Best Country to Retire in South America in 2026

5 Reasons to Retire in South America in 2025

South America has quietly become one of the world’s most compelling retirement regions. Several countries, Argentina, Chile, Colombia, Uruguay, and Paraguay, are attracting retirees with a mix of affordability, healthcare access, lifestyle opportunities, and clear residency programs. Below are five reasons why the continent deserves a serious look:

1. Climate Variety for Every Preference

From the eternal spring weather of Medellín (average 72°F / 22°C year-round) to the cool alpine landscapes of Bariloche or the sunny Atlantic coast of Uruguay, retirees can literally choose their climate. Unlike many retirement destinations that are limited to one weather type, South America’s geography, spanning the Andes, Amazon, Pampas, and Patagonian steppe, offers four-season options across short distances.

2. Rich Biodiversity and Outdoor Living

South America is home to six of the world’s top 17 megadiverse countries (including Brazil, Colombia, Ecuador, Peru, Venezuela, and Bolivia), offering unparalleled opportunities for retirees who enjoy outdoor activities. From birdwatching in Paraguay’s Chaco to vineyard tours in Chile’s Central Valley or hiking to Argentina’s Iguazú Falls, the continent delivers constant chances to engage with nature.

3. Strong Expatriate Networks

Cities like Medellín, Buenos Aires, Montevideo, and Asunción now host thriving expat communities. According to InterNations’ Expat Insider survey, Colombia ranked among the top 15 countries globally for expat ease of settling in. Expat groups frequently organize cultural exchanges, language meetups, and social clubs, helping retirees avoid isolation and quickly build friendships.

4. Cultural Celebrations Year-Round

Retirement in South America means never running out of festivals. Argentina celebrates over 3,000 local festivals annually, from wine harvests in Mendoza to tango in Buenos Aires. Colombia’s Barranquilla Carnival is one of the world’s largest, drawing 1.5 million people each year. Uruguay’s Carnival, lasting up to 40 days, is the longest in the world. These events provide retirees with vibrant opportunities to integrate and enjoy local traditions.

5. Residency and Citizenship Possibilities

What truly sets South America apart is how accessible it is to not just live, but belong. Retirement visas in Argentina, Colombia, Chile, Paraguay, and Uruguay are income-based rather than investment-heavy, with entry thresholds starting at about USD 1,000–1,500 per month. Most allow retirees to include family members and offer straightforward renewal options. Even more attractive are the naturalization timelines: Argentina grants citizenship after just 2 years, Uruguay after 3 years if married (5 if single), and Colombia after 5 years of permanent residency. Nearly all countries in the region recognize dual citizenship and, thanks to Mercosur agreements, new residents gain freedom to live and work across multiple South American nations. For retirees, this means retirement is not just temporary, it can be the foundation for a second passport and regional mobility.

Argentina

Argentina remains one of South America’s most compelling destinations for retirees. The country offers a striking mix: the cultural sophistication of Buenos Aires, the vineyards and mountains of Mendoza, the tranquil lakes around Bariloche, and the windswept beauty of Patagonia. Beyond aesthetics, practical reasons make Argentina attractive: cost, healthcare, and accessibility.

According to Numbeo’s 2025 Cost of Living Index, Argentina is about 67% cheaper than the United States and nearly 50% less expensive than Spain. A single person’s average monthly expenses, excluding rent, hover around USD 700, while a couple can live comfortably on USD 1,500–1,800 depending on the city. Housing is affordable, too: in Buenos Aires, a one-bedroom apartment in the city center averages USD 350 per month, while in smaller cities or towns, costs can drop below USD 250.

Healthcare is another decisive factor. Argentina spends roughly 9–10% of GDP on healthcare (World Bank), one of the highest ratios in Latin America. Public hospitals provide free care to residents and foreigners alike, while private clinics in Buenos Aires, Córdoba, and Mendoza offer international-level services at a fraction of U.S. or European costs. The CIA World Factbook notes that Argentina has one of the region’s highest physician densities, with 4 doctors per 1,000 people, well above the regional average.

Culturally, Argentina is unmatched. Around 95% of its population descends from European immigrants, mainly from Italy and Spain, which gives retirees from Europe or North America a sense of familiarity. Buenos Aires alone has more than 150 bookstores per 100,000 inhabitants, one of the highest concentrations in the world, and is considered the tango capital of the globe. Add to that the Argentine passion for football, food, and wine, and retirees find themselves immersed in a vibrant everyday life.

