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Which Are the Best Countries in Europe to Retire In? Top 6 For Expats | LeX-Wealth
- hannahmcnaught5
- Sep 25
- 16 min read
Updated: Oct 6
Blog Summary: |
Explore the top European countries for high net worth expats to retire in, including current tax rates, healthcare access, residency options, and cost of living. |
This practical guide highlights Portugal, Spain, Greece, Malta, Croatia, and Cyprus, helping you make informed decisions about maximizing pension income and achieving a rewarding lifestyle across Europe. |
Disclaimer: This content is for informational and educational purposes only. Please consult a qualified financial adviser or book a free consultation call with LeX-Wealth for personalized advice tailored to your situation.
Retiring abroad is increasingly becoming less a dream and more a strategic move, especially for expats in Germany looking for flexibility, tax efficiency, and lifestyle upgrades. Whether it’s coastal air, a Mediterranean diet, or clearer rules for pension income, the right choice comes from balancing facts with foresight—never sheer enthusiasm alone.
At LeX-Wealth, the approach is rooted in clarity, calm evaluation, and adaptability. This guide unpacks the essential considerations— cost of living, healthcare, tax, and residency—when it comes to establishing the best countries in Europe to retire in, equipping retirees with the knowledge to make confident, tax-efficient moves and optimize pensions for both today and tomorrow.
Table of Contents
How to Choose the Right Retirement Destination
Selecting the best European country for retirement means weighing cost, access to quality care, tax treatment of pension income, and real integration prospects.
Summary Pillars:
Cost of Living/Housing: Will your money stretch further, or just thin out among hidden extras?
Healthcare Access: Can expats count on public cover, or is private insurance non-negotiable?
Tax Environment: Is pension income taxed into irrelevance, or given breathing room?
Quality of Life: Language, culture, safety, and climate—plus expat community support.
Residency & Visa Pathways: Are there retirement-specific visas or clear legal routes?
Navigating Cross-Border Healthcare and Tax: The S1 Form & Double Taxation Agreements
Accessing Public Healthcare with the S1 Form
EU/EEA citizens and UK nationals retiring abroad can use the S1 form to register for public healthcare in their new EU country, letting them access medical services as if they were local residents. The S1 is issued by the state providing your pension and must be registered promptly in your country of residence. This process ensures full integration into public health systems, which is especially valuable for retirees planning a long-term stay.
Double Taxation Agreements & Efficient Pension Planning
Double taxation agreements help prevent pensions and investment income being taxed in both your country of origin and your new residence. The impact depends on your pension’s type, treaty details, and personal circumstances—so professional tax advice is essential. With the right structuring, expats can minimize tax liability and keep more of their retirement income.
Best Countries in Europe to Retire in for Expats in 2025
Each country below offers unique strengths and some differences for German expats, wrapped up with a concise summary and a table detailing financial and practical specifics for clear comparison.
Portugal: Sun, Simplicity, and Tax-Efficient Living
Portugal’s allure is no secret—mild climate, beautiful coasts, a welcoming culture, and growing expat networks. The cost of living is notably lower than Germany, and Portuguese public healthcare is accessible, though many retirees opt for private policies to avoid wait times. Recent changes have narrowed Portugal’s famous NHR pension tax advantages to select applicants, so always check the latest eligibility with an adviser.
Why Consider Retiring in Portugal?
Portugal combines affordability, strong healthcare, and a strategic blend of city and coastal living, making it one of the continent’s most practical choices for value-driven expats.
