This article was originally published in 2018 and was most recently updated on September 16, 2026, to include current information.
Who among us hasn’t taken an island vacation and thought wouldn’t it be nice to live here year round? If you’re winding down your working years, that fantasy could become reality. From Isla Colón, Panama, to Penang, Malaysia, there are gorgeous islands around the globe where you can enjoy a high quality of life, fantastic weather, and a moderate cost of living. In combination with International Living‘s list of the best places to retire abroad, InterNations’ annual survey of the best places to live abroad, and our own reporting, here are 10 beautiful island destinations for retiring, how to do it, and an estimate of the monthly cost of living.
1. Malta
The Mediterranean climate of Malta’s sunny islands, English as a national language, and an excellent healthcare system with public and private options offer an easy lifestyle to slide right into. Seasonal nonstop flights on Delta connect New York and Malta International Airport, less than six miles from the capital, Valletta. And if retirement is still a few years away, you can work remotely from abroad because Malta also has a remote work visa program.
How to retire in Malta
The Malta Retirement Programme (MRP) is open to those without European Union citizenship. There is no minimum monthly income required for the Malta Retirement Programme, however 75 percent of an applicant’s income needs to come from savings or a pension (as opposed to an ongoing salary). Among other requirements for the MRP is either buying or renting a home: the minimum spend is €220,000 if the housing is in Gozo or the south of Malta or €275,000 for properties situated in the rest of Malta; for those who want to rent, the minimum annual spend is €8,750 in Gozo or the south of Malta or €9,600 in the rest of Malta (that’s a minimum of €730 per month in rent). You’ll find everything you need to know about the Malta Retirement Programme here.
Estimated cost of living
Crowd-sourced data site Numebo’s very rough estimate of the monthly cost of living for a single person in Valletta is about $1,015 (€880), excluding housing.
2. Mallorca, Spain
Mallorca’s capital of Palma de Mallorca has rows of colorful homes.
Photo by Alex/Getty Images/iStockphoto
Spain ranks no. 8 on International Living‘s list of the best places to retire abroad and no. 6 on InterNations’ list of best places for expats, so it’s safe to say people love living here. The largest of Spain’s Balearic Islands, Mallorca sits 125 miles off the southeast coast of mainland Spain and has long attracted retirees from the British Isles. This sun-soaked paradise is ideal for those who want some semblance of seasons but never want to feel too cold. The chilliest months are January and February, when the daytime temperature rarely tops 60 degrees Fahrenheit and nighttime lows are in the 40s, although skies remain clear and sunny.
There are a dozen-odd museums on the island, including one of Joan Miró’s work and another all about tennis player Rafael Nadal. But the main leisure activities here are outdoors: loads of hiking, snorkeling through coral reefs, sailing, beach-hopping, and cycling. Mallorca is a popular retirement destination for those who are seeking a balance of relaxation and outdoor activities.
How to retire in Spain
To retire in Spain, you’ll need to apply for a Non-working (Non-lucrative) residence visa. The minimum income requirement is 400 percent of Spain’s Public Indicator of Multiple-Effect Income (IPREM), which in 2026 is €600 per month. This means residence visa applicants need a monthly minimum income of €2,400 (approximately $2,770). The Spanish consulate in Los Angeles has all the relevant information.
Estimated cost of living
According to Numbeo’s crowd-sourced data, the rough monthly cost of living for a single person in Palma de Mallorca, Mallorca’s capital, is about $985 (€852), excluding housing.
3. Penang, Malaysia
George Town, the capital of Malaysian island Penang, is known for its street art and Buddhist temples such as Kek Lok Si Temple, built in 1891.
Photo by Yaopey Yong/Unsplash (L); photo by Geraldine Ng/Unsplash (R)
Heavily influenced by Indian, Chinese, Malay, and Peranakan culture and a British colony for 171 years, Penang has wonderfully diverse food and architecture, particularly in the capital city (and UNESCO World Heritage site), George Town. The island serves up a range of attractions, from 70-plus Michelin-recommended restaurants to a thriving street arts scene, with pieces from global artists such as Louis Gan, Ernest Zacharevic, and Julia Volchkova. When you need a break from city living, hike through jungles to waterfalls, cycle along palm-lined paths, or swim in the warm Strait of Malacca.
