Best Places to Retire in Latin America in 2025

Latin America has long captured the imagination of retirees looking for something more than a conventional retirement.

The warm climate, rich culture, and dramatically lower cost of living offer a tempting mix of adventure and affordability.

But enthusiasm needs to be tempered with pragmatism. Not every destination is created equally, and Latin America is no exception in this regard.

Factors like personal safety, infrastructure reliability and healthcare quality can vary dramatically from one country to the next and need to be taken into careful account.

For the globally minded retiree, it’s not just about finding paradise – it’s about finding somewhere they can build a life that’s exciting, secure and sustainable.

Discerning retirees take their time to research their options and find destinations that can successfully blend first-world amenities with local charm and strong expat communities. 

The good news is that a number of countries in Latin America now combine strong expat networks, improved healthcare systems, favourable visa options, and attractive tax regimes without compromising on lifestyle.

But this is a wide-ranging subject with a lot of information to take on board. That’s why the Nomad Capitalist team has put together this in-depth guide on the best places to retire in Latin America in 2025.

It takes into account the practical criteria that matter most to retirees so that they can be confident they’re going where they’re treated best.

Pros and Cons of Retiring in Latin America

Choosing a retirement destination is a big decision, particularly when it involves moving beyond familiar shores. Like any major life decision, it requires analysis of the upsides and the potential hurdles. 

The Advantages 

Out of all the benefits, financial matters typically rank first. 

Latin America offers a much lower cost of living than in the US or Western Europe. It promises the potential to upgrade your lifestyle for less. 

In addition to day-to-day expenses, certain jurisdictions offer highly favourable tax regimes, reducing the burden on passive investment income or pensions.

In terms of access to healthcare, while public systems vary in quality, excellent private clinics and hospitals are readily available in major cities and retirement hotspots.

From its glistening beaches to its Andean mountains and lush rainforests, Latin America’s climate and natural beauty are legendary. 

Beyond that, many countries in Latin America have retiree-friendly visas. 

These programs are usually easy to qualify for, provided you can show a certain level of passive income or make a qualifying investment. 

Depending on where you’re from, proximity can be a real advantage, particularly for North Americans who have family or business interests back home.

The Potential Challenges (Cons)

When it comes to Latin American countries, it’s important to set realistic expectations. 

While certain areas undeniably face security challenges, these are frequently localised and quite easily avoidable. 

Infrastructure gaps can be noticeable, particularly outside major metropolitan centres. In less popular areas, you can expect variations in road quality, internet reliability and sometimes power or water consistency. 

Dealing with bureaucratic hurdles is practically a rite of passage. Obtaining residency, opening bank accounts or setting up utilities can involve paperwork, patience and occasionally, a good local facilitator (a ‘gestor’). 

Life moves at a different tempo – embracing this rather than fighting it is usually more productive, even if occasionally testing.

While English is spoken in tourist areas and expat communities, language barriers exist. Learning some Spanish or Portuguese is often necessary to fully engage in daily life. 

Lastly, economic and political volatility is a factor in some nations. Currency fluctuations, shifts in government policy or periods of social unrest can occur, but with careful planning, they can be accounted for. 

Top Retirement Destinations in Latin America for 2025 

Latin America has plenty of retirement options. 

Here are some standout choices to consider in 2025.

Retire in Mexico

Mexico isn’t just one of the best options in Latin America – it’s one of the best options in the world. 

The reason? 

It’s not just a warm and welcoming retirement location. Mexico truly shines in terms of the lifestyle choices available, coupled with established residency pathways and resulting incentives. 

Obtaining temporary or permanent residency based on financial solvency (demonstrating sufficient monthly income or savings) is a popular path. For high-net-worth individuals or most Western expat retirees, these thresholds are typically easy to meet. 

Securing permanent residency can simplify local banking and potentially lower your tax burden, depending on how you structure your finances and whether you can take advantage of tax treaties. 

The sheer variety of high-quality living options in Mexico is remarkable. 

Forget generic expat bubbles: San Miguel de Allende offers upscale, almost European-feeling cultural immersion with its galleries, festivals and fine dining. 

Alternatively, the Lake Chapala area has a unique community infrastructure – think English-language libraries, theatre groups and extensive social networks – ideal for those who enjoy familiar comforts alongside the Mexican setting. 

For urbanites, Mexico City has everything you need, from world-class museums and gastronomy to thriving business hubs. 

Coastal areas like Los Cabos or select spots on the Riviera Maya provide luxury living, with marinas and golf courses, at prices simply unattainable back home. 

Top-tier private hospitals in major cities (like those in the Angeles or Star Médica groups) offer excellent care, often with English-speaking, internationally trained specialists, at costs way below US levels. 

For entrepreneurs, Mexico’s integration into the North American economy via USMCA, coupled with improved connectivity and specific industry hubs (like Guadalajara’s tech scene), has laid the business foundations. 