Criteria | Portugal Details |
Cost of Living | Portugal is known to have a great quality of life for a relatively low cost compared to the rest of Europe. A retired couple could live comfortably with €1,500–€2,500 per month, especially outside Lisbon or Porto, should they stay in a one-bedroom apartment. This could be higher if they live in a larger apartment, house or live closer to the city centers. A single bedroom apartment can cost between €900–€1,500 in central areas, and basic monthly groceries for two can range from €200–€500. |
Public Healthcare | Serviço Nacional de Saúde (National Health Service) is considered to be good quality, ranking highly on the global comparisons, however they experience challenges such as understaffing and long wait periods; access for legal residents |
Private Insurance | Can range from €30–€150/month depending on your coverage, age and health circumstances. Private is often used to supplement public cover and is a good option for residents looking to see specialists with less waiting periods. |
Pension Tax | In the past, Portugal has been known to tax pension income at a general 10% rate for qualifying expats. However, since 2025, Portugal has updated its tax and immigration pathways. This amount can now range between 14.5%-48%, depending on income level. Some exceptions may exist, but they are a lot less prevalent. It is always best to seek professional advice from a financial advisor to confirm the relevant eligibility, to ensure you receive personalised advice tailored to your situation. |
Residency Pathways | The D7 Visa or passive income visa is granted for certain individuals with passive income from pensions, rental income or various investments. A Golden Visa is granted within 4-8 months should certain high-net worth individuals make a significant investment into the country and its economy, such as purchasing property or successful business ventures. Portugal has updated its immigration pathways since June 2025, with several legal changes making the D7 Visa more accessible for pensioners or retirees. A 10-year wait period is now in place for citizenship applications. We recommend seeking professional advice to confirm the relevant eligibility for your specific case. |
English Proficiency | High in expat hotspots and the service industry, however it is a lot less common in rural Portugal. |
Spain: Sun-Kissed Days and Affordable, High-Quality Care
Spain remains a perennial favourite for retirees—delivering urban excitement, beach life, and a sophisticated healthcare system. It’s hard to beat Spain’s property value, diverse climates, and vibrant expat communities. While Spain does tax worldwide income, double taxation treaties and expert planning can moderate the impact for German expats.
Why Consider Retiring in Spain?
Spain is ideal for those who want a balance of climate, culture, and excellent healthcare with reasonable living costs and wide-ranging lifestyle options.
Criteria | Spain Details |
Cost of Living | Spain continues to offer a high quality of life for retirees at moderate cost for Western Europe. A retired couple can live comfortably with €2,000–€3,200/month, and single retirees generally need €1,500–€2,500/month depending on region and lifestyle. In Madrid, Barcelona, or the coast, rents for a one-bedroom apartment run €1,000–€1,400, with utility and food costs similar to Portugal. |
Public Healthcare | Spain’s system is consistently ranked among the world’s best. Legal residents (including retirees on non-lucrative visas) can access universal coverage after registering locally, though EU retirees may enter via the S1 scheme. |
Private Insurance | Private health insurance is optional and often allows retirees to avoid wait times or to ensure English-speaking doctors. Costs average €50–€200/month for retirees. Age, health, frequency of use and coverage level affect this considerably. |
Pension Tax | Spanish residents are taxed on worldwide income. Most foreign pensions are taxed at progressive rates (19–47%). Tax relief can be available, depending on the local tax exceptions and your relevant eligibility, to ensure you receive personalised advice tailored to your situation. |
Residency Pathways | Most non-EU retirees use the Non-Lucrative Visa (NLV), which requires adequate passive income and health insurance. Golden Visa programs via real estate were discontinued in 2025. EU/EEA retirees enjoy straightforward registration. Spain’s residency bureaucracy can be complex, so professional help may smooth the process. |
English Proficiency | High in coastal, urban, and tourist regions; many expats live in Valencia, Málaga, Alicante, Costa Blanca, and parts of Andalusia. Rural Spain has much lower English-language use and basic Spanish is recommended for integration. |
Greece: Strategic Tax Haven Amidst Island Tranquility
Greece is no longer just for sun-seekers, it’s now a strategic haven for tax clarity thanks to a 7% flat rate on foreign pension income, if you are a qualifying resident. This sharply reduces tax stress for many retirees. Public healthcare is decent, but private cover is wise for speed and comfort. The cost of living remains low, especially outside tourist zones.
Why Consider Retiring in Greece?
