Where to Buy Your Retirement Home in 2026: Yields, Taxes and Peace of Mind
Published 10 October 2026 · 11 min read · By the BecomeHH Team
A retirement home has to do three jobs at once: be a calm place to live, cost little to keep, and pass to your children without a tax bill. Very few countries do all three — and the one with the best rental yield is rarely the one with the best retirement.
We combined BecomeHH's own data for 18 countries — prices, rental yields, buying costs, property tax, maintenance and, new this month, rental income tax — with the most-cited independent rankings: International Living's 2026 Global Retirement Index, the 2026 Global Peace Index, and the national tax rules for pensions and inheritance. Every figure below was re-checked in October 2026.
The short answer
- Living on a pension: Greece — flat 7% tax on foreign pensions for up to 15 years, and #1 in the 2026 Global Retirement Index.
- Safety and leaving the home to your children: Portugal — 7th most peaceful country in the world, and no inheritance tax for children.
- Lowest cost to buy and keep: Romania — 3.5% buying costs, the lowest we track, and an 8%-of-rent tax if you let it.
- Best numbers on paper: UAE — no income, property or inheritance tax — but with real catches for older buyers.
How we compared
A retiree's home is judged differently from an investor's. We looked at five things, in this order of importance for most retirees:
- Tax on your pension — the income you live on every month.
- What the home costs to keep — property tax plus maintenance, every year, for as long as you own it.
- What your heirs pay — inheritance tax when the home passes on.
- Safety, healthcare and day-to-day life — the independent rankings.
- What the home earns if you let it — useful if you rent out a room, a second unit or the whole home while travelling, and a guide to its resale value.
The numbers: what a retirement home earns and costs
From BecomeHH's country data, on a reference home. "Net yield" is rent minus property tax, maintenance and rental income tax for a non-resident landlord; "annual cost" is what you pay every year just to own it.
| Country | Gross yield | Annual cost | Rental tax | Net yield | Buying costs |
|---|---|---|---|---|---|
| 🇦🇪 UAE (Dubai) | 7.2% | 1.50% | 0% | 5.7% | 6.0% |
| 🇹🇭 Thailand | 6.2% | 0.85% | 15% of gross | 4.4% | 7.0% |
| 🇷🇴 Romania | 5.8% | 1.18% | 8% of gross | 4.2% | 3.5% |
| 🇪🇸 Spain | 6.2% | 1.35% | 19% of profit* | 3.9% | 14.0% |
| 🇵🇹 Portugal | 5.5% | 1.15% | 25% of profit | 3.3% | 11.5% |
| 🇮🇹 Italy | 5.5% | 1.35% | 21% of gross | 3.0% | 5.5% |
| 🇬🇷 Greece | 4.4% | 1.25% | 15% (first €12k) | 2.5% | 8.1% |
| 🇫🇷 France | 4.8% | 1.45% | 27.5% of profit** | 2.4% | 11.5% |
📌 BecomeHH country data, October 2026. * EU/EEA residents; 24% for others. ** 20% minimum rate plus 7.5% social charges for EU/EEA-insured landlords; about 37–39% for others. Greece's yield is Global Property Guide's national average (4.38%). Sort all 18 countries yourself in our country comparison, or see the full rules in rental income tax by country.
Two things stand out. The countries that earn the most on paper — the UAE and Thailand — are not the ones independent rankings rate best for retirees. And the way a country taxes rent matters as much as the rate: Italy's 21% looks mild until you notice it is charged on the gross rent with no deductions, which takes about a fifth of everything the tenant pays.
The taxes that matter most after 65
| Country | Tax on a foreign pension | Children inheriting | Retirement Index 2026 | Peace Index 2026 |
|---|---|---|---|---|
| 🇬🇷 Greece | Flat 7%, up to 15 years | Free to €150,000 each, then 1–10% | #1 | — |
| 🇵🇹 Portugal | Normal rates up to 48% (pensioner regime closed) | Exempt | #4 | #7 |
| 🇮🇹 Italy | Flat 7% for 10 years — southern towns ≤30,000 people | 4% above €1 million each | #6 | — |
| 🇪🇸 Spain | Normal progressive rates | Depends on region (up to 99% relief in some) | #8 | — |
| 🇫🇷 France | Normal progressive rates | Up to 45% after €100,000 each | #7 | — |
| 🇹🇭 Thailand | Taxed when brought in (exempt with an LTR visa) | 5% only above THB 100 million each | #9 | — |
| 🇦🇪 UAE | None | None (register a will — see below) | — | — |
| 🇷🇴 Romania | No special regime — treaty rules apply | None if settled within 2 years, then 1% | — | — |
📌 "—" means not ranked in that index's top list (the Retirement Index covers 24 countries; the Peace Index top 10 is shown). Eligibility rules apply to every pension regime — see each country below.
Country by country
🇬🇷 Greece — the best place to live on a pension
Greece took first place in International Living's 2026 Global Retirement Index for the first time, which estimates a couple's budget at about $2,000–2,700 a month. Its headline attraction is Article 5B of the Greek tax code: if you were not a Greek tax resident in five of the previous six years, you can elect to pay a flat 7% on all your foreign income, pensions included, for up to 15 years. A €30,000 pension taxed at 7% leaves €27,900 — in most of Europe the same pension would lose several thousand more.
