This article will look at the 20 cheapest places to retire in Europe. You may skip our detailed analysis on Europe's real estate and it's retirement options and go to 5 Cheapest Places to Retire in Europe instead.
Real Estate in Europe
Due to a string of recent banking crises in Europe, investors are questioning the health of it's real estate market. Borrowing costs have increased due to high-interest rates, valuations in the property sector have depressed, and there are speculations that Europe’s real estate sector could be the next one to implode. There have been "clear signs of vulnerability," as noted by the European Central Bank, concerning the property sector. While January witnessed inflows of European funds invested directly in real estate amounting to £300 million (around $380 million), February saw outflows of £172 million (around $188 million), notes CNBC.
Moreover, as the impact of higher interest rates further pans out, analysts speculate that European real estate stocks could fall by 20%-40%. On the contrary, Brookfield Corporation (NYSE:BN), one of the world's largest investors in real estate, thinks otherwise. The company, Brookfield Corporation (NYSE:BN), suggests taking a look beyond the prevailing headlines, further stating that the real estate market could open a host of opportunities in the future. This is because Europe has been at the forefront as a leader on the environmental, social and corporate governance (ESG) regulatory frameworks, providing opportunities to create value and strong demand for sustainable properties.
According to Brookfield Corporation (NYSE:BN) analysis, household formations will continue to expand despite population growth leveling off in the medium term. Also, since mortgage rates are increasing, it is further driving the costs of homeownership upwards. Residential renters are rising, providing various opportunities for the housing market. Since affordability is being constrained due to house price growths and interest rate hikes, renting homes seems to be the norm across Europe.
Retirement Options in Europe
Many renters in Europe are migrating to the continent from across the pond. According to BlackTower, Americans are moving across due to many reasons, such as free healthcare, affordable housing, and a strong exchange rate. Some of the best places to retire in Europe include Cascais, Portugal; Alicante, Spain; Algarve, Portugal; Lisbon, Portugal; and Berlin, Germany, to name a few. Many of these countries have also made it to our list of easiest countries to retire to, such as Bulgaria, Portugal, and Malta.
For those concerned about language barriers and the difficulties of learning a new language, there are many English-speaking countries in Europe that they can retire to instead. Some of these best places to retire in Europe for English speakers include Portugal and Malta. Even in places where English is not the official language, a large proportion of people speak the language, especially in expatriate communities.
Finally, in order to retire to Europe, individuals must apply for a European visa depending on their country of retirement. Each country sets financial requirements and criteria that EU/EEA and Non-EU nationals must meet, depending on where they want to settle. Some European countries with recognized retirement visas include Ireland, Albania, Switzerland, Latvia, and Portugal.
In order to help you explore your options regarding retiring to Europe, we have compiled a list of all the cheapest places to retire in Europe.
20 Cheapest Places to Retire in Europe
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Methodology
In order to come up with the list of the 20 cheapest places to retire in Europe, we began by listing out all the European countries. Next, we ranked them individually on their cost of living index, rent index, groceries index, restaurant and price index, as well as their local purchasing power index, sourced from Numbeo.
The scores from individual rankings were summed up to come up with a total Insider Monkey Score. Countries were then ranked in ascending order from the lowest to the highest scores. After compiling the 20 cheapest countries from our list, we picked out one cheapest place in each country recommended on forums such as Quora and Reddit.
20. Murska Sobota, Slovenia
Insider Monkey Score: 23
Slovenia calls out to all adventurists, bee-keeping aficionados, and culture enthusiasts alike. Retirees especially love it for its golden honey, a cherished, delectable nectar like no other. One of the towns worth retiring to within Slovenia is Murska Sobota. Retirees get to enjoy a traditional, rural living experience here. The monthly cost of living in the town for a single individual is as low as $786, making it one of the cheapest places to retire in Europe.
19. Prague, Czech Republic
Insider Monkey Score: 23.6
The Czech Republic is a beautiful country brimming with enchanting towns and cities. One popular yet cheap city to retire to is Prague. Retirees love to move here for its excellent healthcare system, stunning architecture, and affordable living. The city is also home to a flourishing expatriate community, and a single individual can expect to live with $900 to $1,500 monthly.
18. Vilnius, Lithuania
Insider Monkey Score: 25
One of the cheapest places to retire in Europe is Vilnius, Lithuania. Retirees shift to the city in order to stretch their retirement savings. Despite being an affordable European destination, residents also get to enjoy a high quality of life. The architecture of its Old Town, amongst other things, is a popular attraction. It is one of the largest and best-preserved old towns in Europe. It has also been declared a UNESCO World Heritage Site. The monthly cost of living is around $1,000 for a single individual.
17. Thessaloniki, Greece
Insider Monkey Score: 25
Embracing a Mediterranean climate, historical appeal, and rich cultural heritage, Thessaloniki has a lot to offer retirees. Flavorful Greek cuisine revolves around the exquisite use of golden olive oil, offering a healthy yet delectable experience. Healthcare in the city is high quality, and there are plenty of recreational opportunities to engage in. A retiree can live here on $800 a month.
