Top 5 Cheapest European Countries for US Retirees

American retirees spend $5,007 a month. But even in Europe, you can live better on half that.

I’m not going to send you to some war-torn corner of Eastern Europe. These are real places like Portugal, Spain, and a few surprises where $2,000 a month gets you a damn good life.

I’ve done it myself! I’m James Nuveen, founder of the Freedom Files, and I’ve lived in almost 15 countries, helped hundreds of Americans retire abroad, and cut my cost of living while improving my lifestyle.

Let’s start with Greece…

COUNTRY 1: GREECE

I’ll be honest: When I first told people I was headed to Athens a few months ago, even my own mom said, “Isn’t that just a layover city?” But the Athens I experienced in 2025 is a totally different story.

This city is alive. It’s growing fast, it’s more cosmopolitan than most people expect, and it’s no longer just for history buffs or budget backpackers. It’s now a genuine contender for American retirees, especially if you’re looking to cut your cost of living or taxes in half without sacrificing quality of life. If you’re interested in the tax portion, we broke their special tax regime down in a recent video linked in the top right.

But here’s the catch: Greece isn’t “cheap” in the way people think of Eastern Europe. Yes, prices have risen. Greece has emerged from its economic turmoil. But it still remains one of the most strategic lifestyle bargains in Europe. The trick is knowing how to spend your budget.

Let’s say you’re in the US spending $5,000 a month between rent or mortgage, healthcare premiums, groceries, dining out, transportation, and general life expenses.

Here’s what that exact same lifestyle could look like in Greece:

• You can rent a modern 1-bedroom apartment in Athens or Thessaloniki for $600-$800/month. Want a nicer view or a place on the coast? You’re still likely under $1,500 – fully furnished, no property taxes, and no HOA fees. Compare that to $2,400/month for the average US renter over 65.
• For groceries, fresh tomatoes, olive oil, cheese, seafood all locally produced. A month’s worth of groceries for two people comes in at just about $500-700. If you’re solo, it drops closer to $350-$400. And this is far better than what you’re eating in the US, trust me. If you enjoy dining out as I do, you can enjoy a wine-and-lamb dinner at a sit-down taverna for $15-$20 per person. I consistently had meals under $20 in Greece that would cost $60+ back home.
• Transportation: No need to own a car. Athens has a clean, affordable metro system, and even intercity buses and ferries are cheap. Expect to spend $50–$75/month tops for all your transportation needs. That’s insurance + gas + maintenance gone from your budget.
• Healthcare: This is the one that shocks people. Basic medical care in Greece is decent and affordable. You can pay out of pocket at local clinics for even less. Prescription meds are often under $10/bottle. I met expats who see a private doctor for the price of a US copay.

Here’s how the math adds up:

Our clients are consistently surprised that yes, an American retiree can live comfortably in Greece for $2,000-$3,500/month at the low end. And it comes with sunshine, ancient Greek history, some of the best cuisine I’ve ever had, a Mediterranean pace of life… and no more snow.

Now if Greece feels like a hidden gem, wait until you see what life looks like in the Balkans. Because our next country Serbia is where geoarbitrage really starts to kick in.

COUNTRY 2: SERBIA 

Now if Greece was the Mediterranean surprise, Serbia is the Balkan bargain no one talks about. But maybe that’s on purpose.

Most Americans can’t find it on a map. But for the Freedom Files retiree? Serbia has been an underrated lifestyle hack in Europe.

Let’s start with the capital city: Belgrade – big, gritty, lively. Novi Sad is also a considerable expat destination. It’s a smaller, cleaner, more peaceful, and in my opinion, a better long-term fit for retirees. 