The trade-off is the yield: at about 4.4% gross, Greek homes earn less than Spanish or Portuguese ones if you rent them out, and rental income has its own scale (15% up to €12,000). Children inherit the first €150,000 each tax-free. Buying costs run about 8%, and non-EU buyers need a permit in some border zones. Full Greece buying guide →
🇵🇹 Portugal — the safest, and the kindest to your heirs
Portugal ranks 4th in the Retirement Index and 2nd of all 24 countries for healthcare and climate, and it is the only mainstream retirement destination in the 2026 Global Peace Index top 10, at 7th of 163 countries. Annual property tax is among the lowest in Europe (about 0.25% of value), and children and spouses inherit with no inheritance tax.
Two things count against it. The old Non-Habitual Resident regime is closed to new applicants, and its replacement is aimed at skilled professionals, not retirees — so new residents pay normal income tax, up to 48%, on pensions. And buying costs are high, about 11.5% on a resale home. Full Portugal buying guide →
🇮🇹 Italy — 7% too, if you choose the right town
Italy offers the same 7% flat tax on foreign pensions, for 10 years, but only if you move to a town of up to 30,000 residents in one of eight southern regions — Sicily, Sardinia, Calabria, Campania, Basilicata, Molise, Puglia or Abruzzo. The limit was raised from 20,000 in April 2026, opening up dozens of larger towns. Inheritance is gentle (4% only above €1 million per child) and buying costs are modest at about 5.5%. Full Italy buying guide →
🇪🇸 Spain — the highest yield in Western Europe
Spain pairs a 6.2% gross yield with excellent healthcare and the 8th place in the Retirement Index. But it has no special tax regime for pensioners, buying costs are the highest we track at 14%, and inheritance tax depends heavily on the region — Madrid and Andalusia relieve up to 99% for children, others much less. Full Spain buying guide →
🇷🇴 Romania — the best value, if you know the country
Romania has the lowest buying costs of all 18 countries we track (3.5%), a 5.8% gross yield and a light touch on rent: 10% income tax after a 20% automatic allowance, so 8% of gross rent. There is no inheritance tax if the succession is completed within two years of death. It does not appear in the international retirement rankings, and healthcare quality varies widely by region, so it suits people with Romanian roots or who already know the country best. Full Romania buying guide →
🇦🇪 UAE — the strongest numbers, with catches
On paper Dubai wins: no income tax on pensions or rent, no annual property tax, no inheritance tax and the highest yield we track. A five-year retirement visa is available from age 55 with a property worth at least AED 1 million (or qualifying savings or income), plus mandatory health insurance. The catches for older buyers are real: private health insurance becomes expensive with age, summers are extreme, and without a registered will (for example through the DIFC Wills Service) local property can pass under Sharia inheritance rules rather than your own wishes. Full UAE buying guide →
🇹🇭 Thailand — the cheapest to own
Thailand ranks 9th in the Retirement Index and has the lowest running costs of our shortlist (about 0.85% of value a year). Foreign pension income is taxed when you bring it into the country if you live there 180 days or more, unless you hold a Long-Term Resident visa, which exempts it. Inheritance tax only applies above THB 100 million per heir. The big limitation: foreigners can own condominium units but not land. Full Thailand buying guide →
Outside our database: Panama, Costa Rica, Mexico
The Retirement Index's 2nd, 3rd and 5th places are all in Latin America — Panama, Costa Rica and Mexico — popular especially with North American retirees. We don't track them yet, so they aren't in the tables above.
Safe, but not a good retirement buy
Austria, Singapore and Japan all sit in the Global Peace Index top 10, but our data shows why they rarely make sense for a retirement purchase: net yields of 1.5–2.2% and high prices (an 80 m² home costs over €1 million in Singapore). France ranks 7th for retirees, but combines 11.5% buying costs with inheritance tax of up to 45% for children.
See the buying costs, the yearly bill and the tax on rent for any of our 18 countries.
Hidden Buying Costs Annual Ownership CostsFive checks before an older buyer signs
- Residence first, house second. Your tax regime and healthcare depend on becoming resident — Greece's 7% needs genuine Greek tax residence, Dubai's retirement visa needs the property in your name.
- Mortgage age limits. Many lenders want the loan repaid by 75 (Greek banks, for example), which shortens the term for anyone buying in their sixties. Our mortgage calculator shows the payment on a shorter term.
- A will in each country. Property usually passes under the law of the country where it stands. A local will avoids surprises — essential in the UAE.
- Health insurance with age. Price private cover for your age now and in ten years; it can cost more than the property tax.
- Should you buy at all? If you might move again within a few years, renting can be cheaper once buying and selling costs are counted — see when renting actually beats buying.
Frequently asked questions
Sources
- International Living — Annual Global Retirement Index 2026; summaries in Quartz and The Portugal Brief.
- Institute for Economics & Peace — Global Peace Index 2026.
- Natixis Investment Managers — 2026 Global Retirement Index (retirement security for local residents — a different question from retiring abroad).
- Greece 7% regime (Art. 5B) — Global Citizen Solutions; Italy 7% regime and the 30,000 threshold — ItalianTaxes.
- Thailand foreign-income remittance rules — Brer Rabbit Legal; inheritance tax threshold — ThaiLawOnline.
- Inheritance taxes in Europe — Tax Foundation, 2026; Romania's two-year rule — Contzilla.
- UAE retirement visa — Property Finder; Dubai housing fee — TaxNews UAE.
- Rental income tax rules — PwC Worldwide Tax Summaries and national tax authorities; full list on our rental income tax table.
- Greek property prices and yields — Global Property Guide; Indomio.
- Prices, yields, buying costs, property tax and maintenance for all other countries — BecomeHH country data (see each country guide for sources).
Figures are national averages and the tax rules summarised here have eligibility conditions. Educational content, not tax or legal advice — confirm your own situation with a qualified adviser in the country before buying.