A new life with mild, sunny winters, a slower pace but lots of time for fresh hobbies and friendships is the retirement dream for many.
For decades, British retirees have followed familiar paths when deciding where to spend these later years, with well-trodden paths to the Spanish costas, rural France or perhaps Florida and Australia for the more adventurous.
These destinations have long been seen as safe, sunny, and straightforward with well-established British expat communities a reassuring presence too. But the world has changed.
Rising living costs, shifting visa rules post-Brexit, evolving tax landscapes and an increasingly global mindset mean that the decision of where to retire or relocate now involves far more than sunshine and property prices.
To determine which destinations truly remain attractive and viable for Britons today, the financial advisory firm, Hoxton Wealth, has produced a piece of research analysing visa options, cost of living, taxation, healthcare, climate and lifestyle, safety, connectivity and economics to compare traditional favourites with those rising in appeal – the ‘challengers’.
The ‘favourites’ are Spain, France, Portugal, Australia, New Zealand, Canada, United States, Ireland, Cyprus and Thailand.
So which are the ‘challenger’ countries that compete with the UK’s baseline score of 77/100?
Malta – 83/100
A view of Valletta, the capital of Malta. Many love the country’s beach and sailing lifestyle and the fact it’s only a three-hour flight from the UK
Enjoying historic ties and a strategic location within southern Europe, the small island of Malta remains popular for its high standard of living, Anglo-friendly culture and choice of residency programmes. English is widely spoken, and there’s a well-established network of relocation agents and tax advisers, as well as plenty of high-class hospitals. Many also love its beach-and-sailing lifestyle and the fact it’s only a three-hour flight from the UK.
While property is not cheap – new-build one-bed flats in development where foreigners are allowed to purchase start from around €400,000 (£347,302) – retirees do report a lower cost of living day-to-day. For a more relaxed feel, some retirees prefer its sister island of Gozo, where you can find a second-hand two-bedroom apartment for €180,000 (£156,286).
Malta scores more highly than most due to its choice of visa and residency schemes and tax benefits: 15 per cent pension tax rate and no inheritance tax. Because the EU country can offer Schengen access, Malta’s golden passport schemes are among the most popular in the world, according to Henley & Partners, although it requires significant investment (at least €600,000, or £520,953).
Malaysia – 81/100
English is widely spoken in Malaysia and there are strong expat networks in Kuala Lumpur, Penang, and Langkawi, as well as high-class hospitals
Rather like its neighbour Thailand, Malaysia is one of the best-value destinations for retirees, with western-standard amenities at southeast Asian prices. You can hop in a Grab (Malaysian Uber) taxi for a couple of pounds, and enjoy delicious street food for half of that.
It offers one of the longest-established residency programmes for foreign retirees – its 1987 ‘Silver Hair Programme’ was rebranded Malaysia My Second Home (MM2H) to include those below 50. While the entry bar has been raised with the new tiered system, the first investment remains relatively low at RM625,000 (£111k) plus property purchase of RM600,000 (£106k). Sarawak (in Borneo) also has its own programme with lower figures. Property purchases by foreigners are limited to certain areas.
English is widely spoken and there are strong expat networks in Kuala Lumpur, Penang, and Langkawi, as well as high-class hospitals. The tropical climate means life revolves around the beach and culturally diverse restaurants.
There’s also a territorial tax regime: foreign-sourced income (including UK pensions) are not taxed unless remitted and used in Malaysia. There is no inheritance tax and limited capital gains tax, so some consider it worth the 13-hour flight time from the UK.
Panama – 81/100
The politically stable country offers the year-round sun of the Caribbean, with financial services and logistics sectors anchoring its economy
Panama couples a tropical lifestyle with some of the world’s most generous retirement incentives and excellent healthcare. No wonder, then, that it’s very popular with retirees in the US – and increasingly the UK.
Housing, food, transport, and services cost far less than the UK, and the environment offers a comfortable lifestyle on a modest pension, exempt from local tax.
The politically stable country offers the year-round sun of the Caribbean, with financial services and logistics sectors anchoring its economy. Living costs are typically lower than in Bermuda or the Bahamas. English is also widely spoken, and the government welcomes foreign retirees; the Pensionado Programme offers permanent residency to foreign retirees who can show an income of $1,000 (£745) per month, or lower if they spend $100,000 (£75k) on a property.
Furthermore, the visa beneficiaries receive big discounts: 25 per cent off utility bills, 25 per cent off airline tickets – that will help with the 12-hour plus flights to the UK (none direct) – as well as 30 per cent off other transport and 15-20 per cent off medical costs.
Greece – 80/100
The small traditional village of Hora Sfakion on Crete. Low property prices and other long-stay visa options make the Greek island popular with retirees
Long appreciated for its hospitality, slow pace of life and beautiful coastlines, Greece is now attracting an unprecedented number of foreigners with its golden visa and flat-tax regimes.
Its low cost of living makes it one of the most affordable destinations within Europe, and property prices remain modest outside the hot-spot areas of Athens or Mykonos where the threshold of the golden visa – offering residency in return for investment – has increased to €800,000 (£694,604).
This may be hefty, but low property prices and other long-stay visa options (the type D visa requires income of around €2,000 or £1,737 per month) make Crete popular, where you can find a pretty stone house for as little as £60,000 and pay negligible council taxes.
Islands with less well-developed infrastructure, direct flights to the UK and expat communities are much less popular.
Across Greece there’s the flat 7 per cent tax rate on foreign pensions for 15 years for those who move there, in addition to the €100,000 flat tax for high-net-worths.
The biggest obstacle is the seasonality of direct flights to many areas, Greek bureaucracy and sometimes the language barrier.
