirement Index in recent years will hardly be surprised: The countries that were considered the best for retirement in 2025 remain the same this year, only their ranking positions have changed. For example, last year’s number eight is now in first place for 2026. TRAVELBOOK presents the top five countries to retire in the coming year separately below. You can find the entire top 10 list below.
Rank 1: Greece
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Last year, Greece was in the lower part of the top ten, but this year it tops the Global Retirement Index. The southeastern European country scores a total of 90.1 points, with the highest affinity score of 98 points. Could this be due to the lifestyle that an expatriate describes in “International Living” as a decelerated, nature-oriented community life?
In addition to the gut feeling that positively encourages retirees to move to Greece, the European country excels in all other categories. For instance, the Greek climate, with around 300 sunny days a year, hot summers, and mild winters, scores a solid 89 points. The healthcare system also receives 89 points, described as “consistently good,” with low costs, readily available, relaxed, and English-speaking doctors.
Overall, living costs in Greece are considered affordable, depending on perspective. The American expatriate writes that her expenses here are only about a third of what she used to spend in Colorado. This might not be entirely accurate for Germans, as living costs in the U.S. tend to be higher than in Germany. She specifically mentions that as a couple, they need around 3,000 euros per month for all expenses; a three-bedroom house with a sea view on Corfu costs between 800 and 1,000 euros per month, while a simple two-bedroom apartment is available for 600 to 800 euros. On the mainland, a good rental apartment costs around 300 to 600 euros. Living costs receive 88 points in the index, the same as housing and development. Since Greece is part of the EU, German citizens do not need a visa to move there, so we will skip this part.
Also interesting: Greece is the most hospitable country in the world
Rank 2: Panama
Last year, Panama was in first place, but in 2026, the perennial retirement paradise slips to second place. The Global Retirement Index assigns the Central American country a total score of 89.3 points—more than the 84 points from last year. The category of visa conditions and benefits stands out with 97 points, but caution is advised: Different conditions apply to U.S. and German citizens. However, the retirement visa makes moving possible for Germans as well. The healthcare system is also impressive with 92 points.
Panama’s housing situation is rated with 89 points in this year’s Global Retirement Index. The expatriate author explains: “Foreigners who purchase property here are practically granted the same ownership rights as citizens.” Panama is described as a “stable, well-governed country with many solid, registered homes.” Both the property tax, sometimes as low as 0.5 percent, and the value-added tax, only 7 percent on most non-essential goods and 10 percent on luxury items, are low. According to the expatriate, there are financial advantages for retirees: “Retirees receive incredible discounts: special, government-mandated discounts that cover almost all important areas of life (…): 25 percent off your electricity bill, 50 percent off movie and theater tickets, 20 percent off doctor visits, and much more.” The requirement: a personal pension of at least 1,000 U.S. dollars per month or 1,250 U.S. dollars for couples.
The second-best country for retirees also scored high in all other areas: The climate received 89 points, development and affinity received 88 points, and living costs received 82 points.
Also interesting: 9 reasons why you must visit Panama
Rank 3: Costa Rica
Costa Rica remains the third-best country for expatriates in retirement this year. The country scores 87.6 points (2025: 81.9 points), with the climate particularly standing out with 97 points. The healthcare system in Costa Rica has improved compared to the previous year, scoring 91 instead of 89 points. However, the country drops seven points in the visa/benefits category to 87.
Living costs are rated at 74 points, with the expatriate expert explaining that they are “subjective.” She knows singles who manage with 1,500 euros as well as couples who spend 4,000 euros. The author summarizes in “International Living”: “The monthly expenses of this couple in Sámara give a good impression of what is possible once you have settled in: 50 U.S. dollars property tax, 400 U.S. dollars for groceries, 250 U.S. dollars for leisure activities and dining out, 100 U.S. dollars for transportation, 80 U.S. dollars for public healthcare, 275 U.S. dollars for electricity, 18 U.S. dollars for water, 80 U.S. dollars for internet, 48 U.S. dollars for two phones, and another 205 U.S. dollars for cleaning, gardening, and pool maintenance. They are homeowners and spend a total of about 1,593 U.S. dollars per month.”
