Which underrated cities to retire in Europe offer the best mix of low prices and quality of life… but NOBODY is talking about them?
Can you imagine yourself living in this place for less than $1000?
I’ve analyzed more than two hundred European cities, comparing the cost of living, healthcare, and lifestyle to bring you this list.
All the eight names I will tell you have been handpicked after reviewing and talking to locals about their affordability and quality of life.
I am talking about everything you need for less than the cost of rent in the US!
So, why settle for expensive, violent cities when these affordable gems are so much better?
Ready?
Because your ideal retirement could be waiting in one of these 8 amazing cities, and the next paragraphs might be life-changing,
And by the way, the list will be in alphabetical order, except for the last name, which I’ve saved as a surprise.
Águilas, Spain
So, ever heard Águilas? If not, you’re in for a pleasant surprise.
This charming coastal town, located in southeastern Spain’s often-overlooked autonomous community of Murcia, combines the tranquility of a small community with the beauty of the Mediterranean. With a population of around 35,000, it offers an intimate yet lively atmosphere that many expats and retirees find irresistible.
Águilas has plenty of other advantages, starting with its stunning natural scenery: Places la La Playa Amarilla, Cuatro Calas or the Playa de los Cocedores del Hornillo.
We are talking about wonderful beaches, a warm summer, a mild winter, and a relaxed pace of life that makes each day feel like a retreat.
The city also has plenty of attractions so you can convince your friends and relatives to visit you very often.
The Castillo de San Juan, perched high on a hill, offers panoramic views of the Mediterranean that are nothing short of breathtaking.
Take a walk along the promenade, which hugs the coastline, and you’ll find it’s perfect for evening strolls or enjoying a quiet coffee while watching the world go by.
The town is dotted with Roman ruins and historic landmarks that tell the stories of its rich past.
If you’re a fan of festivals, the Águilas Carnival is a must-experience. Recognized as a festival of international tourist interest, it’s a vibrant celebration filled with parades, music, and incredible energy that lights up the entire town.
And for those who enjoy the great outdoors, Cabo Cope Natural Park is just a stone’s throw away.
This is what a local from Águilas told us:
“People from Barcelona of Madrid usually Look down on people from Murcia. It must be a Spanish insider joke, but my parents have lived happily there for 20 years now. You can probably find some of the country’s most beautiful beaches there. There are beautiful nature parks for hiking, everywhere.”
Now, let’s talk about what makes Águilas practical for retirees.
Affordability with quality of life!
Housing is affordable, and the low cost of living means you can enjoy a comfortable lifestyle without stretching your budget.
There are many apartments for rent below €550, just minutes from the beach.
If you prefer to buy, and here is maybe the biggest surprise of this entire article, you can buy an entire detached house, with a sea view
for only €100,000! That’s less than US$112,000!
For comparison, the cheapest property with a sea view in Fort Lauderdale, Florida, costs more than 2X this price, and it is not a house but a tiny studio!
So, in my opinion, in terms of cost-benefit, it is hard to find a coastal city that will beat Águilas, Murcia.
The next city on our list also starts with A. As mentioned, the first seven cities are in alphabetical order, except for the last one, which is a very special case, so keep watching.
Annecy, France
Let me tell you, this place is straight out of a fairytale.
Nestled in southeastern France near the Swiss border, it’s lovingly called the “Pearl of the French Alps”—and for good reason.
The population here is about 130,000, and that number was somehow a surprise for me because the city looks smaller than that, and it is very, very walkable
At the heart of Annecy is its stunning Lake Annecy, with crystal-clear waters that seem to change shades depending on the light. You can swim there until early October, take a leisurely boat ride, or cycle along the lake’s scenic paths. And let’s not forget the majestic Alps surrounding the city—they offer hiking trails, skiing opportunities, and some of the most breathtaking views you’ll ever see.
