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Best Countries to Retire to from the UK: Top Destinations for Expats
Hoxton Blog • Best Countries to Retire to from the UK: Top Destinations for Expats
Retiring abroad can offer lifestyle, cost, and tax advantages for UK expats. This guide compares nine of the best countries to retire to from the UK in 2026, covering visas, pensions, healthcare, and costs, and explains how structured retirement planning can support long-term security.
Why Where You Retire Matters More Than Ever
Retirement can offer UK expats the opportunity to reassess where and how they want to live. For some, this means warmer climates, lower living costs, or access to different healthcare systems. For others, it reflects a desire for new experiences or closer proximity to family overseas.
Retiring abroad also introduces additional planning considerations. UK pensions, overseas tax rules, post-Brexit visa requirements, healthcare access, and currency exposure all need to be assessed together. UK government guidance on retiring abroad highlights that these factors can materially affect retirement income and entitlements if not reviewed in advance.
In this article, we compare nine of the best countries to retire to from the UK, looking at practical considerations alongside lifestyle factors, and outlining how retirement planning can help UK expats manage the transition with greater clarity.
Why Listen to Us?
Hoxton Wealth works with thousands of UK expats across multiple regions, supporting retirement planning that spans pensions, investments, and international assets.
With nine international offices and experience across different regulatory systems, the firm has insight into how location choices affect long-term retirement outcomes.
Further information is available on the Hoxton Wealth company pages.
What Makes a Country Attractive for UK Retirees?
Several factors tend to influence where UK expats choose to retire. Double taxation treaties determine whether pensions are taxed in the UK or the country of residence. The UK State Pension may be uprated annually in some countries, while in others it remains frozen, as confirmed by Department for Work and Pensions guidance.
Visa requirements are another key consideration. Many countries require proof of minimum income, assets, or health insurance. Access to healthcare, whether public, private, or mixed, also affects long-term costs and quality of life.
Living costs, housing availability, climate, safety, and the presence of established expat communities often shape day-to-day experience. Taking these factors together helps narrow down the most suitable retirement destinations.
Why Retirement Planning Is Important for UK Expats
- Retirement planning for UK expats often involves more complexity than planning solely within the UK
- Many retirees need to coordinate UK State Pension entitlements, private pensions and overseas investments held across multiple jurisdictions
- Income may be drawn in different currencies, introducing additional considerations around exchange rates and cashflow timing
- Tax rules can vary significantly between countries, with double taxation treaties influencing how pension income is treated
- Careful planning can help clarify how much income may be available, how it is taxed, and how long it is expected to last under different assumptions
Top Countries to Retire to from the UK
This table is intended to help UK expats compare popular retirement destinations using practical planning criteria, not just lifestyle appeal.
When reviewing each country, consider how visa requirements, pension taxation, healthcare access and currency exposure interact with your long-term income strategy.
Looking at each country through the same framework can help highlight where retirement plans may be more sustainable over time.
|
Country |
Monthly Budget (Couple) |
Visa (name) |
Minimum financial requirement (headline) |
UK State Pension |
Pension tax (high-level) |
Healthcare |
Hoxton office |
|
Portugal |
€2,000–€2,700 |
D7 Passive Income or Retirement Visa |
€920 per month for main applicant plus 50% for spouse, typically around €1,380 per month used in applications |
Uprated |
Treaty-led outcomes. Taxation depends on Portuguese residency and pension type |
Public and private, many expats use both |
Regional |
|
Spain |
€2,000–€2,800 |
Non-Lucrative Residence Visa |
400% IPREM for main applicant plus 100% IPREM for spouse, around €36,000 per year or €3,000 per month for a couple |
Uprated |
Treaty-led outcomes. Pensions taxed as general income under Spanish rules |
Public access possible via S1 route where eligible, many also budget for private |
Regional |
|
Cyprus |
€1,800–€2,700 |
Category F Residency |
€9,568 per year for main applicant plus €4,613 per year for spouse, around €1,182 per month |
Uprated |
Foreign pension option of 5% flat tax above €3,420 allowance or election for normal income tax rates |
Public and private |
✓ |
|
Malta |
€2,200–€3,000 |
Malta Retirement Programme |
Not a monthly income test. Pension must be primary income with 15% tax on remitted foreign income and a minimum tax of €7,500 per year plus €500 per dependent |
