Do you know which European countries have the most retiree-friendly tax laws, the highest quality of life for retirees, or the best weather if you have arthritis? What are the best countries to retire in Europe?
Today you will discover the best countries to retire in Europe – but more than that, you will discover the best cities too.
Because many bloggers tell you that Spain or Italy are good places to retire.
But what they forgot to tell you is that there are enormous tax and cost differences inside these countries
In some provinces in Spain or Italy, you pay certain taxes, while in others, those same taxes are ZERO.
I have spent months researching the best European countries and cities for retirees, considering everything from taxes, to cost of living to healthcare quality, and the ease of obtaining a visa.
You won’t believe how affordable it is to retire in these countries with a high quality of life.
So let’s start with the 7th place.
7th Best Country to Retire in Europe: Bulgaria
This country might be off the radar for many people thinking about retirement in Europe, but some specific circumstances make retirement there quite attractive – Bulgaria is losing many people due to low birth rates and emigration.
The shrinking population drastically lowers housing costs, so you can rent an apartment with pool access near the beach for 480 euros.
That’s less than $530 per month.
And this is not the only low-cost thing in Bulgaria: Dining out and private healthcare are also very cheap in Bulgaria.
There are other advantages too. It has one of the income tax rates for foreign retirees. Only 10% of income tax.
So if your income is 75000 dollars per year, you will pay only $7500 in Bulgaria.
The country has a beautiful coast at the Black Sea, which I visited a few times.
It is lovely and reminds me of some coastal cities in the Mediterranean region.
Their main beach city is Burgas. And if we compare it to Florida, it is so much cheaper tha it is mindblowing
Fort Lauderdale, for example, is 3 times more expensive.
In Burgas, a good-quality pint of beer in a nice pub costs 2.5 Lev (about $1.40). In the US, you likely would buy only a Pabst Blue Ribbon at Walmart for this price, if you are lucky.
And if you prefer to live in the mountains, they also have a fantastic ski region around Bansko.
In fact, Bansko attracts so many expats that when I went there, it looked like there were as many foreigners as Bulgarians.
There are British pubs everywhere – but I recommend that you also try some Bulgarian restaurants, they are great.
Bulgaria offers a visa specific for pensioners, called a D Visa. You need to provide some documents like medical insurance, proof of income abroad, etc… but it is very straightforward.
The 6th country in our ranking shares a large border with Bulgaria
It is Greece
If the Bulgarian flat income tax rate of 10% sounded attractive to you, just wait until you discover that…
Greece has a flat tax rate over foreign pensions even smaller: only 7%
This is a lower tax rate created to stimulate foreigners to move to Greece, and it is valid for 15 years from the moment you move.
So for 15 years, you’ll pay only 7% income tax.
Of course, this is only one of the many advantages this country offers.
- They have the ideal climate for human life, known as the Mediterranean climate.
- Their cuisine ranks among the best and healthiest in the entire world. (Tarasamalata is the best dip I EVER tasted)
But here are two things you might not be aware of!
- Firstly, Greece has some of the best private hospitals in the region.
Medical tourism is on the rise, with people traveling to Greece specifically for medical treatments – for a fraction of the cost they would pay in the US.
- Another lesser-known positive aspect of Greece is that housing in Greece is surprisingly affordable (by EU standards), especially outside Athens and touristy islands.
In Thessaloniki, a city smaller than Athens but large enough to offer everything you need, the cost of living is less than half that of a major city in Florida.
In smaller cities, like Kalamata, you can find a sea-view apartment for just 500 euros per month (less than US$550).
One peculiar downside of Greece, as mentioned by Greeks themselves, is the poor internet quality, which is among the worst in the European Union, but it is a small con among so many positive aspects.
To live in Greece, you can apply for a Greek Financially Independent Person Visa. The requirements are a bit higher than Bulgaria, because the Greek authorities just increased it from 2400 euros per month of income to 3500 euros.
But the next country has a similar climate, much lower requirements, and EVEN LOWER taxes than Greece….
I am talking about Croatia
And if you are surprised to hear the name of this country in 5th place, hear this…
Germans, Brits, Italians, French, and Americans are some of the main nationalities among the over 70,000 Western expats who chose to call Croatia their new home.
There are a few reasons so many people chose this country.
First of all, life in Croatia is cheaper than in Western Europe. One resident told us this:
Working here in Croatia? Not a good idea, because salaries are low. Living here? Well, this is a good idea. Retirement is great. Lots of UK citizens are coming to buy and renovate properties specifically for retirement.
