Living Abroad / Best Places for Military Retirees to Live Overseas
Best Places for Military Retirees to Live Overseas
Key Takeaways
- US military retirees enjoy benefits from tax treaties, affordable healthcare and access to military bases. Spain, Portugal and Germany provide PX, commissary and medical facilities for them. Countries like Thailand and Greece have low living costs. France and Italy provide excellent healthcare and have vibrant veteran communities.
- Double taxation treaties between the US and EU countries can often help veterans living overseas to minimize their tax burden. However, you must still file US taxes and FBAR reports if holding over $10,000 in foreign accounts.
- Residency options differ by country. Portugal’s D7 visa requires only €760 a month in income while Spain’s Non-Lucrative Visa requires €2,400 a month. Retirees must also get private healthcare in most locations unless they qualify for national health care systems after residency.
Why Military Retirees Choose to Live Overseas
For US military retirees, moving abroad can mean a lower cost of living. It also offers good healthcare, tax benefits and a new adventure in retirement. Choosing the right country is important. VA benefits, Social Security, taxes, healthcare access and local laws can differ a lot from one place to another.
Europe is a great choice for retired US service members. This is because of SOFA (Status of Forces Agreements), US military bases and vibrant veteran communities. Many countries have tax treaties with the US which help manage military pensions, Social Security and VA benefits better.
| Benefits | Challenges |
|---|---|
| ✓ Lower Cost of Living: Many countries offer 50%+ lower costs compared to US cities. | Residency Visas Can Be Complex, some countries require proof of income or investment. |
| ✓ High-Quality Universal Healthcare: Many European countries provide free or low-cost healthcare for retirees. | Taxation Rules Differ: some countries tax US military pensions, while others exempt them. |
| ✓ VA benefits: The VA Foreign Medical Program (FMP) covers service-connected disabilities outside the US. Additionally, TRICARE Overseas is usually available for military retirees but often requires upfront payment for medical care. | Currency Exchange Fluctuations can impact pension values. |
| ✓ Under most US-EU tax treaties, military pensions and Social Security benefits are taxed only in the US which helps avoid double taxation. Some countries like Spain, Portugal and Italy do not tax US military pensions. | |
| ✓ Military-Friendly Communities: Established veteran groups make it easier to integrate into a new country. |
1. Spain – Best for Low-Cost Living & Tax Benefits
Why Spain?
✓ US Military Base Access: Rota (Naval Station Rota) is the biggest U.S. military base in Spain. It provides a PX, commissary, and healthcare benefits for eligible retirees.
✓ Cost of Living: Much cheaper than the US rent in cities like Alicante, Valencia, or Málaga starts at €600/month.
✓ Healthcare: Spain offers top-tier universal healthcare and a private healthcare system for expats (~€100-€200/month).
✓ Taxation: Under the U.S.-Spain Tax Treaty, U.S. military pensions are only taxed in the US, avoiding double taxation.
Residency Options for US Veterans:
- Non-Lucrative Visa (NLV) – Ideal for retirees with pensions over €2,400/month.
- Digital Nomad Visa – If working remotely, requires €2,520/month in income.
- Golden Visa (Investment Visa) – Requires a €500,000 real estate investment.
Challenge: Spain taxes non-military US income, such as rental income and dividends. Veterans with side investments should talk to a tax professional.
2. Portugal – Best for Tax Perks & Easy Retirement Visas
Why Portugal?
✓ Tax Benefits: Portugal has a program called Non-Habitual Resident (NHR). This program allows retirees to not pay Portuguese taxes on their US pensions. This tax exemption lasts for 10 years.
✓ Low Cost of Living: Cities like Porto, the Algarve, and Coimbra offer affordable rents (~€800/month).
✓ Healthcare: Portugal’s public healthcare system is nearly free for residents.
Residency Options for US Veterans:
- D7 Passive Income Visa – Requires €760/month in pension income.
- Portugal Golden Visa (Investment Visa) – Requires a €500,000 investment.
Challenge: After 10 years, Portugal may change its tax rules for military pensions. This means long-term financial planning is important.
3. Italy – Best for Food, Culture & Community
Why Italy?
✓ Veteran Community: Large US military retiree population in Rome, Naples, and Sicily.
✓ Healthcare: Italy has world-class healthcare, with private insurance costing ~$100/month for expats.
✓ Taxation: The US-Italy tax treaty states that the US taxes military pensions only.
Residency Options for US Veterans
- Elective Residency Visa – Requires proof of passive income (~€2,600/month).
- Golden Visa – Requires a €500,000 investment in bonds or businesses.
Challenge: Bureaucracy in Italy is slow, so expect residency approvals to take months.
4. Greece – Best for Easy Residency & Affordable Island Living
Why Greece?
✓ Cheapest Cost of Living in Western Europe – Rent in places like Crete and Thessaloniki starts at €500/month.
✓ Military Pensions: Tax-exempt under the US-Greece Tax Treaty.
Residency Options for US Veterans
- Retirement Visa (Greece Golden Visa): Requires a €250,000 property investment—the lowest in Europe.
Challenge: Greece has strict financial requirements for non-Golden Visa retirees—proof of income at €2,000/month.
Thinking About Retiring Overseas as Veteran?
5. Germany – Best for Healthcare & Strong Veteran Network
Why Germany?
✓ Large US Military Presence: Germany has the biggest US military community in Europe. Bases in Ramstein, Stuttgart, and Kaiserslautern (K-Town) provide PX, commissary, and medical services for eligible retirees.
✓ Taxation: Under the US-Germany Tax Treaty, military pensions & Social Security benefits are taxed only in the U.S.
✓ Healthcare: Germany has one of the best healthcare systems in the world. It offers both public and private insurance options for retirees. Expats can expect to pay around €150 to €300 per month.
Residency Options for US Veterans:
- Freelancer Visa – Allows retirees to stay if they prove sufficient income (~€1,500/month).
- EU Blue Card – If working, offers a fast-track to residency.
Challenge: Germany has higher living costs in cities like Munich, Frankfurt, and Berlin, but smaller towns offer affordable alternatives.
6. France – Best for Top-Tier Healthcare & Relaxed Lifestyle
Why France?
✓ Best Healthcare in Europe: France has one of the best healthcare systems in the world. Retired expats can join the French public healthcare system (PUMA) after three months.
✓ Taxation: The US-France Tax Treaty taxes military pensions in the U.S., which avoids double taxation.
✓ Affordable Regions: While Paris is expensive, areas like Occitanie, Normandy and the Dordogne region offer affordable living (€1,500/month total expenses).
Residency Options for U.S. Veterans:
- Long-Stay Visitor Visa (Visa de Long Séjour – VLS-TS) – Requires €1,329/month in income.
- Talent Passport Visa – If investing or working remotely.
Challenge: Bureaucracy often moves slowly, so you should prepare for paperwork-heavy residency applications.
7. Thailand – Best for Ultra-Low Cost of Living
Why Thailand?
✓ Super Low Cost of Living: A military retiree can live well in Thailand for about $1,500 a month. Rent can be as low as $400 a month in cities like Chiang Mai and Pattaya.
✓ Taxation: Thailand does not tax foreign income, meaning military pensions & Social Security are tax-free.
✓ Expat-Friendly: Thailand has one of the largest US retiree communities in Asia.
Residency Options for U.S. Veterans:
- Retirement Visa (O-A or O-X Visa) – Requires $24,000 in savings or a monthly pension of $2,000.
Challenge: Hot climate, cultural differences, and language barriers can be an adjustment for some retirees.
Thinking About Retiring Overseas as Veteran?
