The 5 Best Places to Retire in Europe (Without Being Rich)

The best places to retire in Europe include Portugal, Spain, Montenegro, Greece and Bulgaria. Each has good healthcare, a slower pace of life and a clear retirement visa, and your money goes further than it would in London, Zurich or New York.

Many people retire in the wrong country. They chase low taxes and overlook healthcare or choose the sunshine over practicality. Our advice is to put lifestyle first and tax second. Shortlist the places you'd enjoy living, then find the one that works best on tax. Check the tax treaty too, because your pension can be taxed where you live, not only where it's paid from.

Topics covered:

• Portugal: laid-back coastal living on a D7 visa
• Spain: affordable living on the non-lucrative visa
• Montenegro: low flat tax and a possible path to the EU
• Greece: a 7% flat tax for retirees
• Bulgaria: affordable living and tax-exempt pensions
• Why not Italy, Croatia or Switzerland?

1. Portugal: laid-back coastal living on a D7 visa

Portugal is affordable, safe and easy-going, with surfers in the water even in December. Public healthcare is good but slow, so most retirees go private and carry health insurance. The trade-off is bureaucracy: getting a visa is easy but expect delays.

Visa: Portugal also offers various visa types such as the investment-based Golden Visa and the D2 visa for entrepreneurs, however the D7 visa is the main residence route for retirees with qualifying pension or other forms of passive income.

Tax: Portugal's original Non-Habitual Resident (NHR) regime is now closed although existing beneficiaries may retain their tax advantages. Otherwise, pensions are generally subject to progressive income tax rates of 12.5% to 48% in 2026. Portugal has double taxation treaties with countries including the US and Canada, but the tax treatment of foreign pensions depends on the type of pension, the individual's tax residency and the applicable treaty provisions.

2. Spain: affordable living on the non-lucrative visa

Spain may be the best all-rounder for retirees. Living costs are well below the US or UK, healthcare is strong and the weather is warm most of the year.

English is common in expat areas and tourist spots, but less so elsewhere, so some Spanish helps. Large expat communities in cities like Valencia and Madrid make settling in easier, and Spain is well connected for travel around Europe. Be advised, however, daily life in Spain moves at a slower pace – especially when paperwork is involved.

Visa: The non-lucrative visa, which requires proof of at least €28,800 / $32,000 in financial resources for a single applicant in 2026, plus €7,200 / $8,000 for each additional dependent.

Tax: pensions are taxed in Spain, but a tax treaty usually lets you credit tax paid in one country against the other.

3. Montenegro: low flat tax and a possible path to the EU

Montenegro is generating a lot of client interest right now, mainly because of its progress toward the EU. It is the frontrunner among candidate countries and aims to close accession talks by the end of 2026, with membership targeted for 2028.

Nothing is guaranteed, of course, however retirees are still settling there in the hope that residence will one day lead to an EU passport. There are other reasons too, the country has amazing scenery with stunning mountains, a long coastline, low living costs and a safe, slow pace of life.

Visa: Montenegro offers temporary residence permits through qualifying routes, including property ownership and family reunification. Applicants must demonstrate sufficient financial resources, accommodation and health insurance. There is no clearly established dedicated retirement visa based solely on pension income.

Tax: Montenegro applies personal income tax rates of 0%, 9% and 15% to employment and certain self-employment income, depending on earnings. Other taxable income categories generally attract a 15% rate, with applicable local surtaxes.

4. Greece: a 7% flat tax for retirees

Greece combines a warm climate, relatively affordable living costs and access to both mainland cities and islands. A practical setup could mean spending more time in Athens during winter and moving to the islands in summer.

Visa: The Golden Visa or the financially independent person visa (requiring a minimum of €3,500 per month), depending on your circumstances and income.

Tax: Qualifying retirees who transfer their tax residence to Greece can opt for a 7% tax on foreign-source income under the country’s retiree regime. Greece also offers a separate €100,000 annual lump-sum tax on foreign-source income for qualifying high-net-worth individuals who move their tax residence to Greece.

5. Bulgaria: affordable living and tax-exempt pensions

Bulgaria is the surprise pick, and it earns its place. Housing, food and services are affordable even in larger cities like Sofia and Plovdiv, and more so in smaller towns or along the Black Sea. You get seaside and ski slopes in one small country. Expat communities are small but growing around Sofia, Plovdiv and Varna.

Visa: A dedicated retirement visa.

Tax: Pensions are generally exempt from tax, subject to conditions

Why not Italy, Croatia or Switzerland?

Italy came close and remains a popular choice. Its 7% flat tax for retirees is a real draw, but it only applies if you live in a small town in the south, where healthcare and services are thinner than in the north. Residence permits can also take months to arrive, which makes travel harder in the meantime.

Croatia and Slovenia came close too, but residency is harder to get. Switzerland is ideal for HNWIs but too expensive otherwise. Ireland has high property prices and cold, damp winters, and the Baltics have long, icy winters that few retirees want to sit through.

Key takeaways:

• The best places to retire in Europe: Portugal, Spain, Montenegro, Greece and Bulgaria.
• Choose for healthcare and lifestyle first, then tax.
• Your pension may be taxed where you live; the tax treaty decides how much.
• Lowest tax on this list: Greece's 7% flat regime and Bulgaria's pension exemption.

Retire in Europe –Conclusion:

Retiring well in Europe comes down to balancing healthcare, lifestyle and finances, and the right answer depends on your pension, your home country's tax treaties and how you want to spend your days.

Retire in Europe FAQ:

What is the best place to retire in Europe?

It depends on your priorities. Spain is the strongest all-rounder for healthcare and lifestyle, while Greece and Bulgaria lead on tax.

Is my pension taxed if I retire abroad?

Usually, yes, in your new country of residence. A tax treaty with your home country typically prevents double taxation, but you should always get proper tax advice first before making any changes.

What is the most affordable place to retire in Europe?

Our pick is Bulgaria, where housing, food and services are affordable even in the capital.

Which European country has the lowest tax for retirees?

Bulgaria generally exempts pensions, and Greece offers a 7% flat tax for retirees.