Best Places to Retire Abroad on Social Security: Affordable Countries and a Practical Benefits Guide
Best places to retire abroad on Social Security—affordable countries, benefit rules, visas, healthcare, taxes, and safety in one practical guide.
If you’ve ever caught yourself daydreaming about sipping coffee on a cobblestone street in Lisbon (or eating tacos on a Tuesday like it’s a sport) while your Social Security check quietly shows up and does its job, welcome—you’re in good company. A lot of Americans are realizing the same thing: retirement overseas isn’t just a wild idea you pitch after two glasses of wine. In the right places, it’s a practical plan.
In this guide, I’ll walk you through the best places to retire abroad on Social Security, plus the real-world stuff that matters once you’re serious: how payments work overseas, what residency looks like, how healthcare actually feels on the ground, and the tax-and-safety details that can make your budget either purr… or hiss. Think of it like the coffee-chat version of the research, minus the doom-scrolling.
Why Retiring Abroad on Social Security Makes More Sense Than You Think
Here’s the thing nobody tells you at your retirement planning seminar: your dollar may be tired, but it’s still got some fight left in it—once you take it overseas. In most of the world, the same monthly Social Security deposit that feels a little cramped in the U.S. can feel downright roomy.
For context, the average Social Security retirement benefit in 2025 is around $1,900 a month. In plenty of American cities, that’s the “pay rent and hope your car doesn’t make a weird noise” plan. But in places like Medellín, Chiang Mai, or Portugal’s Algarve, that same check often covers rent, groceries, utilities, and still leaves room for a dinner out that doesn’t involve calculating the tip like you’re defusing a bomb.
I’ve always believed retirement shouldn’t feel like a consolation prize. And you’re not imagining the momentum here: the Social Security Administration reports hundreds of thousands of beneficiaries living abroad while still receiving payments. Translation: people are doing the math, comparing lifestyles, and deciding they’d rather spend their 60s and 70s exploring than merely “managing.”
The Best Places to Retire Abroad on Social Security
Not every country is created equal when it comes to retiring on a fixed income. The best destinations share a few things in common: a lower cost of living, accessible healthcare, a welcoming attitude toward foreign retirees, and a clear path to legal residency. Let’s break down the top contenders.
Mexico: The Classic Choice That Still Delivers
Mexico is the most popular retirement destination for Americans, and honestly, it earns that title every year. The proximity alone is a huge draw — you can pop back to the U.S. without turning your travel day into a two-flight, three-snack, existential-crisis situation. But what really seals the deal is the cost of living. In places like Mérida, San Miguel de Allende, or Puerto Vallarta, a couple can often live comfortably on $2,000–$2,500 a month, including rent in a neighborhood you’ll actually enjoy walking around.
When I’ve spent time in Mexico, what’s stood out most is how normal life can feel — in a good way. You’re not “roughing it.” You’re grocery shopping, grabbing a coffee, meeting friends for lunch, and suddenly your budget isn’t the main character of every conversation.
Healthcare is another win. Mexico’s private clinics are frequently excellent — modern, well-run, and dramatically cheaper than U.S. equivalents. Many expats pay out of pocket for routine care and still spend less than they would on a U.S. insurance copay. For residency, Mexico’s temporary resident visa is a common route for retirees; it’s renewable and can lead to permanent residency after a few years.
Add warm culture, ridiculously good food, and established expat communities in places like Lake Chapala and Oaxaca, and you can see why Mexico is often near the top of any list of the best places to retire abroad on Social Security.
Costa Rica: Pura Vida on a Budget
Costa Rica has been quietly winning over American retirees for decades, and it’s not hard to see why. The country is politically stable, genuinely beautiful, and has a healthcare system that’s consistently ranked among the best in Latin America. The national health system — the Caja Costarricense de Seguro Social (CCSS) — is available to legal residents, including retirees, at a relatively low monthly contribution.
The Pensionado visa is one of the most retiree-friendly programs in the world. If you receive at least $1,000 per month in guaranteed pension income (Social Security qualifies), you’re eligible. That’s it. No complex income thresholds, no massive bank balance requirements. Just proof of steady income and a clean background check.
Living costs vary by region — the Central Valley around San José is more affordable than beach towns like Tamarindo — but most retirees find they can live well on $1,800–$2,500 per month. The biodiversity is staggering, the people are friendly, and the phrase “pura vida” isn’t just a tourist slogan. It’s genuinely how people approach life there.