Retirement Visa in Argentina

Argentina’s Pensionado Visa makes settling down legally a realistic option. It is a one-year renewable residence permit for retirees with a steady pension income. The threshold is tied to five times the national minimum wage. With the 2025 minimum wage set at ARS 286,711 (Ministry of Labor, Argentina), applicants must prove at least ARS 1,433,555 per month, about USD 1,390 at the official exchange rate. In practice, experts recommend showing USD 2,000 or more to strengthen the case.

The visa allows up to three years of temporary residency, with eligibility for permanent residency after that period. Notably, Argentina is one of the few Latin American countries where foreigners can apply for citizenship after just two consecutive years of residence, opening the door to a passport ranked 19th globally. Foreign-earned income is not taxed, a major draw for retirees relying on pensions or investments abroad.

Recent updates under Decree 366/2025 tightened requirements: proof of health insurance is now mandatory, documentation is scrutinized more closely, and retirees must not remain outside Argentina for more than six months per year. Even with these refinements, the program remains among the most accessible in the region.

Chile

If Argentina offers romance and affordability, Chile brings stability and structure. Stretching 4,270 kilometers from the Atacama Desert to the glaciers of Patagonia, the country gives retirees a wide choice of climates and lifestyles. Santiago’s central valley mirrors a Mediterranean feel; Valparaíso and Viña del Mar offer coastal charm; the south delivers alpine landscapes reminiscent of Switzerland.

Chile ranks consistently high in global retirement studies. In the Natixis Global Retirement Index 2023, it was among the top ten countries worldwide in the finance sub-index, thanks to its strong pension system and economic fundamentals. The World Bank reports Chile’s GDP per capita at nearly USD 16,000 in 2023, well above most of its neighbors. The cost of living is higher than in Argentina or Colombia but still far below Western Europe or the United States: on average, expenses for one person are around USD 1,000 per month, according to Numbeo.

Healthcare is one of Chile’s strongest assets. The World Health Organization estimates the country has nearly 30 doctors per 10,000 people, and private hospitals in Santiago and regional capitals often meet international accreditation standards. Public and private health systems operate side by side, giving retirees flexibility in choosing coverage.

Safety and governance also set Chile apart. On the Global Peace Index 2025, Chile ranked 62nd worldwide, higher than the U.S. and better than most of Latin America. Infrastructure is another plus: highways are modern, broadband penetration is high, and airports connect retirees easily with North America, Europe, and the rest of South America.

Retirement Visa in Chile

Chile’s Retirement Visa, also known as the Retirement/Rentista Visa, is designed with flexibility in mind. Applicants don’t need to be formally retired; consistent passive income from pensions, rental properties, dividends, or other financial assets also qualifies.

The government does not impose an official minimum, but immigration lawyers recommend demonstrating USD 1,500 per month for the main applicant and around USD 500 per dependent. Temporary residence is granted for one to two years and can be renewed. After two years, retirees may apply for permanent residency, and citizenship becomes possible after five years of residence.

Taxation depends largely on physical presence. If retirees spend fewer than 183 days in Chile in a calendar year, their worldwide income is generally not taxed. This flexibility is attractive to retirees who want Chile as a base but still plan to travel widely. Moreover, Chile’s passport ranks 16th worldwide, giving retirees a valuable long-term option.

The program is not only about legality. Retirees also benefit from pensioner discounts on public transport, cultural events, and services, part of Chile’s commitment to supporting older residents. Coupled with safety, healthcare, and predictable rules, Chile’s visa makes the country one of the most appealing retirement destinations in South America.

Colombia

Colombia has moved from “emerging” to “established” on many retirees’ shortlists. Costs run far below North American and Western European levels, while quality of life, in the coffee-growing Eje Cafetero, cosmopolitan Bogotá, springlike Medellín, or Caribbean Cartagena, continues to rise. Minimum wages and the pension system have been modernized (a reform takes effect in July 2025, strengthening Colpensiones and broadening coverage), yet Colombia still preserves its signature advantage: everyday affordability with big-city healthcare and infrastructure. 

