The annual list takes into account factors that matter when making such a big move, including healthcare, climate, safety, cost of living and how easy it is for foreigners to settle in the country.

Portugal continues to stand out as a popular choice, particularly for retirees looking for a European destination with a warmer climate and a more relaxed way of life.

The Algarve remains one of the country's best-known areas among international retirees, with its beaches, mild winters and large foreign community. English is also widely spoken across much of the region, particularly in areas that have long been popular with international residents.

But the Algarve is far from the only option. Lisbon and the surrounding areas attract those who prefer to be closer to a major city, while Porto, the Silver Coast and smaller towns across central Portugal offer a very different pace of life.

Portugal has become considerably more expensive in recent years, particularly when it comes to housing in Lisbon, Porto and parts of the Algarve. However, for people prepared to look beyond the country's main cities and most popular coastal areas, there are still quieter and more affordable places to consider.

Healthcare is another important factor for people thinking about retiring abroad. Portugal has both public and private healthcare, while the country's relatively small size also makes travelling between regions and larger cities fairly straightforward.

For Americans looking to retire in Portugal, there are several options for gaining residency, including the D7 visa, which is aimed at people who can show they have a regular income. Portugal's Golden Visa also still exists, although buying a property is no longer one of the ways to qualify.

Portugal was one of several countries included in Forbes' 2026 selection. The list looks at places around the world, giving those considering retirement abroad plenty of different options, from destinations elsewhere in Europe to countries in Latin America and Asia.

Other countries highlighted include Spain, France, Italy, Greece, Mexico, Costa Rica, Panama, Malaysia and Thailand, offering everything from Mediterranean coastal living to tropical destinations and lower-cost alternatives.

For anyone considering such a move, Forbes also stresses that the decision involves more than finding good weather and affordable property. Visa rules, taxes, healthcare, language and the cost of travelling back home are all factors that need to be considered before choosing where to spend retirement.