Portugal: Europe on a Retiree’s Budget
If Europe is calling your name, Portugal is where the math actually works. Compared to France, Spain, or Italy, Portugal remains significantly more affordable — especially outside of Lisbon and Porto. Cities like Coimbra, Évora, or the Algarve coast offer a high quality of life at a fraction of what you’d pay in Western Europe’s more famous destinations.
Portugal’s public healthcare system (Serviço Nacional de Saúde, or SNS) is well-regarded, and private care is available for faster appointments at costs that still undercut U.S. prices. The D7 visa — designed specifically for non-EU citizens with passive income like pensions, dividends, or rental income — is the standard route for American retirees. You’ll need to show proof of stable income and health insurance, but the process is manageable.
There’s also a reason Portugal keeps showing up in modern retirement conversations: it’s been intentional about attracting income-stable residents. A 2025 study on macro-level geoarbitrage and digital nomad policymaking in Portugal (Gaspar, 2025) digs into how Portugal’s residency pathways—including the D7—fit into a broader strategy. In plain terms: it’s not just that Portugal is charming (it is). It’s that the paperwork is built for people like you.
One more thing worth mentioning: the U.S.–Portugal tax treaty generally means your Social Security benefits won’t be taxed by Portugal. That’s a meaningful difference in your monthly take-home—and it’s the kind of detail that turns “this could be nice” into “okay, this could actually work.”
Thailand: Southeast Asia’s Retirement Gem
Thailand is for the retiree who wants to stretch their dollar to its absolute limit without sacrificing comfort. Bangkok and Chiang Mai both offer world-class medical facilities, vibrant expat communities, and a cost of living that can run as low as $1,200–$1,800 per month for a comfortable lifestyle. I’ve spoken with retirees in Chiang Mai who describe it as living like royalty on a modest fixed income — and they’re not exaggerating.
The Thai Retirement Visa (Non-Immigrant O-A) requires applicants to be 50 or older and show either a monthly income of at least 65,000 Thai Baht (roughly $1,800) or a lump sum in a Thai bank account. Social Security income can satisfy the income requirement for many retirees.
Healthcare in Thailand is genuinely impressive. Hospitals like Bumrungrad International in Bangkok are internationally accredited and attract medical tourists from around the world — for good reason. The food culture is incredible, the temples are breathtaking, and the pace of life in northern Thailand especially has a way of resetting your nervous system.
Bulgaria: Europe’s Best-Kept Retirement Secret
Bulgaria doesn’t get nearly enough credit in retirement conversations, and that’s honestly a shame. It’s one of the most affordable countries in the European Union, with a cost of living that rivals Southeast Asia in some regions. Cities like Plovdiv and Varna offer a mix of history, culture, and modern amenities at prices that feel almost too good to be true.
As an EU member state, Bulgaria offers access to a functioning healthcare system, and private care is available at very reasonable rates. The country is increasingly popular among retirees who want a European lifestyle without the European price tag. The scenery — from the Black Sea coast to the Rhodope Mountains — is genuinely stunning, and the pace of life in smaller towns is exactly what a lot of retirees are looking for.
How Social Security Works When You Retire Abroad
This is the part where people get nervous, and I get it. Leaving the country feels like it might complicate your benefits. The good news: for most destinations, it doesn’t.
Can You Actually Receive Social Security Payments Overseas?
Yes — the Social Security Administration sends payments to most countries around the world. There are a few exceptions (Cuba and North Korea are the ones everyone mentions), but the places most retirees consider are typically fine.
On the practical side, most people keep direct deposit going to a U.S. bank account and then access funds via ATM withdrawals or transfers. In some countries, you can also receive payments in a local account. Either way, the key is to set it up before you’re standing in a new country with a new phone plan, trying to remember your password from 2013.
The SSA also wants you to keep your address updated and respond to occasional questionnaires to confirm you’re still eligible. It’s not hard — it’s just the kind of admin task that’s easy to ignore until it becomes a problem.
What You Need to Stay Compliant
If you’re eligible for Social Security retirement (or disability) benefits in the U.S., you’re starting from the right place. From there, staying compliant mostly means: keep the SSA updated with your foreign address, make sure your chosen country isn’t restricted, and respond to any checks they send.
