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Retiring Abroad: Climate, Cost and the Tax Rules That Changed

Retiring Abroad: Climate, Cost and the Tax Rules That Changed

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Retiring Abroad: Climate, Cost and the Tax Rules That Changed

Climate lists for retirees are easy to write and mostly interchangeable. The things that actually decide whether a move works — the visa income threshold and the tax treatment of your pension — change without notice, and a guide written two years ago will get them wrong.

Two of those have changed since this page was first published. Both are below, before the climate comparison.

⚠️ Portugal: the pension tax break is gone

If you are considering Lisbon or Madeira for tax reasons, this is the single most important thing to know.

Portugal’s Non-Habitual Resident (NHR) regime was discontinued on 1 January 2024. Under NHR, foreign pension income was taxed at a flat 10%. That benefit has been removed: pensions for new arrivals are now taxed as regular income at progressive rates (PwC Portugal).

RegimeNHR, closed to new entrants 1 January 2024
Old pension treatment10% flat rate on foreign pension income
New pension treatmentProgressive rates, as ordinary income
TransitionalThose who became tax resident by 31 December 2023 continue until their 10-year period ends
ReplacementIFICI — 20% flat rate on eligible Portuguese employment income, aimed at scientific research and innovation professionals

IFICI does not replace the pension benefit. It is aimed at qualified professionals in science, technology and innovation, not retirees.

🇨🇴 Colombia: the M-Pensionado visa, in numbers

For readers of this site, the relevant threshold is Colombia’s retirement visa.

Climate comparison

CityClimate typeNotes
Medellín, ColombiaSeasonless, altitude-moderatedMean 22°C, typical range 16–26°C; two rainy periods rather than seasons
Cuenca, EcuadorSeasonless, high altitudeCooler than Medellín — it sits considerably higher
San Cristóbal de las Casas, MexicoHighland, mildCool evenings year-round at altitude
Lisbon, PortugalMediterraneanMild wet winters, warm dry summers, Atlantic-moderated
Málaga, SpainMediterraneanAmong Europe’s sunniest, at 3,248 sunshine hours a year
Nice, FranceMediterraneanRiviera coast; the most expensive option here
Santa Cruz de Tenerife, SpainSubtropicalWarm through the European winter
Madeira, PortugalSubtropical AtlanticMild year-round, but see the Portugal tax note above

Medellín’s figures are the ones this site can vouch for: an elevation of 1,495 m, a mean annual temperature of 22°C and a typical range of 16–26°C, with rain — not heat — as the thing that varies. The two rainy periods run late March to early July and late September to early December (Weather Spark; Climas y Viajes).

On Málaga: it is often called Europe’s sunniest city and is not. Annual sunshine hours put Seville at 3,526, Alicante at 3,397 and Murcia at 3,348, ahead of Málaga’s 3,248 (idealista).

How to actually compare costs

This page previously carried specific rent figures for each city and a claim that Medellín healthcare runs “50–70% cheaper than the U.S.” None of it was sourced, and rents in particular move faster than any static guide can track.

Use live sources instead, and check them the month you are deciding:

  1. Rent — search the local portal, not an aggregator: Fincaraíz or Metrocuadrado for Colombia, Idealista for Spain and Portugal.
  2. Healthcare — get a quote from a specific insurer for your age and conditions. National averages tell you nothing about your premium.
  3. Tax — confirm with a tax professional in the destination country, and confirm the year. Portugal is the illustration of why: a regime that defined the country’s appeal to retirees for a decade closed with a few months’ notice.
  4. Visa income thresholds — check the current figure in local currency, since most are pegged to a minimum wage that rises annually.

A note on this guide

Rechecked in September 2026. The Portugal tax position was corrected — the NHR pension benefit ended on 1 January 2024, and both the Lisbon and Madeira entries previously advertised tax advantages for retirees that no longer exist for new arrivals. Medellín’s temperature range was corrected to 16–26°C. The Málaga “sunniest in Europe” claim was corrected. Every rent figure and the healthcare cost comparison were removed as unsourced, and the comparison table, which had lost its markdown and was rendering as a single run-together line, was rebuilt.


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