The Top 5 Countries to Retire as a UK Expat in 2025
Retiring abroad is no longer a niche trend—it’s a strategic decision for thousands of British nationals seeking lifestyle upgrades, tax efficiency, and global freedom. Whether it’s the Mediterranean climate, favourable tax systems, or access to top-tier healthcare, more UK retirees are opting for a well-structured life overseas.
But retiring abroad is not just about beaches and brunch. It requires serious consideration of visa pathways, healthcare access, pension taxation, inheritance laws, and long-term financial stability. For high-net-worth individuals (HNWIs), the stakes are even higher: cross-border tax planning, succession structures, and residency compliance must be coordinated with professional advice.
In this guide, we outline the Top 5 Countries for UK Expats to Retire in 2025, focusing on jurisdictions that offer robust lifestyle benefits, legal residency solutions, and attractive financial environments—backed by credible infrastructure and expat-friendly frameworks.
1. Portugal – Sunshine, Stability, and Strong Infrastructure for UK Retirees
Why Portugal?
Portugal has consistently ranked among the top retirement destinations for British expats. Its mild climate, relatively low cost of living, EU healthcare access, and widespread use of English make it exceptionally comfortable for UK nationals. Whether you’re considering the Algarve, Lisbon, Porto, or the Silver Coast, Portugal offers a mix of rural tranquility and urban vibrancy.
Residency for Retirees
- The D7 Visa remains a highly popular route for retirees with stable passive income such as pensions, rental income, or dividends. The application process is relatively straightforward and includes proof of accommodation and income.
- Applicants gain access to Portugal’s residency pathway and, after five years, may apply for permanent residency or Portuguese citizenship.
Tax Considerations
- Portugal’s Non-Habitual Residency (NHR) regime, while amended in 2024, may still provide partial tax relief on foreign-source income for new residents under transitional rules. However, the exemption for pension income has been tightened and now typically faces a 10% flat rate unless further reforms are passed.
- UK retirees should coordinate with advisers to understand Portugal’s treatment of UK pensions, dividends, and capital gains. Portugal does not tax foreign-sourced income under certain residency regimes, but this depends on application, remittance rules, and double tax treaties.
Healthcare & Lifestyle
- Portugal offers high-quality private and public healthcare. As a legal resident, you are entitled to access the Serviço Nacional de Saúde (SNS)—Portugal’s national health system.
- International health insurance is common among new arrivals and recommended during the residency application process.
- The cost of living—particularly outside Lisbon—can be 30–40% lower than the UK.
Important: Portugal has updated many immigration and tax pathways since June 2025, including changes to the Sephardic Jewish citizenship route. Retirees should seek professional advice to confirm current eligibility and timelines.
2. Spain – Mediterranean Comfort, Familiarity, and World-Class Healthcare
Why Spain?
Spain is home to one of the largest British expat communities in Europe, with regions like the Costa del Sol, Balearic Islands, and Costa Blanca offering English-speaking services, thriving social scenes, and reliable property markets. Warm climate, cultural heritage, and modern infrastructure make it an appealing retirement base.
Residency Options
- The Non-Lucrative Visa (NLV) is the most accessible retirement route, requiring sufficient passive income and private health insurance. It prohibits active employment but allows property management and investment oversight.
- The Digital Nomad Visa is now available for those continuing to earn remote income abroad, though retirees typically favour the NLV route.
- After five years, applicants may qualify for long-term EU residence.
Tax Considerations
- Spain is a worldwide income tax jurisdiction. UK pensions, rental income, and gains may be taxed, depending on structuring and DTT protections.
- Wealth Tax (in certain regions), Modelo 720 foreign asset declarations, and succession law (forced heirship) are key issues requiring forward planning.
Spain offers a form of the Beckham Law tax incentive, but this is aimed at highly skilled employees and is not applicable to retirees.
Healthcare & Cost of Living
- Spain’s public healthcare system is excellent, and legal residents can access it after registration.
- Retirees often use private insurance for immediate access and English-speaking care.
- Property prices in popular coastal areas have remained competitive, though demand has risen post-COVID and post-Brexit.
Note: Spain’s succession rules are based on regional and national law and can override UK wills if not explicitly structured with legal advice
3. France – Refined Living, Strong Healthcare, and Assurance Vie for Financial Planning
Why France?
