Germany Sees a Rise in “Retirement Migration”
- Nejla Kılınç
- Oct 9
- 1 min read
Low pension levels in Germany are increasingly pushing retirees to move abroad in search of a more affordable and peaceful life.
Many Germans, upon retiring, are making a life-changing decision — to emigrate — seeking better living standards, warmer climates, and lower costs of living.
According to International Living magazine’s 2025 Global Retirement Index, the top destination for Germans planning to retire abroad is a surprising one: Panama. It is followed by Portugal, with Costa Rica and Mexico next on the list.
Two European countries — Spain and France — rank fifth and sixth, while Malaysia appears in seventh place. Greece ranks eighth, Italy ninth, and rounding out the top ten is another unexpected country — Thailand.
The ranking shows a clear trend: rather than traditional tourist hotspots, tropical destinations and southern European countries are most appealing to German retirees. These countries combine sunshine, quality of life, and lower living costs, making them especially attractive.
Why is Panama at the top?
Key reasons include:
No taxation on foreign income
Low property taxes
Simplified visa procedures for retirees
A healthy environment, low crime rates, and modern infrastructure
Affordable healthcare and low general living expenses
Source: ARTI49