Another good thing about Croatia (but not the best one yet, which I will reveal in a few paragraphs) is its location.
Croatia’s strategic location on the Adriatic Sea makes it a perfect base for exploring other European countries – and many low-cost airlines fly there.
It is also a tremendously safe country. It is more than 6 times safer than the US, and safer than countries like Germany, France, or the United Kingdom.
But the best thing about Croatia – the one that will REALLY make you think about living there…
Croatia exempts foreign pension income from taxation.
You will pay ZERO income taxes from your income from abroad. Everything you earn, will go to your pocket.
There are three cities that stand out when we talk about retirement there as an expat.
The first is Split, a medium city with 220 thousand residents.
This is how a resident of Split described the city to us:
“Split is lovely, I love living here. Public transportation is much better now. The weather is great, the lifestyle is very stress-free and it’s great for families. There’s always something to do even during the winter, I mean it’s definitely not as eventful as it is during the summer but I never found myself bored. A lot of digital nomads moved here in the last few years and there are many coworking spaces where you can meet other people”
The other two cities are Zagreb, due to its larger size and better infrastructure, and Rijeka, due to the large expat community there and pleasant beach city atmosphere.
In 4th place among the best countries to retire in Europe is Cyprus
This is one of my favorite islands in the Mediterranean. It has wide, sandy beaches everywhere, with pleasant waters, great infrastructure, good restaurants with the magnificent cypriot-greek cuisine, and hear that: Cyprus has a Mediterranean climate with more than 300 days of sunshine per year.
You might think that all this would cost you a fortune, right?
No, not really.
Larnaca, one of the best cities in Cyprus, has HALF of the cost of living in Miami.
The local government created a visa scheme very useful for expat retirees willing to move there
It is the Cyprus F visa. The income required for this visa is one of the lowest in Europe: €9,568.17 per year.
This income can come from a pension, but also from overseas rentals, dividends, royalties, or investments.
You also must maintain a deposit of at least €30,000 in a Cypriot bank for three years.
And after living in Cyprus for 7 years you can become a citizen!
The island has a very high quality of life. It has one of the highest life expectancies in entire Europe – people in Cyprus live longer than in much richer countries like Germany or England.
Cyprus is also famous for its favorable tax schemes! Foreign pension income is taxed at a flat rate of only 5%, with an annual exemption of €3,420.
Now we enter into the top 3. Those 3 nations we will talk about are all very famous among expat retirees, BUT… They are also marked by enormous internal differences, making it crucial to choose the correct part of the country so you can save on taxes and housing costs.
The 3rd Best Country to Retire in Europe: Portugal
Many people would expect Portugal to be higher on this list, not in third place.
They have an incredibly beautiful coastline, a pleasant weather year-round, some of the best culinary traditions that humankind has ever created, and on top of all that Portugal is generally budget-friendly, at least for Western European standards.
Nearly every ranking about retirement abroad will put them at the top of the list or very close to the top… but we placed them just in the 3rd place – which is still good, but not as good as before.
So instead of explaining the reasons Portugal is still a good place for expat retirees, I will explain why they are no longer in the top 2.
The cost of living in Portugal has increased significantly.
Once affordable cities that became popular among expats, especially British retirees, like Faro, are nowadays as expensive as Valencia in Spain.
The housing market in Portugal, especially in popular expat areas like the Algarve, has become increasingly tight. In some places, it is simply impossible to find a place to rent.
Recent changes in Portuguese laws and visa requirements have also impacted retirees. The Golden Visa program, which was extremely popular among expats, has undergone so many changes that is pretty much gone.
The minimum investment amounts have increased, and the eligible regions for real estate investments have been restricted.
Additionally, there have been stricter regulations on long-term visas and residency permits, making it more challenging for retirees to move to Portugal.
Another change is that, not long ago, expat retirees could live tax-free in Portugal.
Not anymore.
The Non-Habitual Resident (NHR) tax regime, which offered significant tax breaks for foreign retirees, has been revised. Under the new rules, foreign pension income is now taxed at a flat rate of 10%, whereas it was previously tax-free.
For certain types of expats, Portugal still might be a wonderful place, among the best in the world. Their flat income tax rate of 10% is not high at all – at least for European standards.
I made a special video with 5 types of expat retirees who would love what Portugal offers – The link to this video is in the comment section.
Sharing a large border with Portugal is the next country on our list, the 2nd best place to retire in Europe.
