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.
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.
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
“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.”
“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.”
“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.”
