What if I told you there are two South American countries where you can retire with a quality of life on par with Europe, but for a fraction of the cost, and with zero taxes on your Social Security pensions?
But be warned: this is a continent that changes really fast.
I am South American, and when I was a child, Venezuela was very wealthy, attracting immigrants from my country. Today, however, Venezuela has collapsed so badly that Venezuelans come to us as refugees – and the differences between South American countries are enormous too.
- Some countries have lower crime rates than the US; others are more violent than South Africa.
- Some leave your Social Security untouched – ZERO taxes, while others tax it up to 34%.
So today I’m ranking every South American country from worst to best, based on four criteria:
- Quality of Life
- Safety – and in this factor, you will get some surprises
- Cost of Living
- Taxation of Foreign Income
And my personal impression as a South American who helped hundreds of Expats.
I’ve ranked all ten countries—and there are two clear winners.
The Best Countries to Live and Retire in South America
So, let’s count them down—starting with the worst one.
10th – Venezuela: A Cautionary Collapse
How does a country that was once one of the richest in South America end up the worst destination?
In the 1980s and 1990s, Venezuela was wealthy, powered by oil, and drew in migrants from across the continent. Its cities were developed, its economy was strong, and people saw it as a land of opportunity.
For many, it looked like the place you might actually want to move to – in fact, waves of people from my country moved to there to make money.
That image, however, belongs to the past.
Today, Venezuela stands as a warning of what happens when prolonged political mismanagement meets economic collapse. Hyperinflation has destroyed the currency, food and medicine shortages are common, and bureaucracy makes visas nearly impossible to navigate. You cannot rely on shelves being stocked, and even when you hold foreign currency, your purchasing power is limited by scarcity.
The crisis extends into safety.
Official statistics already point to a serious homicide problem, but they do not capture the full picture. Many crimes go unreported, and violence has become so widespread that raw numbers understate the danger. Kidnappings, robberies, and assaults are common in both cities and rural areas. It is one of the most dangerous places in the world, and no amount of affordability offsets the constant risk.
With weak services, scarce goods, widespread insecurity, and high taxation, Venezuela scores lowest in every factor.
This is what a local from Venezuela told us about life there:
“Currently, the power goes out for three hours every three hours, and we’re expecting a blackout. There’s no healthcare system, no doctors or nurses, no sanitary control of anything.”
Venezuela gets a 1 in Quality of Life, a 1 in Safety, and a 4 in Cost of Living. With a total score of 6, it is by far the lowest and the worst in our ranking.
A sad downfall for a country that once had European standards
By the way, I’m also thinking of ranking the best and worst in Europe—let me know in the comment section if you’d like a video on such a controversial topic.
Now imagine a country that is safe and affordable, yet let down by its infrastructure? That is exactly where we go next.
9th – Ecuador: Affordable but Dangerous
What happens when a country with excellent retiree visas becomes one of the most dangerous on the continent?
That is the story of Ecuador, a nation that still offers some good features on paper. The retiree visa, called Jubilado, requires proof of $1,410 per month in guaranteed income. That is accessible for many receiving Social Security. The process is straightforward, grants two years of temporary residence, and leads to permanent status if conditions are met.
The cost of living is also appealing. According to global data, Ecuador’s price level is about 72 compared to the world average of 100. That means food, housing, and daily expenses are cheaper than in North America or Europe, although slightly more expensive than some of its neighbors because of dollarization.
Using the US dollar brings monetary stability but also raises import costs, especially for certain goods. Retirees still find rent affordable in cities like Cuenca. This gives Ecuador a cost-of-living score of 7 out of 10.
Ecuador’s Human Development Index stands at about 0.777, placing it in the middle range. Infrastructure lacks in some aspects, including air connectivity. For overall quality of life, Ecuador earns a score of 4 out of 10.
But things get much, much worse once safety enters the equation.
Ecuador’s homicide rate rose from 25 per 100,000 to 45 in just one year. That makes it the most violent country in South America today (at least of those that gather data, since Venezuela kind of stopped counting).
We asked a local about Violence in Ecuador, and this is what he told us:
“I have been to almost every Latin-American country except Venezuela and, in my opinion, Ecuador is by far the worst now regarding security. Quito and Guayaquil seem horrendous regarding crime, but Cuenca is definitely a lot better.”
For safety, Ecuador scores just 2 out of 10. Adding all factors together, the final score is 13.
Ecuador looks good financially – it is cheap. Yet crime pushes it much lower in this ranking.
The next country shows a very different balance between affordability and development.