Greece delivers unmatched pension tax simplicity, a famously relaxed lifestyle, and accessible healthcare options, especially for expats who value maximized income.
Criteria | Greece Details |
Cost of Living | Greece is among the most affordable Mediterranean destinations for expat retirees. A retired couple can live comfortably with about €2,000/month. Renting a one-bedroom apartment in a regular city typically costs €400–€600; coastal/island prices are higher. Groceries and utilities are comparable to Portugal or Spain. |
Public Healthcare | The ESY (Ethniko Systima Ygeias) healthcare system offers universal coverage to all legal residents, including retirees who hold residency permits. Service quality can be variable, with long waits and under-resourcing in rural areas, but big city hospitals are well equipped. |
Private Insurance | Private health insurance is affordable and popular with expats, costing €65–€100/month for decent coverage. Many retirees use this to ensure swift specialist appointments or access to private clinics in Athens or other high expat areas. |
Pension Tax | Foreign pensioners can take advantage of a 7% flat rate on overseas pension income (for up to 15 years, if qualifying for the special expat regime); otherwise, progressive rates apply. Some income may be exempt under double tax agreements. We recommend seeking professional guidance for compliance with any new pension tax related rules. |
Residency Pathways | The financially independent person (FIP) visa and Golden Visa programs remain open to retirees: the FIP is viable for those proving €2,000/month income plus rent, while the Golden Visa requires investment. EU/EEA citizens can register with minimal paperwork, however, bureaucracy can cause delays; it is best to plan ahead, allow additional time for the process, and consult professional relocation consultants should the process be unclear. |
English Proficiency | English is widely spoken in Athens, Thessaloniki, islands, and tourist hubs; less so in rural mainland. Many doctors and younger Greeks speak good English, and expat communities are substantial in Crete, Rhodes, and Corfu. |
Malta: English-Speaking, EU Access, and Clear Pension Taxation
Malta stands out for its security, clarity, and English-language accessibility, making transitions from Germany seamless. Living costs are reasonable, and the streamlined Malta Retirement Programme offers a fixed 15% tax on foreign pension income. Public healthcare is available, augmented by private options that guarantee faster, specialist-led response.
Why Consider Retiring in Malta?
Malta offers a unique combination of EU legal certainty, English-speaking convenience, and favourable pension tax treatment, making it a smart choice for expats seeking clear pathways to residence and lifestyle balance.
Criteria | Malta Details |
Cost of Living | Malta is one of the more expensive Mediterranean countries for retirees, but it offers a very high standard of living. Couples can expect to spend €2,800–€3,200/month, with single renters around €2,000. Central apartments are €1,200–€1,800/month. Utilities and groceries are a touch higher than in Portugal, Spain, and Greece. |
Public Healthcare | Malta’s NHS-style system is accessible to EU citizens, and non-EU retirees with long-term residency permits. Public hospitals are modern and well equipped, but wait times can occur for non-urgent care. |
Private Insurance | Private insurance for retirees costs €1,000–€1,500/year (€85–€130/month). Many expats carry local or international policies to avoid queues and cover private clinics; a popular choice for those with complex medical needs. |
Pension Tax | For pensioners and expats retiring in Malta, foreign pension income brought into Malta is typically taxed at a flat 15% rate through the Malta Retirement Programme, with tax applying only to income remitted to Malta and a minimum annual tax of €7,500 (plus €500 per dependent). There are various qualifying conditions and specialist structuring is recommended to ensure eligibility and maximize tax efficiency; personal income sourced in Malta is taxed at standard progressive rates up to 35%. |
Residency Pathways | Malta’s Retirement Programme and long-standing Permanent Residence Programme (MPRP) both allow retirees and non-EU investors to qualify for residency. One of the most popular routes is through real estate investment: non-EU individuals can gain permanent residence by purchasing property (minimum €375,000 as of 2025) or by leasing (€14,000/year in specified localities, 5-year minimum). Many expats choose Malta for its stable real estate market, often initially buying as an investment or holiday home, with the intention to use or rent it out until retirement. LeX-Wealth has a network of trusted real estate partners in Malta to help clients secure qualifying property and maximize long-term value. After 5 years, properties can be resold or switched while maintaining residency. |
English Proficiency | English is an official language, universally spoken and used for healthcare, business, and all legal documents. Communication barriers are rare, making day-to-day life very accessible to expats. |
Croatia: Scenic Living With Simple Residency for EU Expats
Croatia’s Adriatic beauty and low crime levels make it a rising star among German expats. Living costs are modest, English is widely spoken, and the healthcare system is accessible (although private cover helps with speed). Foreign pension tax rates can be moderated through reductions and treaty credits.
