How to Retire in Europe: Visas, Best Places and Real Costs

You can retire in Europe on a US pension and Social Security, but only through a residence visa, because retirement itself is not a visa category in most countries. The workable routes are passive-income or "financially independent" visas, such as Portugal's D7, Spain's non-lucrative visa, Italy's elective residency and long-stay visitor visas in France. Each asks you to show steady income, health insurance and a place to live, and none lets you work locally.

The best places depend on what you want: Portugal's Algarve and Spain's Mediterranean coast for sun and value, Italy and France for culture and food, Greece and Cyprus for warm winters. This guide compares the visas, the places, the healthcare and the money questions that matter most to retirees. It is research, not legal or tax advice.

Thresholds and rules change often. Each route links to its official government page — confirm there before you apply. Not legal advice.

The main retirement visa routes

• Portugal D7: designed for people with passive income such as pensions, rental income or dividends. The income bar starts at one Portuguese minimum wage (about €920 a month in 2026) for the main applicant, with additions for a spouse and children. It is among the lowest thresholds in our set. See Portugal D7.
• Spain non-lucrative visa: requires private health insurance without co-pays or deductibles, and income set as a multiple of a national benchmark (IPREM). It tends to be a higher bar than Portugal's. You may not work. See Spain's non-lucrative visa.
• Italy elective residency: for people with stable passive income and housing, aimed at retirees. Consulates have discretion over how they assess income.
• France long-stay visitor visa: requires proof of means, insurance and housing, with a one-year renewable residence card.
• Greece Financially Independent Person visa: a passive-income route. Greece also has a digital nomad visa for those still working part-time remotely.
• Malta and Cyprus: residence programmes aimed at retirees and investors. Both use English widely. See Malta and Cyprus.

Thresholds are indexed to wages and change each year. Check the official page and our visa pages before you apply.

Where retirees actually settle

Portugal. The Algarve around Faro draws retirees with its climate, golf, English-speaking services and direct flights. Lisbon and Porto are better for culture and hospitals but hillier and busier. See the full Portugal guide and compare Lisbon vs Porto.

Spain. Valencia and Malaga offer sunshine, large expat communities and good hospitals. Seville is more traditional and gets very hot in summer. Compare Valencia vs Malaga.

Italy. Florence and Bologna suit walkers who want culture and trains. Southern regions are cheaper but lack English services and fast healthcare in places.

France. Nice and Bordeaux combine strong healthcare with higher costs and heavy paperwork.

Greece and Cyprus. Athens, Limassol and Paphos have mild winters; Cyprus uses English widely.

Croatia. Split has Adriatic coast and a growing expat community. Read the Croatia guide.

Not sure where to start? The quiz filters by budget, climate and health needs, and the cost of living tool shows estimated monthly budgets by city.

Healthcare: the number one question

Healthcare drives most retirement decisions. Three facts:

1. Medicare generally does not cover care in Europe. If you keep Part B while abroad you pay premiums for coverage you can rarely use in Europe, but dropping it can mean a late-enrollment penalty if you return to the US. Decide with a Medicare or SSA adviser.
2. You will need private insurance for the visa. Spain and Portugal want a policy that meets the consulate's wording. See expat health insurance in Europe.
3. Public systems open up after you're resident. In Portugal you can register with the national health service (SNS) as a resident. In Spain, access for pensioners without a contribution history often depends on a special agreement or paying a premium. France's PUMA system can cover residents after a waiting period. Confirm what applies to you.

Social Security, pensions and taxes

US Social Security benefits can be paid to residents of most European countries, and direct deposit to a US account or a local one is possible. Totalization agreements prevent double social-security taxes for workers, but they matter less in retirement.

Tax is different. The US taxes citizens and green card holders on worldwide income, so you keep filing. The foreign earned income exclusion applies to wages, not pensions, so you rely on the foreign tax credit and tax treaties. Treaties differ on how pensions, IRA withdrawals and Social Security are taxed in the country where you live. Some countries tax foreign pensions heavily; others have special regimes for retirees. Get advice before moving: US expat taxes.

Money: what it costs

Your monthly budget depends on the city and household. Our cost of living guide explains regional tiers, and Eurostat's latest price comparison puts Romania and Bulgaria at the cheap end and Switzerland, Denmark, Ireland and Norway at the top. Southern Europe sits in between, which is why it dominates retirement searches. Budget for housing, insurance, flights home and a buffer for currency swings.

A trial run beats a leap

Test a place across seasons before committing. Rent for a month in winter and a month in summer, visit a local clinic, ride public transit, and find out how far you are from the nearest airport with a direct flight home. The Schengen 90/180 rule lets you do this as an American without a visa, within limits. Then apply for the visa with real numbers in hand.

Practicalities

• Housing: most retirees rent for the first year before buying. Foreigners can generally buy property freely in Portugal and Spain, but get a local lawyer.
• Language: you can live on English in the Algarve, Malta and Cyprus. Elsewhere, learn the basics.
• Driving: many retirees skip a car in cities. Check licence rules on each country page.
• Banking: US-based pension deposits can continue. See opening a bank account in Europe.
• Mobility: Europe's older towns have cobbles, hills and stairs. Look for lifts and level access.

Downsides to know

Bureaucracy, long waits for residence cards in some countries, summer heat in southern Spain, Italy and Greece, being far from family, and the cost of flights home. Winters can also be cold and damp in northern Portugal and Spain's interior.

Next steps

1. Pick two or three countries and read their guides.
2. Check the visa income and insurance rules.
3. Talk to a US tax professional.
4. Try a long visit before you commit.
5. Start the document checklist.