A new report has revealed the best places to retire in Europe for 2025.
Before considering a move, Britons are urged to consider their state pension, and private pensions to ensure they have enough money to support their lifestyles abroad.
The Annual Global Retirement Index for 2025, by International Living (IL) evaluates 20 carefully selected countries across seven key categories to help retirees identify locations where their money stretches further.
The categories include housing, visas and benefits, cost of living, healthcare, development and governance, climate, and community integration.
The assessment process relies heavily on insights from on-the-ground correspondents who are expats themselves, providing real-world data about daily living costs and experiences.
Jennifer Stevens, executive editor at IL said: “This year’s Index showcases safe, welcoming, good-value places where retirees can live better for less—while enjoying an adventure and finding like-minded community in surrounds that suit them.”
Best places to retire in Europe
Portugal
Portugal ranks as the top retirement destination in Europe for its affordability, safety, and relaxed lifestyle. Its Mediterranean climate offers over 300 days of sunshine annually, especially in the Algarve.
Retirees benefit from low living costs, affordable healthcare, and a simple visa process through the D7 visa program. The combination of coastal beauty, historical charm, and vibrant local communities makes Portugal a standout option.
Terry Coles, IL Portugal contributor said: “Portugal is an enduring favourite among retirees, known for its stunning coastlines, historic charm, and affordable living.”
A couple can live comfortably in Portugal for £1,950 to £2,340 monthly, with expenses typically running about one-third of U.S. costs.
France
France is second and combines a world-class healthcare system with a vibrant cultural lifestyle. Housing and healthcare are more affordable compared to the US, with government-regulated healthcare fees ensuring financial predictability.
From the sunny French Riviera to the lush landscapes of Brittany, retirees enjoy a range of climates and accessible residency options through the Long-Stay visa. The French “joie de vivre” promotes a slower, more community-focused way of life.
Tuula Rampont, IL France correspondent said: “Food costs are another area where retirees can save. A couple can expect to spend £470 ($600) a month on groceries, and it’s still possible to enjoy a three-course gourmet meal at a restaurant for £28 ($36).”
French healthcare is notably affordable, with doctor visits costing £20 ($26) and specialist appointments £63 ($80), with 70% of costs reimbursed.
A couple can live comfortably in France on £1,560 ($2,000) monthly, excluding rent, with two-bedroom rentals in southern France averaging £740 ($950)
Spain
Third comes Spain which attracts retirees with its warm climate, diverse regions, and excellent standard of living at an affordable cost. Its healthcare system, ranked among the best globally, is both accessible and inexpensive.
Retirees appreciate the laid-back lifestyle and vibrant social culture. Residency options such as the Non-Lucrative Visa make long-term living in Spain straightforward. From bustling cities like Madrid to tranquil coastal towns, Spain offers something for everyone.
Marsha Scarborough, 77, said: “I eat most of my meals at home, use public transportation, and regularly go out to films, theater, and art exhibitions. I spend evenings socializing over drinks or dancing for hours.
“My monthly budget is around $2,200, plus another $400 saved for Spanish taxes, and I live in one of the most expensive cities in spain.”
Greece
Greece comes in at number four and is celebrated for its Mediterranean lifestyle, breathtaking landscapes, and affordability. Retirees value the welcoming community, delicious cuisine, and strong cultural traditions.
The country offers flexible visa options like the Digital Nomad and Golden Visas, making it easier for expats to stay long-term. Corfu and Crete are particularly popular for their stunning scenery and lower cost of living.
Italy
Italy is fifth and the appeal lies in its rich cultural heritage, diverse landscapes, and relatively low cost of living in smaller towns.
Retirees are drawn to its focus on family, community, and slow living. Southern Italy, with its mild climate and affordability, is especially attractive. Tax incentives and an efficient healthcare system further add to Italy’s retirement credentials.