Why Consider Retiring in Croatia?
Croatia appeals for scenic, safe living, affordability, and seamless residency for EU retirees, making it an underrated gem.
Criteria | Croatia Details |
Cost of Living | Croatia remains one of the least expensive destinations on the Mediterranean. A retired couple can live well on €2,000/month, especially in non-tourist towns. One-bedroom flats in popular beach towns run €600–€900/month; inland prices are lower. Food and utilities are lower than both Spain and Malta. |
Public Healthcare | The Croatian Institute for Health Insurance (HZZO) provides coverage to registered residents. EHIC (for EU/EEA) system can work for the short term. For residents, mandatory registration covers basic care, but private options can provide higher level of services in terms of speed and access to English-speaking doctors. |
Private Insurance | Private insurance averages €60–€120/month. Local plans tend to supplement public care; international insurance is more expensive but essential for non-EU retirees or those desiring wider provider access. Cost of private insurance will range depending on the level of coverage, age and health conditions. |
Pension Tax | Foreign pension income in Croatia is taxed at progressive rates—20% on income up to €60,000, and 30% above that. However, a 50% tax base reduction applies to qualifying foreign pensions for residents, effectively halving the taxable amount for many expat pensioners. Croatia has double tax treaties with many countries, which often assign sole taxing rights to the country of residence and can help minimize or eliminate double taxation. Professional planning is highly recommended to adhere to proper processes and minimize double taxation. |
Residency Pathways | EU/EEA citizens enjoy near-automatic right to reside. Non-EU retirees apply for temporary residence (based on income/property), renewable with permanent residence after five years. Croatia is making efforts to streamline these applications, but bureaucracy can cause delays, and professional advice can help retirees ensure a smoother process. |
English Proficiency | English is very common in tourist and major urban zones, especially on the Dalmatian coast (Split, Dubrovnik, Istria). Less so in rural provinces, but most expat services, doctors, and city authorities can communicate in English. |
Cyprus: Mediterranean Comfort, Welcoming for Expats and Smart Investors
With more than 300 days of sunshine a year, Cyprus offers retirees a relaxed Mediterranean lifestyle, quality healthcare, and an easy-going culture with strong English proficiency in expat towns. Living costs are moderate, and the island features a stable, growing real estate market; making buying property both a lifestyle investment and a future retirement strategy. LeX-Wealth partners with reputable local real estate professionals, making it easy for clients to secure a holiday home that can serve as an immediate rental or a future base for long-term living.
Why Consider Retiring in Cyprus?
Cyprus attracts expats for its blend of beautiful scenery, robust property investment options, straightforward residency (especially for EU retirees and those using real estate investment routes), and tax-friendly treatment for foreign pension income. It’s an excellent destination for those seeking a Mediterranean lifestyle, a practical investment, and simple pathway to permanent residency.