There is an Old Town that could be in any postcard with cobblestone streets, pastel-colored buildings, and quaint canals winding their way through the area, there is also the Château d’Annecy, an imposing castle with a rich history, or the Pont des Amours, a picturesque bridge with romantic views of the lake.
Plus, it’s close to Geneva International Airport, which is super convenient for international travel.
And if you’re into cultural events, you’ll love the annual Annecy International Animated Film Festival—a must-see for film enthusiasts.
This is what a resident of Annecy told us about the city:
“I live in Annecy center and I really enjoy it because there’s quite a bit more happening in Annecy than the smaller villages. This area has a reputation for being filled with rich old people, which is definitely true, but there are a good amount of families as well. Something that I like about this area is that in the summer there are so many nice outdoor things to do and it’s the same for the winter.”
Now, here’s the deal: Annecy is a little pricier than some of the other cities on this list, I am not gonna lie, but you’re paying for top-notch quality of life. It’s safe, it’s beautiful, and it’s got a great atmosphere.
There you can rent a 2-bedroom apartment for 1170 euros per month – around $1250
This is 21% less than what you would pay for a similar apartment in Pittsburgh, Pennsylvania.
An important disclaimer about Annecy is that if you want to really get well-integrated with the locals, it is imperative to learn some French.
But don’t worry – it is a VERY fun language to learn.
The method I use to learn new languages is this one (by using this link you get a 40% discount after trying for free, and if you subscribe, you’ll get a 40% discount!)
Time to jump to the next city, and it is located in a country that I am sure you expected to see in this list.
Braga, Portugal
With a population of almost 150,000 people, this city has a rich history that stretches back to Roman times – it’s no wonder it’s often called the “City of Archbishops”—its religious and cultural roots run deep.
I had been to Braga just 2 years ago and I fell in love with so many things, including this delicious, wonderful, spectacular, outwordly pastel de Bacalhau that is sold in this place right in the center of the city.
Braga also has a treasure trove of attractions that are bound to leave you in awe. Take the Bom Jesus do Monte sanctuary, for instance, a UNESCO World Heritage site and a masterpiece of Baroque architecture. (If you watched some of my videos, you probably know how much I love Baroque – to the point that my wife is almost jealous of my admiration for Gian Lorenzo Bernini).
Sometimes viewers might ask why I talk so much about architecture in my videos about retirement abroad. It is because I am a partisan of the idea that a good dose of beauty and aesthetic magnificence makes our life better, just like cinnamon in a sweet bun.
And this type of Cinnamon is what you will find in cities like Braga.
What makes Braga truly special, though, is its atmosphere. It’s beautiful, clean, and very safe.
And when you’re ready to explore beyond Braga, you’ll appreciate its proximity to Francisco Sá Carneiro International Airport in Porto—less than an hour away, and with destinations on multiple continents.
Getting around in Braga is a breeze. The city is compact enough to explore on foot or by bike, and its public transportation system is reliable and affordable.
Another big draw of Braga is the cost of living – It’s much easier on the wallet than Lisbon or Porto, yet it offers an equally rich lifestyle.
Dining out there is a joy – take for example the Tasquinha do Fujacal: despite the funny name, this is one of the best restaurants in Braga
And there you can have a full meal, with entry and beverages, for less than 10 euros!
However, Braga is not the warmest city in Portugal – don’t expect Algarve weather there.
This is what a local told us:
“Porto is cheaper than Lisbon and Braga is cheaper than Porto. Porto and Braga are a lot safer than Lisbon but also more rain and cold”
Now you might be asking about housing, right?
Braga is the kind of city where you will find plenty of housing options for less than 700 euros per month – less than $750. This is 30% cheaper than Memphis, Tennessee.
So, in Braga, you pay less to live in a much, much safer city than Memphis – and Braga has Baroque architecture.
From Portugal, our 4th city is also in a country that you surely expected to see in this list: Greece, a country that we talk about so often in videos due to the high quality of life and lower costs.
Kastoria, Greece
And the city I want to present to you is Kastoria, a little piece of loveliness in northern Greece.
