For retirees acquiring a European Golden Visa and planning to relocate to Portugal, Italy, or Greece, understanding the cost of retiring in Europe is an important step. How much money they need each month to live a comfortable and decent life in these destinations?
Choosing where to live is often about making the pension income stretch further without compromising the quality of life. Beyond affordable houses and daily expenses such as groceries, utilities, and transportation, retirees consider the cost of healthcare services, as well as leisure and entertainment activities.
A destination that provides a manageable cost of retiring in Europe can allow retirees to allocate more of their income for dining out, cultural experiences, travel, and social activities. Therefore, the balance between monthly expenses, healthcare costs, and lifestyle opportunities can play an important role in deciding which Golden Visa to obtain.
Cost of Retiring in Europe: Start by Choosing the Right Destination
Greece
According to the 35th Annual Global Retirement Index 2026, Greece was placed at the top of the list with an overall score of 90.1. This ranking is attributed to Greece’s policies that protect its expat incentives, Mediterranean climate, slower pace of life, community, and connection with nature, making it the premier target for global retirees seeking both sun and savings.
Portugal
Portugal was ranked in 4th place, with an overall score of 87.4. This is due to Portugal’s fresh and affordable food, universal healthcare, and a broad range of lifestyles from Lisbon and Porto to the Algarve, Madeira and the Azores. Portugal offers the lowest cost of living in Western Europe, as retirees from North America, for instance, can expect to spend one-third to one-half less than they do in their home countries. Healthcare in Portugal is ranked 12th by the World Health Organization.
Italy
Italy was ranked in 6th place, with an overall score of 85.3. This ranking is attributed to Italy’s geographical diversity, from Sicily and the Mediterranean coastline to northern mountain regions, as well as its food, culture, and historic cities. With its rich culture, world-class cuisine, and relatively affordable living costs outside major cities, Italy provides an enviable lifestyle for retirees looking to embrace the charm of Europe.
| Country | Housing | Retiree Benefits | Cost of living | Development & Governance | Climate | Healthcare | Affinity Rating | Total |
| Greece | 88 | 91 | 88 | 88 | 89 | 89 | 98 | 90.1 |
| Portugal | 83 | 75 | 79 | 94 | 93 | 96 | 92 | 87.4 |
| Italy | 84 | 85 | 85 | 81 | 83 | 89 | 90 | 85.3 |
Cost of Retiring in Europe in a Nutshell
The monthly cost of retiring in Europe depends heavily on the city chosen in each country and the lifestyle. Below is the average monthly cost of living in Portugal, Greece, and Italy, according to Numbeo:
| Country | Average monthly expenses for a single person | 1 Bedroom Apartment in City Center | 1 Bedroom Apartment Outside of City Center |
| Portugal | €700 excluding rent | €920 | €720 |
| Italy | €890 excluding rent | €720 | 570 |
| Greece | €790 excluding rent | €490 | €390 |
Based on the figures above, Greece would be one of the best options in terms of cost of retiring in Europe, for both everyday expenses and accommodation. A single person spends an average of €1,300 in Greece, €1,600 in Italy, and €1,620 in Portugal if they choose to live in the city center. Expenses may drop if they choose to live in calm and peaceful areas outside the city center.
Housing Cost of Retiring in Europe
Housing cost of retiring in Europe may vary depending on the type and size of the apartment and its location.
Greece
In Greece, the housing cost in urban centers like Athens and Thessaloniki has risen noticeably in recent years, driven by the growth of short-term rentals, steady tourism, and foreign investment. A one-bedroom apartment in a desirable area of central Athens now ranges from €800 to €1,000 per month, while Thessaloniki remains more affordable, between €600 and €1,000. In sought-after islands such as Santorini and Mykonos, prices surge further.
It is also worth highlighting that investors who choose the Greece Golden Visa through real estate investment may be able to use the property as their own residence, helping them avoid rental expenses while benefiting from an asset they already own.
Portugal
In Portugal, Lisbon is the most expensive area. An independent flat that includes one bedroom in the capital region has a median price of €1,354 per month. It is followed by the island of Madeira at €1,295, Faro at €1,171, Porto at €983, Setúbal at €981, and São Miguel island in the Azores at €979 per month. At the other end of the scale, the cheapest one-bedroom flats are found in the districts of Guarda at €456 per month, Castelo Branco at €527 per month, and Bragança at €529 per month.
Italy
In Italy, Milan is the most expensive major city for renters, with a two-room flat costing an average of €1,128 a month. Rome had the second-highest average monthly rent among the cities cited, at €949 for a two-room flat. Florence followed at €879, while Bologna averaged €828.
Cost of Retiring in Europe: Daily Expenses
The cost of retiring in Europe includes everyday expenses that people spend on groceries, transportation, and utilities.
Greece
These expenses remain manageable in Greece, as utilities for an 85-square-meter apartment, including electricity, water, and heating, cost around €190 per month, with internet services adding another €30. Food costs vary depending on lifestyle, but a single person can expect to spend between €300 and €450 on groceries. Dining out remains accessible compared to other European countries, with a meal at a mid-range restaurant costing around €30 for a single person. Transportation is also affordable, with a monthly public transport pass costing around €30. Greece rewards its retirees in small but meaningful ways. Citizens and long-term residents over 65 receive 20–25% discounts on transport, museums, and more.
Portugal
Portugal also offers manageable day-to-day living costs, especially for retirees who choose smaller cities or live outside major urban centers. Basic utilities for a small apartment cost around €120 per month, and broadband internet costs €35. The cost of groceries in Portugal is cheaper than in Italy and Greece, with an average cost ranging between €200 and €300. Dining out in a mid-range restaurant costs around €20. Transportation is accessible and affordable, with a monthly public transport pass costing around €40. Long-distance trains called comboios crisscross from one end of Portugal to the other and offer reliable and inexpensive transport.
