A number of countries around the world have developed special residency programs for foreign retirees that offer preferential tax treatment—ranging from full exemption to flat rates of 5–7%. The requirements for applicants, the duration of the tax benefits, and the pathways to permanent residency vary significantly depending on the jurisdiction. Learn more about the countries where a retirement visa grants tax benefits and the eligibility requirements for each program

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Moving abroad to retire is a decision that requires careful consideration not only of the cost of living and climate, but also of the host country’s tax regulations. Some countries have developed special residency programs for retirees and combined them with preferential taxation of foreign pensions. ImiDaily recently reported on this. It is precisely this combination—the availability of a retirement visa and reduced or zero tax on retirement income—that makes a country an attractive destination for retiring abroad.

We’ll discuss 12 such countries, their tax rates, applicant requirements, and residency conditions in the article below.

Are you planning to retire abroad and want to reduce your tax burden?

Some countries offer foreign retirees special visas combined with preferential tax rates—ranging from 0% to 7% on pension income. The Visit World portal has prepared an immigration guide to help you choose the best destination and navigate all stages of the residency application process.

How to choose a country for retirement: key criteria

Three factors determine how advantageous a particular program will be for a specific retiree:

1. Minimum income threshold — the amount you must prove to qualify for a retirement visa.
2. Effective tax rate on foreign pension income after obtaining resident status.
3. Duration of the tax benefit — the period during which the reduced rate applies.

Other factors — healthcare, infrastructure, integration — are important, but these three indicators form the financial basis of the decision.

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Countries with a territorial taxation system: 0% on foreign pensions

A number of Latin American countries apply the territorial principle of taxation, under which income from foreign sources (including pensions) is not subject to local tax. Combined with special visas for retirees, these countries offer full tax exemption on pension income.

Panama

The Pensionado visa in Panama has been in effect since 1987 and is the oldest program for retirees in the region. The threshold is $1,000 in monthly pension income ($750 if you own real estate worth at least $100,000). Permanent resident status is granted immediately upon approval, and there is no minimum mandatory stay in the country—it is sufficient to visit Panama once every two years. Visa holders also receive legally mandated discounts on healthcare, transportation, and utilities. In 2024, Panama approved a record 1,917 Pensionado visas.

Costa Rica

Requirement: $1,000 in monthly pension income. Spouses may combine a single pension to meet the threshold. The visa is issued for two years and is renewable provided the holder is physically present for at least four months per year. Permanent residency is available after three years, and citizenship after seven years. Residents are required to pay contributions to the Caja social security system, which provides access to public healthcare.

Nicaragua

The threshold in Nicaragua is $1,000 in monthly pension income, and the minimum age for applicants is 45. The program’s legal framework has undergone significant changes: in 2019, the thresholds were raised (from $600), and in 2024, Law No. 694 was completely replaced by Law No. 1210. Administration of the program was transferred from the Institute of Tourism to the General Directorate of Migration. The 2024 reform extended the naturalization period to seven years, and the 2025 constitutional amendments abolished dual citizenship for most foreigners—retirees from the U.S., the U.K., or the EU must renounce their previous citizenship. Infrastructure outside Managua and Granada remains limited.

Belize

The QRP (Qualified Retired Persons) program is administered by the Tourism Board and requires proof of $2,000 in monthly income from foreign sources; the minimum age is 40. Beneficiaries are exempt from all Belizean taxes on foreign income, capital gains, and inheritance. The minimum stay requirement is just 30 consecutive days per year, the lowest requirement among countries in the Americas. An additional benefit is duty-free importation of household goods, a car, a light aircraft, and a boat during the first year. QRP status does not lead to citizenship.

The easiest countries to obtain a residence permit in 2026 — listed here.

Ecuador

The income threshold in Ecuador is tied to the minimum wage and stands at $1,446 per month for 2026. Permanent residency is available after just 21 months. Formally, Ecuador’s tax system is based on the principle of residency; however, in practice, foreign pension income is usually not taxed thanks to a network of double taxation avoidance agreements. Naturalization is possible after three years of permanent residence, and dual citizenship is permitted.

Thailand (LTR Visa)

The Wealthy Pensioner category under the Long-Term Resident (LTR) visa in Thailand provides full exemption from Thai tax on foreign income for a period of ten years (5+5). This is particularly important given the changes to standard tax rules effective January 1, 2024, under which remitted foreign income is now taxable. Requirements: age 50 or older, verified passive income of $80,000 per year (or $40,000 provided there is an investment in Thai assets of at least $250,000). Family members—spouses, children under 20, and parents—may be included in a single application.

