Retiring in Europe doesn’t have to mean draining your savings. Across the continent, there are beautiful, affordable destinations where retirees can enjoy a high quality of life, reliable healthcare, and rich cultural experiences, all at a fraction of the cost compared to North America. In this guide, we’ll explore the top European countries to retire on a budget, focusing on value, comfort, and lifestyle.
Whether you dream of Mediterranean sunshine, quaint countryside living, or vibrant historic towns, Europe offers something for every retiree looking to make their money go further.
1. Portugal – Sunshine and savings on the Atlantic coast
Portugal consistently ranks among the best European countries to retire thanks to its affordable cost of living, mild climate, and friendly locals. Cities like Lisbon and Porto offer cosmopolitan experiences, while smaller towns such as Coimbra or the Algarve region provide relaxed seaside living at a lower price point.
Healthcare in Portugal is excellent and affordable, and the country’s Non-Habitual Resident (NHR) tax regime can offer significant savings for foreign retirees. You’ll also find English widely spoken, making it easy for newcomers to settle in comfortably.
2. Spain – Mediterranean living on a modest budget
Spain is another top contender for those seeking affordable places to retire in Europe. With its warm weather, delicious cuisine, and affordable real estate, Spain’s cost of living is often 20–30% lower than in major Canadian cities.
From coastal Andalusia to inland regions like Valencia and Granada, retirees can find a perfect balance of modern amenities and traditional charm. Spain’s public healthcare system is world-class, and the relaxed pace of life adds to its enduring appeal for budget-minded retirees.
3. Greece – Ancient beauty and modern affordability
For those craving history, sunshine, and island life, Greece stands out as one of the top European countries to retire on a budget. The cost of living in Greece remains remarkably low, especially in smaller towns and islands such as Crete or Naxos, where fresh produce, rent, and utilities are highly affordable.
Greece also offers a “digital nomad” and retirement visa, making long-term stays simple for non-EU citizens. Add in the Mediterranean diet, beautiful beaches, and welcoming locals, and it’s easy to see why so many retirees are drawn here.
4. Italy – Affordable charm beyond the tourist hubs
While parts of Italy can be pricey, regions such as Sicily, Puglia, and Calabria remain surprisingly affordable. These southern areas offer a slower pace of life, delicious cuisine, and warm climates, ideal for retirees seeking value without compromise.
Healthcare in Italy is excellent and low-cost, and foreign residents can access the national health system. Property prices in smaller towns can be exceptionally low, making Italy one of the best European countries to retire on a budget for those seeking authentic culture and timeless landscapes.
5. Croatia – Coastal beauty at Eastern European prices
Croatia combines the scenic appeal of the Adriatic coast with lower living costs than most Western European countries. Expats and retirees are often surprised by how far their money goes, from affordable housing to inexpensive dining and utilities.
The country’s healthcare system is strong, and English is widely spoken in major cities like Split and Dubrovnik. Croatia’s EU membership also brings financial and travel convenience, cementing its place among the best European countries to retire affordably.
6. Bulgaria – Europe’s best-kept secret for low-cost retirement
Bulgaria may not be the first place that comes to mind, but it’s one of Europe’s most affordable countries to retire. With low property prices, inexpensive groceries, and minimal taxes, retirees can enjoy a comfortable lifestyle on a modest income.
Popular areas like Plovdiv and Veliko Tarnovo offer a blend of history, culture, and friendly communities. For those seeking tranquility, Bulgaria’s countryside and Black Sea coast deliver exceptional value for money, ideal for retirees focused on stretching their budget.
7. Hungary – Culture, comfort, and low costs in Central Europe
Hungary offers an appealing mix of affordability and culture. Budapest, its capital, combines grand architecture with affordable amenities, while smaller towns offer even lower living expenses. Retirees can access quality healthcare, low transportation costs, and affordable entertainment.
Hungary also has well-connected rail and air routes across Europe, making it an ideal base for retirees who want to explore the continent without spending heavily. It’s no wonder Hungary often appears on lists of top European countries to retire on a budget.
How to save on CAD to EUR exchange rates when retiring in Europe
One of the most overlooked aspects of retiring abroad is managing your foreign currency transfers efficiently. Exchange rates can significantly impact your monthly expenses, especially if you’re converting Canadian dollars to euros regularly for rent, utilities, or pension transfers.
To save money, look for competitive CAD to EUR exchange rates and avoid banks that charge hidden markups or high transfer fees. Partnering with a regulated foreign exchange specialist like MTFX lets you access real mid-market rates, set rate alerts, and even lock in favourable exchange rates for future transfers. By timing your conversions and using online tools, you can reduce costs and make the most of every Canadian dollar during your European retirement.
Conclusion
Choosing one of the top European countries to retire on a budget means balancing cost, lifestyle, and long-term comfort. Whether you’re drawn to Portugal’s sunshine, Greece’s culture, or Bulgaria’s unbeatable affordability, Europe offers endless options for retirees who value both experience and savings.