Criteria | Cyprus Details |
Cost of Living | Cyprus offers a relaxed Mediterranean lifestyle at a moderate price point. Single retirees can expect to spend €1,800–€2,000/month including rent, while couples may spend €2,800–€3,200/month in central cities; coastal and rural living can be even less. A central-city one-bedroom runs between €740–€1,000. |
Public Healthcare | The GESY (General Healthcare System) offers universal coverage to all legal residents who register and pay nominal social insurance fees. Quality is good, with extensive coverage for routine and specialist care, though waiting times can be lengthy, especially in peak season. |
Private Insurance | Retiree-focused local insurance starts from €100–€300/month, depending on age and pre-existing conditions; international coverage (for broader access) is around €2,000–€3,000/year. Private insurance is popular for faster access and English-speaking specialists. |
Pension Tax | Foreign pension income above €3,420 per year can be taxed at a flat rate of 5% (if elected) or under progressive personal income tax rates ranging from 0% (up to €19,500) up to 35%, allowing retirees to choose the most favorable option for their pension. Many DTAs (e.g., with the UK and Germany) can eliminate double taxation. We recommend seeking up-to-date financial. advice, based on your own situation. |
Residency Pathways | EU/EEA retirees register easily with minimal documentation. Non-EU citizens can use “Category F” (retirement), an investor route (property of €300,000+), or “Pink Slip” for annual renewable stays with adequate income. Cyprus is known for straightforward, expat-friendly processes. LeX-Wealth partners with established real estate experts in Cyprus, guiding clients through the property search, legal checks, and application process to ensure a smooth, compliant purchase experience—all while optimising the asset’s potential to appreciate or generate rental income until full retirement. |
English Proficiency | English is widely spoken, especially in expat-heavy coastal regions (Paphos, Limassol, Larnaca), among medical staff, and in most public offices. In villages and the Turkish-speaking north, Greek or Turkish is more common, but services for retirees are overwhelmingly in English. |
Other Standout Choices
Italy: Southern Italy now offers retirees a 7% flat tax on worldwide pension income, but only if settling in smaller towns (under 20,000 people). Public healthcare is excellent for legal residents, though the bureaucracy is well known for being slow and complex.
Bulgaria : One of Europe’s most affordable choices, Bulgaria features a straightforward 10% flat tax on foreign income for residents and very low living costs. Healthcare is steadily improving with a mix of public and private providers, making it especially appealing to budget-conscious retirees.
France: France ranks high for its excellent public healthcare and refined lifestyle; though costs, especially housing and daily expenses, are higher than most southern destinations. Progressive income tax and stringent inheritance laws mean pensioners should get expert advice for tax and succession planning.
Montenegro: Montenegro offers dramatically low income tax (9–15%), cheap coastal living, and an easy-going lifestyle for expats who buy property. However, its healthcare and pension systems are still developing, so many retirees opt for international health insurance to supplement local services.
Serbia: Serbia boasts ultra-low daily expenses and favourable tax treatment for foreign pensions (often tax exempt), making it strong value for retirees. Healthcare is basic but widespread; private insurance is advisable for those seeking faster, English-speaking medical care or peace of mind for longer stays.
Healthcare: A Practical Comparison
Public Systems:
The top European retirement destinations guarantee universal coverage for legal residents, but the quality of service, wait times, and language options vary widely by country and even by region.
EU expats can use the EHIC or S1 scheme to access basic public healthcare when moving within the EU, though it’s essential to confirm eligibility and seek professional advice to clarify what each system covers, depending on your personal situation.
Private Insurance:
Supplementing with private health insurance is common, especially for retirees with chronic conditions or higher medical needs.
Private health insurance can dramatically reduce wait times, ensure better access to English-speaking specialists, and cover a wider range of treatments, boosting peace of mind for expats in other European countries.
Expert Tips for Tax-Efficient Retirement Planning
Effective retirement planning for German expats starts early and builds on four essential strategies to maximize post-retirement income, limit unnecessary taxes, and ensure lifelong flexibility, wherever you choose to retire in Europe or beyond.
Start Early: Make regular contributions to German private pensions or international retirement accounts during your earning years. Early action leverages tax relief and compound growth so you can build a substantial nest egg by retirement.
Coordinate Withdrawals: Once living abroad, align pension and investment withdrawals with your new country’s tax regime. For example, in remittance-based systems like Malta, only withdraw what you need to reduce local tax liability and leave the rest invested for future growth.
