Opinions on places in the world for Americans to retire to cheaply

I will address this.

We have been in Europe many years. We consider our move permanent and have been taking steps accordingly. We’re studying the local language (Luxembourgish is a beast), our kids are fully embedded in the local school system (no expat educational bubble), we’ve bought our Forever House :wink:, we read the local press and follow local politics, our friends are mostly European (again, no expat bubble), we’re a few months away from securing citizenship, etc etc.

However, we still have some money in savings and investment accounts back in the US, because moving all of it is incredibly difficult. The biggest problem, by far, is the massive burden of financial reporting required for European banks that do business with Americans. It’s called FATCA, and banks here hate it. The American feds are ruthless about receiving every goddamn penny of tax money that’s owed them, so financial institutions required to comply with FATCA must submit endless reports and disclosures on their American clients to US regulators.

The unfortunate consequence of this is that many European banks simply refuse to accept American clients even for basic banking. And if you want to add on investment services, the number of banks willing to work with you shrinks even further. We’ve found only one investment manager here in Luxembourg that will take our business — and they have a cap.

We are dealing with this by “spending down” our Stateside holdings. When we buy a big-ticket item, like our house or our car, we use the American money to do it. Essentially, we’re converting our liquid American dollars into European hard goods and real estate. There are complexities and difficulties, but it’s a reasonable workaround, for purchases above a certain threshold.

Eventually, all our money will be out of the US, and in Europe. But it’s not something that’s trivial to achieve, the way you suggest.

I’ll address this as well, from the other side of the world viewpoint (i.e. SE Asia or South of the border).

Banks in many countries are not as stable and dependable as banks in the US are. Too big too fail is not even a concept they have; in many countries they don’t have much in the way of deposit insurance so you could lose everything and have no recourse to get any of it back.

Also, historically the US dollar has done very well compared to other currencies and even with the present administration its doubtful that this will change significantly over the long term. Many people are retiring overseas and are very adverse to risk, their lives depend on stability.

I guess you could invest and put your money into the Chinese markets and banks, but what to do if our relationship with China (or any other government) goes south. Your assets could very well be seized or frozen, and there you are in a welfare situation in a foreign land.

And why would you assume everyone would want to live like a local? I want to live the way I want with the money I earned, I’m not taking a vow of poverty by moving overseas.

You mean living like a local means living in poverty? Depends very much on where you move.

The value that the American dollar will hold, and your ability to transfer US$200k of holdings into foreign currency (as addressed by @Cervaise) is a very salient part of permanently relocating to another country. Americans have lived in a world where their currency is the default, and basically accepted anywhere as long as you are willing to pay an exchange fee, or with pleasure if the local currency is unstable. The assumption of the dominance of the US dollar in the near future is in doubt if the current leadership decides to try to remake the country into a hermit kingdom which it shows every evidence of doing.

Real villains use ‘untraceable’ bearer bonds to transfer their millions of dollars offshore.

Stranger

So I read a lot of “best places for Americans to retire” lists and Greece didn’t appear on any of them. And I think I just assumed they weren’t friendly to retirees in terms of granting visas. But they have a pretty similar Visa to Spain requiring 2000eur a month guaranteed income and pretty much the same other requirements. Cost of living is somewhat similar - cheaper rent, more expensive consumer goods. Climate is similarly great. Any idea why Greece is not seen positively for retirement?

Wildfires, the economy in the crapper, the first place that immigrants from Africa and the Levant head to, the general fact that Greeks are generally kind of sick of wealthy tourists knocking about even though it is most of their revenue.

With regard to climate change, you really need to consider that anywhere without a solid freshwater supply, resilient against flooding and hurricanes/typhoons/tornadoes, and capable of sustainable food production is likely going to become materially undesirable in your timeframe of the next 25-40 years. The Med has had a reliable climate for agriculture and protection from ocean-borne storms but we’re already seeing that change; ditto for anywhere +/- 15 degrees of latitude from the equator or low laying archipelagos. It isn’t as if there is any place that you will be able to completely escape those impacts but Spain, Italy, and Greece are probably going to be some of the countries hit worst by those changes and least prepared to adapt.

Stranger

One thing I forgot to mention in my original post is that I really hate haggling and I being targeted as a (white) foreigner and given the high pressure sales pitch and different prices than locals. Like “oh here’s a guy that must be rich, let’s swarm him!” everywhere you go.