Here’s how it stacks up:

• A modern 1-bedroom apartment in central Novi Sad runs about $500/month. Want to cut that even more? Move just outside the city center and you’re looking at $400/month or less. In Belgrade, rent is higher, closer to $800/month for a similar space in the city center. Still, compare that to the US, and you’re slicing housing costs by 70-80%.
• Electricity, heating, cooling, water, and garbage for a 1000 sq ft apartment cost around $150/month in Novi Sad and $200/month in Belgrade — and that’s for full service.
• Local markets are filled with fresh produce, meats, and baked goods which Serbians love. A couple can eat well – very well – for under $500/month in groceries. Eating out is also a steal. A three-course dinner for two at a mid-range restaurant? About $45 total with wine.
• Public transit is cheap and efficient – and not full of rats and scary people. Local buses in Belgrade are even free now. Taxis offer a great deal too.
• If you’re thinking about investing in Serbia and potentially getting citizenship, the price per square meter in Novi Sad is around $3,000 while in Belgrade, it’s closer to $4,500. I’ve seen some gorgeous new-build apartments go for the equivalent of what a US kitchen remodel costs.

And here’s the bottom line: If you’re retiring on a fixed income of let’s say $2,000-$2,500/month, you can live very well in Serbia. For US citizens who feel squeezed out of homeownership, sick of outrageous rent, or just ready for something different, Serbia can be a soft landing. If you’ve been to Serbia, let me know in the comments. Did you get a similar sense of these prices? 

But what if you still want that Central European vibe with a strong economy and EU access? That’s where Poland comes in.

COUNTRY 3: SPAIN

Spain is one of those rare countries where the dream and the reality can actually meet, but only with the right plan and expectations.

I’ve lived in Madrid. I’ve lived in Barcelona. I’ve spent months in Sevilla, Grenada, Córdoba, Marbella, Málaga, and all across the Costa del Sol. And the truth is Spain can be affordable.

Let’s address the obvious: housing.

Spain is in the middle of a housing crunch, especially in the cities that Americans love. In Marbella, Madrid, Barcelona, and even Sevilla, demand is sky-high, especially from foreigners. Landlords often require 12 months of rent upfront, plus a deposit and an agency fee. We’ve helped clients navigate this dozens of times through our housing search service, but make no mistake – it’s overwhelming.

Expect to pay $1,500-$1,800/month for a decent apartment in a good area of a small town. I’d budget more like $2,000 for a good apartment in a city. For a villa on the coast, you’re looking at $2,500-$5,000/month. That’s why so many of our Non-Lucrative and Digital Nomad Visa clients lean on us for help with property. You can check out the video in the top right all about moving to Spain.

Now, the day-to-day life in Spain can be surprisingly cost-effective.

Shopping at places like Aldi or local organic markets, a couple can spend €500-€800/month eating well. That’s fresh produce, cured meats, cheeses, and incredible olive oil and a hell of a lot of wine.

You can dine out with your significant other at a local Spanish tapas bar for €25-€40 total including wine. Even one of Spain’s many Michelin-star meals won’t come close to US prices.

Spain has one of the most affordable and well-connected transit systems in Europe. You could get by on €50-€100/month using public transport and high-speed rail alone. 

Spain’s public healthcare system is top-tier, but not immediately accessible to new arrivals. That’s why expats typically start with private insurance, which runs about €100-€180/month for two people, depending on age. Just ridiculous right? We help all our Freedom Files clients get this set up during their visa application process.

So, what’s the bottom line?

A couple can live comfortably in Spain for around $2,800–$4,000/month, especially in smaller towns. Solo retirees can drop that closer to $2,000-$2,500. But Spain is not Vietnam. You can burn through your budget quickly. 

Now, wait until you see the stability, economic upside, and EU residency benefits that Poland and Portugal have to offer. Let’s go there next.

COUNTRY 4: POLAND

Poland doesn’t show up on most “retire abroad” lists, and that’s exactly why you should be paying attention.

I like to call it Europe’s sleeper pick. One of the fastest growing economies in the world (now stronger than Japan by the way), EU access, thriving cities. You won’t find beaches or a Mediterranean pace of life here. But if you’re looking for safety, infrastructure, walkability, history, and affordability, Poland delivers.

Warsaw or Kraków are modern yet historic and beautiful, clean, and rising fast. And for American retirees? It’s an absolute cost-of-living masterclass.

