If you're considering retirement in Europe, the cost of living will likely be a big factor in deciding which country is best for you.
Thankfully, several European countries offer a more affordable lifestyle than others. We'll explore five of the most budget-friendly European countries for expats to retire in, providing valuable inspiration for your retirement plans.
Various factors come into play when choosing the cheapest countries to retire in Europe. These include the cost of living, healthcare, safety, climate, and quality of life.
Expatra contains a lot of data and country research, and we'll link to any supporting articles so you can explore those factors in more detail. This will provide further information to help you decide where to retire in Europe.
So, let's take a look at the most affordable countries in Europe for expats to retire.
Key Takeaways
- Portugal, Spain, Greece, Bulgaria, and Slovenia are the cheapest countries for expats to retire in Europe.
- Factors such as cost of living, healthcare, safety, climate, and quality of life should be considered.
- Financial planning is essential when considering retiring in Europe.
Criteria for choosing the cheapest countries
Here are some of the most important factors to keep in mind when choosing your ideal retirement destination.
Cost of living
The cost of living is paramount when choosing your ideal retirement location. This includes housing, healthcare, and everyday expenses such as food, transportation, and utilities.
Remember that the cost of living can vary widely from country to country and from region to region within a country. Therefore, you should also compare the cost of living in different regions as well as countries.
Healthcare costs
Having access to reliable healthcare services is essential for a stress-free retirement. Therefore, it's essential to consider the cost and quality of healthcare in the countries you are considering.
Some countries have excellent public healthcare systems, while others may require you to purchase private health insurance. If you have any existing healthcare needs, it's vital to check the availability and affordability of healthcare services that meet your needs in the areas you are considering.
Housing affordability
Housing will almost certainly be your most significant expense when moving to a new country.
In addition to the cost of buying or renting a home, you'll need to consider utility costs and other housing-related expenses. Remember that the cost of housing can vary widely, not just between countries but sometimes from street to street in a large city. You can never over-research home finding. It really does pay dividends to do as much research as you possibly can before making commitments.
You'll also need to keep up-to-date with housing costs in the locations you are considering. Less well-known destinations can suddenly come under the spotlight, and housing prices can shoot up almost overnight.
Taxation for expats
Taxation is another essential factor when choosing a country to retire in. Some countries have more favorable tax laws for expats, while others may have higher taxes.
It's important to research the tax laws in the countries you are considering and any tax treaties between your home country and the country you are considering.
Portugal
Portugal is an excellent option if you're looking for an affordable country to retire in that offers many contrasts and retirement lifestyle possibilities. The country has much to offer, above and beyond its sunny weather, beautiful beaches, and rich culture.
Here are some of the best places for expats to retire in Portugal.
Algarve Region
The Algarve is a popular destination for retirees in Portugal. It's known for its beautiful beaches, warm weather, and relaxed lifestyle.
The cost of living in the Algarve is relatively low compared to other parts of Europe, making it an attractive option for expats on a budget. A couple can live comfortably in the Algarve for around €1,650 per month, including rent.
Find out more in our Living In The Algarve guide.
Lisbon
Lisbon is the capital city of Portugal and a great place for expats who enjoy city living. It's known for its beautiful architecture, rich history, and passionate culture.
While the cost of living in Lisbon is higher than in other parts of Portugal, it's still relatively affordable compared to other European capitals. A couple can live comfortably in Lisbon for around €2,200 per month, including rent.
For more information, read our Living In Lisbon guide.
Porto
Porto is a charming city in northern Portugal known for its beautiful historic center, port wine, and lively cultural scene.
It's also an affordable place to retire for expats. While the cost of living in Porto is slightly higher than in other parts of Portugal, it's still relatively low compared to other European cities. A couple can live comfortably in Porto for around €2,000 per month, including rent.
Learn more in our Living In Porto guide.
Spain
Spain is a top destination for retirees due to its lovely climate, beautiful beaches, and affordable cost of living. Here are some of the cheapest places to retire in Spain.
