The best countries for expats dreaming of retiring abroad

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It will probably come as little surprise that the most popular retirement for retired Britons is Spain, but is it the country where people’s pension will stretch the furthest? It’s important to consider how much savings someone will need as well as the cost of living abroad.

Living in Spain can be up to 30 percent lower than living back in the UK, according to a survey by Rest Less Events.

“Retiring to Spain will require a pension pot that provides an income of around £15,000 on top of the state pension,” the website states.

“Whether you’re looking to rent or buy, property prices are considerably lower than back home, with the benefit of a much more temperate climate. Tax-wise, Spain prefers pension holders to purchase annuities that will pay out a set income.”

Malta came in second place but it comes with a warning that the cost of living is higher than in Spain and expats will need to go through immigration.

Because it relies on a lot of imports the price of goods, food and accommodation can be higher than the UK, though there are some bargains to be had in terms of property, fuel, alcohol, and transportation.

“Since Brexit, acquiring retiree status in Malta means going through immigration, something it’s highly advised to use a lawyer for,” the website states.

“Your pension will be taxed in Malta rather than back in the UK, which comes in at a flat rate of just 15 percent. Any of your pension pot that’s left outside of the country won’t be taxed.”

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The 7 Best Places to Retire in Europe:

  • Spain
  • Malta
  • Italy
  • France
  • Austria
  • Northern Cyprus
  • Croatia

While the website looked at numerous factors like the food, cost of living and climate – the northern part of Cyprus topped the list for its cost of living.

“Settling in the northern part of Cyprus, however, means retired Brits can expect to enjoy the cost of living slashed on average by 50 percent,” the website states.

“Accommodation, for example, is a whopping 80 percent cheaper than the UK, with the average shop coming in 40 percent less.

“Most attractive to those wanting to maximize their pension is that in North Cyprus, income from a pension is not taxed. The downside is with no social security agreement with Turkey, state pension increases will not be reflected while you remain a resident of North Cyprus.”

Before deciding where to move abroad, it’s advisable to check the state pension situation – one pensioner told Express.co.uk he’s worked out he’s lost £13,914 in state pension after moving to Thailand.

Britons receive Britons annual upratings to their state pension if they move to a country in the European Economic Aread (EEA).

The EEA includes EU countries as well as Iceland, Liechtenstein and Norway.

More information can be found on which countries aer in the EEA can be found on GOV.UK.

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