What are the Best Countries for American Expats and Retirees?

The Association of American Residents Overseas (AARO), the largest organization serving American expats, believes that at least 5.4 million American expats were living overseas in 2023. There are many reasons for these high emigration figures, whether US citizens are seeking a better quality of life, business opportunities, or enhanced safety and security. 

The US Citizens Retirement Trends Study

Many expats seeking a change of scenery are retirees, looking to enjoy their golden years in style, but it can be difficult to determine which are the best countries to move to from USA.

The US Citizens Retirement Guide by Global Citizen Solutions, our residency and citizenship division, provides a comprehensive and holistic overview of the best countries for American retirees to relocate to. The study was developed in cooperation with the AARO and focuses on quality of life, ease of integration into the new country, security and economic reasons, and community acceptance. And it may be surprising that some of the most popular countries that Americans tend to relocate to are not on the list.

Moving to a more peaceful country

There are many different reasons why American retirees are seeking to move abroad, and each individual will have their own defined reasons. The best countries for American expats to relocate to will vary considerably depending on their requirements and priorities. The safety and security of a country, however, are key factors when deciding on where to relocate to.  

The 2024 Global Peace Index (GPI) is a unique tool that was created by the Institute for Economics and Peace (IEP) to provide a comprehensive ranking of nations’ and regions’ levels of peacefulness. The index is used by governments, NGOs, and researchers to create policies and to strategize conflict resolutions, analyzing the level of peacefulness in a country under three main pillars: Societal safety and security, ongoing domestic and international conflict, and militarization.   

According to the 2024 Global Peace Index, Iceland ranks in the first position, followed by Ireland, Austria, New Zealand, Singapore, Switzerland, and Portugal. To put this into perspective, the USA ranks in 132nd place. For many, seeking out a more peaceful country is key to an enjoyable retirement.  

The US has a high homicide rate (over six per 100,000 people), which is more than six times higher than most Western European countries. For example, gun deaths reached a record high in 2021 with 48,830 deaths, a massive 23 percent increase from the number of deaths in 2019.  

As such, as Madrid writes, “consequently, many are turning their eyes towards European countries such as Portugal and Spain with lower rates of violence and higher standards of public safety, where they can enjoy their retirement years with a greater sense of security and well-being,”. 

Economic Factors Leading Americans to Relocate

America’s high living costs, from healthcare to restaurants, can be seen as a key motivator to retirees looking overseas to make their money go further.  

Madrid mentions that “In these cost-effective places, retirees often enjoy the dual benefits of lower living expenses and access to affordable, yet dependable, healthcare. In Costa Rica, private health insurance for expats can range from $60 to $250 per month, which is significantly lower than average costs in the US”.  

Moving to a country with a much lower cost of living, such as Spain, which is 31.7 percent lower, or Portugal, which is 35.6 percent lower*, can make pensions and retirement funds stretch further, providing a higher quality of life that may be unattainable in the USA. Affordable universal healthcare is also a crucial factor for expats looking to relocate. 

*Data taken from Numbeo. 

Making the Move Seamless

There are many reasons why American citizens choose to relocate, whether it is the safety and economic factors, progressive legislation, job opportunities, better business options, or seeking a higher quality of life. But fitting into a new culture can be tricky.  

Madrid recommends expats seeking to relocate to learn their host country’s language, as this can be the key to unlocking the culture.  

“Start studying even before (you) go, because when you learn the language, you learn the culture. You avoid a lot of culture clashes, you understand local communities and you can integrate better with local communities … because you feel that you are part of your country of relocation, and the community also feels that you’re there to add your culture and integrate with the community,” she says. 

“If you don’t want to learn a language,” she adds, “you need to look for a country where English proficiency is super high. Either a country that has English as an official language or countries like, for instance, in Europe — Nordic countries, the Netherlands, Cyprus, and Malta — countries where English proficiency is high”.  

Portugal, Belgium, and Austria also rank highly, according to the English Proficiency Index 2023. Moving to Portugal has a significant perk, where the climate is sublime, while English is widely spoken across the country, particularly in areas where there are strong expat communities. This makes Portugal one of the best countries for Americans to immigrate to. 

Madrid also stresses the importance of speaking with people who have already relocated to break down the relocation and integration processes and make the move as stress-free as possible. “They started an integration process that will be very important and relevant. If you want to relocate, talk to people, get their experiences, learn from their mistakes, and it is going to make your journey and transition much smoother.” 

Consider Taxes

Madrid also mentions that the factor that should be at the forefront of Americans relocating overseas is often overlooked – taxes.  

“People, when they want to relocate and they’re coming from the US, have to think about taxes,” Madrid says. “I know it’s not the obvious answer, but it can give you a lot of headaches when you don’t have a tax consultant who will give you advice on the countries best for investment and migration programs that can give you beneficial tax regimes.” 

America has a double taxation system on citizens living abroad, which has led to an increasing number of American expats renouncing their US citizenship, according to some experts, as they seek to minimize their tax burden. For retirees looking to make a move overseas, understanding the tax implications and tax arrangements of the country that you are moving to is crucial.  

When considering the best countries to move to, it’s also important to note that the best country for one person will not be the ideal place for another, as each person will be looking for something slightly different.

For one, the dream life may be a country with sublime weather, rich cultural heritage, and incredible gastronomy, while another may be seeking a life abroad with excellent infrastructure, opportunities, such as world-class international schools for their children, or a low-cost of living.

For example the best countries for American families will likely feature access to top education facilities, while this would not matter to retirees looking to relocate. Increasingly, many remote workers are looking to strike the perfect work life balance and to uncover the vibrant culture and natural beauty of a country while working on their own terms, highlighting that they would also have different criteria when focusing on a specific country.