Budget-Friendly Countries To Retire In With $500k Or Less
Throughout North America and Western Europe, citizens have experienced have noticed how steep the cost of living has become. Although this trend varies from place to place, it's hard to find a city throughout many industrialized nations where someone can live comfortably without being a millionaire.
Whether it's due to housing costs, healthcare, insurance, or just the day-to-day basics, living is expensive. That's why some people's retirement plans have them moving overseas to more affordable countries. For those considering the life of an ex-pat, there are quite a few destinations worth choosing from.
Slovenia
Although it's not often the first European country most people think of, the nature and historical beauty of Slovenia rivals that of more popular destinations in that region. As Yahoo! Finance noted, however, one of the nation's biggest draws is its affordability.
Even in the nation's capital, Ljubljana, it's not hard to find a one-bedroom apartment for about $600 a month. Groceries are also reasonably priced here, as are local restaurant and entertainment options. Although residents can access good healthcare through their mandatory state health insurance, supplementary private plans are also commonplace.
Denmark
According to Travel + Leisure, Denmark is considered the happiest country in the world for retirees. However, it's worth noting that this is far more true for people who have lived there all their lives than people just moving there. That's because the country's Universal Pension System is considered one of the most generous in the world, but it's only available to those who have lived there for at least 40 years.
Still, that doesn't make it any less of a great retirement destination for those who obtain permanent residency. Denmark's social safety net and healthcare system are among the most robust in the world, and senior discounts are known to be particularly significant there. It's just that getting in is the tricky part.
Portugal
According to Forbes, Portugal was once a retirement destination, which seemed too good to be true. Residency was easily obtained for people willing to buy property there, and it was considered absurdly tax-friendly to ex-pats who moved there. Yet, while some of these loops have been closed and property values have risen, it's still a great destination.
Not only are Portuguese properties still 30% less expensive on average than American ones, but Portugal is ranked within the global Top 25 for healthcare quality and within the Top Ten for safety. It's a beautiful country with friendly locals who can often speak English. It also has solid infrastructure for such an affordable place to live.
Mexico
Like in many nations, Mexico's cost of living can vary significantly from place to place. However, Travel + Leisure noted that even well-known tourist destinations like Cancún feature rent prices 83% lower than in New York City and lower general costs of living by 51%.
Although Mexico has government healthcare programs that service low-income residents, even the private hospitals cost far less than they would in The United States. Before applying for a residence permit through the Mexican Consulate, however, it's worth noting that permanent residents have monthly income requirements of $7,300 and a $293,000 bank account requirement.
Greece
According to The Greek Herald, Greece is considered among the top ten most popular retirement destinations, and this is partially because the nation has a golden visa program in place that makes residency easier for those who buy property there. Although the temperate climate, rich history, and rich, healthy cuisine are all factors for why Greece is so attractive to retire in, the biggest reason comes down to money.
For those coming from the United States, the property requirement may not be as big of a hurdle as it sounds. That's because housing costs are 75% less than what people tend to experience in America, while the overall cost of living is between 40% and 50% less.
France
According to the AARP, anyone looking to apply for permanent residency in France needs to prove they earn a monthly income of at least $1,898.02, as this is the equivalent of the French minimum wage. Although there are no restrictions on foreign property ownership in France, be prepared for the complexities of obtaining a mortgage from a French bank.
As for healthcare, it is taken care of by L'Assurance Maladie, the national health insurance system. This can be accessed as soon as the residency goes through. According to International Living, the total monthly cost of living for a single person in Provence, France, is about $2,695.
Spain
According to CNBC, the Spanish city of Granada is considered a particularly budget-friendly place to retire in the Iberian nation. A single person can generally expect their non-rent living expenses to total about $770 a month, while a one-bedroom apartment in the city center costs an average of $637 a month.
Granada is known as a relaxing place in a land that carries a slower cultural expectation for day-to-day life than places like the United States and the United Kingdom. That said, it's also a college town, so residents should expect a youthful atmosphere if they head to this part of Spain.
Belize
According to Belize Hub, the nation's Qualified Retirement Program makes Belize an attractive destination, as anyone who can prove income of over $2,000 a month can move their whole family there for just $2,100. Once they do so tax-free and duty-free, they'll find that a house in a rural area will cost about $15k, while an apartment in Corozal costs around $700 a month.
All in all, living in Belize costs between 40% and 80% of what it costs to live in The United States, depending on one's preferred lifestyle. It's also worth noting that Belize's official language is English, so it's a great option for those who aren't interested in learning a new language.
Ecuador
According to Travel + Leisure, Permanent Residence visas become available after people spend at least 21 months in Ecuador under a temporary visa, so retiring in this nation can take some preparation. English speakers are common in Ecuador, especially in the ex-pat-heavy city of Cuenca, and the nation uses U.S. dollars.
