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Best Tax Havens for Retirees

— June 11, 2021

These locations are some of the best tax havens for retired individuals to consider. They are wonderful places to live that will drastically reduce or even eliminate the amount of tax you will need to pay when retired.

While taxes go to some very important things like roads and social programs, it’s still not a fun time to see a portion of your income get taken away. This is tough for anyone, but especially retirees, as you likely don’t have as much money coming in as you once did.

Thankfully, there are places you can retire that are not only beautiful but also offer great tax benefits. Whether it is lower taxes on foreign income, special programs, or even completely tax-free living, there are a variety of options out there around the world. While you may need to jump through some hoops to become a resident, it can be done.

Of course, be sure to work with a law firm that ranks well and is high-quality to make sure you can navigate and understand the potentially murky waters. This ensures you are protected and everything is done by the book.

But which of the many available tax havens are the best for those just entering their golden years? Well, that is exactly what this guide is going to take a closer look at. Read on to learn some more about a few of the best tax havens for retirees to consider.


Image by Monica Iglesias, via
Image by Monica Iglesias, via

Panama is commonly brought up when talking about tax havens, and it’s easy to see why. A large reason for this is because it has a territorial tax system. This means that only income that is earned in that country is taxed. So if you retire, and your only income is your pension from the country you used to live in, it will not be taxed. But if you were to get a job in Panama, what you earn from that employment would be taxed.

In addition to tax benefits, Panama is simply a gorgeous place to spend time. It has everything from relaxing beaches, to magnificent mountains and everything in between. Locals are friendly, the area is welcoming and the cost of living is quite fair.

There is also a retirement visa in Panama that can provide retirees with many great benefits like cheaper travel, more affordable entertainment, and discounted health care. Don’t worry, acquiring this visa is also quite easy.


If you prefer Asia over Central America, Malaysia might just be the place for you. It offers a lot of versatility, with options that range from living in big cities to living in smaller communities. Like Panama, Malaysia uses a territorial taxation system, perfect for retirees and those with income outside of Malaysia.

While the country is more expensive than many others in Asia, the costs compared to the USA, Europe and many other places around the world are incredibly low. Even with a modest nest egg and/or pension, you will likely be able to enjoy a very comfortable living in Malaysia.

Things like groceries, travel, entertainment, housing, healthcare, and others are all quite affordable, without being low-quality. The weather is beautiful, the food is incredible and there are hundreds of nearby islands and neighboring countries you can visit, as well.

English is also commonly spoken and understood in Malaysia, so you won’t need to learn a new language if you don’t want to. 

Costa Rica

Even on a relatively small budget, Costa Rica is a completely attainable place to retire. Rent is cheap, and homes can be found for a fraction of the cost of American homes. The universal healthcare system, which is known as Caja, has the potential to save you a lot of money, too. It is only for legal residents, but you only pay a small monthly fee that covers everything from prescriptions, to testing, to surgery.

In addition to foreign income not being taxed here, the annual property taxes are only 0.25% of the value of your home, which is much more affordable than in many other countries. For example, in the USA, this number is around 1% or higher.

You will love the natural beauty of the country, and it attracts millions of tourists annually. If you want a healthy, active retirement full of fun outdoor adventures to go on and beaches to visit, Costa Rica is for you. If you are a resident over 65, there is also the “Gold Citizen” program. This gives discounts and deals on everything from clothing to groceries and so many others.

The country is also a very peaceful and friendly place, especially for seniors as they are highly respected there. Costa Rica is also a safe place to live, and has a government that is committed to keeping its environment beautiful and protected.

Saint Kitts and Nevis

While all of these tax havens have had a territorial tax system in place, there are also nations that have no personal income tax at all. Saint Kitts and Nevis is one of those countries. Everything from income to capital gains is not taxed. Saint Kitts also maintains a high level of financial privacy, as well.

In addition to these tax benefits, Saint Kitts is a lovely nation in the Caribbean that has a tropical climate, perfect for those who love getting in the water and laying out by the beach. While the costs aren’t as low as some other countries we have mentioned, Saint Kitts is much more affordable than nearly every other country in the West Indies.

However, to take advantage of the many benefits (tax and otherwise) you need to become a citizen. The only way to do that is through their citizenship-by-investment program. By making a healthy real estate investment or donation, you can quickly and easily become a citizen and immediately gain access to the aforementioned tax advantages. Not only that, but you can keep your original citizenship if you so choose.

So while this isn’t an option for everyone, if you and your family can afford it, it is a lovely place to consider.


If you want to enjoy European living, but pay no taxes, Monaco is your only choice. They levy no income tax on individuals and only French citizens have capital gains taxes imposed on them. There are also no property taxes in Monaco, though rental properties have a tax of 1% of the total annual rent.

Due to its location on the southeast coast of France, this small sovereign city-state enjoys an incredibly pleasant Mediterranean climate with hot summers and mild winters. It has many parks, beaches and outdoor spaces, and a world-famous casino if you like to gamble. It is a dream destination for some people, and among the most desirable places to live globally.

The cost of living here is high, as some of the wealthiest people on the planet call Monaco home. But if you are looking for an incredibly luxurious and tax-friendly place to retire, and have the retirement savings and income to afford it, it is hard to beat Monaco.

In conclusion, these locations are some of the best tax havens for retired individuals to consider. They are wonderful places to live that will drastically reduce or even eliminate the amount of tax you will need to pay when retired.

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