Nestled along the shores of Lake Orestiada and surrounded by lush mountains, this town offers a tranquil lifestyle that feels miles away—both literally and figuratively—from Greece’s busier tourist hotspots.
With a population of just 35,000, it’s the kind of place where you can truly unwind and soak in the beauty of nature.
Kastoria’s charm lies in its historic neighborhoods, like Doltso and Apozari, where cobblestone streets wind past elegant Macedonian mansions.
These traditional homes, with their intricate architecture and timeless appeal, tell stories of the city’s vibrant past.
And if you’re into history, you’re in for a treat: Kastoria boasts over 70 Byzantine churches, many adorned with stunning frescoes that will transport you back in time.
Of course, the lake is the heart and soul of Kastoria. Whether you’re enjoying a peaceful stroll along its tranquil shores, birdwatching in the wildlife-rich area, or simply sitting by the water with a good book, it’s impossible not to feel at peace there.
The city is well-connected by road, and it’s only about a two-hour drive to Thessaloniki, Greece’s second-largest city.
From there, Thessaloniki Airport offers flights to major European destinations, so you’re never too far from your next adventure.
If you’re looking for affordable living, Kastoria won’t disappoint – it is among the cheapest cities on this list.
Housing is budget-friendly, and the overall cost of living is modest compared to larger Greek cities. You can rent entire 3-bedroom apartments for 350 euros or less. This apartment, for example, is available for 300 euros – less than 320 dollars – monthly.
This is less than what you would pay for a parking space in Boston or the US!
Such a low price for such spectacular views sounds almost unbelievable.
And since we are talking about beautiful views, the 5th city in our list deliveries just that
Ljubljana, Slovenia
Imagine a capital city that doesn’t feel overwhelming, noisy, and excessively accelerated but instead feels like a nice neighborhood.
That’s Ljubljana for you. With a population of around 285,000 people, Ljubljana somehow manages to combine the energy of a capital with the friendliness and charm of a small town.
It’s got it all—stunning architecture (you know what I am talking about by now)
plenty of green spaces, good infrastructure, and walkability—all without the stress and chaos you’d expect in a big city.
One of Ljubljana’s biggest draws is its pedestrian-friendly Old Town, a car-free haven where you can wander to your heart’s content.
When I was there, I also enjoyed their Cevapi, but I suspect the cooks were Bosnians. Anyway, try the cevapi; it is good.
Running through the heart of Ljubljana is the Ljubljanica River, which adds to the city’s laid-back vibe. Its picturesque banks are lined with cozy cafes and restaurants, where you can enjoy everything from a morning espresso to a leisurely dinner under twinkling lights.
A local told us that:
“Ljubljana is absolutely beautiful and one of the cleanest and safest cities in the world. A lot of great dining options and a sort of laid-back but very diverse nightlife and many cultural options. The level of spoken English is among the highest in the EU, and people are not as open and joyful as in southern Europe, but they are generally very hospitable and helpful as long as you’re respectful.”
And let’s not forget, Ljubljana is one of the greenest capitals in Europe, which means you’re never too far from nature.
Yes, it is a very calm city, and you might get bored – if you do, just travel one hour west to lake Bohinj and…
oh, wow, you will be in awe – I was – I don’t have words to describe how beautiful that place is.
And when wanderlust strikes, Ljubljana Airport is just 25 kilometers from the city center, with flights connecting you to major European hubs.
Now, let’s talk practicalities. Living in Ljubljana won’t break the bank—its cost of living is noticeably lower than many Western European capitals – although it is more expensive than other capitals from former Yugoslavia like Belgrade, Podgorica, or Sarajevo.
A 2-bedroom apartment like this one is from 800 to 900 euros per month.
Ljubliana, however, is not for those who want mild winters – it can get cold.
BUT…
If you prefer mild or even warm winters, the next city on the list is the PERFECT place for you.
Las Palmas de Gran Canaria, Spain
Ah, Las Palmas—the vibrant heart of the Canary Islands – and a perfect place for those who hate VAT taxes (more about it in a few minutes).