Spain
Now, that they are in the 2nd place and not the first, might surprise you.
Less than 3 years ago, we told you that a Spanish city called Valencia was the best city to retire in Europe, but since then, big changes have happened all over Spain.
- Prices soared
- Some taxes increased
- In some cities, like Barcelona, there is a general feeling of discontent with an allegedly excessive amount of tourists.
Locals complain that entire districts of certain cities are taken over by Airbnb, displacing locals and inflating the prices.
In Valencia, despite the existence of some regulation of Airbnb, the housing prices soared 45% in only 3 years, so it is no longer the best city to retire in Europe. It is not even the best city for an expat retiree in Spain anymore.
There is, however, one place in Spain that gained considerable attention lately: Andalusia.
And to explain why Andalusia became so attractive, first, we need to understand that Spain is not formed of provinces or states, but of autonomous communities, each with their own fiscal policies
For long, Andalusia was one of the most impoverished and struggling of all these autonomous communities, so between 2020 and 2022, they made numerous changes in their law to attract foreign money.
Andalusia introduced several tax benefits for expats and residents.
They implemented a 100% rebate on the wealth tax, effectively eliminating this tax for residents and non-residents who have assets in the region.
Andalusia also reduced inheritance tax and property transfer tax. For example, if you buy a house in this part of Spain, and your children inherit it, they won’t pay any inheritance tax if it costs less than 1 million euros.
But remember: these incentives apply only in Andalusia. Other parts of Spain, like Madrid or Barcelona, have different tax codes.
These lower taxes are not the only benefit of this Spanish autonomous community. The second positive aspect of this region is the private healthcare that is good and affordable.
Medical procedures cost much less than in the US. For example, glaucoma surgery in Malaga costs only 1000 euros (less than 1100 USD), whereas in the US, it costs between $2450 and $4260.
Not surprisingly, Spaniards spend only about one-third of what Americans spend on healthcare annually.
The Andalusian Weather
Malaga’s Mediterranean weather features mild, wet winters and hot, dry summers. Temperatures below 12 degrees Celsius (54F) are VERY rare, even during winter nights. And spring is especially delightful in this climate – summer days sometimes might be a bit too hot.
But since housing is much cheaper there, you can just rent or buy a house with a swimming pool to refresh during hot days, or even better: go to the closest beach. Andalusia has many of them.
Where in Andalusia?
Some of the best cities in Andalusia for ex-pats are cities like Rincon de La Victoria and Torremolinos, both are close to Málaga, the second largest Andalusian city, and also an interesting place for retirees.
A bit further to the west, there is also Cadiz, with some of the most attractive real estate markets for foreign retirees.
There you can rent an apartment with a sea view for only 650 euros per month – 710 dollars.
In Boston or Chicago, even for the double of that price, you would struggle to find something.
The biggest downside of Spain is the income tax rate, which is among the highest in all countries in this ranking. If your annual income is 50,000 dollars, you will pay around 27% of income taxes – more than 13 500 dollars per year.
The next country, however, has lower taxes.
It is arguably the best country to retire in Europe, and just like Spain, this place also has some drastic differences between regions
As you might guess, our number one place goes to Italy.
And this country is tremendously diverse.
The north of Italy has a very high income per capita – close to Austrian or even Swiss levels of development.
It is a rich zone, where a lot of people move to work.
The South of Italy, on the other hand…
Well, It is one of the most stunning places I have ever been to.
But I will not lie, this place also has some issues
Like one of the highest unemployment rates in Europe
However… Unemployment does not matter, because you are not going there to find a job. You’ll live on income from abroad.
And in Southern Italy, if you do things right, you’ll live your best life.
Regions like Puglia, Calabria, Campania, and some parts of Sicily are among the most ignored gems of Europe for retirees.
They have this delightful Mediterranean weather, together with some SERIOUS tax incentives for those who are moving there
Yes, you heard it right. Italy offers a flat tax rate of only 7% on all foreign income, including pensions, for retirees moving to certain southern regions like:
- Sicily
- Calabria
- Sardinia
- Campania
- Basilicata
- Abruzzo
- Molise
- and Puglia
…for the first ten years.
This regime is designed to attract foreign retirees and is quite advantageous compared to the standard progressive tax rates.
So the Italian government gives you a tax break to live in the place with the best weather, a mouthwatering cuisine, and the most incredible landscapes of their country!
Now let’s talk a bit about these regions.
We start with the smallest, Molise.
70 years ago, the Molise province had over 400 thousand inhabitants.
