Choosing where to retire overseas is less about chasing sunshine and more about finding the right fit. As Blacktower Financial Management frames it, “In a world of increasing global mobility, the best countries for UK expats in 2025 are those that offer the right mix of financial advantages, lifestyle benefits, and long-term stability.”

Spain has been and continues to be one of the most popular destinations for British expats due to its appealing climate, relaxed lifestyle, and vibrant culture, though recent changes in visa rules post-Brexit have introduced new challenges for those pining after a change of pace. It means that regions like the Costa del Sol and Costa Blanca are trumped by a European neighbour as the most attractive place for British retirees, according to Blacktower’s financial experts.

The most contented British retirees tend to score destinations on practical markers first, and proximity to sandy beaches second.

That means weighing up favourable tax treatment of residents, accessible residency or visa pathways, especially post-Brexit, and a high quality of life, including healthcare, safety, and infrastructure.

Blacktower’s financial experts rank Portugal first for its lifestyle, legal frameworks, and practical considerations.

They said: “Portugal remains one of the most attractive destinations for British expats in 2025, offering a laid-back Mediterranean lifestyle, a favourable climate, and one of the largest UK expat communities in Europe.”

The magnetism here isn’t a single headline perk but a well-rounded package that manages to feel relaxed, safe and culturally rich while staying within reach for pension-led budgets.

Brits abroad can expect low everyday costs in Portugal. In most neighbourhood cafés, a bica and a pastel de nata will still set you back roughly €2–€4. Casual lunches of grilled sardines, a hearty prato do dia or a bifana hover around €10–€15 per person, and an easy-going dinner for two with wine at a mid-range spot lands in the €40–€60 bracket.

Meanwhile, a glass of house wine or a domestic beer in unfussy venues typically costs €2–€4.

Tourist strips and peak-season Algarve resort prices can spike, but step a street or two off the main drags—or visit outside July and August—and Portugal’s reputation for simple, good-value eating reasserts itself.

The Algarve is the most popular region for British expats in Portugal, primarily due to its warm climate, beautiful beaches, and established expat communities, particularly in towns like Lagos and Albufeira.

According to local expat Ben Taylor of Portugal Property Guides, Tavira and the eastern Algarve have become extremely popular among Britons. This area hosts a diverse group of expats, from those living in rural hillside environments to others in resort-style beach apartments who enjoy visiting English pubs and sports bars.

Other highly popular areas include the cultural hubs of Lisbon and Porto, and Madeira’s tranquil, mild year-round weather.

The practicalities are a big part of why Portugal attracts British expats. Advisers repeatedly highlight that there are “Multiple visa routes, including D7 for passive income and digital nomad visas,” giving pension-led households and mixed-remote-working couples a clear path in.

Portugal’s pros list also captures the everyday feel that retirees report back to friends at home: mild climate, excellent healthcare, and a relaxed lifestyle supported by a large and active British expat community.

But the country’s policy has shifted. The Non-Habitual Residency (NHR) tax regime, which previously offered significant tax advantages, is being phased out for new applicants. However, Blacktower’s experts note: “Though NHR is ending, Portugal still offers tax-efficient alternatives, and the D7 and digital nomad visa options remain viable.”

According to Get Golden Visa’s latest guide, a monthly budget of $1,500 to $2,000 (£1,120-£1500) is sufficient for a pleasant living for retiring in Portugal, although life in a metropolis such as Porto or Lisbon may necessitate a little more income, about $2,500 to $3,000 (£1,860 to £2,240).

Blacktower compared popular and emerging expat destinations using key criteria that matter most to British nationals abroad, including taxes, residency pathways, quality of life, cost of living, and the size of the British expat community.

The experts revealed that Spain remains a sought-after retirement destination for its “excellent climate” and expat community, but noted that post-Brexit visa routes are complicated.

Meanwhile, Australia boasts world-class healthcare and education, but a complicated points-based visa system.

Best countries for retired British expats

1. Portugal
2. Spain
3. United Arab Emirates (UAE)
4. Australia
5. Switzerland
6. USA
7. Canada
8. Thailand