The Best Countries to Live On a Budget, and What Each One Requires

The best countries to live on a budget are the ones where the money stretches and the visa still lets you in. Colombia, Ecuador, Thailand and Portugal clear both tests on an average US retirement benefit.

Alex Carter · · 5 min read

Both tests together

A country is only workable on a budget if it is cheap and will grant residency on the income you have. Here are both columns side by side.

Country$2,086 becomesVisa income floorHealthcare out of pocket
Colombia$5,511about $1,710 a month$250/yr
Ecuador$4,633$1,446 a month$382/yr
Thailand$6,750800,000 baht in a Thai bank, or 65,000 baht a month$106/yr
Portugal$3,449€920 a month$1,371/yr
Panama$4,082$1,000 a month$1,342/yr
Costa Rica$3,275$1,000 a month$465/yr
Malaysia$6,587a deposit from $32,000 at age 50+$535/yr
Mexico$3,535$4,200 a month over six months, or $70,000 held for twelve$564/yr
Spain$3,275€2,400 a month$1,029/yr

Where the budget breaks

Three costs sit outside the cost-of-living figure and each of them has ended plans.

Private health cover. Sample premiums run around $684 a month at 65 and $1,171 at 75 on comparable plans. On a $2,086 budget that is a third of the income, and it grows faster than the income does.

Flights home. Recurring and not small from Asia.

Currency. Only Panama and Ecuador use the dollar. Everywhere else a rate move is a pay cut.

What to do with this

Take your own monthly figure rather than the average. Multiply by the country's multiplier. Then subtract insurance, flights and a currency buffer — and budget above the result, not at it.

Frequently asked

What is the best country to live in on a budget?

Colombia scores best on the combination: $2,086 a month behaves like $5,511, healthcare costs $250 a year out of pocket with only 14.6% of spending falling on individuals, and the visa floor of about $1,710 sits inside an average benefit.

Can you live abroad on $1,500 a month?

In Southeast Asia comfortably: $1,500 behaves like $5,062 in Vietnam and $4,854 in Thailand. The constraint is usually the visa rather than the cost — most countries want proof of more.

What do budget calculations usually leave out?

Private health insurance, which is priced separately and steps upward with age; flights home, which recur; and currency movement, which quietly changes a dollar income by several per cent a year.

Other questions

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