Many Brits dream of retiring to sunny destinations around the world, seeking well-earned rest and vitamin D amid sunnier climes.
Now, the best destinations for UK residents to retire to have been revealed in the UK Retirement Destinations Attractiveness Report 2026.
Published by financial advisory and wealth management firm Hoxton Wealth, and produced in partnership with a team of international students from the University of Warwick, the study measured each destination against a consistent set of criteria.
These included visa access and residency pathways, cost of living, healthcare quality and access, economic and political stability, as well as climate, lifestyle and safety.
And the joint-top spot went to Cyprus and Ireland.
In the report, Cyprus scored high for its flexible pension tax options with no wealth or inheritance tax.
The island’s Mediterranean climate with strong outdoor lifestyle, familiar legal framework and widespread use of the English language were also cited as reasons for its high score.
Cyprus, known for its sunshine and beautiful scenery, takes the top spot in the UK Retirement Destinations Attractiveness Report 2026
Plus, Nicosia, its capital, is the city with the most sunlight hours annually, with 3,388 each year according to travel booking site Omio.
Meanwhile, under the Common Travel Area (CTA), UK citizens have the right to live, work, and retire in Ireland without requiring a visa.
Residency is effectively automatic and does not require a formal application process – making a move here incomparably easy.
Cyprus and Ireland were followed by Malta, Portugal and Panama.
Similarly, both Portugal and Malta’s favourable climates, access to healthcare and low crime levels explained their high rankings.
Both also benefit from strong air links to the UK with short flight times and regular services.
For those prioritising financial efficiency, cost of living and taxation, Panama’s territorial tax system, where foreign-sourced income is not taxed locally, marked it out as the leading choice in this category.
The country’s ‘Pensionado’ programme also provides a range of discounts that support overall affordability.
In joint first place is Ireland, which has an easy-to-understand tax system for retirees
Malaysia also scored well in this category. Despite recent changes to MM2H visa tiers, Malaysia offers lower costs than the UK, alongside favourable treatment of foreign income in many cases.
Mauritius also ranked highly because of its 15 per cent flat tax and moderate island living costs.
Also, Thailand, with its low cost of living offset by updated tax enforcement, and Portugal, with its balanced VAT and evolving NHR (Non-Habitual Resident) tax transitions, made the list.
For those whose priority is peace of mind, prompted by available healthcare, safety and political stability, it may be worth considering Uruguay, recognised for its political stability and consistent regulatory environment within the region.
Its ‘Mutualist’ healthcare system also provides a structured pathway to private medical care.
Within Europe, Spain continues to attract retirees due to its healthcare system and high safety ratings, particularly for those seeking proximity to the UK.
Chris Ball, CEO at Hoxton Wealth, said: ‘For many British professionals and families, the idea of living abroad has long been tied to lifestyle. Better weather, a slower pace, or simply the opportunity to experience something different.
‘In 2026, that decision is becoming more considered. Changes in tax treatment, evolving visa frameworks, and a more uncertain economic backdrop mean that relocating is no longer just about where you would like to live. It is about how that decision fits with your wider financial position, both now and over time.
Malta also comes near the top of the list, a favourite country for pensioners to spend time
Best overseas retirement destinations for UK residents
1. Cyprus – 86
=1. Republic of Ireland – 86
3. Malta – 85
4. Portugal – 84
5. Panama – 83
6. Mauritius – 82
7. Spain – 80
8. Uruguay – 79
9. Malaysia – 78
=9. Italy – 78
11. France – 77
12. Greece – 76
13. Turkey – 75
14. Hungary – 73
15. Canada – 71
=15. New Zealand – 71
=15. Thailand – 71
United Kingdom (baseline) – 70
18. United States – 67
19. Australia – 66
20. Japan – 62
Source: Hoxton Wealth
‘What was once a relatively straightforward choice has become more nuanced. The same destination can offer clear advantages in one area, while introducing complexity in another.
‘As a result, planning a move abroad increasingly involves balancing lifestyle preferences alongside tax considerations, residency rules, healthcare access, and long-term financial sustainability.
‘Taking the time to understand how these factors come together supports clearer decision making and reduces the likelihood of unexpected challenges over time.
‘The aim of our report is to provide a practical, data-led view of the global retirement landscape, giving people in the UK the insight they need to plan and make well-informed decisions about where to settle in the years to come.’
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