On the numbers, Colombia’s legal monthly minimum wage for 2025 is COP 1,423,500, a key benchmark that influences visa income thresholds and household budgets alike. That figure is reviewed annually and sets a clear financial yardstick for newcomers. 

Healthcare access is strongest in major hubs, Bogotá and Medellín in particular, where modern hospitals and specialty clinics operate at a fraction of U.S. costs, and where a growing expat community eases the landing.

For retirees, Colombia’s path from “great place to spend a season” to “long-term legal home” hinges on a straightforward pension rule. Once you document a stable, verifiable pension and clear background checks, the residence track is predictable and renewals are routine.

Retirement Visa in Colombia

Colombia’s Retirement (Pensionado - M) Visa pegs eligibility to three times the current minimum legal monthly wage. With 2025’s SMLMV at COP 1,423,500, the baseline works out to COP 4,270,500 per month (roughly USD 1,000–1,050, depending on the rate). Multiple legal and practitioner sources confirm the “3× SMLMV” standard and the updated wage level. 

Visas are commonly issued for up to 3 years, are renewable, and can lead to permanent residence after 5 years in M-category status, with citizenship available after an additional qualifying period (continuous residence and integration required). 

Tax exposure depends on presence: if you become tax resident (generally 183 days within a 365-day window), worldwide income reporting rules may apply, shaped by treaty relief; otherwise, foreign-source income often sits outside the Colombian tax net. (Confirm specifics with a cross-border adviser.)

Uruguay 

Uruguay is South America’s quiet outlier: stable, rules-driven, and consistently safe, with politics and institutions that rarely make dramatic headlines. That calm shows up in daily life, efficient public services, a robust private “mutualista” health-plan model, and a rights-oriented legal framework. Retirees gravitate to Montevideo’s rambla and cultural scene, the Atlantic coast around Punta del Este and Piriápolis, and slower-tempo river towns like Colonia. Affordability isn’t “rock bottom,” but costs are predictable, governance is steady, and long-run planning (including tax planning) is unusually transparent.

Uruguay’s tax rules for new tax residents are a standout. Since 2020, newcomers can choose between a 10-year exemption on foreign financial income or a permanent 7% rate on that income, options you elect when becoming tax resident. The framework is well-documented in professional guidance and remains in force for 2025. 

Unlike countries that rely on ad-hoc “investor retiree” categories, Uruguay embeds its retiree benefits directly in law. If you qualify as a foreign retiree and obtain permanent residence, you unlock customs and mobility perks that are unique in the region.

Retirement Visa in Uruguay 

Uruguay’s retiree regime is codified in Law 16.340 and its implementing rules. To access the benefits reserved for foreign retirees who obtain permanent residence, you must prove retirement status and a minimum monthly income from a pension or other foreign-source income. In return, the law grants one-time duty-free import of household goods and a vehicle (with a four-year no-sale period) and streamlines issuance of a Uruguayan passport for the beneficiary and immediate family once residence is granted. These criteria and benefits are stated in the government’s own guidance and the law itself. 

Separately from the “retiree benefits” statute, Uruguay’s migration portal explains the residency categories (temporary and permanent) and procedures. Most retirees proceed via the standard residence route, documenting income (practice benchmark: ~USD 1,500/month), clean records, health checks, and integration; citizenship is typically available after 3 years of residence if married (5 years if single), subject to presence and ties.

Paraguay

Paraguay is often described as South America’s best-kept secret for retirees. Landlocked but lush, the country offers a pace of life that is slower than its neighbors, with modest costs, political stability, and a culture that blends Guaraní roots with Spanish and European influence. For many expats, the attraction is straightforward: you can live comfortably on USD 1,200–1,500 per month, rent included, a fraction of what you’d spend in North America or Europe. 

Healthcare is accessible and increasingly modernized. Public hospitals are free but vary in quality; private clinics and insurance plans are affordable by international standards, with annual premiums starting around USD 300. Paraguay’s government has steadily expanded its pension system. According to the World Bank’s ASPIRE database, about 35% of Paraguayans aged 60+ receive some form of pension benefit, a coverage rate that highlights both progress and gaps in old-age security. For retirees with foreign pensions, however, the bigger attraction is Paraguay’s territorial tax system: only locally sourced income is taxed, leaving pensions and investments from abroad untouched. 