Uprated |
Under the programme, 15% tax on foreign income remitted to Malta subject to a minimum annual tax |
Public and private |
Regional |
|
UAE (Dubai) |
$4,000–$5,500 |
UAE Retirement Residence Visa |
AED 15,000 per month under Dubai scheme. Federal routes often cite AED 20,000 per month |
Frozen |
No personal income tax on pensions locally, but wider structuring considerations apply |
Private insurance typically required |
✓ |
|
United States |
$3,800–$5,500 |
No dedicated retirement visa |
Long-term residency usually via family, employment or investor routes. No standard retiree income threshold |
Uprated |
Treaty-led outcomes. Pension taxation depends on pension type and residency status |
Predominantly private |
✓ |
|
Australia |
AUD 5,500–7,500 |
No mainstream retirement visa for new applicants |
Financial independence is not a standalone visa category. Most routes are family, skilled or investment based |
Frozen |
Treaty-led outcomes. Pensions generally taxed in country of residence subject to structure |
Public and private |
✓ |
|
Malaysia |
RM 12,000–16,000 |
MM2H and state variants |
Tiered system with fixed deposit requirements. Some state schemes cite monthly income thresholds such as RM10,000 single or RM15,000 family |
Frozen |
Foreign-source income rules apply with exemptions subject to conditions and time limits |
Private commonly used |
✓ |
|
South Africa |
R 35,000–50,000 |
Retired Person’s Visa |
Income requirement commonly cited at around R37,000 per month |
Frozen |
Treaty-led outcomes. Many private pensions taxed in country of residence |
Private commonly used |
✓ |
Portugal
Portugal remains popular with UK retirees due to its climate and lifestyle. The D7 visa requires proof of income, currently around €920 per month. UK State Pensions are uprated as Portugal is within the EU framework. Pension taxation depends on treaty rules and personal circumstances.
Pros
- Uprated State Pension
- Established expat communities
- Accessible healthcare
Cons
- Property demand in some regions
- Tax rules have evolved in recent years
Hoxton Wealth can help with pension structuring and long-term income planning for retirees moving to Portugal.
Spain
Spain offers a non-lucrative visa requiring proof of income of around €28,800 per year. UK State Pensions remain uprated, and healthcare access is available through the S1 system. Living costs vary by region.
Pros
- Strong healthcare system
- Wide choice of regions
Cons
- Higher income thresholds
- Regional tax differences
Cyprus
Cyprus combines EU pension uprating with a relatively low pension tax rate, often 5% above a threshold. It also has a UK double tax treaty.
Pros
- Favourable pension tax options
- English widely spoken
Cons
- Smaller job market
- Seasonal cost variation
Malta
Malta’s retirement programmes offer a flat pension tax rate of 15%, subject to minimum tax requirements. UK State Pensions remain uprated.
Pros
- English-speaking
- Stable legal framework
Cons
- Minimum tax thresholds
- Higher housing costs
Dubai
Dubai offers a retirement visa linked to income or property ownership. UK State Pensions are frozen, but there is no income tax on pensions.
Pros
- 0% income tax
- Modern infrastructure
Cons
- Frozen State Pension
- Private healthcare costs
United States
Retiring to the US requires family or investor-based visas. UK State Pensions are uprated, and the UK-US tax treaty governs pension taxation.
Pros
- Uprated pension
- Broad lifestyle options
Cons
- Healthcare costs
- Complex visa rules
Australia
Australia offers strong healthcare but freezes UK State Pensions. Retirement visas often require evidence of financial independence.
Pros
- High quality of life
- Medicare access
Cons
- Frozen pension
- Distance from UK
Malaysia
Malaysia’s MM2H visa requires proof of income. UK State Pensions are frozen, but Malaysia applies territorial taxation in many cases.
Pros
- Lower living costs
- Affordable private healthcare
Cons
- Pension frozen
- Policy changes to visas
South Africa
South Africa attracts retirees seeking lower costs and lifestyle variety. UK State Pensions are frozen, and worldwide income may be taxable.
Pros
- Lower daily costs
- Private healthcare options
Cons
- Frozen pension
- Currency volatility
What to Consider Before Choosing a Country
- State Pension: will it be uprated or frozen?
UK State Pension treatment depends on where you live in retirement. In some countries, it may continue to rise annually, while in others, it can remain frozen at the level first received. Understanding this distinction is important when projecting long-term income and assessing whether other pension or investment sources may need to compensate.
- Tax efficiency: how are pensions taxed locally?
Pension income may be taxed differently depending on your country of residence and the type of pension held. Local tax rules and double taxation agreements influence whether income is taxed at source, locally, or partially offset. Reviewing this in advance can help avoid unexpected liabilities and improve overall tax efficiency.
