Uruguay Tops 2026 Global Retirement Index; Spain and Portugal Also Rank High

Uruguay has been named the best place in the world to retire in 2026, according to the Global Retirement Report and Index. The South American nation, which rose from fourth place last year, offers direct permanent residency upon proof of a stable monthly income of $1,700.

The index, which evaluates 46 retirement or passive-income visa programs globally, scores destinations across five pillars: quality of life, mobility and citizenship, tax, procedure, and costs. Quality of life holds the most weight in the rankings, followed by mobility and citizenship, then financial and procedural factors.

Top Retirement Destinations

Uruguay's capital, Montevideo, is noted for its safety, relaxed atmosphere, and walkability. The country is recognized for its political stability and healthcare availability, although its tax optimization is considered its weakest point. The estimated cost of living in Uruguay is around £1,174 per month, with average rent at £498 and groceries at £216 per person. A meal for two at a mid-range restaurant averages £40.43.

Mauritius secured the second position, praised for its 15% flat tax and moderate living costs. The island nation scored highly on costs and investment. Its residence permit for retired non-citizens requires a monthly income of $2,000, with citizenship possible after seven years. The average monthly cost of living is £682, with rent at £296 and meals at inexpensive restaurants around £4.72.

Spain, a perennial favorite among Britons, ranked third overall. It leads in quality of life, mobility, and family considerations, though its tax benefits are less favorable compared to other top destinations. Spain also boasts excellent healthcare and high safety ratings. The requirement for retirees is €2,400 (£2,034) per month. Cost of living varies by region, with San Sebastian at £1,761 per month and Leon at £1,337.

Costa Rica placed fourth, highlighted as a standout value destination with a qualifying income of $1,000 (£756) per month. The country ranked highly in the World Happiness Report and offers tax exemptions on foreign income. It is favored for its natural beauty, including beaches, mountains, and jungles. The cost of living is approximately £1,548 per month, with rent at £737 and dining out averaging £125. However, the application process can take up to 18 months.

Portugal rounded out the top five, maintaining its position as the second-highest ranked European destination. It is supported by its D7 Passive Income Visa and a strong private healthcare sector. Portugal offers a favorable climate, access to healthcare, and low crime rates. The income requirement is $920 (£695) per month, with average living costs at £1,315 per month. Rent is around £734, with groceries at £199.

Portugal's drop from first place in the 2025 Index is partly attributed to an extended naturalization pathway, now ten years (seven for EU and Portuguese-speaking country nationals), signaling a potential broader European trend of restricted access to citizenship.

The full top 10 includes Uruguay, Mauritius, Spain, Costa Rica, Portugal, Paraguay, Latvia, Andorra, Italy, and Greece. The index surveyed 46 countries worldwide.

Patricia Casaburi, CEO of Global Citizen Solutions, noted that a retirement visa is best understood as an asset for diversifying tax, lifestyle, and political exposure. With the global population aged 65 and over projected to nearly double by 2050, countries that adapt their programs to this demographic shift will likely shape the future of retirement mobility.