Before you pick a destination, run it through the SSA’s Payments Abroad Screening Tool. It’s the quickest way to avoid building your dream retirement plan around a country that won’t actually receive payments.
Visas and Residency: What You Need to Know Before You Move
Every country has its own rules, and the details matter. Here’s a practical overview of the most common pathways.
Retirement Visa Programs Worth Knowing
Mexico: The Temporary Resident Visa is a common starting point. It’s renewable and often leads to permanent residency after a few years. Income requirements change over time, but Social Security is frequently part of how retirees qualify.
Costa Rica: The Pensionado program is famously straightforward: show at least $1,000/month in guaranteed pension income (Social Security counts) and you’re in the right lane. The Rentista option works for retirees with other reliable income streams.
Portugal: The D7 Passive Income Visa is the go-to for many Americans. You’ll typically need proof of stable passive income (pensions count), health insurance, and a clean record.
Thailand: The Non-Immigrant O-A Retirement Visa generally requires either proof of income or a bank deposit, and it’s renewed on a set schedule.
Bulgaria: As an EU country, Bulgaria follows its own residency steps. Americans often start with a long-stay visa and then transition to a residence permit, usually with proof of income and housing.
The Application Process in Plain English
Most applications follow a similar pattern: gather your financial documents, get a background check, secure health insurance, and submit everything to the relevant consulate or immigration office. The timelines vary — Portugal’s D7 can take several months, while Mexico’s temporary resident visa is often faster. Start the process earlier than you think you need to. Bureaucracy everywhere moves at its own pace.
Healthcare Abroad: Don’t Wing This One
Healthcare is the variable that keeps most retirees up at night, and rightfully so. Here’s the honest picture.
What Healthcare Looks Like in Each Country
Mexico: A robust private healthcare sector that’s affordable by U.S. standards. Many expats pay cash for routine care and purchase private insurance for major events.
Costa Rica: Legal residents can enroll in the CCSS national system for comprehensive coverage at a low monthly contribution. Private care is also available for faster access.
Portugal: The SNS public system is solid and accessible to legal residents. Private insurance is popular for shorter wait times and specialist access.
Thailand: Internationally accredited private hospitals in major cities offer excellent care at a fraction of U.S. costs. International health insurance is widely recommended.
Bulgaria: Public healthcare is available to residents; private care is affordable and increasingly modern in urban areas.
Should You Get International Health Insurance?
For most retirees abroad, the answer is yes — at least initially. An international or expatriate health plan gives you predictability, covers emergency medical evacuation if needed, and fills gaps in local public systems.
When you compare plans, focus on the stuff that matters at 2 a.m. (when nobody wants to be reading policy PDFs): pre-existing condition rules, deductibles, hospital network access, whether the plan is renewable year to year, and what’s actually covered if you need to get back to the U.S. quickly. If you later decide the local system is enough, you can always adjust.
Taxes: The Part Nobody Wants to Think About (But Really Should)
Taxes as an American abroad are genuinely complicated, and I won’t pretend otherwise. The U.S. taxes its citizens on worldwide income regardless of where they live — one of only two countries in the world that does this. But tax treaties and foreign tax credits can significantly reduce what you actually owe.
How Tax Treaties Change the Picture
The U.S. has tax treaties with many popular retirement destinations, including Portugal and Mexico. These treaties typically prevent double taxation — meaning you won’t pay full taxes to both governments on the same income. Portugal’s treaty, for example, generally means Social Security benefits are taxed only in the U.S., not by Portugal. Mexico’s treaty has similar provisions for certain income types.
A 2012 analysis on U.S. expatriate taxation (The End of Taxation Without End, 2012) makes the case that the complexity of U.S. tax rules for expats — especially where no treaty applies — can materially affect net income. The takeaway: don’t assume your tax situation abroad will mirror your situation at home. Work with a tax professional who specializes in expat taxation. It’s worth every penny.
Countries With Favorable Tax Conditions for Retirees
Portugal and Mexico are frequently cited for favorable treatment of foreign retirees’ income. Bulgaria’s flat 10% income tax rate is also attractive. Thailand doesn’t tax foreign-sourced income that isn’t remitted into the country in the same year it’s earned — a nuance that benefits retirees with U.S.-based income streams.