16. Riga, Latvia
Insider Monkey Score: 26.5
Riga, Latvia is one of the cheapest places to retire in Europe, with the cost of living 30.5% lower than in the United States. A single individual can live here easily for under $1,000 a month. The city enjoys a unique cultural identity; shaped by its vibrant culture, rich traditions, and beautiful architecture. Expat retirees can live here with peace of mind, as it is a safe place to live with a low crime rate. Boasting all four seasons, residents also enjoy seasonal activities throughout the year.
15. Bragança, Portugal
Insider Monkey Score: 26.5
From the rolling vineyards of the Douro Valley to the golden beaches of the Algarve, Portugal provides a beautiful backdrop for retirees to call home. Not only is the country a popular retirement destination, but many places in the country have landed on our list of best places to retire in Europe. One of the cheapest places in Portugal is Bragança, revered for its relaxed pace of life. A single individual can expect to live comfortably on $642 monthly.
14. Split, Croatia
Insider Monkey Score: 27.5
Quality healthcare, welcoming communities, and natural beauty draws retirees to the beautiful city of Split. Not only is it a stunning destination to retire to, but it is also home to delicious wines and savory cuisines. The place is relatively safe, so expat retirees can live here with a sense of security and peace of mind. The cost of living in Split, Croatia, is, on average, 35.6% lower than in the United States, and a single individual needs $1,093 monthly to live comfortably.
13. Bratislava, Slovakia
Insider Monkey Score: 28
Bratislava is another one of the cheapest places to retire in Europe, offering breathtaking natural beauty, quality healthcare, and rich history and culture. Mysterious caves and beautiful castles are enticing, with retirees often spending the day on the beach or at the spa. Healthcare in the city has made significant improvements as well, an important consideration for retirees. The cost of living is 36% lower than in the United States, and a single individual can live on $1,353 monthly.
12. Kraków, Poland
Insider Monkey Score: 30
In Poland, retirees can choose to live anywhere between the Tatra mountains and the charming Baltic Sea coastline. One particularly attractive yet cheap destination within Poland is Kraków. The city is a favorite for nature enthusiasts, offering four distinct seasons and beautiful parks for retirees to relish the outdoor life. Polish cuisine is heartwarmingly delicious, boasting diversity and tradition alike. The city is one of the cheapest retirement destinations in Europe, alongside places in Hungary and Bulgaria.
11. Kaliningrad, Russia
Insider Monkey Score: 30.8
Retirees choosing Russia as their retirement destination will find living expenses to be 59.2% lower than in the United States. Kaliningrad in Russia is a cheap retirement destination, offering a nice blend of historical appeal, nature, and modern amenities. There are plenty of cultural festivals and events happening throughout the year. Residents also learn their language, a nice pastime for their golden years.
10. Szeged, Hungary
Insider Monkey Score: 31.8
Szeged is the place to be for retirees looking for modern amenities and quality services at affordable rates. The cost of living is, on average, 38.8% lower than in the United States. Moreover, rent is, on average, 73.8% lower than in the United States. Housing options are affordable, public transportation is cheap, and food prices are also low. Apart from being one of the cheapest European retirement destinations, Szeged is also revered for its delicious cuisine, friendly locals, and scenic views.
9. Sofia, Bulgaria
Insider Monkey Score: 32
Sofia is the cheapest capital in the European Union and is an ideal choice for many. Retirees will find the city to be one of Europe's most affordable destinations, offering quality healthcare and reasonably priced lifestyle options. On average, the cost of living is 45.6% lower than in the United States, with $921 being enough for a single individual to live comfortably throughout the month.
8. Podgorica, Montenegro
Insider Monkey Score: 32.8
Montenegro is one of the world's cheapest and safest countries to retireto. Podgorica, in particular, is home to majestic mountains, historical landmarks, and unique architectural sites. An individual can live modestly on $800 a month, with expenses increasing depending on amenities and comfort level. On average, the cost of living is 43.1% lower than in the United States.
7. Craiova, Romania
Insider Monkey Score: 34.2
Craiova is on many retirees' wish lists these days, offering the perfect blend of affordability and quality. Its rich cultural heritage, surrounding countryside, and warm and friendly community make it ideal to spend your retirement years. The cost of living is 48.1% lower than in the United States, with a decent lifestyle for a single individual costing around $630 monthly in Craiova.
6. Minsk, Belarus
Insider Monkey Score: 36.2
Cheaper than many European cities, Minsk offers retirees a welcoming environment, natural beauty, and adequate healthcare. Expats can expect to live a high-quality life at considerably low costs. The cost of living is 51.7% lower than in the United States, with an individual living comfortably for $489 a month. While there is a certain level of foreign influence in the country, the government remains in control of the country. The lack of political freedom, however, is made up for in terms of quality of life which is higher than the world average.