I realize this is more prevalent in tourist areas than non-tourist areas, but I know for example hailing a cab in Mexico in any remotely touristy area is going to get you a price 4x higher than what they’d charge locals which you can then haggle down to about 2-3x what they’d charge locals.

This culture is pretty prevalent in central America and the Caribbean, but what about somewhere like Portugal or Spain? Is it like that in Thailand and the Philippines? Is it a big difference between tourist and non-tourist areas? Can you live a fairly normal life in public in these places in less touristy areas?

And please don’t lecture me about how I deserve it, I’m just trying to gather information here.

No, this is not part of the local culture in Spain or Portugal (or Greece). Or basically anywhere in Europe.

Agree. I’ve never seen anything in Europe that compares to the “hey man, come look at my shop! good deals! good deals! for you, special price!” that I regularly get in, say, Mexico, or across the tourist areas of North Africa. (Morocco was the worst; Tunisia was better but not great. I was surprised at how little of it there was in Turkey, now that I think about it. Anyway.)

One might occasionally get some pressure sales tactics if one deliberately seeks out a highly intense tourism hot spot (e.g. the souvenir booths around the Tower of Pisa), but considering that the question is about locations where one can retire and live, one probably wouldn’t be going to those kinds of places anyway.

In fact, you can mortally offend shopkeepers in some places if you start trying to haggle - I’ve seen tourists get very short shift in Italy and France for trying that trick. Market stalls are more open to haggling, but usually if the price is written on the item - that’s the price.

And taxis in most of Europe tend to be metered and controlled. So as long as you make sure the meter is switched on, there’s no haggling.

Yes, for sure. In fact, in many tourist-heavy areas, there are flat-rate fares between frequently visited nodes. The cabbie who took us from the airport to the city center in Florence (I think it was) apologized for the heavy traffic, but said nothing about how the delays were impacting his income; he was ecstatic when we gave him a big tip.

Of course, since we are, again, talking about retirement and residency and not tourism, I have to assume the future resident would, pretty quickly, want to learn how to take advantage of local transit options anyway, and stop relying on taxis. Most everywhere I’ve been, public transport has been at minimum pretty good, and frequently excellent. The system in Prague is terrific, for example. It can be a little spotty in the smaller towns, but you have to get pretty far out in the sticks before there’s nothing.

Yes, in the Philippines it is called the skin tax. But they do not harass you about it, once you are there and been around you just tell them you know what the price should be and walk away if they don’t give you the locals rate. Generally they will just cave in and smile, knowing you didn’t just get off the banana boat so to speak.

If Trump boosts tariffs substantially, I would expect the dollar to strengthen (and exporters to be hurt). 1) Reduced demand for foreign good implies reduced demand for foreign currency, which implies weaker foreign currency and a stronger dollar. 2) Higher inflation from higher import prices will lead to higher interest rates set by the Federal Reserve (barring recession, of which risks have increased). Higher interest rates imply higher demand for US currency as foreigners seek to buy US bonds.

This assumes that the US doesn’t default on foreign holdings of US debt. That’s something the Trump admin is actively considering - the plan would mandate a trade of treasury bills (debt which is due in one year or less) for 100 year US bonds that don’t pay interest. This would be illegal under a noncorrupt judiciary, but that no longer applies either.

https://www.marketwatch.com/story/wall-street-cant-stop-talking-about-the-mar-a-lago-accord-heres-how-the-currency-deal-would-work-f8fbbda0

There are a lot of moving parts here, but we can’t assume vast weakening of the US dollar moving forwards. I expect strengthening over the coming year, but will reassess my forecast as facts emerge. Over a five year horizon, I’d expect weakening as the US dollar is currently over-valued, under a the-Republic-survives scenario.