8th – Bolivia: Safe but Struggling
Bolivia ranks higher than some of its neighbors because it is both inexpensive and relatively safe. Day-to-day living costs are roughly half the world average, with the price level index near 55. This means retirees can rent apartments, buy groceries, and access basic services at very low prices compared to North America or Europe. For this reason, they get a score 7 in Cost of Living.
On safety, Bolivia posts a homicide rate of 4.4 per 100,000, one of the lowest in South America. There are. however, doubts about how reliable this number is in certain areas of the country. Bolivia gets a score of 6 in Safety.
Yet, quality of life indicators remain a serious drawback. With a Human Development Index of 0.733, Bolivia is second to last in South America.
This reflects limited healthcare, lower average income, and weaker infrastructure than retirees may expect. Outside of La Paz and Santa Cruz, medical care is difficult to access, and even in major cities, it is not comparable with higher-ranked countries. Road networks, airports, and utilities also lag, which reduces comfort for long-term living. On this measure, Bolivia earns just 2 out of 10.
The economy leans heavily on natural gas exports, which make up roughly 40 percent of revenue. The current low prices for gas pose long-term risks of instability. This mix of affordability and insecurity brings Bolivia to a total of 15 points.
Now time to talk about the big neighbour of Bolivia.
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7th – Brazil
Brazil offers a lot of good things (no, I am not talking to you, Passport bros)… but at what price for safety and taxes?
On paper, it appears attractive. The country has a Human Development Index of 0.786, placing it in the upper half for South America.
Larger cities like São Paulo have an impressive infrastructure of hospitals, international airports, and cultural institutions. For many expats, the lifestyle is modern and varied, but the high and sometimes chaotic urbanization charges a price in terms of traffic, pollution, noise, and general chaos.
Yes, chaos. I lived in São Paulo for some time, and I think chaotic is a good adjective to describe the city, especially when it rains.
On this front, Brazil earns a 6 out of 10 for quality of life.
But things get worse when we talk about crime – safety is where Brazil struggles heavily. ,
The homicide rate is 19.3 per 100,000 people in 2023, making it one of the most violent countries in the region. Beyond violent crime, expats must also contend with petty theft, scams, and general insecurity, especially in large metropolitan regions. For safety, Brazil scores a 3 out of 10.
Living costs are another challenge. Brazil is not among the cheapest countries in South America. There is also a phenomenon in Brazil that is very difficult for me to explain to Europeans regarding housing prices.
In cities like Rio de Janeiro or São Paulo, average housing prices can be misleading because they include properties in very unsafe areas near favelas, which makes the overall cost seem lower than it really is. But when you check the prices of the safer, more developed districts, they are way more expensive. In Europe, I rarely see such discrepancies.
But at least fruits are very cheap in Brazil – I miss eating mangoes.
So Brazil gets a 6 out of 10 for cost of living.
Residency requirements are relatively high. To obtain the retirement visa, applicants must prove they receive at least $2,000 USD in monthly foreign income.
Finally, U.S. Social Security is taxed as standard income in Brazil, with rates climbing to 27.5 percent, and there is no treaty for relief.
Together, Brazil totals 15 points and a 7th place. The next country is very similar to Brazil – in fact, I would call it a Brazil that speaks Spanish, and it is a bit worse at Football, but way more affordable.
6th – Colombia
Colombia often surprises expats—it feels modern and affordable, but insecurity remains a constant factor.
The country has a Human Development Index of 0.788, slightly higher than Brazil.
In major cities like Bogotá and Medellín, there are modern hospitals, improved roads, and urban transport systems. Healthcare has advanced significantly, and many expats highlight the quality of care available, especially in Medellín, which has become a popular retirement city.
However, regional inequality and weaker services in rural areas lower the overall score. Since we need to consider the entire country and not just the most developed cities, for quality of life, Colombia earns 6 out of 10.
On safety, the country still has serious challenges. The homicide rate is 25.3 per 100,000 residents which is among the highest in South America. While this is a marked improvement from the worst years of violence, it remains troubling. Colombia scores 3 out of 10 in this factor.
Living costs, by contrast, are one of Colombia’s greatest advantages. The cost of living index is near 55, making it one of the cheapest in the region. Expats find rents low, fresh food affordable, and local services inexpensive. For cost of living, Colombia scores 8 out of 10.
The residency system works in favor of foreign retirees. The Pensionado visa requires a monthly income of around $975, which is realistic for many receiving Social Security. However, taxation is heavy for those considered residents—worldwide income may be taxed up to 39 percent.
