With migration to Latin America and the Caribbean rising 23% since 2020, according to the United Nations Department of Economic and Social Affairs (UN DESA), more Americans are leveraging foreign income to upgrade their quality of life. To identify the best havens,  a new study by Argentina Expat, the 2026 Latin America Expat Index, analyzed 47 hubs across six categories, including cost of living, safety, healthcare, climate, visa, and community, to find out where Americans should actually relocate.

 

Key Findings:

  • Mérida, Mexico, ranks #1 overall. The city also stands out for its high safety score, which is higher than that of most major US cities. Oaxaca, Mexico, ranks #2 overall, while Cuenca, Ecuador, comes in at #3.
  • Roatán ranks last in the index, placing #47 overall. Significant concerns around local safety and limited healthcare infrastructure have heavily impacted its overall livability score.
  • Despite its popularity, San Miguel de Allende fell to #46 out of 47 cities due to the lowest safety score in the index and rising local costs.
  • Cusco, Peru, was identified as the most affordable destination in the study, scoring a perfect 10 for cost of living.
  • Argentina also stands out, placing three cities in the top 10, including Mendoza, Córdoba, and Buenos Aires, despite being a less widely recognized retirement destination.
5 Best Latin American Cities for US Retirees
Rank City Country
1 Merida Mexico
2 Oaxaca Mexico
3 Cuenca Ecuador
4 Medellin Colombia
5 Mendoza Argentina
5 Worst Latin American Cities for US Retirees
Rank City Country
43 Cartagena Colombia
44 San Jose Costa Rica
45 Tamarindo Costa Rica
46 San Miguel de Allende Mexico
47 Roatan Honduras
Ognjen Pavlovic, founder of Argentina Expat, comments, “Retirees are no longer defaulting to the biggest capitals; instead, they are pivoting to mid-sized cities like Mérida and Cuenca. When planning a relocation in 2026, it comes down to strategic lifestyle arbitrage. Expats are realizing that these secondary cities offer the perfect sweet spot, delivering higher safety scores and better quality of life at a fraction of the cost.”

 

Here are 3 expert tips for Americans researching a move to Latin America:

 

  1. Check the local cost of living, not the vacation cost. 
    Cities famous for short-term tourism are actively pricing out long-term expats. Places like Tamarindo, Costa Rica, and Cabo San Lucas look great on paper, but their long-term rent and grocery costs rank among the most expensive in our index. Research 12-month lease prices, not Airbnb rates.
  2. Budget for the first 90 days.
    The first three months abroad are always the most expensive. When researching, expats must also look for the hidden setup costs, such as international moving fees, attorney retainers for residency visas, temporary accommodation premiums while apartment hunting, and the security deposits required for foreigners without local credit.
  3. Don’t confuse an easy visa with tax immunity. 
    Many expats forget to research what happens after they stay for 183 days. Several Latin American countries will officially classify you as a tax resident and may attempt to tax your global income, remote salary, or US retirement accounts. Always research the local tax laws and dual-taxation treaties.

 

Read the full data set at the link in the source below.

Source