Here’s how it breaks down: In Kraków, you can rent a modern 1-bedroom apartment in a good area for about $1,000/month. In Warsaw, expect slightly higher prices for something similar in the city center. These are fully furnished, clean, centrally located – not bottom-of-the-barrel. And you’re still paying less than half what you’d pay in Boston, Seattle, or Florida. But because Poland is positioned above the 49th parallel that separates Canada and the US, you will need some extra heat and electricity costs in the winter.

All right, food-wise Poland wins big. Whether you’re shopping at Lidl or a weekend farmers’ market, a retiree can eat well for $300-$400/month. And while Polish food won’t make many top 10 lists or make you drool, the cosmopolitan cities of Krakow and Warsaw will have plenty of the international cuisine you desire. Expect extremely cheap beer and mid-range prices at good restaurants.

Both Kraków and Warsaw have excellent public transportation. Cabs and Uber are reliable, and monthly transit passes are under $30. The intercity rail network is also one of Europe’s best – fast, clean and cheap. Most retirees we’ve helped settle in Poland never even bother buying a car.

 New expats usually opt for private health insurance, which we help set up for clients applying for residency or a long-stay visa. Great, inclusive plans can cost as low as $50 a month per person if you’re healthy. And you’ll be shocked at what you get for the price — and how little paperwork you’ll deal with compared to US systems.

So, all-in, a solo retiree can live comfortably in Kraków or Warsaw for as little as $2,000-$3,000/month, depending on your living situation. You’re not getting the beach. But you’re getting safety, walkability, and so much history.

And now, for the expat golden child. A culture that welcomes Americans with open arms.

COUNTRY 5: PORTUGAL

Portugal has earned its crown as the expat darling of Europe. But here’s the truth: Most people are looking in the wrong places.

Yes, Lisbon has exploded. Prices there have surged beyond what most retirees should consider, with landlords jacking up rents and golden visa program updates and special tax regime restrictions being floated to cool off the foreign buying frenzy. But if you know where to look, places like Madeira, Porto, Faro, and lesser-known Algarve towns can offer one of the best retiree lifestyles in the world, for a fraction of the US price.

Let’s take Porto or Faro, for example. In these regions, you can find:

A 1-bedroom modern apartment for around $800-$1,500/month. Even on the coast, outside of peak tourist areas, you can stay below $2,000/month.

A two-person grocery budget averages €400-€600/month, especially if you shop like a local — think markets, Continent, Pingo Doce. And yes, that includes wine.

Eating out? A full sit-down meal for two often comes in under €60 total. Some of the meals I’ve seen in Madeira — grilled octopus, wine, and dessert. So good.

Now here’s where Portugal really shines: Healthcare. This is the part that makes American retirees do a double take. You’re used to spending $2,000/month on insurance premiums and still worrying about coverage gaps. In Portugal, you can get high-quality private health insurance for $100-$150/month for two healthy retirees. And, Portugal really deserves recognition as a Blue Zone culture, with Mediterranean California-like weather year-round, fresh food and produce, healthy lifestyles, etc. Our Freedom Files clients live significantly more healthy here than they did in the US. It’s one of the most common feedback items we hear.

And if you’re wondering how to move to Portugal on the D7 retirement visa, D8 digital nomad visa, or the golden visa, we’ve got you covered. Click on the tag in the top left and watch that video. Here’s the kicker: Portugal offers citizenship in just five years, one of the fastest timelines in the EU.

So what’s the grand total? If you’re living solo and modestly, $2,000-$3,000/month gets you a great life. For couples, $3,000-$3,500/month is a realistic, comfortable budget.

If you want a more complete breakdown of the most retiree-friendly international destinations for Americans, we compiled a 162-page relocation guide for you. And it’s free on the website. That wraps our tour of Europe’s 5 most affordable retiree-friendly destinations. Or stick around and click on this video to learn the top 7 countries where our clients and US expats in general are heading in 2025.