The final score for Colombia is 18 – the low costs are a highlight, but violence does not allow the country to rank higher.
But some places keep costs low without the same level of danger—the next country in our ranking shows that balance.
5th – Paraguay
Imagine being able to settle in South America while keeping your entire foreign pension tax-free. That is exactly what Paraguay offers, and it makes the country stand out even before we look at the other factors.
Safety is one of Paraguay’s biggest advantages. The homicide rate is about 7 per 100,000 people, far below many neighboring countries. There is no large-scale drug war, nor the level of urban violence many expats fear elsewhere. Life in smaller towns is often described as calm and routine. For this, Paraguay earns 7 out of 10 on safety.
Affordability is another clear strength. With a cost-of-living index of just 60.4, daily expenses are roughly 40 percent cheaper than global averages. Housing, utilities, and groceries are accessible on almost any retirement pension. For cost of living, Paraguay gets 9 out of 10.
Quality of life, however, is not at the top level. The Human Development Index stands at 0.756, below many neighbors in the region. Healthcare is still developing, infrastructure is basic, and Asunción is much quieter than larger South American capitals. Expats in Paraguay trade modern city comforts for simplicity, and so the quality of life factor lands at 3 out of 10.
The residency process is perhaps the easiest on the continent. Applicants show proof of about $1,300 in recurring monthly income, along with basic documents like a background check. Approval comes in a few months, and residency does not expire, though you must visit once every three years to maintain it.
Taxes are a final win. Paraguay’s territorial model means foreign pensions remain untaxed, giving retirees full use of their income.
Paraguay makes 19 points in total and gets the 5th place, right in the middle of the ranking. In my personal opinion, it is a country with a lot of potential, and in a few years, it will probably rank higher. They are investing heavily in infrastructure and attracting considerable investments.
Next comes a country that balances affordability with stronger infrastructure.
4th – Peru
Can a country find a balance between safety, affordability, and living standards?
Peru comes close to that balance. With a Human Development Index of 0.794, it performs above regional averages, reflecting improvements in health and education over the past decades. In Lima or Arequipa, expats find private healthcare of reasonable quality, international flight connections, and modern amenities. Still, because rural areas remain underdeveloped, gaps pull its overall score in quality of life to 7 out of 10.
Safety is another mixed picture. Peru’s homicide rate stands at around 8.5 per 100,000, which is much better than Brazil or Colombia, but still not close to the best. Tourist centers and established expat areas are policed and generally manageable, but problems remain. Pickpocketing and theft occur frequently in crowded bus terminals and local markets. For an expat lifestyle centered around Lima, Arequipa, or Cusco, risks are more about petty crime than serious violence. On safety, Peru scores a 6 out of 10.
The residency program works in favor of expat retirees and pensioners. The Rentista visa requires a minimum income of about $1,000 per month for the main applicant, with an additional $500 if applying with a spouse. This requirement is accessible for Social Security recipients. The paperwork is predictable, and approval usually takes one to three months. While holders must spend half the year in Peru, the path to permanent residence is clear after three years.
Finally, Peru’s cost-of-living index is about 71. A couple can live comfortably from $1,500 to $2,000 in major cities. Food, housing, transport, and services remain affordable, earning Peru 7 out of 10.
Altogether, Peru reaches 19 points, making it one of the most balanced retirement destinations. From here onward, we enter the premium tier of South America.
3rd: Uruguay – Very Good Place, But With a Price Tag
Living in Uruguay feels like living in a European country planted in South America—but it comes at a cost.
The country is known for political stability, dependable services, and one of the safest environments on the continent. Montevideo, its capital, combines coastal living with urban infrastructure, and that makes it attractive for expats who want security and predictability. Safety is good – not perfect but good, with a homicide rate lower than most of the region, so Uruguay gets an 8 out of 10 on safety.
The cost of this stability is significant. Uruguay’s cost-of-living index sits at 100, the highest in South America. Day-to-day expenses like groceries and utilities are expensive, and cars cost more than in neighboring countries. For retirees used to cheaper regions, this can be a shock. Maintaining a middle-class lifestyle requires a budget larger than most other South American options, so Uruguay scores a 2 out of 10 for cost of living.
Quality of life, however, is where Uruguay excels. Its Human Development Index ranks among the highest in Latin America, reflecting strong education, healthcare access, and functioning institutions. Public and private healthcare meet standards that many expats consider reliable, and the legal system works in a predictable way. For quality of life, Uruguay earns a 9 out of 10.
