Best Places in Europe to Retire on a Budget
Category: Best Retirement Towns and States
February 12, 2024 — People looking to retire in a charming European town on a budget have many fine choices beyond the obvious destinations like France, Ireland, and Scotland. They can be terrific places to retire, but countries like Spain, Portugal, the Czech Republic, Lithuania, Italy, and Bulgaria offer affordable rents, much lower cost of living, and sometimes liberal policies about permanent residency. They can also provide an ideal lifestyle for adventurous retirees.
Affordable, stable countries in Europe to retire on a budget
Spain. This large country on the Mediterranean offers varied environments including locations with warm winters on the sea. It has become very popular with retirees from the U.S., along with a long tradition of Europeans coming here. Valencia is a fair sized city with many attractions. It also has a Numbeo Cost of Living + Rent Index (CoL+RI) of 35, compared to New York’s 100 (so the cost of living is about one third that of New York’s). Towns and cities in Spain like Seville have similar costs and offer a fantastic lifestyle with great public transportation and healthcare. Sitges is one of many smaller towns on the coast or inland that offer a great lifestyle for retirement. See our Spain Community Directory and Guide to Retirement in Spain for more.
Portugal. This country on the Atlantic Ocean next to Spain has become “The” hot spot for retirement because its low cost of living and friendly policies toward retirees (although these have become more restrictive lately). Lisbon is a huge and varied city with a Cost of Living + Rent Index of 43.5. Porto is one of the most popular spots for retirees with its UNESCO World Heritage city center and very affordable rents. The Algarve on the southern coast is a haven for sun-seeking retirees. Check here for reviews of more Portuguese cities.
Lithuania. This country on the Baltic Sea in northern Europe is not top of mind for most retirees. But it has a very low cost of living and many interesting towns and cities. Klaipeda is a seaport city with two UNESCO World Heritage sites – the Vilnius Old Town and the Curonian Spit.
Bulgaria. This country has a coastline on the Black Sea with many great places to retire. Varna and Burgas are two of those – both offer sandy beaches and beautiful beach promenades. The cost of living is quite low with a Cost of Living + Rent Index (CoL+RI) of 25. Sofia is the capital and has good healthcare and transportation. Its CoL+RI is 28.
Italy. It would not be too difficult to imagine retiring in this beautiful, varied country with its great food and friendly people. The CoL+RI is 41, lower than the U.S. figure of 59. Lucca is an ancient walled city near Rome that offers incredible beauty. Sorrento is situated along the stunning Amalfi Coast. It offers breathtaking views of the Mediterranean Sea, mild climate, and a charming old town. Siena is famous for its medieval architecture, annual horse race (Palio di Siena), and scenic countryside. The city’s historic center is a UNESCO World Heritage Site, offering narrow streets, historic palaces, and beautiful piazzas. Throughout Italy there are many beautiful little towns that would be ideal retirement spots for the right person.
The Czech Republic. Big cities like Prague and Brno offers a high quality of life at a relatively low cost. Retirees can explore historic landmarks, cultural attractions, and scenic countryside without breaking the bank. The cost of housing, groceries, and dining out is generally more affordable compared to Western European countries and the U.S. Its CoL+RI is a low 35.
Beyond the cities
The places to retire above are just scratching the surface of what is available. If you are interested in retiring to Europe on a budget, the best thing to do is narrow your search down to one or two countries and take the time to do some exploring. That might involve staying in Airbnb’s or VRBOs and using them as a base to check out neighboring towns. Renting is almost always the best policy until you are very sure you like the town and the area. Although you can often buy a home in a small village at a bargain, renting might be an easier, less risky approach. On a recent visit our Portuguese guide showed us some beautiful restored homes in a village, but he made the comment that the people came, spend a small fortune restoring them, and then realized they don’t really like living there.
Comments? What places in Europe appeal to your retirement dreams? Please share your thoughts and experiences in the Comments section below.
For further reading:
Spain and Portugal Retirement: A Travelogue
Comments on "Best Places in Europe to Retire on a Budget"
Scott R L says:
I would add Poland to the list.
It's a beautiful country, with friendly people who like Americans (almost everybody has relatives in the US). A lot of Poles speak excellent English.
The cost of living is amazingly cheap (outside of Warsaw, anyway), the food is good, the beer is excellent, and the country is a mix of historic and modern. (I remember being struck by the juxtaposition of "Free WiFi" signs at medieval sites.)
Worth a look.
Admin says:
I agree. Poland is a beautiful country with big cities like Krakow and Warsaw and many little towns too. The food is great and the lifestyle healthy.
Jennifer says:
Poland is a wonderful country, however in light of current events, one might question its location and safety if a conflict should arise. Visting is great, not so sure about a long-term retirement residence.
Tom Egly says:
I would think healthcare would be the most important criteria when you retire. Is there insurance and how much?
Shalev Gilad says:
In addition to health care, one of the important criteria which is not talked about much is the amounts of purchase tax when buying property and capital-gain tax when selling a property. Are there any blogs related to these questions?
Admin says:
Good questions. Healthcare is a super important issue no matter where you retire. In many foreign countries you might have better access to high quality health care at lower prices than you might in the U.S, particularly if you retire to a rural area in America. European health care is generally high quality at low cost, but you can purchase insurance. Medicare does not apply outside of the U.S. The tax issues can be complex but you should be aware of how they might apply before you buy. Having good local legal representation is always a good idea.
Admin says:
Bad news for people who would like to retire to Spain. The country looks like it is about to join neighboring Portugal in dropping its Golden Visa Program. The popular initiative let non-EEU residents get extended visas to Spain if they invested at least 429,000 Euros in the country. The reason the program is being dropped is that most of these investments were occuring in real estate in the already crowded major cities. That has distorted the market and made housing unaffordable for local residents. An estimated 300,000 Britons are currently living in Spain. See https://www.dailymail.co.uk/news/article-13285823/british-expats-spain-golden-visa-scheme.html
Admin says:
The NY TImes has an excellent article on the steps you need to take if you want to retire abroad.