Portugal, Mauritius, Spain: The best places to retire abroad for quality of life and low taxes

More and more people are looking to retire abroad in search of a different lifestyle and a lower cost of living. And while the United States doesn’t have an official retirement visa program, dozens of other countries around the world do.

This year, Global Citizen Solutions published its Global Retirement Report 2025, ranking 44 passive income and retirement visa programs.

The report looked at 20 targeted indicators grouped into six sub-indices: procedure, citizenship and mobility, economics, tax optimisation, quality of life, and safety and integration. Each country was given a score out of 100.

The US did not make the list, but the report did find that many of the countries ranked in the top 10 are in the Americas and Europe.

“The Americas dominate the availability of digital nomad retirement visas and then Europe. They have a very high quality of life that’s above average,” Dr Laura Madrid Sartoretto, Research Lead at GCS’ Global Intelligence Unit, tells CNBC Make It.

“That’s not a coincidence because one of the motivations people have when they decide to relocate abroad is looking for a place where they will have a better quality of life.”

Of some of the other factors retirees consider when planning to move abroad, Madrid Sartoretto adds, “people look for places that are politically stable and safe when they want to retire abroad.

The other relevant aspect in Europe is health care. Most countries in Europe have a blend of robust public health care systems and affordable private health care options.”

Portugal is the No. 1 country to retire abroad in 2025

Overall score: 92.61

Portugal ranked as the best country to retire abroad.

The European country offers non-EU citizens the D7 visa, which allows those with steady passive incomes, like pensions or rental income, to retire.

Dr Madrid Sartoretto says Portugal’s retirement visa program has been a flagship one for the last 10 years.

“The country started to invest in attracting investors, retirees and digital nomads. Portugal is a country that nowadays scores really well in quality of life,” she says.

“Portugal is the safest country in Europe if you look at the World Peace Index. It is one of the most sought-after countries in Europe for retirement.”

To apply for that visa, you’ll need a minimum income requirement of 870 euros ($A1530). After the initial residency permit is granted and you’ve lived in Portugal for at least five years, you become eligible to apply for permanent residency or citizenship.

The Portuguese government offers a worldwide tax system, meaning it includes foreign-earned income.

Portugal also has no wealth and inheritance tax for close family members. There is a 10 per cent Stamp duty that applies to others.

Portugal is also known for its golden visa program. It allows non-EU citizens to gain citizenship or residency in the country through investment, which doesn’t include real estate.

The Portuguese government has seen a 72 per cent increase in golden visa approvals, with Americans making up the majority, according to Forbes. Portugal’s golden visa program has raised more than $7.2 billion since it was created in 2012.

The 10 best countries to retire abroad in 2025

1. Portugal
2. Mauritius
3. Spain
4. Uruguay
5. Austria
6. Italy
7. Slovenia
8. Malta
9. Latvia
10. Chile

Located in Africa, Mauritius ranked as the No. 2 best country to retire abroad with a score of 89.24.

“Mauritius has a very reliable procedure. It’s fast, transparent, and one of the countries that has the best options for tax optimisation.

People who don’t want to have any fiscal risk when moving abroad with their pensions choose countries like Mauritius because it doesn’t have a worldwide tax system,” Madrid Sartoretto says.

“It also has one of the highest quality of life standards in our ranking.”

Mauritius offers retired non-citizens over the age of 50 a 10-year residence permit. You must have a monthly income of $2,000 or $24,000 a year. After the 10-year period expires, you’re eligible to renew the residence permit for another 10 years.

The African country offers the main applicant the chance to include their spouse or legal partner and dependent children in their application.

Mauritius also has a territorial tax system, meaning it doesn’t include foreign income. It also has no imposed taxes on foreign-sourced income or wealth and inheritance tax.