Visa rules require more planning. The Pensionado visa asks for a pension or passive income of $1,500 per month, plus a $100,000 investment in real estate or securities. This commitment must be held for ten years, making it restrictive for retirees without substantial savings.
Taxes are a bright spot. Foreign pensions are exempt for ten years. Other sources of income (capital gains) can be tax exempt for up to 10 years. Altogether, Uruguay ends up with 19 points, a strong but expensive choice. You might have noticed that Paraguay, Peru, and Uruguay all got the same punctuation – 19 points – so the criteria used to decide the tie is quality of life, and among the 3, Uruguay has the highest.
But what if you want a place a bit cheaper, but with an even higher quality of life? That brings us to the next country, the 2nd best in South America.
2nd – Chile: Once the best, but not “just” the 2nd best.
Chile has the highest Human Development Index in South America, at 0.878. It means solid infrastructure, dependable healthcare, and a good quality of life in general—factors that make daily life feel closer to a developed country.
I lived in Chile, and this is a picture of my neighbourhood – some people might get angry in the comment section with me for saying that, but this does not look like a typical Latin American city – it is too organized, clean, and tidy.
Expats in Santiago or Valparaíso have access to modern hospitals, international schools, and public services that generally work as expected. That stability earns Chile 10 out of 10 for quality of life.
The trade-off comes with cost. Chile is one of the most expensive countries in Latin America, with a cost-of-living index of 87.7. A couple in Santiago should budget between $2,500 and $4,000 per month, including rent, food, utilities, and transportation. A two-bedroom apartment in a good neighborhood can run from $1,000 to $2,000, and eating out or buying imported goods can feel like living in an American city.
For affordability, Chile scores 3 out of 10.
Safety is still above average for the region, with a homicide rate of 6.7 per 100,000 people. That is low by Latin American standards, but not as calm as it once was. When I lived in Chile more than a decade ago, it felt as safe as many parts of Europe. Today, locals tell me that while it remains secure compared to Colombia, it is no longer as tranquil, and petty crime has increased in big cities.
For safety, Chile scores 8 out of 10.
Visas involve paperwork. The Pensionado or Rentista visas require proof of stable retirement or passive income, usually around five times the minimum wage. Processing can take months, and documented proof is strict.
Adding everything together, Chile reaches 21 points. It is an excellent choice for expat retirees and remote workers ready to pay premium costs for stability and services. But if I made this ranking 5 years ago, likely Chile would get the first place – not anymore, and next comes the most surprising number one.
The Best Country to Live and Retire in South America
How does a country known for inflation and recurring economic problems rise to the number one spot for retirees?
The answer lies in how Argentina looks when you measure all factors that matter for expats who live on foreign pensions.
On human development, Argentina has one of the highest scores in the region, with an HDI of 0.865. That reflects good healthcare, education levels, and a robust cultural life.
Buenos Aires is often described as European in style, but it also can feel overwhelming: it’s a vast metropolis with more than 13 million residents, constant traffic, and way more expensive than the rest of the country.
Meanwhile, cities like Mendoza and Córdoba offer more relaxed and affordable living – I wrote an article about the best cities to live in Argentina, and these places are way cheaper than Buenos Aires. In the factor quality of life, Argentina reaches 9 out of 10.
Safety is another standout. Argentina is the safest country in South America by some measures. Violent crime exists, but is rare compared to most neighbors. Petty theft is still an issue, especially in busy areas, but overall, expats consistently point to feeling secure. For safety, Argentina earns 9 out of 10.
At first glance, talk of inflation seems discouraging. Argentina’s economy often struggles, and local prices change quickly. But for retirees with income in U.S. dollars or euros, this volatility creates an advantage.
The exchange rate keeps the cost of living relatively low – it got more expensive lately with the stabilization of the economy, but it is still far cheaper than Uruguay and a bit cheaper than Chile. Some friends even tell me that Argentina is cheaper than Brazil! In the cost of living factor, Argentina gets a 7.
Residency paths are also practical. The Rentista visa requires around $1,390 per month in guaranteed pension income, and the process leads quickly to permanent residence.
Altogether, Argentina finishes with 25 points. It is not the richest, but it is the most balanced choice for retirees.
Now you know that places like Peru, Uruguay, Chile, and Argentina are actually quite good – but which cities in these countries are THE BEST?
For you, I ranked the 34 best cities to live in South America, from North to South.
Levi Borba is the founder of expatriateconsultancy.com, creator of the channel The Expat, and best-selling author. You can find him on X here. Some of the links above might be affiliated links, meaning the author earns a small commission if you make a purchase.