So I have now spent 3 weeks in Spain and it has all been positive. I realize that in 3 weeks, I’m not seeing all the downsides of normal life and as a tourist I’m seeing all the good stuff, but I haven’t been staying in posh resorts the whole time or anything like that. Mostly in the cities in the cheapest private (non-hostel/dorm) rooms, using almost exclusively public transit and walking to get around. And I love pretty much all of it. The city design, the cultire, the mass transit, the food, the eating style (this is actually huge for me since I love to hang out in nice public spaces and also eat out, and you can do both here 10x better than any city I’ve ever seen in the US. The only complaints I can really muster up is that if you had a car it could be a pain to drive through the narrow roads with little parking, but there’s such good mass transit you’re better off not even having a car in the cities. In smaller towns, sure. And bathrooms. They have almost no public bathrooms in the whole country. It’s weird. Even in places like airports – I got off a plane, went from the arrivals area to a tram to the main part of the aport, and had to walk a lot to finally find a single bathroom. It was literally 20 minutes from getting off the plane to the first bathroom I saw. In a US airport I would’ve passed at least 7 or 8 bathrooms in that time.

I would absolutely be willing to live here and I think it scored a lot of points versus the cheaper but more foreign/poorer options like Thailand or the Phillipines. Spain is definitely not one of the richer countries in Europe, but the infrastructure is modern. It doesn’t feel like you’re in a third world country or anything like that. A lot of it is old/historic, and that comes with sometimes inconvenient designs – like lots of buildings in cities with no elevators or weird layouts with the plumbing because they’re old ass buildings before modern building standards.

The prices are excellent – they’re not as cheap as a third world country, but they’re 30-40% cheaper than the US for things like restaurant dining and bars. A quick glance at rent prices looks pretty reasonable. I haven’t had any interactions with the police or anything but they seem fine and I haven’t felt like I was ever in danger (though I have exercised additional caution against pickpockets).

In general, it’s pretty much on the positive end of my expectations and I don’t see a lot of downside to living here.

Haven’t been to portugal yet. I can’t remember if I mentioned this earlier in the thread, but that’s a serious contender because their visa requirements are trivial to meet (with Spain, I’d have to get them to look at my savings/investment income in addition to my guaranteed income), and they just seem more generous towards immigrants in general. In Portugal, you can become a citizen in 5 years of residency, but in Spain it’s 10. Spain requires you to renounce your previous citizenship upon gaining Spanish citizenship (though there are mixed reports as to whether they actually check), whereas Portugal is fine with you keeping your old passport.

I suspect I may like Portugal less – not because Portugal is bad but because Spain seems so great – but it’s easier to move to Portugal and they seem happier to have you. And once you get citizenship you’re free to live in the EU where you wish.

What about eastern europe, are nations there a good idea? They have advanced infrastructure and are generally liberal democracies, but the cost of living is lower. I’ve heard Poland is a good location to retire in.

However, the languages are harder to master than spanish.

For me personally, I’ve thought about this too and I get the impression that buying a small condo in a medium sized city in a blue state would be my best bet to retire. I know the US is moving towards fascism, but I was hoping that living in a blue state would offer me some protection from fascism.

In lot of Europe they are cracking down on residential requirements for obtaining longterm visas, or ‘buying’ EU passports - Malta has been told its existing Golden Passport scheme is illegal by the European Court of Justice, though it’s not clear what will happen to existing passport holders.

Alternate timeline Sitnam would run a backpacker dorm in South East Asia. Phnom Penh to be exact, that place is like Tombstone. He would be officially retired, but his duties would include drinking at the bar, talking to locals, and giving travel advice for tourists staying with him.

The challenges would be many, but he wouldn’t invest too much in the country and would have a backup getaway plan. If he succumbs to a heart attack or something because of his age then that’s how he goes.

Spain has excellent food, a sensible lifestyle and pleasant weather. Because there are a lot of tourists - a sizeable percentage who bought property there - this has caused some resentment similar to other places, but worse with people who would prefer if you spoke Basque or Catalán rather than Spanish. You could do much worse.

Panama is my preferred choice. It’s one of the most prosperous and safe countrues in Latin America. From what I hear it’s relatively easy for Americans to gain residency and even full citizenship

Plus I’m hispanic and speak Spanish fluently.

I had brief hopes that I would be able to get citizenship in Italy. My grandfather was born there, and under their old laws, my mother was a dual citizen through him and I could apply citizenship through her. But they changed the law just this year to basically remove the ability for Italians that emigrated to the Americas in the 20th century to come back. Pre-1992, Italy considered you to have given up your Italian citizenship if you naturalized in another country. But if you had kids and it was a jus soli country, they would retain their Italian citizenship even if you naturalized. Well, they would lose it until they were an adult, and then automatically regain it. It’s a little complicated. But the 2025 law changed it so that your grandparent had to be fully italian/un-naturalized to anywhere else when YOU were born, not your parent. It’s really inconsistent with how they generally handled the chain of descent issue – they basically cut out your parent at that point. Since my grandfather naturalized when my mom was a child, I could’ve qualified under the old system but not the new one. I was briefly very excited about the possibility of gaining Italian citizenship because having EU citizenship would be amazing – you could live anywhere in the EU without a long and complicated residency application. I was so hopeful I could go that route.

