Looking for a New Country to Retire in?
Category: International Retirement
November 13, 2024 — Perhaps the adventure—or maybe the lower cost of living—has made you dream of retiring abroad. Or, maybe the contentious nature of American politics has you considering a change of country. Regardless of your reasons, there are many appealing options for dual citizenship or permanent residency. This article explores some intriguing countries to consider for retirement, including links to mini-retirement guides for specific destinations where available. At the end we will outline the pros and cons of retiring abroad.
Dual Citizenship: A Top Option for Retirees
Dual citizenship is often the most attractive option for retirees moving abroad, as it provides more rights and fewer restrictions than residency permits. Many countries offer residency to foreigners, but they usually impose additional financial or in-country residency requirements.
Citizenship by Descent
Several countries offer citizenship to individuals who can prove descent from a native ancestor. For example, if you can prove you have an Irish grandparent, you may qualify for citizenship in Ireland. Italy‘s program is even more generous—there’s no generational limit on ancestry, as long as the descendant was born when their parent held Italian citizenship.
Spain allows citizenship for individuals with a Spanish grandparent after a year of residence, and Hungary offers citizenship to those with a Hungarian grandparent without a language requirement. However, for those with political motivations, Hungary may not be an ideal choice due to current governance.
Germany offers a unique program for descendants of those who lost German citizenship due to persecution between 1933 and 1945. Lithuania also grants dual citizenship to descendants of citizens who left before 1990.
Note: All citizenship-by-descent programs require detailed applications and solid documentation of lineage. See Citizenship by Descent.
Residency as an EU Citizen
Citizens of the European Economic Union (EEU) generally have the freedom to live and work in any EU country. Since Brexit, however, British citizens no longer have automatic rights to EU residency, although they can apply for visas or residency permits in EU countries.
Golden Visas: Residency Through Investment
Several countries offer “Golden Visas” for investors, including retirees. These programs typically grant residency to individuals who make significant financial investments, such as buying real estate or investing in a business. However, some of the most popular countries with these programs—like Spain, Portugal, and Greece—have increased the requirements for these visas due to concerns over real estate market disruptions.
While the number of Golden Visa programs is shrinking, a few countries still offer them. Malta, Greece, Cyprus, and Italy are attractive options due to their ambiance and stability. If you want to retire in Ireland you may apply for residency if you prove you have sufficient income, €50,000 per year, plus other money equal to buying a residence (see https://www.irishimmigration.ie/coming-to-live-in-ireland/i-want-to-retire-to-ireland/). Other countries with investment-based residency options include Australia, Austria, Canada, Luxembourg, Malaysia, Monaco, Namibia, New Zealand, Panama, Singapore, and Thailand. Investment requirements vary by country, from purchasing real estate above a set value to making other financial investments.
Countries like Bulgaria, Cyprus, Malta, and the Czech Republic are also relatively accessible for retirees. France, for example, offers residency to those meeting specific financial criteria and who own or rent property. Individuals over 60 are exempt from strict French language proficiency requirements.
Retiring in Latin America
Many of the easiest countries for U.S. retirees to settle in are located south of the U.S. border. Often, the main requirement is proving sufficient income. Top destinations include Mexico and Costa Rica. Panama is especially popular among American retirees due to its straightforward immigration process, stable government, and use of the U.S. dollar.
Canada
Canada experiences spikes in immigration inquiries during U.S. elections, as many Americans consider moving north. While it is possible for U.S. citizens to gain Canadian residency, it often requires a significant financial investment—around 1.2 million Canadian dollars (approximately $800,000 USD).
Pros and Cons of an International Retirement
As with any major decision, retiring abroad has its benefits and drawbacks. This choice requires careful thought, planning, and self-assessment.
Reasons to Consider an Expatriate Retirement:
- You enjoy living in diverse environments and exploring new cultures.
- You speak—or are willing to learn—a foreign language.
- You have experience living abroad, not just vacationing there.
- You need to stretch your retirement dollars.
- You have a high tolerance for managing logistical challenges.
Reasons Against an Expatriate Retirement:
- Saving money is the primary motivation for moving abroad.
- You need to stay close to family and friends.
- You have specific medical needs requiring specialized care or easy access.
- You’re not particularly interested in foreign languages or cultures.
Bottom Line
If retiring outside the U.S. appeals to you, there are numerous countries worth exploring, including many not mentioned in this article. However, it’s essential to carefully research the residency paths and understand that many may require substantial investments. Requirements change frequently so it is important to check with official country websites and/or a knowledgeable attorney. Before you make a major move, spend some time in the country you are considering (most allow for 3 month residency).
Comments? Are you considering retirement abroad? Please let us know your reasons and where you might be considering in the Comments section below.
For further reading:
Best Affordable Places to Retire in Europe
Spain and Portugal Pull Their Golden Visa Program
The Pros, Cons, and Considerations of an International Retirement (with many Comments)
Comments on "Looking for a New Country to Retire in?"
Admin says:
One country we didn't mention is Finland - the world's "Happiest Country".
Jack says:
TERRITORIAL INCOME TAX countries like Panama and Costa Rica are popular for American Expats because these countries don’t tax your US investments back home, at least for now. The problem is there aren’t too many TERRITORIAL type countries to choose from. Most Euro countries have tax Treaties with the U.S. but the IRS has a lot of leeway on how to impose these so called treaties on expats so it’s still possible you could still be DOUBLE TAXED. After all, most governments are rapacious and need the tax money.
Admin says:
I am tempted about the idea of living in a country like France, Italy or Ireland for part of the year, and the rest traveling and in the U.S. Would be nice to get out of this sordid political environment for part of the year. Looks like living just about anywhere for 3 months is easily achievable, and with enough money we could retire to most countries. Part of what holds us back is family and friends - not seeing former and having to make new of the latter. In the end, I guess my spirit of adventure isn't high enough.
Rufus says:
I find it very interesting that millions of people from all over the world are willing to walk hundreds if not thousands of miles to get to the USA while some who've been born and raised and lived here all their lives are wishing they could leave. If the former can afford to come the way they are coming surely you can afford to leave. ...(Political comment deleted)
Admin says:
Interesting CNN article on how retiring abroad can relieve some of the micro stressors of everyday life. In addition to affordable healthcare , not having to tip for everything, lower cost of living, and better bread.
Admin says:
Forbes just put an interesting piece about the 5 easiest ways to gain residency in Panama, which can be an excellent choice for expat retirement. It starts with the retirement visa - if you are retired and on Social Security or some other pension, you qualify! See 5 Ways to Residency in Panama
LS says:
Link is broken.
Editors comment: Thanks LS, now corrected. https://www.forbes.com/sites/kathleenpeddicord/2024/10/31/5-of-panamas-best-residency-options-for-expats/