As the cost of living rises in the U.S., Canada, and parts of Europe, more retirees are looking south – for warmer weather, better healthcare access, and a slower, more affordable lifestyle. South America, once overlooked, has become a retirement hotspot for those seeking quality of life without draining their savings.
From beachside havens to wine country retreats and bustling mountain cities, the continent offers a wide range of options. And while the big names like São Paulo or Rio may grab headlines, the real gems are quieter cities where expat communities are thriving under the radar.
In this article, we explore five of the best cities to retire in South America – each offering a unique blend of comfort, culture, and opportunity for retirees ready to make a move.
1. Montevideo, Uruguay — Safe, Clean, and Peaceful
If you’re looking for a quiet, well-organized place to spend your retirement years, Montevideo deserves a spot at the top of your list.
Uruguay’s capital combines European-style charm with South American warmth. The city stretches along the Río de la Plata with calm beaches, walkable neighborhoods, and a reputation for political stability. It offers everything retirees look for: safety, modern healthcare, access to private hospitals, and a relaxed, friendly atmosphere.
What sets Montevideo apart is its predictability. The country’s institutions are strong, corruption is low by regional standards, and property laws are clear and protective of foreign buyers. Whether you’re renting or buying, the real estate market is accessible and not overinflated.
Uruguay offers an easy path to permanent residency with minimal financial requirements, and many foreign residents enjoy a 10-year tax holiday on overseas income. This, combined with the country’s neutrality and privacy-friendly banking system, makes it especially attractive to Americans and Europeans seeking long-term security.
If your goal is to retire in Uruguay, Montevideo is one of the most stress-free and livable cities in Latin America – ideal for retirees who value peace, order, and access to solid infrastructure without sacrificing lifestyle.
2. Mendoza, Argentina — Wine Country with Mountain Views
For retirees who want beauty, culture, and value for money, Mendoza offers one of the best deals in the Southern Hemisphere.
Set at the foothills of the Andes, Mendoza is known for its stunning natural surroundings, world-class vineyards, and sunny, dry climate. It’s a favorite among active retirees who enjoy hiking, wine tasting, and scenic road trips – not to mention a strong culinary scene that rivals cities twice its size.
Mendoza’s affordability is one of its biggest draws. You can live well on less than $2,000 a month, with high-quality local produce, low utility bills, and access to domestic help for a fraction of what it would cost in North America. Real estate is also accessible, and foreigners can purchase property with few restrictions.
The expat community here is well-established and growing, with many retirees from the U.S., Canada, and Europe choosing Mendoza for its balance of nature and city life. Private healthcare is available and affordable, and local clinics often have English-speaking staff.
Argentina’s retirement visa allows foreign pensioners to obtain temporary residency with proof of stable monthly income. The country also has a pathway to dual citizenship for long-term residents, adding another layer of flexibility.
If you’re seeking a relaxed lifestyle in a postcard setting with excellent wine, Mendoza checks all the boxes.
3. Medellín, Colombia — Spring Weather All Year Round
Once known for all the wrong reasons, Medellín has undergone one of the most remarkable urban transformations in Latin America. Today, it’s a favorite among retirees who want a vibrant city life with a mild climate, modern infrastructure, and affordable living.
Located in the Aburrá Valley, Medellín is known as the “City of Eternal Spring” for its consistently pleasant weather – think 75°F year-round. That alone is enough to attract retirees tired of harsh winters or scorching summers. But there’s more to Medellín than good weather.
The city boasts a modern metro system, quality private hospitals, fast internet, and an increasing number of English-speaking professionals. Health insurance plans are reasonably priced, and Colombia’s healthcare system is frequently ranked among the best in Latin America.
For those on a fixed income, Medellín offers a great lifestyle at a low cost. One-bedroom apartments in safe neighborhoods like Laureles or El Poblado can be rented for under $700 a month, and dining out or hiring help is far more affordable than in North America.
Retirees can apply for Colombia’s pensionado visa, which requires proof of a minimum monthly income from a pension or retirement fund. The process is relatively straightforward and provides a path to permanent residency and eventual citizenship.
With an active expat scene, friendly locals, and a unique mix of urban energy and mountain calm, Medellín continues to grow as one of South America’s best retirement cities.
4. Santiago, Chile — First-World Comfort in South America
If your ideal retirement includes modern infrastructure, access to international travel, and a well-functioning legal system, Santiago may be your best fit in South America.
Chile’s capital is one of the continent’s most developed cities. It offers clean streets, organized public transport, high-quality healthcare, and access to global banking and investment services. For retirees coming from the U.S., Canada, or Europe, Santiago feels familiar—without the high price tag of major Western cities.
While the cost of living in Santiago is higher than in cities like Medellín or Mendoza, many expats find that the stability and services are worth the premium. Private hospitals rank among the best in Latin America, and the city offers everything from high-end shopping to mountain getaways just an hour away.
Chile’s residency process is well-regulated. Retirees can apply for a temporary visa with proof of income, and after five years, they may apply for permanent residency or citizenship. The legal system protects foreign property owners, and Chile’s financial sector is one of the strongest and most transparent in the region.
Santiago is a good match for retirees who value order, consistency, and modern amenities, and who don’t mind paying slightly more for a structured, first-world experience in a South American setting.
5. Asunción, Paraguay — Low Cost, High Privacy
For retirees who value privacy, independence, and budget-friendly living, Asunción is one of South America’s best-kept secrets.
Paraguay’s capital doesn’t make many international headlines, but that’s part of its appeal. The city is calm, manageable, and far more affordable than most other capitals on the continent. You can live comfortably on under $1,500 a month, and real estate is both cheap and easy to buy as a foreigner – with no restrictions.
The residency process in Paraguay is among the simplest in Latin America. With a small deposit and proof of income, retirees can qualify for permanent residency, and eventually apply for citizenship after three years. There’s no wealth tax, and foreign income is not taxed, making it a strong choice for financial privacy.
Asunción is not as modern as Santiago or as scenic as Montevideo, but it offers quiet stability, friendly locals, and a low-pressure lifestyle. The pace is slow, the traffic is light, and the cost of goods and services is remarkably low. For retirees who don’t need big-city excitement and prefer discretion over flash, it’s an ideal match.
There’s a growing community of expats from Europe, North America, and Asia who appreciate the country’s hands-off governance and personal freedoms. Whether you’re retiring early or looking to stretch a fixed income, Asunción delivers serious value.
Final Thoughts
Retiring in South America offers a unique mix of affordability, comfort, and opportunity. Whether you prefer the quiet order of Montevideo, the scenic charm of Mendoza, or the vibrant energy of Medellín, there’s a place to fit your lifestyle and budget.
With accessible residency options, quality healthcare, and strong expat communities, these five cities stand out as top choices for anyone planning a retirement abroad in 2025.
