TLDR
With three-quarters of Brits considering a move abroad, retiring overseas is a popular dream. This article provides a rundown of five of the best destinations, including Portugal, France, Spain, Panama, and Australia, based on factors like cost of living, visa requirements, and quality of life. It also outlines essential financial considerations, from QROPS pension transfers to local taxation, that every UK expat must consider before making the move to ensure a financially secure retirement.
Author Bio
This article was written by the team at Flying Colours, a firm of independent financial advisers dedicated to providing personalised, clear, and actionable financial guidance. With a collective of highly qualified professionals, including Chartered Financial Planners and specialist advisers, the team brings a wealth of expertise in areas ranging from retirement and investment planning to inheritance tax and estate management. Flying Colours’ commitment is to build long-term relationships with clients, helping them navigate complex financial landscapes and achieve their life goals with confidence and clarity.
The Best Places to Retire Abroad for Brits
Deciding where to live could be one of the biggest considerations you make about your retirement. In fact, MoneyWeek reports that 79% of Brits want to retire abroad. If the idea appeals to you, it’s essential that you thoroughly explore the pros and cons of retiring abroad. There are a number of unique challenges for Brits who decide to retire abroad. In the meantime, if you’d like some inspiration for some of the best places to retire outside of the UK, here are some suggestions.
1. Portugal
Portugal is a popular retirement destination for Brits as it offers a mixture of medieval architecture, beautiful sandy beaches, and incredible food. Porto and Lisbon are favourites among retirees looking for great museums and galleries, vibrant nightlife, and a rich history. Alternatively, the Algarve is ideal if you want sunny beaches, and there are some nice smaller towns where you will find a quieter pace of life.
Portugal is well-suited to retirees because the visa requirements are not particularly strict. The minimum passive income for a visa, according to Atlys, is only €10,440 a year for the main application. You then need another 50% of this amount for each adult on top of this, and this can come from your pension. This makes Portugal a relatively easy place to retire to. Additionally, the government offers free language lessons for migrants, which can make it easier to assimilate once you are there. Portugal is also considered one of the safest EU countries to live in.
2. France
France is another common retirement destination because it is close to the UK, the food and drink is world-renowned, and the weather and culture vary throughout the country. As a result, France offers a wide range of options in terms of the lifestyle you want in retirement. You could move to a small village in the south if you want somewhere quiet with excellent weather, for example. These rural areas tend to have a lower cost of living than urban centres too. Alternatively, you could retire in a larger city like Paris or Marseille where you can enjoy rich culture and history. Other popular locations to retire in France include Lyon, Bordeaux, and Pau.
It is slightly more expensive to retire in France than Portugal as, according to the Immigration Advice Service, you need to prove that you have an annual income of €17,000. That said, this is still relatively affordable, and you can enjoy good quality public services as a result. Indeed, France has a great healthcare system that covers most medical services once you have been living in the country for three months.
3. Spain
Spain is a typical retirement destination for Brits that want sun, sea, and sand. The cost of living is also relatively low and there are some affordable properties, so you can enjoy a comfortable lifestyle. For example, according to Clear Currency, the average cost of living in Spain for one person is €633.20 a month. In comparison, Wise estimates that the average cost of living in London is £919, without taking rent or mortgage payments into account. As such, your money may go a lot further if you live in Spain.
It is important to note that property prices vary a lot depending on the location. While there are some affordable properties in rural areas, the prices could well be the same or higher than in the UK if you look in the centre of major cities. The income requirements in Spain are also stricter than many other countries. According to Expatica, you need an income of €28,800 a year, plus an extra €7,200 for each additional family member.
4. Panama
Panama has become a popular retirement destination for UK expats in the last few years because the locals are very friendly, there is a nice slow pace of life, and the weather is hot all year round. Further to this, the healthcare system is excellent and it’s a very safe country too. There are also some incredible nature reserves and tropical beaches to visit.