- Visa feasibility: can income and asset thresholds be met?
Many retirement visas require applicants to demonstrate minimum levels of income or capital. These thresholds vary by country and may need to be met on an ongoing basis. Understanding how pension income, investments, and savings are assessed can help determine whether a chosen destination is realistic from an immigration perspective.
- Healthcare: public access or private insurance costs?
Access to healthcare differs significantly between countries. Some retirees qualify for public healthcare, while others rely on private insurance. Premiums, exclusions, and long-term affordability should be factored into retirement budgets, particularly as healthcare costs may increase with age.
- Currency risk: exposure to GBP, EUR, USD, or AUD
Receiving income in one currency while spending in another can affect purchasing power over time. Exchange rate movements may increase or reduce effective income. Reviewing currency exposure across pensions, investments, and spending can help manage volatility and support more predictable cashflow.
- Cost of living: visit before committing long term
Day-to-day costs can differ materially from expectations, particularly once housing, healthcare, transport, and local taxes are considered. Spending time in a location before committing long-term can help validate assumptions and refine retirement budgets based on real-world experience.
- Planning: seek expertise on cross-border complexities
Cross-border retirement planning often involves overlapping tax systems, pension rules, and regulatory considerations. Seeking specialist guidance can help coordinate these elements, reduce complexit,y and support more informed decision-making as circumstances evolve.
How Hoxton Wealth Supports Retirement Abroad
Step 1: Build a coordinated international view
With offices across multiple jurisdictions, including the UK, USA, Australia, UAE, South Africa, Cyprus and Malaysia, Hoxton Wealth supports clients by combining local insight with a coordinated global planning approach. This helps ensure decisions made in one country are considered in the context of the wider retirement strategy.
Are all your international assets and plans being considered together?
Step 2: Review and consolidate pension arrangements
Pension structures are reviewed to assess whether consolidation may improve oversight, efficiency or administration. This can include UK SIPPs, International SIPPs and overseas arrangements, where appropriate. The aim is to help clients understand how different pensions interact and support long-term retirement objectives.
Do you have a clear understanding of how your various pensions work together?
Step 3: Assess tax treatment and withdrawal strategies
Tax-efficient withdrawal strategies are considered in light of local tax rules and applicable double taxation treaties. This helps clients understand how pension income may be taxed in practice and whether adjustments could improve overall efficiency.
Have you reviewed how and where your retirement income is likely to be taxed?
Step 4: Model income across currencies and locations
Tools such as WealthFlow are used to model retirement income across multiple currencies and scenarios. This can help illustrate how spending power may vary depending on location, exchange rates and timing of withdrawals.
Have you tested how currency movements could affect your retirement income?
Step 5: Test different country and lifestyle outcomes
Scenario modelling and secure document storage support structured planning across potential retirement destinations. This allows clients to explore how changes in residency, cost of living or healthcare access may affect long-term plans.
Would your plan still work if you changed country or spending patterns?
Step 6: Consider estate planning and legacy implications
Cross-border estate planning is reviewed to help clients understand how assets may be treated under different legal systems. This includes considering succession planning and how wealth may be passed on efficiently, based on current assumptions.
Is your estate planning aligned with where you live and where your assets are held?
Step 7: Review exposure to frozen State Pension risk
For clients living overseas, the potential impact of a frozen UK State Pension is considered as part of broader income planning. This helps assess whether other income sources may need to support long-term affordability.
Have you accounted for how State Pension treatment could affect future income?
Conclusion and Next Steps
There is no single best country to retire to from the UK, but several destinations offer strong combinations of lifestyle, cost, and tax considerations. The right choice depends on income sources, health needs, family ties, and long-term financial planning.
Careful preparation can help ensure retirement abroad remains flexible and sustainable. Hoxton Wealth works with UK expats to structure retirement plans that align with their chosen destination. To begin planning, contact Hoxton Wealth.
FAQs
What is the best country to retire to from the UK?
This depends on personal priorities such as tax, healthcare, and whether the UK State Pension is uprated.
How are UK pensions taxed abroad?
Tax treatment depends on the country of residence and the applicable double taxation treaty.
Should I transfer my pension using QROPS?
This depends on personal circumstances. International SIPPs may suit many expats.
What is the cheapest country to retire to from the UK?
Lower-cost options often include parts of Malaysia or South Africa, though pensions may be frozen.
How do I secure retirement income abroad?
Planning across pensions, investments, and currency exposure can help provide clarity.
How Can We Help You?
If you would like to speak to one of our advisers, please get in touch today.
Contact Hoxton Wealth
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