And don’t just take our word for it: Malaysia is no. 9 on InterNations’ list of best countries for expats, and no. 10 on International Living‘s list of the best countries to retire abroad. This is due in part to how widely English is spoken; with a score of 588, Malaysia ranks 24/123 countries globally on Education First English Proficiency Index, with Penang coming in even higher with a score of 589. A sublime culinary culture doesn’t hurt either; Malaysian breakfast culture—including the country’s national dish, nasi lemak—is on UNESCO’s Intangible Cultural Heritage list.
How to retire in Malaysia
The Malaysia My Second Home (MM2H) is a fairly straightforward way to retire in Malaysia. A five-year residence permit requires a fixed deposit in a Malaysian bank of $150,000 and a property purchase of at least RM 600,000 (approximately $150,000).
Estimated cost of living
According to Numbeo, the approximate monthly cost of living for a single person in Penang is about $520 (RM2,115), excluding housing.
4. Bali
Pura Ulun Danu Batur is a Hindu temple complex with nine temples and 285 different sanctuaries.
Photo by Katarzyna Zygnerska/Unsplash
With eye-poppingly green rice terraces, gorgeous beaches, and myriad wellness offerings, Bali is an extremely popular place to visit and live. This can have upsides for retirees: healthcare facilities that are accustomed to treating foreigners, plenty of choice when it comes to restaurants, and the opportunity to make Balinese and foreign friends. And there are ways to avoid the crowds in Bali, including not living in the packed Seminyak, Ubud, Uluwatu, and Canggu areas. For retirees who enjoy a buzzing social scene, wellness activities, and plenty of sun and sea, Bali is a great bet.
How to retire in Indonesia
Anyone age 55 and up can apply for the E33F Retirement KITAS, a one-year, multiple-entry residence permit that can be extended to two years, or the E33E Retirement KITAS, valid for five years and extendable to 10. Both require a monthly income of $3,000 per month, among other conditions.
Estimated cost of living
Numbeo’s crowd-sourced data indicates that the approximate monthly cost of living for a single person in Bali is $592 (Rp10,448,000), excluding rent.
5. Koh Samui, Thailand
Koh Samui is Thailand’s second largest island after Phuket.
Photo by Nehal Patel/Unsplash
The second-largest island in Thailand after Phuket, Koh Samui is a tropical paradise. Beach bums will be very happy here; daily temperature averages hover in the 80s Fahrenheit year-round, and the island is home to some of the world’s prettiest stretches of sand. Koh Samui is undeniably a tourist hot spot, which means the dining scene has really blown up in recent years; Michelin now recommends 13 restaurants on the island, and a boom in luxury resorts has ushered in upscale dining. Water sports, cultural sites (Buddhist temples and monuments), and jungle trekking will get you out of town when you need a break from the backpackers and snowbirds passing through.
How to retire in Thailand
Thailand has three types of retiree visas, depending on how long you wish to stay. The longest is valid for five years and renewable for another five; to apply, you’ll need a fixed deposit in a Thai bank of about $91,000 (3,000,000 THB) or at least $54,000 (1,800,000 THB) in savings and an annual income of $36,000 (1,200,000 THB), paid into a Thai account.
Estimated cost of living
Numbeo doesn’t have an exact estimated monthly cost of living for Koh Samui. Fintech company Wise says the cost of living on Koh Samui for one person, including housing, is about $1,500 a month.
6. Ambergris Caye, Belize
Ambergris Caye, Belize’s largest island, is a popular tourist destination.
Photo by Meritt Thomas/Unsplash
Head to the Caribbean Sea and the tropical climate of Belize if an English-speaking island with a strong existing community of foreigners and affordable medical care is high on your checklist. Thanks to the favorable weather, fruit and other locally grown produce are plentiful, bringing dining costs way down. Belize is well-connected to the USA, with direct flights from Philip S. W. Goldson International Airport in Belize City to cities such as Boston, Atlanta, and Baltimore, as well as Cancún, Mexico, and Roatán, Honduras.
How to retire in Belize
To apply for Belize’s Qualified Retirement Program (QRP), you must be at least 40 years old (dependents can be under 18 years old) and have an income of at least $24,000 annually coming from outside of Belize.
Estimated cost of living
According to International Living’s 2025 estimate, the cost of living for a single person in a foreigner-friendly city or area in Belize is around $2,400 monthly; for a couple, that cost increases to just over $3,000.
7. Roatán, Honduras
Live in Roatán and dive around the Mesoamerican Barrier Reef, the second largest reef system in the world after the Great Barrier Reef.
