What are the best countries to retire to from the UK?

• The cost of living is a significant factor influencing the affordability of living in your chosen country.

• As people age, healthcare becomes more important, and retirees should carefully research the availability, cost, and quality of care.

• Tax requirements can make some destinations more attractive and feasible than others.

• Since Brexit, certain countries have special agreements or limitations regarding visas and residency for UK citizens.

• Unbiased can match you with a qualified financial adviser for advice on retiring abroad.

Malta is an ideal retirement destination for British retirees for numerous reasons. It has a stable economy, many English speakers, a warm Mediterranean climate, a relaxing lifestyle and an affordable cost of living.

Although there are various residence programmes to live in Malta, the post-Brexit application process is more complicated.

One option for Brits to retire to the country is via the Malta Retirement Programme (MRP).

Retirees must have a minimum annual income of €12,700 or €9,600 from a pension. Pensioners pay a flat tax rate of 15%, with a minimum annual liability of €7,500, plus €500 for each dependent. 

Although Malta has a strong public health system, it is only free for Malta citizens and EU nationals. 

All Malta Retirement Programme applicants must have private health insurance covering them in the country. This insurance is required before applying for the program, costs an average of €300 to €400 per year, and must be renewed annually thereafter.

Cyprus is an ideal lifestyle destination for pensioners wanting to retire outside the UK. The cost of living is low, and it has a warm climate. There is a large English-speaking community, and the country has a long history of expats.

There is no retirement visa or program. UK retirees can gain permanent residency by investment or apply for the renewable Pink Slip, a temporary residence permit. Cyprus has attractive tax benefits, as UK pensioners only pay 5% on their gross pension, less the exemption of €3,420.

Access to Cyprus’ General Healthcare System (GHS) is determined by residency status, which is attained after three months. The GHS provides numerous health services, but you will still need to contribute to the cost of medical treatment.

Having private health insurance is recommended, particularly for the three months prior to receiving residence status. For an older person, the cost of this insurance averages between €680 and €960 annually.

France's proximity to the UK, cultural heritage, and healthcare system attract many British retirees. While the cost of living can be higher in cities, rural areas and smaller towns offer more affordable options.

To retire in France, you must apply for French residency, prove you have a certain income level, and be able to speak some French. 

The healthcare in France is excellent, and expat retirees qualify for the Protection Universelle Maladie (PUMA) programme after three months in the country.

However, the public healthcare programme does not cover the full cost of medical bills, so expats must also have health insurance that costs, on average, €2,500+ per year per couple.

Your pension will also be taxed in France, and its tax rates are often higher.

Italy’s blend of history, mild climate, and welcoming lifestyle makes it an attractive choice. The country offers an affordable cost of living in rural areas and access to a robust public healthcare system.

However, although the Italian National Health Insurance (Servizio Sanitario Regionale - SSR) is available for expat residents and Italians, most people opt for private healthcare if they can afford it.

The SSR is also not free, and there are co-payments for all services, while private healthcare insurance can cost anywhere from €125 to several thousand Euros a year.

To retire to Italy, you apply for an elective residence visa, which requires you to prove you have a certain level of income to support your family:

• €31,000 per annum per single person

• €38,000 per married couple per year

• For each additional dependent child, this amount is increased by 20% per year

To draw expats to southern Italy, there is a 7% flat tax rate for people retiring in the area.

Greece’s picturesque islands, mild climate, and relaxing lifestyle make it one of the best countries to retire from the UK. Its cost of living is affordable, particularly outside the main tourist areas.

Additionally, Greece is one of the easiest countries to retire to from the UK as it has a Digital Nomad Visa, which allows expats to stay for two years, the investment-linked Golden Visa, and the Retirement Visa.

UK retirees who live in Greece for more than 183 days become Greek tax residents and pay a flat 7% tax rate on their foreign income. 

Greece's public healthcare system (ESY) offers universal coverage to all residents, including legally residing expat retirees. Residents can access free or low-cost public healthcare by enrolling in the National Social Security Fund (EFKA), with annual contributions ranging from €250 to €650.