Mauritius – 80/100
Mauritius is ranked the happiest country in Africa by the United Nations’ World Happiness Report
This island nation is another far-flung location becoming increasingly popular not just with retirees but entrepreneurs and families too.
Here, they will find financial and political stability, safety, world-class healthcare, attractive residency schemes and year-round sun on the tropical Indian Ocean island of sugar-sand beaches.
As a former British colony, English is an official language, and there’s a lively expat community with life centred around yacht clubs, beach parties and golf courses. Mauritius is even ranked the happiest country in Africa by the United Nations’ World Happiness Report.
For applicants over 50, the 10-year Retired Residence Permit offers residency with a modest monthly income required of $1,500 (£1200), while the cost of living is 73 per cent lower than the UK (Numbeo.com).
Rent prices are less than half – the average cost of a one-bed apartment is £227 to £321 a month but purchase prices are higher for foreigners (limited to certain schemes) and you can buy one for around £250,000.
There are tax perks: no inheritance tax or capital gains tax; and a 15 per cent flat income tax rate applies to income earned or used locally.
The small island won’t suit everyone (or the 12-hour flight home from the UK with limited direct options) but other benefits include its rich cultural diversity – and it’s one of Africa’s most LGBTQ+ friendly nations.
UAE – 80/100
In the UAE there is no tax on pensions or investment income and no inheritance tax
As with entrepreneurs, digital nomads and families, retirees are also moving to the UAE, and especially Dubai.
Many grandparents are now following their families to join a burgeoning retiree community that revolves around hotel brunches and beach clubs (plus a spot of childcare).
While searing summer temperatures and significant increases in the cost of housing (plus the need for private healthcare) might deter some, the high standard of living and services appeals – along with low crime rates.
Plus, English is widely spoken, there’s a large British expat community and property purchase is made easy – and fast.
You’ll need fairly deep pockets, though: the UAE offers a retirement visa for over-55s that requires either a monthly income of AED 20,000 (£4,050) or the purchase of an AED1million (£203k) property. For Dubai, a slightly lower figure of AED 15,000 (£3,040).
You won’t find much to buy for £200k beyond a studio apartment – but rent in Dubai is 16 per cent lower than London’s, according to Numbeo.
Of course the zero-tax retirement also appeals: there is no tax on pensions or investment income, no inheritance tax (but you won’t get triple lock protection on your state pension from the UK).
Turkey – 80/100
Colorful street view in Kalkan, Turkey. Rent and healthcare in the country are especially affordable and British retirees report a high standard of living for modest pensions
While political instability and periods of terrorist threat have put off foreign buyers for a few years, the appetite for Turkey has returned from tourists and home hunters.
Around the Aegean and Mediterranean coastlines, where there are long summers and mild winters, small communities of expat retirees have evolved, especially around Fethiye, Side, Antalya and Bodrum.
It’s easy to find a modern apartment with pool access by the coast for £100,000, yet title deed purchase rules remain slightly more complicated than elsewhere in Europe.
Property-linked residency is affordable and accessible, with a minimum investment of £156,000 required. Turkish citizenship is offered to those investing at least £312,000 – which is lower than the Greek equivalent in many areas – and it’s possible to stay long-term without major financial hurdles.
Cost of living is a major incentive, despite inflation-induced increases. Rent and healthcare are especially affordable, and British retirees report a high standard of living for modest pensions.
There is no wealth tax, low property tax, and no inheritance tax for most foreign retirees, although residents will need to plan around progressive income taxes as there is no flat-tax rate for retirees as per Greece and Cyprus.
Italy – 76/100
The city of Brindisi, Italy, in the Puglia region. Those keen to renovate can find incredible value in pretty hill towns surrounded by vineyards or low-key seaside villages
Like Greece, Italy has one of the most highly coveted lifestyles in the world – and it has also started courting foreign retirees with low-tax incentives.
Those who fancy the southern part of Italy (and who wouldn’t prefer the warmer climate and the lower cost of living?) can take advantage of the 7 per cent flat-tax regime if they move to a town with fewer than 20,000 inhabitants.
Anecdotally, the most popular regions for British retirees doing this have been Abruzzo, Marche, Sicily and Puglia – but not all parts of these areas are practical for full-time living and speaking Italian is essential outside of expat hubs.
Moving to Italy tends to be for the slightly more adventurous – especially those keen to renovate as they can find incredible value in pretty hill towns surrounded by vineyards or low-key seaside villages. They are even homes for €1 and buyers in Italy face no restrictions.
The most popular visa for retirees, the Elective Residency Visa, has a higher income requirement than other equivalents – €38,000 a year for a couple – and the bureaucracy can be a headache. But it’s hard to top its scores for lifestyle and accessibility.
Uruguay – 76/100
Uruguay – known as the ‘Switzerland of South America’ for its political stability and safety – offers a high standard of living and healthcare and offers a benign tax environment
This South American outlier also appears in the top five global destinations for retirees in a new study by Global Citizen Solutions (GCS).
Uruguay – known as the ‘Switzerland of South America’ for its political stability and safety – offers a high standard of living and healthcare and offers a benign tax environment (no tax on foreign-sourced income and no wealth tax or inheritance tax, according to Hoxton).
The retirement visa requires a modest monthly income of $1,500 (£1,118), according to GCS, which they report many expat couples can live well on. If you have basic Spanish you’ll have an advantage, although English is becoming more widely spoken.
Beach towns around Punte del Este, like the fishing villages of La Paloma or Punta del Diablo, are popular. Foreigners face no restrictions on buying property, but the biggest downside is that while it’s great for exploring the Americas, it’s around 15 hours from the UK with no direct flights.