If you’re hoping to enjoy a golden retirement, stretch those savings and make the most of your pension, then consider heading somewhere in the world that is tax-friendly.
Luckily, lots of lovely countries offer low to zero taxation for retirees, along with purse-friendly living costs, access to decent healthcare and the perfect climate.
Here at CashLady, we explore 8 of these destinations in a little more detail.
Heading to tax-friendly places in retirement
Preparing for your retirement is an exciting time, particularly if you are planning to escape the UK climate.
Finances will no doubt form a large part of the decision on where you choose to retire and so picking somewhere that is tax-friendly makes sense.
Remember to do your homework first, looking at living costs, property costs, along with income tax and other local taxes that might be in place, such as sales and property taxes.
8 of the most tax-friendly places to retire
Consistently coming out as one of the most popular places to retire, Malaysia offers no taxes on retirement income for foreign residents and no taxes on capital gains.
There’s a huge choice of city life or quiet coastal spots, depending on what you prefer, and monthly rent is reasonable, wherever you choose to live.
Living costs are also far cheaper than back in the UK and so it’s no wonder that so many people choose Malaysia to live out their retirement.
A retiree destination that boasts beautiful beaches, hot weather and zero taxes on retirement income and property if you are the sole resident, Panama is another destination that ticks all the boxes.
Panama retirees are also treated to various discounts on services, such as 30% off surgery and doctor visits, 30% off transportation, 25% off monthly utilities and 50% off movies, concerts and sports events.
Offering a subtropical climate and relaxing pace of life, Belize is another top destination for retirees.
With one of the lowest costs of living across the world and no taxes on retirement income, estates or capital gains, it’s also a great spot to invest in property.
A sun-soaked destination that’s the perfect retiree escape, Thailand is tax-friendly – with no taxes on retirement income.
You can also enjoy tropical beaches, delicious food and a very low cost of living.
Most of the destinations in our list are far-flung sun-kissed spots that sit well beyond Europe, but we’re pleased to include a location that’s a little closer to home.
Portugal is reportedly the third safest country in the world, also benefiting from excellent healthcare, the lowest cost of living in Western Europe and the lowest property purchase taxes out of all the Southern European countries.
It’s also one of the UK’s favourite holiday destinations thanks to its glorious beaches, great golf and fabulous food and it’s becoming increasingly popular with retirees too.
Qualifying individuals who have not been resident in Portugal during the previous 5 years can become residents, receiving a private pension or non-Portuguese income, tax-free for ten years under the Non-Habitual Resident (NHR) law.
A totally tropical tax-friendly destination for retirees, Barbados is home to more than 27,000 British expats.
A member of the Commonwealth it also offers all the Caribbean perks of beaches, sunshine and friendliness along with super low-cost healthcare and low property tax.
One of the most popular destinations for ex-pats, it might be far away, but Commonwealth country Australia is a big hit with retirees down to its low tax, high standard of living, cheap healthcare and great climate.
#8 Costa Rica
Costa Rica is an exotic retiree destination that has no tax on foreign income, so your overseas pension won’t be taxed.
It also benefits from an already established and welcoming expat community, a relaxing way of life and plenty of English speakers if you haven’t quite mastered Spanish.