For many, retirement is exciting. The time has come when you’re free to do as you please, which for most people, includes traveling regularly. But a growing number of retirees are taking this even further, and opting to retire outside the country altogether. While there are both pros and cons of retiring abroad, it can be one of the greatest adventures of your life.
But with so many appealing travel destinations, how do you decide on where to pack up and move to? A study from International Living can help — it looks at the best countries to retire in 2024, according to the Annual Global Retirement Index. The index focused on "established expat hubs with a track record for comfortable living" and used several factors to determine which were the best places to retire.
- Housing: Considered the price of housing, property taxes and value you’d receive as a homeowner, along with the ease of buying and owning property as a foreigner. Also considered rental values and renters’ rights.
- Visas and benefits: Considered availability, ease of use, length and how fast/simple it is to obtain a tourist visa. Also considered various retiree options and benefits.
- Cost of living: Considered contributor answers to an extensive cost-of-living questionnaire, tailored to the needs and wants of an expat retiree.
- Affinity rating: For this section, experts and readers ranked the destinations according to whether they’d be happy to move there, judged on factors such as the variety of restaurants and ability to have a vibrant social life abroad.
- Healthcare: Healthcare is assessed on both quality and cost.
- Development and governance: Considered the political environment, quality of infrastructure, banking systems, etc.
- Climate: Since everyone has a different preference when it comes to climate, destinations were scored based on how many different climate options were offered.
IL also used first-hand information from trusted sources who actually live in these locations. "We have our people out there pounding the pavement in attractive overseas communities we know you should consider," reports International Living. "They’re reporting back to us with insights and information about what’s really going on...they work for you."
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Best countries to retire in 2024
So, which destinations came out on top? Here are the top 10 countries to retire in 2024.
- 1. Costa Rica
- 2. Portugal
- 3. Mexico
- 4. Panama
- 5. Spain
- 6. Ecuador
- 7. Greece
- 8. Malaysia
- 9. France
- 10. Colombia
What makes Costa Rica the best place to retire in 2024?
Costa Rica was found to have an affordable cost of living, diverse microclimates, and of course, an abundance of natural beauty. Plus, Costa Rica is home to a Blue Zone, which has one of the healthiest, longest-living populations in the world. The country also has an excellent healthcare system, one of the best in Latin America. Costa Rica is "known for providing quality, and affordable, healthcare for its citizens," according to the International Trade Administration.
Not to mention, Costa Rica has also extended its tourist visas from 90 to 180 days, or approximately six months, in order to give tourists ample time to experience all the country has to offer, before deciding to become a permanent resident. And it's not only attractive to retirees. Costa Rica offers a digital nomad program that allows foreign remote workers to live in the country for a whole year.
Portugal, Mexico and Costa Rica also made our list of the cheapest countries to visit and Colombia and Mexico made our list of best places to visit where the dollar is strong. Keep in mind that while low costs may be a tempting reason to retire somewhere, long term, the dollar may go up in value in those countries.
Best places to live in Costa Rica
International Living also found the five best expat cities in Costa Rica, based on overall safety, nearby healthcare clinics, pharmacies, banks, restaurants and activities, as well as a regional or major airport less than an hour’s drive away.
- Rohrmoser, Pavas, San José: More than one-third of Costa Rica’s population lives within the GAM (greater metropolitan area) of the capital San José. The city is broken into neighborhoods, and IL recommends Rohrmoser in particular, thanks to its year-round temperate weather, nearby amenities and affordable housing prices.
- Playa Flamingo: Located in the northwest corner of the country, Play Flaminga is the best place for those who love the sunshine. According to International Living, it's consistently warm to hot and rarely gets below 78 F at the coldest. But if you want the beach life, you'll have to pay the price. IL reports that "you will be hard-pressed to find a two-bedroom home listed under $400,000."
