Updated: August 18, 2025

 

Portugal has claimed the top spot in the 2025 Global Retirement Report by Global Citizen Solutions’ Global Intelligence Unit (GIU), which ranks 44 countries worldwide that offer passive income visas or retirement residence permits. The holistic assessment utilizes 20 distinct indicators, grouped into six sub-indexes for a data-driven ranking system to show the best countries to retire to in 2025.

Portugal Takes the Top Spot

Portugal not only claimed the first place – an improvement of second position in 2024, when Spain took pole position – but was the only country to surpass the 90-mark threshold, with an impressive score of 92.6 out of 100. Spain, in turn, does, however, also remain a highly desirable location, ranking in third position in 2025.

Top Ten Countries to Retire To

In today’s world, you’ll find passive income and retirement visa opportunities on every continent. However, the Americas (36 percent) and Europe (32 percent) lead in program availability. While Asia and Africa are smaller in representation, they still offer a variety of attractive options, leading to retirees being able to explore their options when deciding which country is best suited to their needs.

Below, you can see the top ten ranking countries to retire to, according to the 2025 Global Retirement Report.

Ranking

Country 

Score 

1st 

Portugal

92.61

2nd

Mauritius

89.24

3rd

Spain

88.52

4th

Uruguay

88.05

5th

Austria

87.92

6th

Italy

87.42

7th

Slovenia

87.30

8th

Malta

87.00

9th

Latvia

86.97

10th

Chile

86.44

You can find the full list of countries here.

Methodology

methology on global retirement reportThe 2025 Global Retirement Report by the Global Intelligence Unit (GIU) evaluates and ranks 44 countries across the world that offer a passive income visa or retirement permit.

They provide a comprehensive ranking of the best destinations to retire to, so retirees can make an informed, data-driven decision on which country could be a good fit for them.

20 distinct indicators were used, grouped into six sub-indexes and one final overall index designed to a definitive answer for the best country to retire to.

The methodology ensures all aspects that relate to retirees looking to retire abroad are covered, from integration to a new culture, lifestyle benefits, and practical requirements. This is how each of the 20 indicators were selected.

The overall Global Retirement Index was constructed as a composite measure, with indices grouped into six sub-indices and assigned a different weight according to their relative importance. You can find out more about the methodology here.

Sub-Indexes 

Assessment Criteria 

Application Process Index 

How quickly applications are handled, whether dependents can be included, and the length and renewal options for residence permits 

Citizenship and Travel Freedom Index 

The steps required to qualify for nationality, whether holding more than one citizenship is permitted, and the global mobility strength of the passport 

Economic Factors Index 

Minimum earnings needed to qualify, government and administrative fees, and everyday living expenses 

Tax Efficiency Index 

The way the taxation framework operates, prevailing tax percentages, and special deductions or exemptions available 

Living Standards Index 

Availability and quality of medical services, typical climate conditions, and environmental cleanliness or sustainability 

Safety & Cultural Integration Index 

Levels of personal security, openness toward newcomers, and how widely English is understood and spoken 

The Rise of International Retirement Migration (IRM)

International retirement migration (IRM) has become increasingly popular in recent years, with individuals from across the globe seeking out countries that offer a higher quality of life, accessible residency options, and economic perks, looking for countries that offer a lower cost of living.

What Makes Portugal Stand Out

s jorge castle in lisbomThere is no one standalone reason as to why Portugal, for many, is the perfect country to retire to. Portugal’s claim as the best country in the world for retirement is bolstered by the fact that it has one of the best climates in Europe and has a low cost of living that does not sacrifice on its high quality of life.

Other Mediterranean countries also rank highly in the index, such as Spain, Italy, Malta, and Greece, highlighting the benefits of living in a Mediterranean country. The Mediterranean cuisine has long been heralded as one of the healthiest – and most delicious – in the word, with diverse cultural experiences and a high degree of security adding to the appeal of retiring to this part of the world.

Some of the key reasons why retiring in Portugal is so sought after, according to the GUI Global Retirement Report, are:

  • Quality of life: Portugal scores highly in Quality of Life (95.0) and Safety and Integration (95.8), two essentials for retirees seeking a country overseas to retire to. This shows world-class healthcare, high English proficiency, environmental standards, and high levels of community acceptance.
  • Mobility and citizenship: Portugal has a Citizenship & Mobility score of 95.3 percent. Non-EU nationals can apply for a Portuguese passport after five years of legal residence, with Portugal also offering dual citizenship.
  • Easy relocation process: The application process to retire to Portugal is relatively simple, such as with the Portugal D7 Visa or the Portugal Golden Visa. This leads Portugal to have a score of 85.6 percent in the Procedure index. Family members can also be included in residency applications.
  • Low cost of living: Portugal’s Economics (94.9 percent) and Tax Optimization (75 percent) showcase the country to have an affordable cost of living and favorable tax regimes, such as IFICI (Portugal NHR 2.0.).

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