Where to retire to as an expat: these are the top 8 countries

Considering retirement abroad but still undecided on the destination? This article offers valuable insights to help you rank and choose from the top countries for retirement.

Keep in mind that the choice of country is always driven by personal motivations, and that your circumstances before departing, including your fiscal situation, are key factors to consider during the pre-relocation phase.

So here are the best 8 countries to retire to abroad:

1. Slovakia
2. Albania
3. Italy
4. Tunisia
5. Greece
6. San Marino
7. Paraguay
8. Cyprus

 

1. Retiring to Slovakia

A country located in the center of Europe, growing economically and decidedly attractive in terms of taxation for pensions: 0% rate on gross with no time limit.

Slovakia in particular differs from other countries in that a residence permit, and therefore tax residency, can be obtained through a simple hosting agreement.

The hosting agreement is signed by the hosting property owner who undertakes, as the name suggests, to host a person at his or her home.

How much does the hosting agreement cost? €60 to €100 per month.

 

2. Retiring to Albania

Albania, and in particular some cities located on the Adriatic coast, have undergone a complete transformation in recent years, thanks to investment in the Real Estate sector and development of the local economy – notably the Tourism industry.

The average cost of living in Albania is quite low and apartments near the sea can be rented at affordable prices, with rather marked differences between coastal towns such as Vlorë and Durrës, compared with smaller, cheaper towns such as Shkodër.

As a tax resident of Albania, your pension will be tax-free (0% on gross). 

 

3. Retiring to Italy

Italy emerges as an exceptionally attractive destination for international retirement, distinguished by a compelling combination of factors that position it prominently in the European landscape of retirement opportunities. The appeal of this Mediterranean nation is rooted in multiple sophisticated dimensions:

Primary Attractions

1. Cultural and Gastronomic Heritage: The country boasts a millennial cultural legacy and a globally recognized culinary tradition, offering retirees an extraordinary experiential context of historical depth and epicurean excellence.
2. Favorable Climatic Conditions: The Mediterranean climate provides generally mild meteorological conditions, characterized by temperate winters and pleasant summers, creating an ideal environment for long-term residency.
3. Lifestyle Quality: Italian society is distinguished by an existential approach emphasizing well-being, with particular attention to interpersonal relationships and the enjoyment of daily experiences.

Administrative Considerations for Non-EU Citizens

Prospective retirees must carefully navigate several procedural and regulatory aspects:

• Visas and Residence Permits: demonstrating adequate financial resources and comprehensive health insurance coverage.
• Fiscal Incentives: The Italian regulatory framework offers targeted tax benefits for foreign pensioners electing to establish residence in specific regions, particularly in the Southern territories.

 

4. Retiring to Tunisia

Tunisia offers a warm and inviting climate, a vibrant European community in Hammamet providing an instant social network, and the opportunity to live just steps from the sea at a decidedly affordable cost.

Tunisia also offers taxation for pensions at a maximum of 5% on the gross amount.

A pleasant climate, tax incentives for retirees, and a significantly lower cost of living and rent than Europe or North America, all place Tunisia firmly among the top countries to retire to as an expat.

  

5. Retiring to Greece

Offering a distinctly high quality of life at a moderate cost of living, Greece is one of the most popular destinations among retirees seeking to move abroad.

The Greek Real Estate market offers diverse opportunities with regard to both rentals and properties for sale. However, significant price variations exist between tourist hotspots and less-visited areas, as well as between the capital, Athens, and more peripheral cities.

Foreign pension taxes: taxation is 7% for 15 years.

  

6. Retiring to San Marino

A micro-state of 23 sq mi, encompassed within the geographic territory of Italy: the Republic of San Marino is one of the best countries to move to for those who meet specific requirements, namely holding a gross pension of at least €120,000 annually or movable assets of at least €500,000.

If you meet one of these two criteria and have never previously been a tax resident of San Marino, you can submit an application which will be evaluated by the Commission. If approved, you will be granted tax residency in the State of San Marino. The number of residencies is limited, and varies from year to year based on decisions taken by the San Marino government.

The advantage of retiring to San Marino is a 6% tax rate on the gross pension. 

 

7. Retiring to Paraguay

A peaceful country that offers a relaxed and unhurried lifestyle, a warm welcome and ease of social integration, pristine natural surroundings and remarkably low living and rental costs, Paraguay stands out as one of the most appealing countries for living abroad.

It is also possible to obtain residency very quickly in Paraguay, without needing to have a lease on a house and without having to open a bank account. In addition, if you are interested in a Paraguayan passport, you will likely be able to apply and be granted one after just 3 years.

Why retire to Paraguay? To transform your life and embrace a more relaxed, easygoing lifestyle, all within a highly affordable setting, with rental prices starting at just €250–€300 per month.

 

8. Retiring to Cyprus

Cyprus is one of the largest and most comfortable islands in the Mediterranean. It offers retirement opportunities for expats combining diverse natural settings with a rich socio-cultural scene, a peaceful lifestyle, and world class tourist destinations. 

For retirees there is the possibility of applying a fixed rate of 5% above €19,500 annually and 0% below this threshold.

With a lower average cost of living compared to Europe and North America and affordable rental prices, Cyprus offers an attractive Real Estate market.

In summary, the island of Cyprus represents an excellent middle ground between more affordable but less advanced countries, and more costly nations that offer an abundance of high-level services.

 

Conclusion

Selecting the ideal country for retirement abroad requires thorough research and careful consideration of numerous factors, including economic and fiscal conditions, socio-cultural aspects, climate, and logistical convenience.

For a comprehensive understanding of the key aspects of relocation procedures and the specific features of the countries you are interested in, we highly recommend seeking advice from experienced relocation professionals before making your move. Contact us!