Photo by Alisa Matthews/Unsplash
If you love an accessible Central American island but those in Mexico are too crowded, consider the Honduran island of Roatán, about 35 miles north of the mainland Honduas. Its coral reefs are part of the Mesoamerican Reef, the second largest barrier reef system in the world. Roatán is not empty; in 2025, Honduras’s Bay Islands (Roatán, Guanaja, and Utila) saw 502 cruise ships, but those are day visitors. Move away from the cruise port and you’ll find far more locals than tourists spread out on Roatán’s white-sand beaches, hiking through its jungles, and gaping at vibrant wildlife.
How to retire in Honduras
Those who want to retire in Honduras need to show proof of at least $1,500 per month in income.
Estimated cost of living
A January 2026 estimate by International Living says the cost of living on Roatán ranges from $1,500 to $3,000 per month depending on where you live and the size of your house or apartment.
8. Isla Mujeres, Mexico
The southern end of Isla Mujeres is home to a sea turtle sanctuary and an ancient Mayan temple.
Photo by Jose Vazquez/Unsplash
Mexico consistently tops the charts when it comes to where to live abroad. In 2026, it ranked no 2. on InterNations’ list of best places for expats, and no 5. on International Living’s list. A mere eight miles and 20 minutes by ferry off the coast of Cancún, Isla Mujeres is known for its Maya history; it was once a sacred place where Ixchel, the goddess of fertility, was honored. There may not be as many sandy beaches as the other islands on this list, but snowbirds and retirees from the U.S. and Canada flock to the destination for warm temperatures and easy-going island life. At four miles long and a half-mile wide, it doesn’t take long to get acquainted with, or get around, this pint-size island.
How to retire in Mexico
To apply for a permanent resident visa in Mexico, foreigners must show proof of funds: a bank account with a balance of about $325,300 or a monthly net income of about $8,136.
Estimated cost of living
A recently breakdown of monthly costs in Isla Mujeres is difficult to find; interviewing foreign retirees on Isla Mujeres in 2025, International Living found that “you can own a one-bedroom, two-bathroom penthouse condo with a view from $230,000, or rent a one-bedroom place for $700 to $1,000 a month.” As many Isla Mujeres residents do their shopping in Cancún, Numbeo’s list of approximate monthly costs in Cancún can give you a rough idea of the cost of living.
9. Isla Colón, Panama
Move to Isla Colón in Panama to live directly on the water.
Photo by Mabelin Santos/Shutterstock
As with Mexico, foreigners adore living in Panama: The country is no. 1 on International Living’s best places to retire abroad list and no. 2 on InterNation’s survey on the best countries for expats. An hour’s flight from Panama City, archipelago Bocas del Toro’s Isla Colón has a thriving expat community where water sports and fishing are popular leisure activities. Outside of town, there are hundreds of small islands, some uninhabited and others home to the Ngäbe-Buglé, one of Panama’s largest Indigenous groups. The entire country is located outside of the Caribbean hurricane belt, making it even more of an appealing spot for retirees.
How to retire in Panama
The Panama Pensionado program offers residency for foreigners who have a monthly income or pension of at least $1,000.
Estimated cost of living
Despite a sizable expat community, a breakdown of the monthly cost of living on Isla Colón is hard to find. Wise lists some of the prices you can expect, while International Living reports that rent can run you $600 to $1,200 per month.
10. Las Terrenas, Dominican Republic
Las Terrenas is known for its white-sand beaches and clear Caribbean waters.
Courtesy of Victor Rosario/Unsplash
What sets this town on the Samaná Peninsula, in northeastern Dominican Republic, apart is that many of the foreigners living here are not from North America but rather France and Italy. You can see this influence in the many bakeries serving croissants and restaurants slinging pizza. When it comes to lifestyle, Las Terrenas runs on island time—drinks are enjoyed with your toes in the sand, nightlife often spills onto the beach, and there’s always a good time waiting to be had. A medical center in the middle of town offers high-quality care, and Cibao International Airport is three hours away. (Samaná El Catey International Airport is 30 minutes away but has flights only to Canada.)
How to retire in the Dominican Republic
As in Panama and Honduras, foreigners wishing to retire to the Dominican Republic need to show proof of at least $1,500 per month in income or savings.
Estimated cost of living
International Living estimates that a couple can live in Las Terrenas for about $2,000 per month, including housing.
Sophie Friedman contributed to the reporting of this story.