With a population of about 380,000, it’s the largest city in Gran Canaria and offers a little bit of everything.
From the vibrant energy of a bustling city to the tranquility of the sun-soaked seaside, Las Palmas has a unique charm that makes it an excellent choice for retirement.
And just wait until you hear about the special tax regime….
First, let’s talk beaches, because Las Palmas is home to Las Canteras, one of the best urban beaches in Europe. It’s the kind of place where you can swim, or simply take a leisurely stroll along its panoramic promenade.
Infrastructure is another strength of Las Palmas. In terms of healthcare, it’s home to the University Hospital of Gran Canaria, which ensures top-notch healthcare is always within reach. For travel enthusiasts, Gran Canaria Airport is just 20 minutes away, offering flights to a wide range of European destinations.
One of the most appealing aspects of retiring to Las Palmas is the special tax regime, which offers significant financial advantages to expats.
For example, imagine wealth tax – Spain does impose a wealth tax, but the Canary Islands offer generous exemptions. For most retirees, the tax applies only to assets exceeding €700,000, with an additional €300,000 exemption for your primary residence. This means a married couple owning a property valued at €1,300,000 would likely pay no wealth tax at all.
Additionally, the Canary Islands benefit from lower tax rates overall, thanks to their status as a special economic zone within Spain.
For example, the General Indirect Canary Islands Tax (IGIC)—the local equivalent of VAT—is only 7%, compared to mainland Spain’s 21% VAT, making.
Owning property in Las Palmas is also appealing, thanks to reasonable property taxes.
The average Impuesto sobre Bienes Inmuebles (IBI), or property tax, is typically 0.4% to 1.1% of the cadastral value—significantly lower than in many other European cities.
This makes Las Palmas not just a sunny retreat but also a smart financial move for retirees.
Someone that lived in Las Palmas told us that:
“Amazing place! I’ve spent a total of about a year there. Very laid back lifestyle, good Internet, relatively cheap (because of island taxes instead of mainland vat), lots to see and do, only a ferry ride away from the other islands and a cheap plane ticket to Europe.”
Let’s say that with all these tax incentives, you want to purchase a property in Las Palmas de Gran Canaria, and your budget is 200,000 euros.
In Miami, that would barely be enough to buy a 380 sqft studio.
…But with that amount in Las Palmas, you can easily buy a 3-bedroom flat instead of a Studio, with 116 square meters, or 1248 sqft – more than 3 times larger than the studio in Florida.
Impressive, right?
As impressive, but less known, is the next city on our list.
Varna, Bulgaria
Welcome to Bulgaria’s “Sea Capital,” where coastal charm meets affordability in one of the most vibrant cities along the Black Sea.
With a population of around 335,000, Varna offers the perfect mix of low prices, good infrastructure, and beachside relaxation—an irresistible trifecta for those looking to make the most of their retirement.
One of the city’s standout features is its Sea Garden, a massive park that hugs the coastline. It’s the ideal spot for morning walks, people-watching at one of the quaint cafes, casual meetups over coffee, or simply enjoying the fresh air.
Maybe you never heard about this city, but it has been an important regional center for a long, long time; the Varna Archaeological Museum houses the world’s oldest gold treasure, dating back over 6,000 years—a fascinating glimpse into humanity’s distant past. And then there are the Roman baths, among the largest preserved ruins of their kind in Bulgaria, proof of the city’s long and storied history.
For those who love to travel, Varna Airport connects to numerous European destinations, and public transportation within the city is reliable and inexpensive, making it easy to get around without a car.
An expat in Varna told us that:
“It is overall a nice city, nice weather, huge sand beaches with a lot of small bars and clubs, a lot of greenery and parks in the city center.”
Another good point of Varna is its affordability, that is why it has become so popular among digital nomads and remote workers, for example.
The city is also growing in popularity among expats, which means newcomers will find a welcoming community of like-minded people.