The government hope to attract retirees with a range of benefits, like a 25% discount on utility bills and airline tickets, and a 50% discount on sporting events or cinema tickets. There are also discounts on basic medical tests like eye tests or dental exams. The key visa for retirees is the Pensionado Visa, which requires a guaranteed lifetime income of at least $1,000 per month. This can come from a government or private pension. This makes Panama perhaps one of the easiest places to retire as the only visa requirement for permanent residence is that you have resided in the country for five years legally on a temporary visa. Furthermore, according to the British Expat Guide, you can even fast track your permanent residency if you buy a property with an equivalent value of $300,000.
5. Australia
Australia is a popular choice because the culture is relatively similar to the UK and there is no language barrier. You also get amazing weather, culturally rich cities, and lots of great beaches and natural beauty spots.
Additionally, you can transfer your pension into an Australian “superannuation fund” when you retire there. This pension scheme, which is a common workplace pension option for locals, allows you to draw an income tax-free. In practice, this means that you benefit from tax relief on your contributions while in the UK and you can withdraw it tax-free after retiring in Australia. While you may incur some costs for transferring your funds, you will likely be able to retain more of your retirement savings this way.
That said, there are several potential downsides to retiring in Australia that you may need to consider. First, the distance from the UK makes it expensive to visit family. Additionally, the entry requirements can be quite restrictive. According to Expatra, it is easier to get a visa if you have family in Australia already. But if you do not, you may need to prove that you can invest a significant amount of money in the country, either through a business or private investments.
What to consider before you retire abroad
Although there are lots of potential benefits, such as a lower cost of living (and of course the weather!), retiring abroad is not without its risks. It’s important to do your research and carefully consider the location.
When deciding where to retire abroad, there are some key things to check:
- Pensions and Tax: While living abroad, you will need to consider how your UK State Pension and private pensions will be taxed. Many countries have a double-taxation agreement with the UK, which can prevent you from being taxed twice on the same income. A key consideration for many is a QROPS pension transfer, which allows you to move your pension pot out of the UK. This can be complex, so it is essential to seek professional financial advice. Crucially, as of October 2024, most QROPS transfers to the EEA now incur a 25% tax charge. This has drastically changed the financial landscape for many. For those seeking a flexible solution, a Self-Invested Personal Pension (SIPP) may now be a more suitable option. For personalised guidance, seek professional advice.
- Healthcare and Support in Later Life: Health and social care provision will vary from country to country. It could be perfectly sufficient during your early years of retirement but may not meet your needs in later life. This can place a greater burden on your finances, but also on your relatives who may not be able to help you if they live in another country. For those retiring to the EU, you may be eligible for a S1 form which grants you free healthcare.
- The Cost of Living: The cost of living varies in different countries, and while some costs like property may be lower, other expenses like food or fuel, for example, could be higher. Therefore, you need to consider all your monthly costs to get a sense of how affordable a country is. Also, bear in mind that the cost of living crisis is affecting countries across the globe, so some locations may not be as cheap as you expect.
- The Culture and Language: Consider how you will deal with the language barrier (if there is one) and whether the culture fits with your desired lifestyle.
- Visa Requirements: Each country has its own visa requirements and, while some actively encourage people retiring there and make it easy, others will have strict criteria you must meet.
- Support for Retirees: Some countries offer additional support for retirees such as discounts on utility bills, for example.
For more detail on the challenges of retiring abroad, read this: Thinking of moving abroad? Make sure you consider these unique challenges first. If you contemplate all these factors, you can hopefully decide whether another country is the right retirement destination for you or not.
Get in touch about retiring abroad
If you are considering the possibility of retiring abroad and you need some support, we are here to help. Take our quick retirement quiz to see if you’re ready for the future you deserve. For personalised advice, contact Flying Colours for advice on Pension Planning, Investment Planning, Retirement planning and advice, and Tax Optimisation. Let us help you secure a confident and comfortable retirement.
Email hello@fcadvice.co.uk or call 0330 828 4714.
Please note
This blog is for general information only and does not constitute advice. The information is aimed at retail clients only. A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future results.
The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates and tax legislation may change in subsequent Finance Acts.
Created: 31 August 2023
Updated: 19 September 2025