The world’s best retirement destinations revealed and Spain makes the top 10

For generations of British retirees, Spain has been the dream destination: Sunshine, affordable living, world-class healthcare and established expat communities have helped make the country one of the most popular places to spend retirement abroad.

But a new global ranking suggests Spain is no longer the undisputed favourite among those looking to enjoy their later years overseas.

The latest Retirement Abroad Index from Expatriate Group has ranked Spain among the world’s top 10 retirement destinations for 2026, but it was beaten not only by several countries in Asia and Latin America, but also by neighbouring Portugal.

The world’s top retirement destinations revealed

According to the ranking, the ten best countries in the world to retire abroad in 2026 are:

1.Philippines
2.Thailand
3.Colombia
4.Mexico
5.Indonesia
6.Costa Rica
7.Panama
8.Portugal
9.Spain
10.Peru

The index assessed destinations using factors including healthcare, cost of living, climate, ease of settling in, retirement visas and the strength of expat communities.

While Spain secured an impressive ninth place overall, it was the second-highest ranked country in Europe, behind only Portugal.

Why Spain still scores highly

Despite missing out on the top spot, Spain remains one of the most attractive retirement destinations on the planet.

The country continues to draw retirees thanks to its Mediterranean climate, extensive transport network, internationally respected healthcare system and vibrant lifestyle.

From the Costa Blanca and Costa del Sol to Mallorca and the Canary Islands, retirees can choose from a wide variety of locations offering everything from beachside living to historic towns and bustling cities.

Spain is also home to one of the largest British communities overseas. More than 400,000 UK-born residents live in the country, with many choosing to spend their retirement years here.

Life expectancy is among the highest in Europe, while the Mediterranean diet and outdoor lifestyle continue to be major draws for those seeking a healthier pace of life.

Why did the Philippines beat Spain?

The biggest surprise in the ranking was the Philippines taking first place.

While Spain outperforms many countries in areas such as healthcare and infrastructure, the Philippines scored highly for affordability, retirement visa options and the low cost of everyday living.

For many retirees, stretching a pension further remains one of the biggest considerations when choosing where to relocate.

Countries such as Thailand, Colombia and Mexico also performed strongly for similar reasons, offering significantly lower living costs than much of Europe.

Portugal remains Spain’s closest rival

Among European destinations, Portugal was the only country to finish above Spain, claiming eighth place globally.

Like Spain, Portugal offers a warm climate, attractive coastline and established expat communities. However, lower property prices in some regions and a growing reputation among international retirees helped it edge ahead in this year’s ranking.

Is Spain losing its appeal?

The latest ranking may have placed Spain ninth globally, but it also confirmed something many retirees already believe: Spain remains one of the best places in the world to enjoy retirement.

As the second-highest ranked country in Europe, it continues to outperform many traditional retirement destinations thanks to its climate, healthcare, lifestyle and established British expat communities. For retirees receiving a UK pension, Spain often offers a high quality of life while allowing everyday spending to stretch further than it might in many parts of Britain.

Another key advantage is proximity. Unlike destinations in Asia or Latin America, Spain allows retirees to remain within a short flight of family and friends in the UK. With regular low-cost flights connecting cities across Britain to Spain’s airports, many retirees can enjoy the benefits of life abroad without feeling disconnected from loved ones back home.

Add in world-class healthcare, a Mediterranean lifestyle, excellent infrastructure and more than 300 days of sunshine a year in some regions, and it is easy to understand why Spain continues to attract hundreds of thousands of British residents.

The Philippines may have claimed the number one spot this year, but Spain’s place among the world’s top retirement destinations shows that for many Britons, the combination of sunshine, community, convenience and closeness to family remains hard to beat.