France is ideal for retirees who appreciate fine food, culture, countryside, and a centrally located EU base. With high-quality healthcare, solid infrastructure, and robust financial planning tools, it’s a top choice for discerning British expats.
Residency Options
- UK nationals can apply for a Long-Stay Visitor Visa (VLS-TS), which requires proof of income and accommodation. This visa is renewable and can lead to long-term residence permits.
- After five years of continuous legal residence, retirees may apply for permanent residence or French nationality.
Tax Planning Tools
- France taxes residents on worldwide income, but the UK–France Double Taxation Treaty helps mitigate exposure.
- A major benefit for retirees in France is the Assurance Vie structure: a tax-deferred investment wrapper that can provide tax advantages on capital gains, succession planning, and income drawdown.
- British pensions may be taxable in France, and financial planning is essential to avoid dual liabilities.
Healthcare
- France’s public healthcare is among the best in the world. Retirees contribute to the system via social charges, with top-up coverage (mutuelle) widely used to cover additional expenses.
Lifestyle & Culture
- From rural Dordogne to the Riviera and Parisian suburbs, France offers an extraordinary diversity of retirement environments.
- Learning some French will enhance the experience, especially in non-tourist areas.
Note: French residency imposes strict rules on wealth disclosure, succession law, and insurance regulation. Always work with cross-border advisers familiar with French and UK rules.
4. Malta – English-Speaking, EU Access, and Tailored Residency for Retirees
Why Malta?
Malta provides a stable EU jurisdiction, English as an official language, and an established track record in financial services and retirement migration. The island offers safety, tax clarity, and a well-regulated residency environment.
Residency Options
- The Malta Retirement Programme (MRP) allows qualifying retirees to gain residency with tax incentives. It is designed for EU/EEA/UK nationals receiving foreign pension income.
- The Malta Permanent Residence Programme (MPRP) is open to non-EU nationals and involves a contribution and real estate commitment.
- Both programmes allow Schengen travel and do not require full-time residence.
Tax Environment
- Under the MRP, foreign-sourced income (such as pensions) remitted to Malta is taxed at a flat 15%, with a minimum tax of €7,500 annually.
- No tax on capital gains not remitted, and no wealth or inheritance tax.
- Malta follows the remittance basis for foreign income, offering planning opportunities for passive income and asset protection.
Healthcare & Infrastructure
- Malta’s public and private healthcare systems are well integrated. Many British retirees opt for private cover for faster access and specialists.
- Malta’s small size makes it easy to navigate and fosters a close-knit expat network.
Note: All residency programmes in Malta require source of wealth declarations and strict due diligence under EU rules. Residency is not automatic and requires pre-approval.
5. Greece – Mediterranean Lifestyle with Low Pension Tax for Foreign Retirees
Why Greece?
Greece has transformed in recent years from a sun-seeker’s paradise to a serious contender for retirement migration. Its tax policies, lifestyle affordability, and improved residency routes make it attractive for financially independent retirees.
Residency Options
- Greece offers a Golden Visa for property investors from €250,000 (rising to €400,000–€800,000 in central zones from 2024).
- Alternatively, retirees can apply for a residence permit as financially independent persons, requiring proof of regular income and private healthcare.
- After five years, permanent residency is possible; citizenship can follow after seven years of residence.
Attractive Tax Regime
- Greece offers a flat 7% tax rate for 15 years on foreign pension income for new tax residents over the age of 55 (subject to application approval).
- Greece does not have a wealth tax, and inheritance tax rates are relatively modest with allowances.
Healthcare and Living Costs
- Greece’s public healthcare system is improving, but private healthcare is recommended for expats.
- Cost of living in rural or island areas is significantly lower than most Western European countries.
Conclusion: Strategic Retirement Requires Structured Planning
Choosing the right country for retirement involves far more than personal preference. For British retirees—especially those with substantial assets or international holdings—the implications span legal residence, tax residency, healthcare access, pension treatment, and long-term succession planning.
Every jurisdiction listed above offers compelling advantages, but each also comes with its own risks, reporting duties, and legal frameworks. The best strategy is one that incorporates:
- Comprehensive tax advice
- Cross-border wealth planning
- Residency pathway navigation
- Ongoing legal and compliance reviews
Blacktower works with trusted, licensed partners to guide UK expats through retirement transitions abroad. We help connect you with authorised financial, legal, and immigration professionals in each jurisdiction—ensuring you’re supported every step of the way.