Paraguay’s geography adds to its charm. The capital Asunción has leafy boulevards, colonial architecture, and a growing café culture, while Encarnación on the Paraná River attracts expats with its waterfront and Jesuit ruins nearby. Ciudad del Este is busy and commercial, sitting on the tri-border with Brazil and Argentina, while towns like Areguá and Villa Hayes offer tranquil living close to lakes and countryside. Travel within the country is inexpensive: a bus fare in Asunción costs about Gs 3,400 (USD 0.50).

Paraguay is also pragmatic about residency. Unlike some countries that impose strict stay requirements, Paraguay allows retirees to maintain legal residence with relatively light physical-presence rules, requiring only a visit once a year, making it attractive for those who plan to split their time across continents.

Retirement Visa in Paraguay 

Paraguay offers both temporary and permanent residency routes for retirees. The Retirement Visa (temporary residence) requires proof of a monthly pension of about USD 1,400, equivalent to 100 minimum wages in local terms. The visa is initially valid for 1 year, renewable for up to 6 years. After 2 years in temporary status, retirees can apply for permanent residence, which lasts indefinitely (renewing the ID card every 10 years). Citizenship is available after 3 years of permanent residency, subject to integration, Spanish language proficiency, and ties to Paraguay.

Applicants must provide standard documentation: a valid passport, apostilled proof of pension income, clean criminal records, health insurance, and local police registrations. Processing requires a brief in-country stay, typically 6 business days, to complete biometrics and filings with the Dirección General de Migraciones. Once granted, residents enjoy the flexibility of spending much of the year abroad, provided they visit Paraguay at least once annually to maintain status.

FAQ about the Best Countries to Retire in 2025

What is the Safest Country to Retire in South America?

If safety is your top priority, Uruguay usually comes out on top. Year after year, it ranks as the most peaceful nation in South America, with low crime rates, political stability, and a strong rule of law. Chile also scores well, making both countries reliable options for retirees who want peace of mind alongside pleasant coastal living and good infrastructure.

What Country has the Best Healthcare System in South America?

Healthcare quality is a major factor in retirement planning, and according to the Numbeo Health Care Index 2025, Ecuador now leads the region. Colombia, Uruguay, Argentina, and Chile follow closely behind. Ecuador’s strong showing is due to the growth of modern hospitals in cities like Quito and Cuenca, where many foreign retirees settle. Colombia is also well regarded, with Bogotá and Medellín hospitals frequently ranked among the best in Latin America.

What is the Cheapest Country to Retire in South America?

When it comes to stretching your retirement budget, Paraguay and Bolivia are consistently at the top of affordability lists. Rent, food, and utilities cost a fraction of what you’d pay in North America or Europe. Colombia and Peru are also relatively inexpensive, particularly outside capital cities. In contrast, Chile and Uruguay, though safer and more developed, are noticeably pricier.

What is the Easiest Country to Retire in South America?

Ease of retirement usually comes down to how simple the residency visa process is. Here, three countries stand out:

• Colombia. The Retirement (Pensionado) visa is one of the most straightforward in the region. Retirees need to show proof of a guaranteed pension, about USD 1,000 per month in 2025, to qualify.
• Ecuador. The Pensioner visa is similarly clear, requiring around USD 1,300+ in monthly pension income plus health insurance. Many U.S. retirees already call Cuenca home thanks to this program.
• Uruguay. The requirements are flexible but more bureaucratic. Officials generally look for about USD 1,500 per month in passive income, though wealthier retirees often combine residency with a property investment.

Are US Social Security Benefits Taxable in South America?

This question trips up many Americans abroad. The short answer is: yes, the IRS can still tax you, even if you move overseas. Whether you owe U.S. tax on your Social Security depends on your total income. Local rules, however, vary:

• Uruguay and Paraguay both run on territorial tax systems, so foreign income like the U.S. Social Security is generally not taxed locally.
• Colombia does tax worldwide income but exempts foreign pensions up to a set threshold (indexed each year).
• Ecuador treats foreign pensions as taxable income unless an exemption applies.

For retirees, this means you could end up owing U.S. tax, local tax, or both, depending on where you settle. That’s why most experts recommend consulting a cross-border tax advisor before making the leap.