Besides the manageable costs, settling in is not too complicated, but it can take up to 18 months. According to the magazine, retirees with an income of 1,000 U.S. dollars per month can apply for the retirement program (Pensionado). However, retirees must deposit 60,000 U.S. dollars and transfer 2,500 U.S. dollars monthly for two years.
Costa Rica is considered safe, stable, and stress-free and has no military. The Central American country, sometimes referred to as the “Switzerland of Central America,” is internationally recognized for its environmental commitment and boasts pristine beaches and lush flora and fauna. A quarter of Costa Rica consists of national parks and nature reserves. The country’s unofficial motto is “Pura vida,” which means “pure life.”
Also interesting: Why you must visit this place in Costa Rica
Rank 4: Portugal
The fourth-best country to retire in is once again a European one: Portugal. The small country at the southwestern tip of the continent drops two places but still scores 87.4 points, almost as many as Costa Rica. According to the index, Portugal’s strengths continue to lie particularly in development and governance (94 points), climate (93 points), and affinity rating (92 points).
Last year, the index highlighted the housing situation in Portugal with only 64 points, showing how critical it is due to skyrocketing prices. For the coming year, the index reflects this issue much less: The country receives 83 points in the housing category, placing it in the good middle range of the top 10. The author residing in Portugal writes: “A one-bedroom apartment outside Lisbon currently costs about 1,500 euros per month. Rents in Porto are comparable, with two-bedroom apartments still available for around 1,200 euros on the outskirts.” In recent years, home prices have sometimes doubled. If you still plan to buy, keep the following in mind: “The mortgage must be paid off by age 75, and non-citizens must make a down payment of at least 20 percent.”
Despite the rising prices, she praises the country, which has always been popular with retirees and others, for its advantages. She summarizes: “For retirees seeking culture, safety, accessible healthcare, manageable costs, and diverse landscapes, Portugal offers a quality of life that is unmatched.” By the way, Portugal is the only one of the ten countries mentioned here that is among the ten most peaceful countries in the world (TRAVELBOOK reported).
Also interesting: Why wintering in Portugal has its downsides
Rank 5: Mexico
Mexico has slipped one place in the ranking of the best countries for retirement but remains in the top 5. The country receives a total score of 87.3, just 0.1 points less than Portugal, but 5.9 points more than last year. In Mexico, visa/benefits and development are again rated highly (92 points each), as is the climate (90 points). Affinity for Mexico has recovered over the past year and stands at 83 points (2025: 77 points), still Mexico’s lowest score. The housing situation is rated at 85, and living costs remain at 84 points.
The expatriate author from “International Living” praises the low living costs, professional and fast medical care, and the friendly and open culture. She explains: “With its healthier lifestyle, vibrant culture, affordable healthcare, and large expat community, Mexico will always remain one of the best places to live.”
Also interesting: How safe is traveling to Mexico currently?
This Is the Best Country in the World for Expats
This European country offers the best quality of life worldwide
The 10 Best Countries to Retire in Overview
- Rank: Greece (90.1 points)
- Rank: Panama (89.3 points)
- Rank: Costa Rica (87.6 points)
- Rank: Portugal (87.4 points)
- Rank: Mexico (87.3 points)
- Rank: Italy (85.3 points)
- Rank: France (84.4 points)
- Rank: Spain (83.7 points)
- Rank: Thailand (80 points)
- Rank: Malaysia (79.3 points)
About the Ranking Methodology
This year’s “Global Retirement Index” from “International Living” is based on seven categories: housing, living costs, visas and benefits, affinity (the emotional reasons or gut feeling that speaks for a country), climate, development and governance, and healthcare system. Each category is rated with points, resulting in a total score.
The magazine only hints at how the score is determined. Additionally, the ranking is created from a U.S. perspective. This is particularly important for the visa topic, as different rules apply to U.S. citizens compared to Europeans or German citizens. Regarding the healthcare system, Germans may be accustomed to a different standard than Americans.