Many Americans are rethinking their retirement plans and considering moving abroad. Rising living costs and inflation in the U.S. are pushing retirees to investigate more affordable options in Europe. According to a Monmouth University poll, the number of Americans wanting to relocate overseas has tripled in the past 30 years. As of 2024, over 700,000 Americans receive Social Security retirement benefits while living abroad, a number that has more than doubled since 2008.
If you’re one of the many considering this route, here are four affordable European countries where you can live comfortably on a budget of €1,000 to €1,500 per month.
Romania
Romania is one of Europe’s most budget-friendly countries, with a rich cultural heritage, beautiful landscapes, and vibrant cities. Its capital, Bucharest, ranks 142nd in Mercer’s 2023 Cost of Living City Ranking, making it an ideal location for expats seeking a low-cost lifestyle.
- Housing: Rent for a one-bedroom apartment in Bucharest is around €400 per month, and utilities cost an additional €100.
- Food: Monthly food costs are approximately €300, with dining out being very affordable.
- Healthcare: Romania offers free public healthcare, which is a significant advantage for retirees.
- Transportation: Public transportation is inexpensive, making it easy to explore the city and beyond.
Living in smaller Romanian towns or rural areas can reduce your monthly budget to around €600, providing an even more affordable retirement option.
Portugal
Portugal is well-known for its pleasant climate, stunning coastlines, and affordable living costs. Retiring in Portugal offers access to modern amenities, affordable real estate, and a healthcare system that provides services for free or at low cost to all legal residents.
- Housing: Portugal is the least expensive country in Western Europe, with monthly budgets in smaller towns around €1,200.
- Climate: Portugal boasts a warm Mediterranean climate with ocean access, ideal for those seeking outdoor activities.
- Healthcare: The Portuguese healthcare system is affordable and highly accessible for both locals and expats.
Lisbon and Porto are pricier, but retirees who choose smaller towns can comfortably live on a modest budget without sacrificing quality of life.
Czech Republic
The Czech Republic offers a high standard of living at a fraction of the cost of neighboring countries like Germany. Its capital, Prague, is one of the most beautiful cities in Europe, although a bit more expensive than the rest of the country. However, retirees can find affordable housing and amenities in smaller towns.
- Housing: Monthly living expenses in the Czech Republic average €950, significantly less than in the U.S.
- Meals: Dining out can be as cheap as $3 to $5 per meal.
- Access to Europe: Located centrally, the Czech Republic provides easy access to nearby countries like Austria and Germany.
The Czech Republic is also known for its happiness rankings and quality of life, making it a great retirement destination.
Spain
Spain continues to be a favorite among expats, offering affordable living costs outside its main cities. Despite recent protests over excessive tourism in certain areas, Spain’s less-traveled regions provide peaceful and affordable retirement opportunities.
- Cost of Living: Retirees in Spain can live comfortably on $1,700 to $2,200 per month, depending on location. Living away from large cities can reduce costs even further.
- Top Retirement Spots: Some of the most affordable retirement destinations include Cádiz, Córdoba, and Gijón, where retirees can live on as little as $20,000 per year.
- Healthcare: Spain’s healthcare system is world-renowned and available to legal residents at little to no cost.
Spain offers a warm climate, rich culture, and affordable retirement options, particularly for those willing to settle outside the major tourist hotspots.
Retirement Abroad
While Europe offers several affordable retirement destinations, moving abroad requires careful planning. Here are a few key considerations:
- Residence Permits: Each country has its own residency requirements for expats. Most European countries require proof of a minimum income and private health insurance for long-term stays.
- Healthcare: Knowing the healthcare system in your destination country is crucial, as healthcare is a significant consideration for retirees.
- Language Barriers: While English is widely spoken in some countries, learning the local language can help ease your transition and enhance your quality of life.
- Professional Advice: Consulting a financial or legal expert can help ensure a smooth transition and minimize the risks of retiring abroad.
Retiring in Europe is becoming a popular option for Americans seeking lower living costs, better healthcare, and an overall improved quality of life. Countries like Romania, Portugal, the Czech Republic, and Spain offer retirees the chance to live comfortably on a modest budget while enjoying Europe’s rich history, culture, and landscapes. Whether you want a quiet life in a small town or easy access to other European destinations, Europe provides an excellent opportunity to enjoy your retirement years to the fullest.
FAQs
Why are Americans retiring abroad?
High U.S. living costs push many to seek more affordable lifestyles abroad.
Can retirees receive Social Security abroad?
Yes, Social Security benefits are accessible to eligible retirees living overseas.
What’s the average budget for retirees in Europe?
A monthly budget of €1,000 to €1,500 is sufficient in several European countries.
Is healthcare free in Europe for expats?
In some countries like Romania and Spain, healthcare is low-cost or free for legal residents.
Do I need to speak the local language to retire in Europe?
It’s helpful, but many European countries have English-speaking communities.