I ended up spending a month in Spain and 2 weeks in Portugal. If I had gone to Portugal first, I think I would’ve had a more positive opinion of it. It’s reasonably nice and there’s a lot to like about it… but.. pretty much everything Spain is better. So going from Spain to Portugal was a downgrade and a disappointment. And most annoyingly, at least Portugal was supposed to be cheaper – every cost of living site agrees – but I found that not to be the case at all. Portugal had incredibly cheap wine, I ate cheaper in Spain.

I thought I might move to Portugal anyway, because their requirements are easier and you can get citizenship much faster (5 years vs 10). But I’ve since learned some very positive things that make Spain more practical. I was under the (incorrect) impression that if I go over on a non-lucrative visa – a non-working visa – based on passive income, I’d never be able to work no matter how long I stayed unless I became a citizen.

However, if I’m understanding what I’ve read correctly, once you’ve lived in Spain on the non-lucrative visa for 5 years, you can apply for permanent residency, and at that point you regain your ability to work. Is anyone familiar with that? I’d like confirmation if possible. Anyway that would make the main reason I would be seeking citizenship moot.

As an added bonus - after 5 years of residency in any EU country (except Ireland and Denmark – they don’t participate in this), you can file for residency in another EU country if you want. It’s not as flexible as citizenship – there are requirements like proving income, health insurance, and sometimes stuff like a language certificate – but it’s much easier than achieving your initial residency in your first country. So while citizenship would be better, permanent residents still have a route to move around Europe if they want.

Portugal also had a much lower requirement for passive income at around 900 Euros a month. I also don’t have enough passive income to meet Spain’s requirements for their non-lucrative visa, which is 28,800 euros per year/2400 per month. My passive income is more like 22,000 euros. However, again, if I’m interpreting what I’ve read correctly, they only require that you make up the gap between your passive income and the required income in savings that you have at all times. So if I keep a bank account with 6800 Euros, and prove it every time I renew, I can qualify for the visa. That’s easy. I’m probably going to talk to one of those agencies that assists with immigration to make sure I have all of this correct.

Given that, I don’t think I have much reason to prefer Portugal over Spain, and I’m strongly leaning towards moving forward on Spanish residency.

I think I’m mostly ruling out non-European options at this point. If I moved to somewhere like Thailand, the Phillipinnes, Costa Rica, etc., I would be relatively richer, I could live a better lifestyle with my income. But those places, I suspect, would have a lower quality of life than Europe in some ways that are important to me. The climate is much worse (I’m averse to hot/humid places compared to southern Europe which is pretty much fantastic), the infrastructure is more third world, the governments are probably less stable and less liberal/protective of people, etc. For somewhere like Thailand or Vietnam, the language would be a real challenge to learn (though the Philippines speaks English widely and central America would be okay with Spanish). Anywhere in Europe is also more likely to fare better in the face of climate change – living in a tropical place would probably be too hot right now, but in 10 or 20 years we may be looking at collapse.

I love Spain. It’s cheap enough that I can have a decent quality of life even without working or just doing modest work (I likely couldn’t work there in my current field so my training/experience is kind of irrelevant unfortunately - but that’s going to be true of pretty much anywhere but a handful of countries that are expensive), the climate, lifestyle, and culture are all awesome. The societal stability and quality of government, while not the best in Europe, is probably a significant step up from the non-European options. Spanish permanent residency grants a decent amount of access to the rest of the EU in case I wanted to move elsewhere.

I could still consider other European options like Portugal, Italy, Greece, maybe eastern Europe – but since I love Spain, it seems hard to imagine they’d be better options. The only real driving factor that might push me somewhere else in Europe is much more widespread English speaking. Somewhere like Greece has the low costs of Spain, the beautiful weather, the history and travel possibilities, but with many more people speaking English. But Spain passed the vibe check very well.