For those opting for private health insurance, premiums start at approximately €65–€100 per year and increase with age, potentially reaching up to €1,000 annually for individuals over 75.

Portugal is renowned for its low cost of living and high quality of life, with an ideal climate and relaxed lifestyle.

In terms of healthcare, the Serviço Nacional de Saúde (SNS) provides universal coverage to all residents, including expat retirees. While these public healthcare services are generally free or low-cost, some individuals opt for private health insurance to access a broader range of services and reduce waiting times. 

Private health insurance premiums in Portugal typically range from €300 to €1,500 annually.

To retire in Portugal from the UK, you have two visa options.

• Golden Visa: Retirees can live in Portugal based on investments in specific projects.

• D7 Visa: This visa type is applicable if you have a reliable income not derived from active employment in Portugal.

While income tax rates vary for expats in Portugal, interest and investment income is taxed at a flat 28%, but there are several methods of reducing your tax bill on pension income and investments.

Spain’s sunny climate and large British expat community make it an ideal retirement destination. The cost of living in Spain is affordable, as are the flights to and from the UK.

Spain has two options for UK citizens wanting to retire there. The Golden Visa programme requires a minimum investment of €500,000, but you can invest in property, making it a worthwhile option.

Alternatively, pensioners can apply for a Non-Lucrative visa to gain residency. To qualify, you must earn €2,400 per month or €28,800 per year.

As a retiree on a visa, you can access the Sistema Nacional de Salud (SNS) public healthcare system. However, healthcare is not free, and retirees under 65 must pay monthly fees of  €50, while those over 65 pay €150 per month.

Alternatively, private health insurance premiums typically range from €500-€2,000 annually.

Panama has a low cost of living, excellent healthcare, and a government that welcomes foreign retirees. The Panama Pensionado Programme is designed to attract foreign pensioners to the country. If your application is approved, you can live there permanently and apply for citizenship in five years. 

The Pensionado Programme has many tax benefits and discounts available to retirees, making Panama one of the cheapest countries to retire to from the UK.

This programme also makes the public healthcare system accessible to all residents, although some prefer to have private health insurance, too, even though it is not a requirement. 

The cost of private health insurance premiums in Panama ranges from $480 to $1,200 per year.

Bulgaria is one of Europe’s most affordable countries. It attracts retirees with its low property prices and affordable cost of living. The country’s expat community is growing, making it easier to settle in. 

While Bulgaria is one of the cheapest countries to retire to from the UK, many expats prefer paying for private healthcare due to concerns about the quality and accessibility of the National Health Insurance Fund’s (NHIF) public services.

While the NHIF has mandatory health insurance contributions that are required regardless, private health insurance costs between £60 and £80 annually.

Mexico’s vibrant culture, warm climate, and low cost of living make it a popular choice for seniors looking to retire abroad. A growing expat community is also a big draw. 

The Permanent Resident Visa allows UK nationals to enjoy long-term residency, and retirees benefit from affordable healthcare and discounts.

Joining the Instituto Mexicano del Seguro Social (IMSS) public health programme is voluntary, and annual premiums vary by age, ranging from approximately $200-$500 annually. 

While not compulsory but the preferred choice of many, private health insurance is available and, on average, costs around £4,800 a year.

Thailand’s appeal as a retirement destination hinges largely on its low cost of living, warm climate, friendly people, and unique combination of busy city life and quiet beach towns. Additionally, everyday expenses in

Thailand are lower than in the UK, and the tax system favours UK retirees. 

Thailand also offers two retirement visas, giving retirees options:

• O-A visa: It allows one year’s residence with the option to renew it. Minimum monthly or annual incomes apply.

• O-X visa: This is valid for five years, and higher minimum investment amounts apply.

Although Thailand’s Universal Coverage Scheme (UCS) provides all citizens with free public healthcare, as an expat retiree, you must invest in private healthcare insurance to access the country’s excellent medical facilities and care. 

Private health insurance premiums for expatriate retirees average between £300 to £800 annually for local policies, while international health insurance can cost between £1,000 and £3,000 or more per month.