The best places to retire in 2026 revealed, from the UK's favourite European country to a tropical island - and a surprising winner

Ditching the UK when you retire is an appealing prospect – with the promise of better weather and a higher quality of life abroad, Britons across the country are eager to start a new life overseas in their 60s and 70s.

Each year, the Global Retirement Report and Index reveals the world’s most attractive destinations for those looking to enjoy life after work.

This year, a South American destination has claimed the top spot in a surprise win, while a mix of European and further-flung destinations make up the rest of the top ten.

Based on 46 retirement or passive-income visa programmes worldwide, the Index scores each programme across five pillars: quality of life, mobility and citizenship, tax, procedure and costs.

Quality of life carries the most weight, followed by mobility and citizenship, then financial and procedural factors – reflecting the priorities of a typical internationally mobile retiree.

Here’s a full look at the places that have shown themselves to be the best in 2026.

1. Uruguay

In first place is, perhaps surprisingly, Uruguay, up from fourth place last year

Capital city Montevideo is a safe, relaxed, and walkable South American choice

It might seem far away, but for those whose priority is peace of mind, prompted by available healthcare, safety and political stability, it may be worth considering Uruguay, recognised for its political stability. 

Ranked highly for mobility and citizenship and weakest on tax optimisation, Uruguay is the best place in the world to retire in 2026.

Here, applicants are granted permanent residency directly, with no temporary phase, on proof of $1,700 (£1,284) a month in stable income.

What about the cost of living?

You'll need around £1,174 a month, according to cost comparison site Wise, with the average rent £498 a month.

Groceries will set you back £216 a month per person, while eating out is not a huge expense either – a meal for two at a mid-range restaurant will set you back an average of £40.43.

Who is it best for? According to the Index: 'It best suits those who value travel freedom and a clear path to a second citizenship; the main trade-off is that the tax treatment of foreign and retirement income is less favourable.' 

2. Mauritius

In second place, scooping up the silver medal, is sunny Mauritius

In addition to great beaches, there's plenty of culture to explore

Mauritius also ranked highly because of its 15 per cent flat tax and moderate island living costs. 

The country takes second place, with its strongest score based on costs and investment. 

Its residence permit for retired non-citizens sets an income bar of $2,000 (£1,513) a month, with citizenship possible after seven years. 

Who should consider moving here? 

Budget-conscious retirees seeking low entry costs and thresholds, the study says, adding: 'The main trade-off is that day-to-day living conditions score lower than the top destinations.'

Other financial advantages include the cost of living, with the average monthly cost just £682, according to Wise.

Monthly rent stands at an average of £296 – stark in comparison to London's £2,218.

Dining out is cheap, too – a meal at an inexpensive restaurant is just £4.72, while you can easily get coffee for £2.

3. Spain

Naturally, British favourite Spain makes its way into the top three retirement destinations

From stunning Seville (pictured) to Madrid, Barcelona and the Costa del Sol, there are endless options in Spain

Boasting sandy beaches, a relaxed lifestyle and good weather, Spain has drawn countless Brits to its sunny shores for years. 

Coming third overall, the nation leads on quality of life, mobility and family, although tax benefits are lower than other options.

Within Europe, Spain continues to attract retirees due to its healthcare system and high safety ratings, particularly for those seeking proximity to the UK. 

It also boasts many of the world's best beaches: this year, Spain set a new record, with 794 beaches awarded the prestigious Blue Flag title – 151 of which can be found across the popular Costa Blanca region. 

You'll need €2,400 (£2,034) a month to qualify, making it less accessible than destinations such as Uruguay and Mauritius.

In terms of cost of living, this varies greatly across different regions. San Sebastian will set you back £1,761 a month, while Madrid comes in at £1,834 and cheaper Leon at £1,337.

4. Costa Rica

In fourth place is Costa Rica, with its gorgeous beaches and relaxed attitude

Scenery is magnificent here too, especially across the jungle

Costa Rica is the standout-value destination, taking a top-five spot for $1,000 (£756) a month to qualify.

Located between Nicaragua and Panama, Costa Rica ranked among the happiest countries in the world in 2025 in the World Happiness Report.

Plus, it's a favourite among expats given it places tax exemptions on foreign income.

The abundance of beautiful beaches, swimmable waters, excellent hiking, mountains and waterfalls to visit makes it an exceptional choice for fans of nature.

The cost of living is £1,548 a month, and rent can be just £737 and dining out an average of £125 a month.

The downside? Procedure – it can take up to 18 months to be processed. 

Who is it best for? According to the Index: 'It best suits budget-conscious retirees seeking low entry costs and thresholds; the main trade-off is that the application process is comparatively slow or demanding.'

5. Portugal

Rounding out the top five is Portugal - capital city Lisbon is a favourite among Britons

Elsewhere, Porto is known for its laid-back nature and excellent gastronomy

Portugal is the second-highest ranked European destination, coming in fifth place, supported by its D7 Passive Income Visa and strong private healthcare sector. 

Portugal's favourable climate, access to healthcare and low crime levels explain its high ranking. 

However, it has dropped since coming in first place in the 2025 Index. 

It has been ranked among the top retirement spot lists in the past, including ranking fourth in the UK Retirement Destinations Attractiveness Report 2026. 

Plus, you only need an income of $920 (£695) a month to qualify.

You might need more for living costs, though, as the average cost per month is £1,315 in Europe's mild-climate gem, with English-speaking locals and a relaxed pace.

Monthly rent comes in at £734, with groceries £199, dining out £98 and transport £35 – all for a month.

THE FULL LIST 

1. Uruguay

2. Mauritius

3. Spain

4. Costa Rica

5. Portugal

6. Paraguay

7. Latvia

8. Andorra

9. Italy

10. Greece

11. Chile

12. New Zealand

13. Austria

14. Albania

15. Brazil

16. Argentina

17. Panama

18. Cyprus

19. United Arab Emirates

20. Malta

21. France

22. El Salvador

23. Peru

24. Malaysia

25. Ireland

26. Honduras

27. Guatemala

28. Dominican Republic

29. Nicaragua

30. Cape Verde

31. Belize

32. Zambia

33. Colombia

34. Namibia

35. Mexico

36. Morocco

37. Philippines

38. South Africa

39. Cambodia

40. Kenya

41. Ecuador

42. Bahrain

43. Indonesia

44. Sri Lanka

45. Türkiye

46. Thailand

Source: 2026 Global Retirement Report and Index

On the flip side, Portugal has doubled its naturalisation pathway from five years to ten (seven for EU and Portuguese-speaking-country nationals), the clearest signal yet of a broader European restriction of access to citizenship, which has cost Portugal its crown in this year’s edition of the Global Retirement Index.

Patricia Casaburi, CEO of Global Citizen Solutions, said: 'The Index's central finding is that a retirement visa is best understood as an asset – a way to diversify tax, lifestyle and political exposure. 

'With the global population aged 65 and over set to nearly double to 1.6 billion by 2050, we're looking at a generation of retirees who will live longer, be more numerous and more mobile than ever before. 

'The countries that design their programmes around that reality will shape the next decade of retirement mobility.'