Cost of Living and Safety: The Numbers That Actually Matter
A 2026 Snapshot of Retirement Destination Costs
Here’s a practical comparison to help you weigh your options:
| Country | Cost of Living Index | Healthcare Quality | Avg. Monthly Budget (Couple) |
|---|---|---|---|
| Mexico | 50 | High | $1,800–$2,500 |
| Costa Rica | 55 | High | $2,000–$2,800 |
| Portugal | 60 | Very High | $2,200–$3,000 |
| Thailand | 45 | Moderate to High | Moderate to High |
| Bulgaria | 40 | Moderate to High | $1,200–$1,800 |
These are ballpark figures — your actual costs will depend on your neighborhood, lifestyle, and healthcare needs. But they give you a useful starting framework.
Safety and Quality of Life: The Honest Conversation
Safety is real, and it’s worth researching seriously rather than dismissing or catastrophizing. Mexico, for instance, has regions with significant security concerns alongside regions that are genuinely safe and well-patrolled. The expat communities in places like San Miguel de Allende or Mérida report high satisfaction and low crime in their immediate areas. Costa Rica and Portugal consistently rank well on global safety indices. Thailand and Bulgaria are generally safe for retirees in established expat areas.
The practical advice: visit before you commit. Spend a month in your top two or three destinations. Talk to expats who are already living there. Read local news. Safety isn’t a binary — it’s a neighborhood-by-neighborhood, lifestyle-by-lifestyle calculation.
Practical Tips Before You Make the Move
Do a trial run. Spend one to three months in your target destination before signing a lease or selling your house. You’ll learn more in 30 days of living somewhere than in 300 hours of online research.
Build your financial infrastructure early. Open a Charles Schwab or Fidelity account with no foreign ATM fees. Understand how currency exchange affects your monthly income. Set up a local bank account once you’re established.
Connect with expat communities. Facebook groups, forums like Expat Exchange, and local expat meetups are invaluable. The people who’ve already navigated the visa process, found the good doctors, and figured out where to buy familiar groceries will save you enormous amounts of time and frustration.
Hire local help. A local immigration attorney or relocation consultant is worth the cost. Bureaucracy in a foreign language is nobody’s idea of fun, and having someone who knows the system makes the process dramatically smoother.
Frequently Asked Questions
What are the key factors to consider when choosing a retirement destination abroad? Cost of living, healthcare access, safety, and cultural fit are the big four. Layer in visa requirements, tax implications, and the strength of the local expat community, and you’ve got a solid decision framework.
Can I really live on Social Security alone abroad? In many destinations, yes — especially in Thailand, Bulgaria, and parts of Mexico. In Portugal or Costa Rica, a modest supplement from savings or other income makes life considerably more comfortable. It depends on your lifestyle expectations and the specific region you choose.
What are the most common challenges retirees face when moving abroad? Language barriers, bureaucratic complexity, building a new social network, and navigating unfamiliar healthcare systems top the list. None of these are insurmountable — they just require preparation and patience.
How do I stay connected with family back home? Video calls, messaging apps, and scheduled virtual hangouts go a long way. Inviting family to visit your new home is one of the best ways to bridge the distance — and honestly, once they see where you’re living, they’ll stop worrying about you immediately.
The Bottom Line on the Best Places to Retire Abroad on Social Security
Retiring abroad on Social Security isn’t a compromise—for the right person, it’s an upgrade. And when you look at the best places to retire abroad on Social Security, you’ll notice a pattern: they don’t just cost less. They make day-to-day life feel easier—simpler errands, more time outside, less “did my grocery bill just personally attack me?” energy.
Mexico gives you proximity and culture. Costa Rica gives you nature and stability. Portugal gives you Europe without the sticker shock. Thailand and Bulgaria give you standout value and a slower, richer pace of life—the kind where you can actually hear yourself think.
The keys are pretty unglamorous (sorry): do your homework, visit before you commit, and build a small support squad—a tax pro who speaks “U.S. expat” fluently, someone who can help with residency paperwork if you need it, and a few expat friends who’ve already learned which office you go to when your stamp needs a stamp.
And here’s the part I’ll leave you with: your Social Security check might not feel like much in the U.S. right now. In the right country, it can be the foundation of a retirement that feels spacious—not just financially, but emotionally. That’s not a fantasy. It’s a map, a plan, and a passport.