Housing is budget-friendly, dining out won’t stretch your finances, and everyday expenses are refreshingly low compared to Western Europe.
And differently than neighboring Romania, Bulgaria has much less restrictions on foreigners buying property
Imagine that you want to buy a property there, and your budget is 95000 dollars.
This is the price of a parking spot in Boston, Massachusetts, and it is the equivalent of 90,000 euros.
In Varna, with this budget, you can buy an apartment in the Golden Sands Sea Resort, with a parking space included.
So for the price, in Boston, you buy only the parking; in Varna, you buy an apartment in a resort, with the parking included.
To be better than that, just if they offered a continuous supply of Kamenitza beer delivered to your door every month – Bulgarian real estate agents, take note.
If you’re seeking a retirement that offers a slower pace of life without sacrificing culture, amenities, or affordability, Varna is a destination worth considering.
So far we have been presenting all the cities in this list in Alphabetic order, but now, for the last one, I decided to break this rule, because this is, by far, the most interesting city in this list.
Capurso, Italy
Now, time to talk about Capurso, in Italy – a charming little town in Italy’s Apulia region that’s as picturesque as it is peaceful.
It has fewer than 20,000 residents (and in a few paragraphs you will discover why this magic number is the best thing about this city).
Capurso offers a slice of small-town tranquility while being less than 10 kilometers from the bustling city of Bari, a regional capital with everything you need.
Capurso’s charm lies in its historic ambiance and slower pace of life. At its heart is the Basilica of Santa Maria del Pozzo, a stunning religious site that attracts visitors from across the region. The town’s charming narrow streets and peaceful piazzas create an ambiance of timeless Italian life – or more specifically, Apulian life.
It’s a place where you can live at your own pace, visiting the local markets or sitting down to a simple but delicious meal at a family-run trattoria.
And it has less than 20,000 residents – 20,000, for those who dislike paying high taxes like me, is a magic number in this case.
Because Capurso has a particularly enticing feature: Italy’s special tax scheme for smaller towns.
If you transfer your foreign pension to southern Italy and settle in a municipality with fewer than 20,000 residents—like Capurso—you could qualify for a flat 7% income tax rate on your pension income. No country in Western Europe offers you such a low-income tax rate on your foreign pension regardless of your nationality.
Combine this with the town’s already low cost of living, and you’ve got a huge financial win-win.
So not only will you pay lower taxes, but you also pay less for nearly everything – like housing, for example.
In this city, you can buy an elegant 3-room apartment with 100 square meters – more than 1000 sqft – for 133,000 euros
This is just $140,000!
And it is located in a calm but still very central part of the town.
So you can buy a nice home for half of the price of the US, in probably the most beautiful country in the world, and still pay low taxes – mindblowing!
But if you are worried about the fact that Capurso has just 15685 residents, here is another good news:
Despite its size, Capurso is very well-connected. The proximity to Bari ensures that you’re never far from urban amenities. Bari offers all the needed infrastructure, from international healthcare facilities and shopping centers to theaters and restaurants.
It’s also a travel hub, with an international airport and a busy port that opens up countless possibilities for trips around Italy and beyond.
And when you’re in the mood for a day by the sea, stunning destinations like Polignano a Mare and Monopoli are nearby. These picturesque towns, with their dramatic cliffs and crystal-clear waters, make for memorable day trips.
Capurso is the kind of place where life feels uncomplicated yet fulfilling. It offers the tranquility of a small-town setting without isolating you from modern conveniences. For retirees who want the best of both worlds—peaceful living with easy access to urban amenities—Capurso might be just the spot.
It is, however, very much recommended that you learn some Italian, which is a relatively easy language to learn, so it is not a big problem.
Now, Italy is not the only place in Europe offering a special tax regime to attract expats who want to retire abroad Greece has a very similar initiative – and it is really difficult to decide between these two countries.
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. Some of the links above might be affiliated links, meaning the author earns a small commission if you make a purchase.