Double Tax Treaties: Take advantage of international Double Tax Treaties (DTTs) between Germany and most EU or top expat destinations. These agreements help you avoid being taxed twice on the same income—seek professional advice to ensure you’re using them fully.
Hybrid Approach: Blend your state pension benefits with private plans and globally portable savings accounts. This flexible mix of products makes it easier to adapt to changing regulations and plan for inheritance and legacy across borders, giving you true peace of mind if you relocate later.
Charting Your Ideal Retirement in Europe: LeX-Wealth Guidance
Whether you see yourself enjoying the Algarve sun, the serenity of Greek islands, or gazing at Croatia’s blue coast, the best retirement isn’t about chasing a trend but creating a course you can navigate calmly for years to come. Considerations like cost of living, tax rules, and healthcare choices are vital, but you don’t need to have all the answers now.
Optimizing expat retirement income across borders can be complex, and if it feels like a lot to navigate, that’s completely normal. That’s why seeking professional financial advice is so valuable for expats. At LeX-Wealth, we guide clients step-by-step and create a tailored, tax-efficient plan for every stage of your retirement journey.
We work with leading relocation professionals and real estate partners in top Southern European destinations, including Cyprus and Malta, so whether you’re planning to find a holiday home, invest in property before moving, or simply want seamless residency advice, you have trusted support at every step.
No matter how daunting the cross-border details may seem, professional support can provide clarity and empower you to take confident steps toward a secure international retirement. Our multilingual experts at LeX-Wealth are here to help you chart the course, not just pick a port.
Find clarity, confidence, and a long-term plan tailored to your unique journey. Contact LeX-Wealth today for a personalised, long-term financial and retirement planning consultation and book a free intro call with one of our advisors. Together, we’ll create a clear path for your retirement ambitions and plan to help you achieve them in the long term.
Frequently Asked Questions:
What are the most important factors to consider when choosing a country to retire in Europe?
Consider cost of living, tax treatment of pensions, healthcare access, visa and residency options, language, safety, and overall lifestyle fit for your needs.
How is my foreign pension taxed if I retire in a different European country?
Tax rates vary across countries, some offer flat rates to expats while others use a progressive scale, and many countries have double tax agreements to reduce or avoid double taxation; professional tax advice is recommended.
Can I access public healthcare in my chosen European retirement destination?
EU/EEA retirees and UK nationals can usually use the S1 form to register for public healthcare, but requirements and coverage differ by country, so it’s important to check eligibility in advance.
What types of retirement visa or residency routes are available for wealthy expats in Europe?
Popular options include Portugal’s D7 Visa, Spain’s Non-Lucrative Visa, Greece’s FIP Visa, Malta’s Retirement Programme, and Cyprus’s retirement schemes, often requiring stable income or property investment.
How should expats structure pension withdrawals and assets for maximum tax efficiency abroad?
We recommend working with a cross-border financial adviser to align your pension withdrawals, investments, and residency status with local tax laws and double taxation agreements to ensure long-term financial security and tax efficiency.
Can I keep and claim my home country state pension if I retire to Europe?
Yes, most expats can claim their state pension abroad, but payment increases depend on the agreement between your home and host country. It's always best to check with your pension authority for up-to-date rules and consult an advisor on pension withdrawal guidelines.
What is the S1 form and why is it important for EU retirees?
The S1 form allows retirees from EU/EEA countries and the UK to access public healthcare in another EU country. We recommend consulting an expert to ensure advice can be tailored to your specific situation and your level of health care required, as in some cases a combination of state and private health insurance may be better suited for pensioners.
Is it possible to move pensions between countries or consolidate them?
While claiming accrued state pensions is possible, consolidating different country pensions is complex and subject to bilateral agreements and tax rules. We recommend consulting a specialist in cross-border pensions for options tailored to your situation.
Work with a cross-border financial adviser to align your pension withdrawals, investments, and residency status with local tax laws and double taxation agreements to ensure long-term financial security and tax efficiency.
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