- Uvita: Located on almost two miles of white sand beach, Uvita is a great place to explore waterfalls, hike in the jungle, go whale watching or scuba dive. According to IL, the city has three medical buildings with fully licensed physicians, as well as a modern hospital about 30 minutes south.
- Quepos/Manuel Antonio: These sister cities are located on Costa Rica's Central Coast. Quepos is known for its world-class marina and attracts fishermen and sea-faring yachts from around the world. Manuel Antonio, about two and a half miles away, is known for its vibrant arts community and national park with beautiful scenery.
- Nuevo Arenal: Although Nuevo Arenal is the smallest and most rural area on this list, there are still plenty of amenities like gas stations and pharmacies in the town. This city is most known for its location next to Arenal Volcano, and for its abundance of outdoor activities — horseback riding, ziplining and hiking, to name a few.
Retiring in Costa Rica
In order to retire in Costa Rica, you'll need to make sure you have the proper paperwork and meet all requirements. There are three types of retirement visas available, according to Immigration Advice Services.
Pensionado (Pensioner):
- Must show an income of at least $1,000 per month from pension, business, fixed retirement plan, etc.
- Under a single pension income, this route covers the applicant and their spouse.
- For the first three years following acceptance, the status is “temporary,” after which permanent residency may be requested.
- Pesionado Residency must be renewed yearly, and proof of income is necessary.
Inversionista (Purchasing in Costa Rica):
- To obtain citizenship through financial means, you must invest a minimum of $200,000 in actual property, shares, negotiable instruments and productive ventures.
- Under the cover of one investment, this option covers the applicant, their spouse and any children under the age of 25.
- Inversionista Visa is temporary for three years initially.
- You must renew this Visa every two years
Rentista (Stable Unearned Income):
- If you aren’t covered by a fixed-income pension, you could be eligible to apply if you have at least two years of unearned income from investments like mutual funds, equities, rental income, etc.
- Must obtain a document from a bank or financial advisor indicating that $60,000 would be sent to Costa Rica at a monthly rate of $2,500 for the subsequent two years.
- This route covers the applicant, their spouse and any children under the age of 25 who are supported by a single source of income.
- The status for at least three years stays “temporary,” following which you can apply for permanent residency.
- Rentista residency must be renewed on an annual basis.
Related Content
-
What's at Stake for Alphabet as DOJ Eyes Google's ChromeAlphabet is higher Tuesday even as antitrust officials at the DOJ support forcing Google to sell its popular web browser. Here's what you need to know.
-
Lowe's Stock Is Falling After Earnings. Here's WhyLowe's stock is lower Tuesday as Wall Street weighs a beat-and-raise quarter against declining revenue. This is what you need to know.
-
What You Should Know About Spousal IRAsWithout spousal IRAs, you would need an earned income to contribute to your retirement account.
-
Six Ways to Optimize Your Charitable Giving Before Year-EndAs 2024 winds down, right now is the time to look at how you plan to handle your charitable giving. The sooner you start, the more tax-efficient you can be.
-
How Preferred Stocks Can Boost Your Retirement PortfolioHigher yields, priority on dividend payments and the potential for capital appreciation are just three reasons to consider investing in preferred stocks.
-
Structured Settlement Annuity vs Lump-Sum Payout: Which Is Better?As the use of structured settlement annuities grows, it can be tough to decide whether to take the lump sum to invest or opt instead for guaranteed payments.
-
What's Hurting Retirees' Confidence?Retirees aren't feeling that confident about their financial health.
-
What to Do as Soon as Your Divorce Is FinalDon't delay — getting these tasks accomplished as soon as possible can help you avoid costly consequences.
-
Many Older Adults Lack Financial Security: What Can We Do?Poor financial literacy and a lack of foresight have led to this troubling reality. It's going to take tax policy changes, education and more to address it.
-
Winning Investment Strategy: Be the Tortoise AND the HareConsider treating investing like it's both a marathon and a sprint by taking advantage of the powers of time (the tortoise) and compounding (the hare).