Countries with a fixed reduced tax rate on pension income in Europe

Several European countries have introduced special tax regimes specifically for foreign retirees. Rates range from 5% to 7%, and the tax break is time-limited.

• Cyprus (5%). The lowest special rate for pensioners in the European Union. Tax residents choose annually between a progressive system and a flat rate of 5% on foreign pensions exceeding €5,000 (the exemption threshold has been raised from €3,420 as of January 1, 2026). A pensioner with an income of €50,000 pays €2,250 instead of approximately €10,400 under the progressive scale. There is no separate pension visa: EU citizens enjoy freedom of movement, while third-country nationals apply for general resident status. Additionally, there is a 17-year exemption from tax on foreign dividends and interest.
• San Marino (6%). The lowest rate for retirees in Europe—6% on foreign pension income for ten years. Important update: as of April 28, 2025, the annual income threshold has increased from €50,000 to €120,000, and applicants are required to hold at least €300,000 in liquid assets in a San Marino bank. The program is available to private-sector retirees from EU countries, Switzerland, and a number of other specified jurisdictions. Other foreign income is taxed under a parallel regime at a rate of 7%.
• Italy (7%). A fixed flat tax of 7% on all foreign income (pensions, investments, rent, capital gains) for ten years. Starting in April 2026, the population threshold for eligible municipalities increased from 20,000 to 30,000 residents, opening up 74 additional cities, including Pompeii, Noto, and Ostuni. The program is available in Sicily, Calabria, Sardinia, Campania, Basilicata, Abruzzo, Molise, Apulia, and in certain areas of earthquake zones. The requirement is to have resided outside Italy for at least five years prior to relocation. The path to residency is the Residenza Elettiva visa, which requires proof of passive income of at least €31,160 per year.
• Greece (7%). A 7% tax rate on all foreign income for 15 years—the longest duration of any pension scheme in Europe. Requirement: not to have been a tax resident of Greece for five of the previous six years. The exemption does not automatically apply to family members—each must meet the requirements independently. Path to residency—a visa for financially independent individuals (passive income of at least €3,500 per month or deposits of at least €126,000). Physical presence—at least 183 days per year.

Malta and Mauritius: Moderate Rates with Structural Advantages

Two countries with a nominal rate of 15% offset this with features of their tax architecture.

• Malta (15%). The Malta Retiree Program (MRP) taxes foreign pensions at a rate of 15% with a minimum annual tax of €7,500. Key detail: the rate applies only to amounts actually transferred to Malta, while income held abroad is not taxed. Gains on foreign capital are also not subject to taxation. Pension income must constitute at least 75% of taxable income in Malta. Minimum presence requirement: 90 days per year on average over five years. The program is available to citizens of the EU, EEA, Switzerland, and third countries.
• Mauritius (15%). A residence permit for retirees aged 50 and older is issued for ten years and requires a monthly transfer of $2,000 to a Mauritian bank account (the threshold was raised in accordance with the Finance Act of 2025). There is no minimum stay requirement. Retirees can hold a residence permit without becoming tax residents (residency is established after 183 days of presence per year). Mauritius does not levy taxes on property, inheritance, or gifts.
  

How much will it cost to live in the best EU countries in 2026 — read more at the link.

Which countries did not make the list and why?

Several popular destinations for retirees do not meet both criteria simultaneously—the availability of a special visa and preferential

taxation of pensions.

• Portugal — the program for non-residents who do not live permanently in the country closed to new applicants in 2024. The new IFICI program does not cover pension income, and standard tax rates reach 48%.
• Spain — a visa for individuals not engaged in gainful employment grants the right to reside, but there is no special regime for pensions. Foreign pensions are taxed on a progressive scale up to 47%.
• UAE — there is no income tax, but no special program for retirees has been developed. The situation is similar in Monaco, Bahrain, Brunei, and Vanuatu.
• Uruguay — the “Tax Holiday 2.0” program (effective January 2026) offers an 11-year exemption from tax on foreign capital gains, but it is intended for all new residents, not specifically for retirees.

The requirements have also been tightened: physical presence for more than 183 days a year or investments of at least $2 million in real estate.

Retiring Abroad: How to Prepare?

Choosing a country for retirement requires a thorough analysis of tax conditions, visa requirements, and rules for maintaining residency status. The Visit World portal has developed an immigration guide to help you navigate the residency application process, gather the necessary documents, and avoid common mistakes.

Order the guide to plan your move, taking into account all legal and financial aspects!

Reminder! In our previous article, we discussed how pensions are calculated in Europe, where the payments are highest, and how they are calculated.

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