It is perhaps not a surprise many Brits want to retire abroad. In the aftermath of Brexit, the pandemic and with geopolitical conflicts on the rise, the dream may feel more desirable than ever. The Department for Work and Pensions estimates that currently, over 1.1 million pensioners live outside of the UK.

An expert relocation service provider Gibraltar Residency researched the top 40 international destinations for UK citizens to retire to, considering factors such as healthcare, sunshine hours or cost of living. While United Arab Emirates topped the list followed by Thailand, Malaysia and Mexico, one destination that took the fifth place stands out.

As a British Overseas Territory and with English as the official language, Gibraltar is naturally appealing to UK retirees. They can benefit from a high amount of Spanish sunshine, while remaining connected to their homeland thanks to a similar legal and healthcare system. Home to around 39,000 residents, Gibraltar was ceded to Britain in 1713 under the Treaty of Utrecht and has remained under UK sovereignty ever since, despite repeated Spanish attempts to reclaim it, including the 1960s sovereignty disputes.

A new treaty agreed on June 11 between Spain, Gibraltar, the EU and the UK allows residents of Gibraltar free movement between Gibraltar and the Schengen area. This restores the pre-Brexit ability to stay 180 days within a 365 day period with the European Union.

Paul Correa, a Gibraltar-based relocation and financial planning expert said: "While Gibraltar does not formally become part of Schengen, the arrangement effectively removes the land border between Gibraltar and Spain, eliminating cumbersome border checks and significantly simplifying daily travel for residents. Travellers will now enjoy unrestricted movement within Schengen countries, restoring Gibraltar’s travel freedoms to pre-Brexit standards - an improvement over even its previous EU membership conditions.

"Although Gibraltar retains full authority over its external border checks, Spanish authorities will perform secondary Schengen checks on behalf of the European Union at Gibraltar’s port and airport. Additionally, travellers from the UK and other non-Schengen nationals will undergo secondary control checks upon entering Gibraltar. This careful arrangement maintains rigorous border security while facilitating smoother travel."

Correa added that the treaty would boost confidence in Gibraltar's property market, making it more appealing to UK-based investors and easing processes for obtaining residency.

"Residents will experience immediate benefits, from simplified travel to enhanced economic stability. Gibraltar's exceptional healthcare, educational facilities, and Mediterranean lifestyle will be further enriched by the increased certainty and growth potential brought by this treaty," he said.

Despite its advanteageous tax framework, a drawback to living in Gibraltar is its cost of living, which is generally higher than in mainland Spain. Housing is particularly expensive, with rental prices in the city centre between £1,000 and £2,000 per month.