Retirees are ditching the expensive United States in favor of a more affordable, albeit slower life overseas. But before copping a one-way ticket abroad, experts warn it’s crucial to understand the implications of their expat journey.

The reason why some American boomers are headed overseas instead of warmer U.S. states like Florida and Arizona? Retirement visas.

Many countries now offer dedicated programs for retirees to have more affordable living and a new laid-back lifestyle, which is why if you look through the Global Citizen Solutions’ retirement report for 2025, it shouldn’t surprise you to see the U.S. didn’t make the cut.

While sipping wine on a tiled balcony overlooking the Mediterranean Sea might sound tempting for retirees, recent shifts in visa rules, tax policies, and local costs mean the process could mean moving abroad is more complex than you’d think. Successful retirement overseas now requires careful planning, thorough research, and flexibility to navigate evolving financial, legal, and lifestyle challenges.

The Global Citizens report ranks 44 passive-income and retirement-visa programs. It also evaluated 20 key indicators grouped into six main categories: visa procedures, citizenship and mobility, economic factors, tax benefits, quality of life, and safety and social integration.

Each country received a score out of 100. Many of the top-ranked countries were in Europe and South America. Portugal got the highest score, followed by Mauritius and Spain.

The 10 best countries to retire abroad in 2025 — and their citizenship paths

Portugal — 5 years

Mauritius — 6 years

Spain — 10 years (2 years for selected nationalities)

Uruguay — 5 years

Austria — 10 years

Italy — 10 years

Slovenia — 10 years

Malta — 8 years

Latvia — 10 years

Chile — 5 years

As housing shortages and increased costs of living may deter retirees from staying in America, Jeanne Thompson, a retirement-strategy consultant and former SVP at Fidelity, offered advice for those looking to pursue retirement in another country.

1. Understand tax implications to avoid double taxation and exchange rates

“From a financial perspective, retirees need to understand the tax implications to avoid double taxation, account for exchange rate fluctuations that could significantly impact their retirement budget and confirm that their banks and investment firms can continue serving them abroad,” she said.

“Many financial institutions have restrictions on serving expats, making this verification essential.”

2. Check your healthcare access

“Healthcare access is another critical consideration,” Thompson said. “Since Medicare generally doesn’t cover healthcare abroad, retirees must budget for international or local health insurance—an expense that can be substantial depending on the destination country and coverage level desired.”

3. Don’t underestimate cultural adjustments and language barriers

“Finally, the social and cultural adjustment shouldn’t be underestimated. Building a new community takes time, particularly when language barriers exist” she said.

“While many retirees gravitate toward expat communities for initial support, these can be transient as people come and go. That’s why I recommend renting for 6-12 months before committing to purchasing property. This trial period allows retirees to experience daily life, navigate local systems, and ensure the location truly suits their lifestyle and expectations before making a permanent commitment.”