However, it's much less expensive to live there than in the United States, as the average cost of living is 68% less expensive than in New York, while rent is up to 91% lower. Public healthcare is also accessible for under $100 per month, but proof of private healthcare plans is also accepted.
Malaysia
Although those planning to retire in Malaysia should be aware of the monsoon season that typically comes between October and March, there's much about this destination that's ideal for a budget. According to Yahoo! Finance, food costs are particularly low throughout the country, as a three-course dinner for two often costs just $18.
Although the government requires liquid assets of at least $86,150 and a monthly income of $2,500 to reside there, the required "fixed deposit" account requires a minimum balance of $24,600. Once those requirements are met, rent should be cheap, as apartments range between $230 a month and $600 a month. The nation also boasts world-class health care at low prices.
Peru
Although life in Peru can get tricky for those who don't speak Spanish, it's reputedly a low-cost and easy retirement option for those who do. For instance, a retirement visa only requires proof of a $1,000 monthly income and spending about six months in the country.
According to International Living, that visa grants access to a temperate nation with all the modern conveniences ex-pats are used to. Better yet, the cost of living is notably low in Peru, as it's not unusual to cover all monthly expenses (including rent) with just $1,500. The culture is also safe, features some delectable cuisine, and is reputedly friendly to new arrivals.
Thailand
According to CNBC, the best city in Thailand to retire in is Chiang Mai, which has been voted as one of the five best retirement destinations in all of Asia. That's not only due to its cultural and historical significance and its mountainous environs, but how much it costs to live there.
After all, it's not considered unusual to pay just $395 a month in rent there. Moreover, a person's additional living expenses tend to add up to just $515 a month. Make sure to check for a Non-Immigrant Long Stay Visa, as this is the equivalent of a retirement visa.
Italy
Italy is a beautiful, scenic country with enviable cuisine that emphasizes a relaxed way of life, which makes it a dream destination for many retirees. Moreover, the Italian food and beverages that people will pay top dollar for elsewhere are available at prices people are used to paying at the local supermarket.
According to Travel + Leisure, Italy's high-quality healthcare system becomes accessible once residency is established, but a private plan is recommended in the meantime. As for costs, Rome has a 44% lower cost of living and rent rates 73% lower than what people find in New York. Considering that only Milan is more expensive, the cost of living should not be an issue for most Italian destinations.
Panama
Although Condé Nast Traveller noted that applying for Panama's retirement visa requires an in-person request through a Panamanian lawyer, the only other requirement is a minimum monthly income of $1,000. That's not much, considering that this is arguably the most attractive retirement visa in the world due to all the discounts it offers.
Panama is also a nation with excellent healthcare, and permanent residents of retirement age can have their prescription medications discounted by 20%. Finally, the monthly expenses a person can expect in Panama City total $3,000 at maximum, and this number falls to about $1,700 a month elsewhere in the nation.
Colombia
According to Condé Nast Traveller, one of the most flourishing parts of Colombia for foreign ex-pats is Medellín, the former home base of Pablo Escobar. That's because the climate is reliably moderate, but one can also expect to pay between $320 to $960 per month for an apartment in the city center.
Those willing to go farther afield can find similar housing for less than $300 a month, and it's not unusual for all of a person's monthly expenses to amount to $2,000 in some parts of the country. Colombia also features public and private healthcare plans, and a retirement visa requires a monthly income requirement of at least $3,060.
Costa Rica
Although learning Spanish is recommended before retiring in Costa Rica, Condé Nast Traveller noted that finding English-speaking communities shouldn't be too difficult, as the nation has been a popular destination for ex-pats for over 40 years. A Pensioner Visa requires proof of a monthly income of $1,000 and needs to happen in person at the Immigration Office of Costa Rica in San José.
Once permanent residency is obtained, people can access the nation's universal medical program in exchange for between 7% and 11% of income. If worse comes to worse, even an out-of-pocket visit costs $70 for a regular doctor and $90 for a specialist. Better yet, a person's total monthly costs should add up to $2,100 or less.
Vietnam
As Yahoo! Finance noted, retiring in Vietnam has a few drawbacks. Since the country doesn't have a retirement visa, those hoping to retire there will need to renew one-year visas until their residency becomes more permanent. Although the nation has a decent healthcare system, flights to Thailand or Singapore may be necessary for more complex procedures.
However, the nation's rich history and eclectic culture aren't the only reasons why someone would want to retire there. Even in major cities like Hanoi, a couple can live on about $1,500 per month. That cost falls to $1,000 a month in other places like Da Nang, where a one-bedroom apartment costs less than $400 a month.
Chile
According to International Living, permanent residency is fairly easy to obtain in Chile, as the relevant application can be made after just a year spent in the nation under a Short Term Visa. However, Spanish language skills are a must, as local slang and variations make communication challenging even for native speakers from abroad.
