What Is a Retirement Visa?

A retirement visa is a special type of visa issued by some nations that allows people with adequate financial resources to live in a specific foreign country for an extended period of time. Americans considering retiring outside of the United States will need to understand the income, health, and age requirements of their destination.

How Retirement Visas Work

A visa is a government permit allowing foreigners to enter a particular country and remain there for a specified period of time. A retirement visa is a type of visa that allows people to enter a country and, if they wish, spend their retirement years there.

Countries that offer retirement visas of one form or another include Costa Rica, Ecuador, Indonesia, Ireland, Mexico, Nicaragua, Panama, the Philippines, Portugal, Spain, and Thailand.

Retirement visas are generally good for at least 12 months, after which they can be renewed if the person still qualifies. In some countries, foreign retirees can also apply for permanent residency and obtain citizenship after they have lived there for a certain number of years.

Retirement Visa Requirements

Retirement visas go by different names in different countries, each of which maintains its own rules. In some countries, an individual must be over a certain age to qualify for a retirement visa. Others may have no specific age requirement but stipulate that the person be retired and have retirement or pension income.

All set a minimum income requirement, and some require that applicants deposit funds in a local bank. In many instances, retirement visa holders are not allowed to work in the host country unless they are able to obtain a separate work permit. The visa holder may also be required to purchase health insurance that is valid in that country. (Medicare pays for healthcare outside the U.S. only in rare instances, for instance.)

How to Get a Retirement Visa

The process for obtaining a retirement visa also varies by country. In most cases, application forms can be found on government websites, along with instructions on how to apply, including where to apply in person. Depending on the country, you may be able to apply either within the U.S. or at an immigration office in the host country. If you’re applying within the U.S., this will typically entail appearing, with necessary documents, at either the country’s embassy in Washington, D.C., or one of its consulates in a major city.

Every country requires at least a few documents, although some are more demanding than others. In virtually every case, applicants are expected to provide:

• A valid passport or other travel document
• Proof of income and/or assets

In some countries, they may be required to provide additional documents, such as:

• A birth certificate
• A marriage certificate (if applicable)
• A medical report attesting to the applicant’s good health
• Proof of vaccinations
• Evidence of medical insurance valid in that country
• Bank statements reflecting deposits in local accounts (if required)
• A house or apartment lease or other proof of a place to stay
• A police certificate showing the lack of a criminal record

Again, depending on the country, it can take several days to several months (or even years) to receive a retirement visa. Most countries seem to require at least a few weeks.

Retirement Visa Options in Different Countries

To show how rules may differ, here are more detailed overviews of retirement visas available in several countries that American retirees might be considering: Australia, Indonesia, Ireland, and Thailand. Before selecting a retirement destination outside the U.S., Americans should be sure that they understand all the details of the visa requirements of the country of destination.

Australia

Australia has some of the strictest immigration laws in the world and no longer offers retirement visas. In 2018, the government created what it calls a “retirement visa pathway,” which can lead to permanent residency for a small number of people who qualify. There are several ways to set yourself on this pathway, although it can be a years-long journey.

If you already held an Australian retirement visa (subclass 410) or investment retirement visa (subclass 405) on May 8, 2018, you may be eligible to apply for permanent residency. (Both of those visas have been discontinued.)

If you don’t meet that requirement, you can apply for either a parent visa (subclass 103) or the more expensive contributory parent visa (subclass 143), which may qualify you for permanent residency after a certain period. In either instance, you must be the parent of an Australian citizen or permanent resident, or of a qualifying citizen of New Zealand, in addition to financial and other requirements.

The government cautions that processing times for parent (subclass 103) visas are significantly longer than those for contributory parent​ (subclass 143) visas, which also receive priority consideration. The government recently estimated waiting times of 15 years for contributory parent visas, and 40 years for regular parent visas.

Indonesia

The Republic of Indonesia offers a retired or senior citizen visa that is good for one year and may be extended for as many as five additional years. It doesn’t specify an age requirement but does require proof of sufficient financial resources in the form of a bank or pension fund statement. In addition, applicants must provide proof that they have health, life, and liability insurance.

After living in Indonesia for five consecutive years, visa holders can apply for permanent residency.

Ireland

To retire to Ireland, U.S. citizens must apply for and be granted what’s known as Stamp 0. To be eligible, the applicant must either be “of independent means, fully financially self-sufficient” or sponsored by someone in Ireland who can provide their full support.

Stamp 0 applicants must also have private medical insurance. They “cannot receive any benefits or use publicly funded services, for example be treated at a public hospital.” In addition, they are not allowed to “work or engage in any business, trade or profession unless specified in a letter of permission from Immigration Service Delivery.”

Residents can apply for Irish citizenship once they have lived in the country for a certain period of time, typically five years but sometimes less.

Thailand

The Kingdom of Thailand offers what is essentially its retirement visa—the Non-Immigrant “O-A” (long stay) visa—to eligible applicants ages 50 and older who don’t intend to work in the country. (Working is, in fact, prohibited on this visa.)

While the visa is only good for one year, visa holders can apply to extend it for additional one-year periods if they continue to meet the criteria, including income and asset requirements. In addition, visa holders must report to immigration officials every 90 days.

After living in Thailand for three years, visa holders can apply for permanent resident status.

However, it’s worth noting that Thailand limits how many people from any given country are eligible for residency each year, which is currently 100.

Retirement Visa Costs

Countries charge fees for retirement visas. This table shows some examples, as compiled by visadb.io, a website funded by grants from a number of countries:

Country	Cost	Good for
Costa Rica	$150	1 year
Mexico	$130	Life
Panama	$800	Life
Portugal	$530	2 years
Thailand	$340	5 years

Benefits and Limitations of a Retirement Visa

Retirement visas allow people to stay in a foreign country longer than typical tourist visas. This can be particularly useful to retirees, who may want to sample a country at various times of the year before deciding on moving there permanently. A retirement visa can also be a step toward qualifying for permanent resident status. The visas do come with requirements, several of which are described above. In addition, retirees can be subject to taxes and may be required to contribute to the country’s healthcare and retirement systems.

Meanwhile, American citizens who retire to a foreign country are still required to file U.S. tax returns if their income exceeds a certain threshold, just as if they had remained in the States. Income from both U.S. and foreign sources is taxable, although foreign income up to a certain amount may be eligible for the foreign earned income exclusion.

The U.S. also has tax treaties with a number of countries, preventing citizens who are living abroad from being taxed twice on the same income.

Tips for a Successful Retirement Visa Application

To save time and avoid potential disappointment, anyone who wishes to obtain a retirement visa should follow a few basic steps:

1. Read the visa requirements for the host country. These can be found online and in English, usually at the website of the country’s embassy or immigration office.
2. Make a checklist of required documents and gather them.
3. If your U.S. passport is close to expiring, renew it.
4. If the country requires a medical examination, arrange a visit to your doctor.
5. Fill out the retirement visa application, which is also typically available online.
6. Make an appointment at the nearest embassy or consulate if the country requires an in-person application and allows you to apply from the U.S.

Note that some countries don’t allow applications from abroad but require that you show up in person at an immigration office in that country, typically after having obtained a tourist visa to get in. That makes it all the more important to obtain every necessary document before you go.

The Bottom Line

Many countries welcome foreign retirees, particularly those who will bring reliable incomes and substantial assets. For that reason, countries often offer visas that allow retirees to stay for an extended time and possibly forever. For retirees, obtaining a retirement visa can be a good way to explore and experience a country long enough to know whether it’s a place where you would like to settle down permanently.