Costa del Sol
Costa del Sol is a famous destination for retirees due to its gorgeous sunny weather, beautiful beaches, and relatively affordable cost of living. Places like Malaga, Marbella, and Estepona have big international expat communities.
The cost of living in Costa del Sol is lower than in other major cities in Spain. You can rent a one-bedroom apartment for around €600 per month, while a meal at an inexpensive restaurant will cost you around €15.
Alicante
Alicante is another popular destination for retirees due to its mild climate, beautiful beaches, and affordable cost of living.
You can rent a one-bedroom apartment for around €450 per month.
Canary Islands
The Canary Islands are an excellent alternative choice for retirees who want a warm climate and island living.
You can rent a one-bedroom apartment for around €550 per month. A meal at an inexpensive restaurant will also cost you around €15.
Greece
Greece has always been a popular retirement destination for expats due to its Mediterranean climate, stunning scenery, incredible history, and affordable cost of living.
Here are some of the best places to retire in Greece.
Crete
Crete is the largest island in Greece and offers a laid-back lifestyle, beautiful beaches, and delicious cuisine.
The cost of living in Crete is relatively low compared to other European countries, making it an attractive destination for retirees. The island has a thriving expat community, particularly in Chania, which is known for its charming old town and picturesque Venetian harbor.
You can rent a one-bedroom apartment for around €300 per month. A meal at an inexpensive restaurant will also cost you around €25.
Being a prominent tourist destination, finding long-term rental housing can be difficult, especially in the summer.
To find out more, visit our Living In Crete guide.
Athens
Athens is Greece's capital city and offers retirees an engaging cultural scene, excellent healthcare, and diverse neighborhoods.
While Athens is one of the more expensive cities in Greece, the cost of living is still lower than in many other European capitals.
You can rent a one-bedroom apartment for around €600 per month. A meal at an inexpensive restaurant will also cost you around €15.
Thessaloniki
Thessaloniki is Greece's second-largest city, located in the country's north. The city has a rich history is known for its Byzantine and Ottoman architecture.
Thessaloniki also has a thriving food and wine scene, with many traditional tavernas and wineries to explore. The cost of living in Thessaloniki is lower than in Athens, making it an affordable option for retirees.
You can rent a one-bedroom apartment for around €550 per month. A meal at an inexpensive restaurant will also cost you around €15.
Bulgaria
Bulgaria is an excellent option if you want a great-value retirement in Europe. The country offers a low cost of living, beautiful scenery, a mild climate, and stunning Black Sea coastal living opportunities.
Here are three locations to consider:
Sofia
Sofia, Bulgaria's capital, is a great place to retire for those who enjoy city life. The cost of living is low, and plenty of cultural attractions exist.
You can visit museums, art galleries, and theaters or stroll through one of the city's many parks. The city also has an excellent public transportation system, making getting around easy.
You can rent a one-bedroom apartment for around €550 per month. A meal at an inexpensive restaurant will also cost you around €12.
*Converted from Bulgarian Lev to Euro for comparison
For more information, read our Living In Sofia guide.
Varna
If you prefer a coastal lifestyle, Varna is a great option. It is located on the Black Sea and offers beautiful beaches and a relaxed atmosphere.
The cost of living is low, and there are plenty of restaurants and cafes to enjoy. The city also has a great nightlife scene, with bars and clubs that stay open late.
You can rent a one-bedroom apartment for around €450 per month. A meal at an inexpensive restaurant will also cost you around €12.
*Converted from Bulgarian Lev to Euro for comparison
Bansko
Bansko is a great place to retire for those who enjoy outdoor activities. The town is in the Pirin Mountains and offers excellent skiing and hiking opportunities.
The cost of living is low, and there are plenty of restaurants and cafes to enjoy. Bansko is also known for its hot springs, which are great for relaxing after outdoor activities.
You can rent a one-bedroom apartment for around €350 per month. A meal at an inexpensive restaurant will also cost you around €12.