Yes, you’ll struggle with bureaucracy – sometimes it feels like wading through treacle – but the benefits, lifestyle and sheer vibrancy make Mexico a great choice. 

Retire in Costa Rica

Costa Rica consistently punches above its weight, welcoming foreign residents through well-defined permanent residency visa programmes. 

For decades, the Pensionado (for those with a qualifying pension) and Rentista (for those with demonstrable regular passive income) visas have been popular routes. 

More recently, Costa Rica has updated and created new programs like the Inversionista (Investor) options and a digital nomad visa, a sign of a government with a progressive outlook. 

Additionally, specific laws give perks, like one-time exemptions on import duties for household goods and vehicles. 

On top of that, Costa Rica has a territorial income tax system, meaning it doesn’t tax foreign-earned income, which is perfect for retirees with pensions from abroad. 

While generally more expensive than neighbours like Mexico or Panama, the premium buys developed infrastructure, particularly in the Central Valley around San José and popular coastal areas like Guanacaste. 

The public CAJA health system is good, but most expatriates opt for private insurance and the private system because it’s still much cheaper than North American or European systems. 

The lifestyle naturally leans towards the outdoors, attracting an active, health-conscious demographic. It’s a place where your investment not only buys affordable property, but also peace of mind and well-being.

Retire in Panama

Panama secures its spot on our list thanks to a compelling combination of first-world infrastructure, a US dollar-based economy and arguably one of the most attractive retirement programmes globally. 

It’s a sophisticated yet accessible landing pad for those seeking a comfortable and financially astute retirement in Latin America.

Becoming a resident is refreshingly straightforward, particularly via the Pensionado visa. This program requires proof of a lifetime pension or annuity of at least US$1,000 per month (or US$1,250 for a couple). 

Most importantly, this visa grants permanent residency relatively quickly and doesn’t demand a hefty investment like the Red Carpet Visa.

From a fiscal perspective, Panama operates a territorial tax system, meaning income earned outside of Panama is typically not subject to Panamanian taxes.

Furthermore, Pensionados receive substantial, legally mandated discounts on everything from travel, entertainment, and restaurants to prescription medicines and closing costs on property purchases, further stretching their retirement income.

As for where to settle, Panama City offers top-tier affordable healthcare, housing, shopping and amenities, similar to major US hubs. 

For a cooler climate and a strong expat community in the highlands, Boquete is a perennial favourite, famous for its coffee plantations and natural resources.

In contrast, coastal towns like Coronado combine beachfront living with established amenities, while the islands of Bocas del Toro have a more laid-back, Caribbean vibe. 

Retire in Colombia

Colombia has long since shed its troubled past to reveal a nation rich in culture, biodiversity and perhaps the best value-for-money lifestyle in the region. 

Securing residency is achievable through the Migrante (M-11) visa, often referred to as the retirement visa. The primary requirement is demonstrating a reliable monthly income, typically from a pension, equivalent to at least three times the Colombian minimum monthly wage. 

This visa grants temporary residency, usually renewable, and paves the way to a permanent residency scheme.

While Colombia doesn’t offer a territorial tax system like that in Panama, the significantly lower cost of living is the major drawcard. 

Think less about explicit tax breaks and more about substantially reduced daily expenses.

Location-wise, Medellín, the ‘City of Eternal Spring,’ offers a pleasant climate year-round, modern facilities, cosmopolitan neighbourhoods like El Poblado and an appealing cultural scene. 

For those seeking tranquillity and lush scenery, the Coffee Axis (Eje Cafetero), encompassing cities like Pereira and Armenia, offers a gentler pace of life. 

Alternatively, coastal cities like Cartagena or Santa Marta offer history, heat and beachside living, albeit at a higher cost than the interior. 

Best Places to Retire in South America: FAQs

Is Retirement in Latin America Right for You?

Deciding where to spend your retirement is a decision that is worth getting right. 

In Latin America, you can trade the cold weather of home for the eternal spring of Medellin or use Panama’s Pensionado benefits and favourable tax laws to make your money work harder. 

It’s about getting more tangible benefits for your hard-earned cash.

Of course, the world is vast, and options abound elsewhere, from the well-trodden paths to Southeast Asia, such as Malaysia or Thailand, known for their low-cost and established expatriate scenes, to European contenders like Portugal.

Each region has its unique blend of benefits and challenges, which is why proactive planning is paramount.

As always, getting the right advice from the start can save you lots of time, effort and money. Rather than relying on local providers, it pays to have impartial advice from international experts with no specific allegiance to any one jurisdiction. 

That’s just one of the reasons people choose Nomad Capitalist – we have direct experience across multiple jurisdictions and will help you weigh up the pros and cons of each. 

We have helped thousands of entrepreneurs and investors with legal tax reduction strategies, company formation and offshore investment. Remove all the guesswork, skip past the gatekeepers and speed up the entire process with a Nomad Capitalist Action Plan.