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 determines the best countries for retirees. TRAVELBOOK presents the results for 2026.
Pleasant temperatures, a beach right outside the door, relaxed people in the neighborhood–this is how many envision their own retirement. Added to this are more practical desires for an affordable standard of living, optimal healthcare, and a straightforward, positive welcome culture. The “Global Retirement Index” from the U.S. magazine “International Living” offers inspiration on where in the world retirees can live comfortably and beautifully.
Each year, it identifies the best countries to retire. The magazine surveys expatriates and correspondents on-site and analyzes data on cost of living, climate, visas, healthcare, and other important areas. In 2026, a compact list of ten worthwhile retirement destinations has emerged once again. Five of these are in Europe.
Overview
These are the Top 5 Countries for Retirement in 2026
Ten countries make 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 already considered the best for retirement in 2025 remain the same this year. Only their ranking positions have changed. For instance, 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
Also interesting: This is the European country where most German retirees move
Last year still in the lower part of the top ten, Greece now tops the Global Retirement Index. It gives the southeastern European country an overall score of 90.1 points, with the highest affinity score of 98 points. Could this be due to the lifestyle, which an expatriate describes in “International Living” as a decelerated, nature-oriented community life?
In addition to the gut feeling that positively inclines retirees to move to Greece, the European country also excels in all other categories. For instance, the Greek climate, with its approximately 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, the cost of living in Greece is considered affordable, depending on one’s 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 entirely apply to Germans, as the cost of living in the U.S. tends 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 can be rented for 800 to 1,000 euros per month, while a simple two-bedroom apartment is available for 600 to 800 euros. Those living on the mainland pay around 300 to 600 euros for a good rental apartment. The cost of living scores 88 points in the index, as do 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 still in first place, the perennial retirement paradise Panama slips to second place in 2026. The Global Retirement Index assigns the Central American country an overall score of 89.3 points–more than the 84 points from the previous year. The category of visa conditions and benefits stands out with 97 points, but note: Different conditions apply for U.S. and German citizens. However, the retirement visa makes moving there possible for Germans as well. The healthcare system is also impressive with 92 points.
Panama’s housing situation is rated 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 covering nearly all major 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 scores high in all other areas: The climate receives 89 points, development and affinity each receive 88 points, and the cost of living 82 points.
Also interesting: 9 reasons why you must visit Panama
Rank 3: Costa Rica
Remaining steady this year, Costa Rica is the third-best country for expatriates in retirement. The country receives 87.6 points (2025: 81.9 points), with the climate particularly standing out positively 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.
The cost of living is rated 74 points, with the expatriate expert explaining that it is “subjective.” She knows singles who get by on 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 in 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 is once again a European one: Portugal. The small country at the southwestern tip of the continent slips two places down but still receives 87.4 points, more than last year and 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 precarious housing situation in Portugal with only 64 points due to skyrocketing prices, but 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 mid-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 on the outskirts for around 1,200 euros.” In recent years, home prices have sometimes doubled. Those still planning to buy should note: “The mortgage must be paid off by the age of 75, and non-citizens must make a down payment of at least 20 percent.”
Despite the rising prices, she raves about the country, which has always been popular with retirees and others, and 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 is not all sunshine
Rank 5: Mexico
Mexico has slipped one place in the ranking of the best countries for retirement but remains in the top 5. At the same time, the country receives an overall score of 87.3, just 0.1 points less than Portugal, but 5.9 points more than last year. Once again, Mexico’s visa/benefits and development (each 92 points) are rated highly, as is the climate (90 points). The affinity for Mexico has recovered over the past year and stands at 83 points (2025: 77 points), although it remains Mexico’s lowest score. The housing situation is rated at 85, and the cost of living remains steady at 84 points.
The expatriate author from “International Living” raves about the low cost of living, 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 At a Glance
- 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, cost of living, 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 an overall score.
The magazine only hints at how the score is determined. Additionally, the ranking is created from a U.S. perspective. This is especially important for the visa topic, as different rules may apply for U.S. citizens compared to Europeans or German citizens. Also, regarding the healthcare system, Germans may be accustomed to a different standard than Americans.