Italy
Daily expenses in Italy are considered higher than in Portugal and Greece. Utilities cost around €200 per month, and internet services cost €30. Estimated spending on groceries ranges between €350 and €450. Dining out in a mid-range restaurant costs around €35. Transportation is affordable, with a monthly public transport pass costing around €40. Here is a table showing the prices of some selected items in the three countries:
| Greece | Portugal | Italy | |
| Meal at Inexpensive Restaurant | €15 | €12 | €18 |
| Milk (1 liter) | €1.5 | €0.95 | €1.43 |
| White Rice (1kg) | €2.4 | €1.41 | €2.62 |
| Eggs (12 Large size) | €4 | €3 | €3.71 |
| Local Cheese (1 kg) | €12.33 | €10 | €15.34 |
| Chicken Fillets (1 kg) | €9.17 | €6.70 | €11.12 |
| Domestic Beer | €1.75 | €1.1 | €5 |
| Cigarettes (pack of 20) | €4.8 | €5.6 | €6 |
| Taxi Start (Standard Tariff) | €4 | €3.5 | €5 |
| Gasoline (1 liter) | €1.90 | €1.8 | €1.80 |
| Cinema Ticket | €8.50 | €8 | €9.50 |
| Monthly Fitness Club Membership | €45 | €38 | €50 |
Healthcare Cost of Retiring in Europe
Healthcare costs play a major role in shaping the overall financial picture for the cost or retiring in Europe.
Greece
In Greece, healthcare is accessible through the public system, although expats opt for private insurance for added convenience and faster services. The cost of private healthcare insurance varies according to age and coverage. According to the Annual Global Retirement Index, Healthcare in Greece is both modern and inexpensive. Many doctors speak English, often US- or UK trained. A retiree over 70 might pay about $1,200 a year for private insurance.
Portugal
In Portugal, retirees can enroll in both public and private healthcare systems. Private insurance costs around €150 a month. They can also register with the public system, which provides universal healthcare that’s free or very low cost for most services. However, waiting times can be long in either, because doctors give patients plenty of time. Most of the doctors speak English, and the quality of care is outstanding.
Italy
Italy ranks in the 2nd place on the World Health Organization’s list, which makes it appealing for people considering retirement in Italy. It offers qualifying foreign retirees access to a comprehensive public healthcare system, under the applicable rules, and a well-established private healthcare system. Italy’s Ministry of Health confirms that certain foreign residents can voluntarily register by paying an annual contribution. Many essential services are publicly covered, but patients may pay a ticket for certain specialist consultations, diagnostic tests, and non-emergency services. Foreign retirees may require private health insurance that can cost approximately between €1,200 and €1,500 per person annually, depending on age and coverage.
Tax Incentives
Greece
A Key driver behind Greece’s appeal for retirees is its highly competitive tax policy. According to Greece’s rules, retirees[11] who transfer their legal tax residency to Greece qualify for a flat 7% tax on foreign retirement income, including Social Security, pensions, and IRAs, for up to 15 years. While this doesn’t eliminate US taxes, a tax treaty between Greece and the US prevents double taxation. So the 7% tax paid in Greece reduces the US tax liability dollar for dollar.
Italy
Italian tax residents are generally taxed on their worldwide income, including pension income. However, eligible foreign pensioners who move to qualifying small municipalities in Southern Italy can opt to pay a 7% substitute tax on foreign-source income for each year. But the 7% rate applies for the periods covered by the option, rather than indefinitely. A retiree choosing Rome, Milan, Florence, Tuscany, or most other northern locations cannot use this specific 7% pensioner regime. Property ownership, rental income, investments and other assets can trigger additional taxes.
Portugal
In Portugal, the pension of a tax resident is subject to the applicable IRS rules. The tax depends on the pension amount, type of pension, source country, and applicable double tax treaty.
Monthly Cost of Retiring in Europe
Italy
Here is a monthly budget sample for a single person living in Rieti, Italy:
| Housing | $600 |
| Food | $480 |
| Medical Care/Insurance | $100 |
| Utilities | $540 |
| Car Maintenance/Gas/Ins | $267 |
| Miscellaneous/Ent | $330 |
| Total- Single Person | $2,317 |
Portugal
Monthly Budget Sample for a Single Retiree living near but outside of a major city like Lisbon or Porto in Portugal[14]:
| Housing | $700 |
| Food | $125 |
| Medical Care/Insurance | $75 |
| Utilities | $75 |
| Internet/Cell Phone/Cable TV package | $35 |
| Car Maintenance/Gas/Ins | $300 |
| Entertainment (Dining Out & other activities) | $150 |
| Miscellaneous | $300 |
| Household help (4 hours, 1 x week) | $125 |
| Total- Single Person | $2000 |
Greece
Monthly Budget Sample for a Single Retiree living in Greece[15]:
| Housing | $750 |
| Food | $160 |
| Medical Care/Insurance | $145 |
| Utilities including internet | $120 |
| Entertainment | $55 |
| Household help (3 hours x week) | $125 |
| Total- Single Person | $1,355 |
Conclusion
For investors seeking a manageable cost of retiring in Europe, Greece, Portugal, and Italy can all offer a relatively comfortable and affordable lifestyle, but the amount of money needed varies by location and lifestyle. Based on the figures above, Greece generally offers lower housing costs, while Portugal provides the lowest cost for groceries in Western Europe, since the produce is grown locally. Italy can be 30% lower than the cost of living in the US, for instance, especially when it comes to healthcare services.
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