For retirees leaving the workforce, the allure of relocation can be strong. No longer tied to an office, why not move somewhere sunnier and more affordable? Unfortunately, as certain destinations rise in popularity, prices climb — and the charm fades.
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We asked relocation experts which retirement hotspots are officially overrated — and where you might want to look instead.
Portugal
For years, Portugal topped “best retirement destination” lists, wooing expats with low taxes, a Golden Visa, and sunny weather. But much of that appeal has vanished.
“Portugal used to have extremely favorable tax incentives, including a 0% rate for some retirees,” said Federica Grazi, founder of Mitos Relocation Solutions. “Now, new residents pay regular tax rates — among the highest in Europe, up to 48%.”
The Golden Visa program has also ended for real estate investors, and property prices in Lisbon, Porto, and the Algarve have more than doubled. “As foreigners came in with bigger pockets, locals were priced out,” Grazi said. “It’s led to backlash and tighter regulations.”
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Where To Go Instead: Greece
Greece offers what Portugal once did — affordability, warmth and generous incentives. Retirees can qualify for a flat 17% income tax for up to 15 years, and the cost of living remains low outside Athens or Mykonos. Coastal towns like Nafplio and Kalamata combine Mediterranean charm with reasonable prices.
Runner-up alternative: Ecuador, where foreign income isn’t taxed and couples can live comfortably on about $2,000 a month.
Spain
Spain’s beaches and lifestyle remain alluring, but the country’s surge in foreign buyers has pushed up prices and stirred local resentment.
“Spain recently removed its Golden Visa and may impose new taxes on non-EU property buyers,” Grazi noted. “And summers in Andalusia now top 100°F for weeks.”
Where To Go Instead: Southern Italy
Regions like Puglia, Calabria and Sicily offer similar scenery at far lower costs. “Italy still has programs to attract retirees,” Grazi said. “Including a 7% flat tax for those who move to smaller southern towns.”
The Pacific Northwest, United States
While Portland and Seattle boast natural beauty and progressive values, sky-high housing costs, gray winters, and growing homelessness have dimmed their appeal.
Where To Go Instead: Slovenia
“Slovenia is one of the world’s best-kept secrets,” said Jen Barnett, co-founder of Expatsi. “It’s lush, safe, eco-friendly, and affordable — ranking in the top 10% globally for both healthcare and safety.”
Ljubljana offers a Pacific Northwest feel with European flair, while Bled and Piran provide access to mountains, lakes, and the Adriatic coast — all for a fraction of Seattle prices.
The Villages, Florida
The Villages is the world’s largest retirement community — and it feels like it. “It’s gargantuan,” said Barnett. “Very ‘Truman Show’ — everything looks the same.”
While Florida’s sunshine and tax perks appeal, many retirees crave more culture and community.
Where To Go Instead: Panama
About 45 minutes from Panama City, Coronado offers expat-friendly amenities, beach access, and a Johns Hopkins-affiliated medical center that accepts U.S. VA benefits. “It’s a warm, affordable option without the cookie-cutter feel,” said Barnett.
Scottsdale, Arizona
Once a desert paradise, Scottsdale now struggles with scorching summers, water shortages, and soaring real estate prices. “On cost of living alone, I’d say it’s overrated,” said Barnett.
Where To Go Instead: Puerto Vallarta
Just a short flight away, Puerto Vallarta offers year-round warmth, top-rated hospitals, and a thriving expat community. “If you’re drawn to the desert climate and mountain views, Puerto Vallarta gives you all that with a vibrant coastal lifestyle — and a much lower price tag,” Barnett said.
Charleston, South Carolina
Charleston’s cobblestone charm has attracted a wave of new residents, driving up housing costs and traffic. Summers are hot and humid, and hurricane threats are rising.
Where To Go Instead: Oaxaca, Mexico
“Oaxaca has the same artsy, historic feel but at a fraction of the cost,” said Barnett. “It’s in the mountains, so the weather’s pleasant year-round, and it’s rich in culture and cuisine.”
Prefer the coast? Try Mérida, a colonial gem with beach access and strong expat networks.
Madison, Wisconsin
Madison often ranks high on “best places to retire” lists thanks to its lakes and college-town feel, but its long winters and rising housing costs can be tough on fixed incomes.
Where To Go Instead: Estonia
If you love Madison’s entrepreneurial spirit, Tallinn offers a similar vibe with modern infrastructure and low costs. “It’s the most digitized country in Europe,” said Barnett. “You can even apply for e-residency online.”
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This article originally appeared on GOBankingRates.com: 7 Popular Retirement Destinations That Are Overrated — and Where To Go Instead