But many people left for larger cities like Rome or Milan, and now the entire province has plenty of empty houses and cheap real estate available.
The best place in Molise for expat retirees is likely the town of Termoli. It is a beautiful beach area, loved by families due to its calmness and weather.
Despite being a quite touristy city, you can buy a 3-bedroom apartment with a balcony and a sea view in Termoli for less than 90 thousand euros!
The next region is much larger: Campania.
Its capital, Naples, is one of Italy’s largest cities, but it is too big and chaotic for a retiree.
Instead, consider Avellino for countryside living or Salerno for seaside life. Salerno, with 130,000 residents, has a friendly, expat-friendly community. It’s near the stunning Amalfi Coast, known for its breathtaking beauty. In Salerno, you can buy an apartment close to the sea for under 60,000 euros!
In my opinion, the biggest downside of Salerno is that during the high season, it might feel a bit crowded.
Next, we’ll talk about Apulia, also known as Puglia. In this region, Bari, the capital city, is recommended for retirement. Bari is not too large to be chaotic or expensive, nor too small to lack good supermarkets or hospitals. It has excellent infrastructure, including the respected Policlinico di Bari hospital and an airport with flights across Europe.
Another city in Puglia with good infrastructure, quality of life, and connectivity at low prices is Lecce.
The next province is Basilicata. For expat retirees, it offers affordability, tranquility, and cultural richness but also has challenges. With only half a million people, it has less developed infrastructure and limited public transportation. Many locals don’t speak English. However, this makes Basilicata very affordable. It disputes with another province the title of the cheapest in Italy – this other province you will discover in a few paragraphs.
Because now is the time for Calabria.
And the two favorite cities for expats there are Reggio Calabria and Cosenza.
Reggio Calabria, the larger city with around 170,000 residents, has a decent infrastructure as the provincial capital. It is home to Ospedale Riuniti, one of the largest hospitals in the region, and has a developed public transport system, including buses and trains. Reggio Calabria Airport connects the city to various Italian destinations.
Cosenza, with less than half the population of Reggio Calabria, is less touristy and not as visually appealing. It offers a slower pace of life with beautiful squares, cafes, and local markets, providing a quintessentially Calabrian experience. Cosenza is also cheaper, with a 5-room, 2-bathroom, 120 square meter apartment in a nice part of the city costing around $75,000.
Now, this is the time to name the best place for an expat retiree in Italy, which, as you already know, the best country to retire in Europe.
Stop here for a second and try to guess.
Ready?
It is Sicily. Of course, it is Sicily.
One counter-intuitive fact is that Sicily is the least developed of all Italian regions.
It has the lowest Human Development Index and the second lowest income per capita, just above Calabria.
So why does this province attract so much interest from expats?
Well, Because it is much cheaper to live there!
In Palermo, renting a one-bedroom apartment in the city center costs about €500 per month, while outside the center it drops to around €350.
Another good point is that mild winters mean lower heating bills compared to northern or central Italy.
Sicily’s Mediterranean climate is ideal for both wine and humans. Similar climates are found in parts of Chile, South Africa, Australia, California, and, of course, the Mediterranean coast.
However, public services in Sicily are not the best. Streets can be dirty, and bureaucracy can be slow. Outside tourist areas, English is not widely spoken.
If you plan to move anywhere in Italy, especially to small towns, be prepared to learn some Italian. It’s not that difficult, and once you start speaking it, your life will be much better. The method I use to learn new languages which I recommend is this one (by using this link we both get a Bonus!): https://www.lingq.com/?referral=LevideSouza
Now, continuing, which city specifically in Sicily are the best to retire abroad?
Many would suggest Palermo. It is the largest city with over 600,000 residents, has an international airport and good infrastructure,
But… it can be chaotic.
A better option might be Catania. With less than 300,000 residents, it’s calmer while still offering essential services.
And not far away you will find some nice beaches, like this one.
HOWEVER…
Both Palermo and Catania are too big – they don’t qualify for the 7% tax program, which is valid only for smaller cities.
There is a solution, however.
There is another region in Sicily, a truly hidden gem
- With costs much lower than Palermo or Catania,
- With houses for sale for even cheaper prices
- And with equally, or even more beautiful beaches.
It is a place where you can buy an entire 4-bedroom house at the seaside…
for 55 000 euros.
I am talking about the province of Agrigento, the most lovely secret of Sicily.
If you want to discover more about this spectacular place, check this article here..
You will not regret it.
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.