*Converted from Bulgarian Lev to Euro for comparison
Slovenia
Slovenia is a beautiful country in Central Europe that offers a high quality of life at an affordable cost. It is an ideal destination for expats who want a great lifestyle in Europe on a budget. The country has a stable economy, a low crime rate, and a friendly population.
The official language is Slovene, but many people speak English, especially in tourist areas.
Ljubljana
Ljubljana is Slovenia's capital and largest city. It is vibrant and charming and offers retirees an excellent quality of life.
The cost of living in Ljubljana is relatively low compared to other European cities.
The city has an excellent public transportation system, and you can quickly get around by bus, train, or bike. Ljubljana also has a rich cultural scene, with many museums, theaters, and galleries.
You can rent a one-bedroom apartment for around €950 per month. A meal at an inexpensive restaurant will also cost you around €20.
Bled
Bled is a small town located in the Julian Alps of Slovenia. It is known for its beautiful lake and stunning scenery.
Bled is a popular tourist destination, but it is also a great place to retire.
The town has a relaxed and peaceful atmosphere, and outdoor activities such as hiking, biking, and skiing are available.
You can rent a one-bedroom apartment for around €550 per month. A meal at an inexpensive restaurant will also cost you around €20.
Koper
Koper is a coastal town in the southwest of Slovenia. It is charming and historic and offers retirees an excellent quality of life.
The town has a Mediterranean climate, and you can enjoy the beautiful beaches and coastal scenery. Koper has a rich cultural heritage, with many historic buildings and museums.
You can rent a one-bedroom apartment for around €500 per month. A meal at an inexpensive restaurant will also cost you around €20.
Living as an expat in Europe
Moving to Europe as an expat can be an exciting and life-changing experience. However, being aware of the practicalities of living in a new country is essential.
Here are some things to consider before making the move.
Residency and visa requirements
Before you move to Europe, you'll need to determine the type of visa you need and the residency requirements.
Each country has its own rules and regulations, and with immigration being a heated debate in most countries, it's essential to research ahead of time and keep updated on any regulation changes that may be in process.
Language and cultural adaptation
If you're moving to a country where you don't speak the language, it will be of great benefit to start learning your new language before you set off.
While many Europeans speak English, understanding the local language, even if it's only a little, is always guaranteed to make daily life easier and happier.
Cultural differences can take some getting used to. Be prepared to adapt to new customs and ways of doing things. It's much easier to embrace change than to try to keep everything just as it was back home.
Expat communities
Connecting with other expats is one way to make the transition to living in Europe easier. There are often expat communities in major cities, and joining one can be a great way to meet new people. You can also get advice on everything from finding a place to navigating the local healthcare system.
Financial planning for retirement
Retirement planning is an essential process. You must carefully consider your financial objectives, investment options, and insurance needs.
Budgeting for retirement
Budgeting is an essential aspect of retirement financial planning. Identifying your retirement income and expenses will help you create a budget that will help you reach your financial goals.
Your retirement income may come from various sources, such as pensions, savings, and investments. Research the cost of living in the country where you plan to retire and calculate which sources of income you'll need for day-to-day living and where best to keep any remaining for both security and financial flexibility should you need it.
You can use a spreadsheet or a budgeting app to create a retirement budget to track your income and expenses. You should include all your retirement income sources, such as Social Security benefits, pensions, and annuities. Then, list your retirement expenses, such as housing, food, transportation, and healthcare.
Where will you retire?
Retiring in Europe can be an affordable and rewarding life experience. With research and exploration during your coming vacations, you could well find the perfect country for your needs and budget, offering the possibility of an exhilarating new lifestyle.
Let us know where you're considering retiring; we'd love to hear your story.
Remember, you can ask questions in the comment section below.
You might find helpful:
- Living In Portugal As An Expat: visas & residency, healthcare, property, taxes for expats.
- Living In Spain: all about moving to Spain from visas to banking to healthcare options.
- Living In Greece: how to move to Greece as an expat, residency options, healthcare, taxes, property, etc.
- Living In Bulgaria: moving to Bulgaria - things you need to know to settle down successfully.