However, those who clear these hurdles will find a comfortable modern living experience that costs far less than usual. The infrastructure is sound, the tap water is drinkable everywhere, and the healthcare system is considered excellent. Best of all, a person can comfortably live on $1,500 a month in Santiago, which is the most expensive Chilean city to live in.
Cambodia
According to International Living, gaining a one-year residency in Cambodia is as easy as extending a $35 business visa — which requires two Passport photos — to an extended one, which costs less than $300. As if that weren't enough, Cambodia also features some of the lowest living costs in Southeast Asia.
Although the appropriate budget varies from place to place, the average cost of living ex-pats experience is around $1,500 a month. Since it's not unusual to rent a one-bedroom apartment in cities like Phnom Penh for $250 a month, rent is included in that figure.
Sweden
Despite how expensive Sweden may seem to live in, many Americans who have moved there have found it surprisingly affordable. However, retiring there requires a Schengen visa, which is more difficult to obtain than its $96 price tag implies.
Once that hurdle is passed, however, Sweden has a lot to offer retirees. According to Business Insider, residents can apply for income pensions as soon as they turn 62, and they also have access to one of the best public healthcare systems in the world. Moreover, they'll live in a country with a cost of living that's 33% lower than The United States.
Montenegro
Much of Montenegro's modern prominence comes from its idyllic coastlines, but they aren't the only reason it's a good idea to retire there. According to Travel + Leisure, there are various incentives for investing in Montenegro, and foreign nationals are permitted to purchase property there.
Although the nation has a public healthcare system, many retirees and other ex-pats opt for private plans, specifically ones that offer medical evacuation coverage. However, the cost of living there is about 44% less than in the United States on average, while rent prices are often 75% lower. So, any money spent on healthcare is saved elsewhere.
Indonesia
According to Yahoo! Finance, a person need only prove pension income of $1,500 a month to obtain a retirement visa in Indonesia, but private health insurance and hiring local domestic help for around $2.50 an hour is also required. Granted, the health insurance is more of a strong recommendation, as inpatient care can cost at least $220 a day. A general doctor's visit is just around $40, though.
Still, not only is Indonesia a nation that people flock to from around the world, but even some of its hotter spots are surprisingly cheap to live in. An apartment in Jarkarta tends to cost around $400 a month, while one in Bali can cost $250 a month as long as it's not in a beachfront property.
Morocco
According to Morocco World News, Morocco was listed among the top ten retirement destinations for French ex-pats by the magazine Retraite sans Frontières. Why? That's partially because it's relatively close to France, has an agreeable climate, the French language is widely spoken there, and the reputed hospitality of Moroccans.
However, it would be hard to ignore the economic factors of "very advantageous taxation" and the low cost of living. Although the news outlet didn't get specific about these factors, other sources have suggested that even $800 - $1,000 a month in income should suffice in Morocco. Just be sure to brush up on your French skills, as English isn't quite as widely spoken there.
Malta
Although Malta is sometimes positioned as a hard place to retire in, that's just because the permanent visa requirements tend to be more specific than usual. According to Yahoo! Finance, applicants need to have more than $26,500 in their bank account ($32,000 if they're married). They also need proof of health insurance, a mortgage or rental contract, a clear criminal record (Malta's not unique in that respect) and will need to file a Maltese tax return.
However, once all of that is accomplished, they'll land in a nation with an enviable climate, widespread English speaking, and health insurance that costs about $115 a month (barring chronic health conditions). An apartment on the island of Gozo also tends to cost less than $500 a month.
Philippines
According to International Living, the Philippines' Special Resident Retiree's Visa makes retiring there super easy, as it allows multiple entries within the country. It also differs from similar visas in that applicants don't need to renew it every year before the become permanent residents.
The Philippines also isn't an expensive country to live in, although this can depend on where a person stays. A life of relative luxury is possible for $2,285 month in major cities like Manila, but a couple can live just as comfortably in rural areas for just $1,140 a month.
Uruguay
Although Yahoo! Finance recommends hiring a Uruguayan to sort out visa restrictions, the nation's retirement visa allows applicants to transport a car and their household items duty-free. They also only need to prove monthly income of $1,500 (plus more if any dependents are coming as well).
While $2,000 a month should allow anyone to live comfortably in Uruguay, it's also true that even $800 a month can support a lifestyle in the city of Salto. Even in seaside towns like La Barra, it's possible to buy a house for $50,000 or rent one for between $500 and $700 a month.
Latvia
Although Latvia is considered an underrated place to retire, it's worth noting that a Schengen visa is required to move there and a retirement visa is only possible if a person is at least 65. Nomad Capitalist also noted that despite the presence of many English speakers, learning Latvian is still recommended. It's also known to be a cold and dark place at times.
However, it's also considered a safe country with a great cost of living. General living expenses are usually about $885 a month, and rent typically ranges between $500 and $600 a month. Real estate also costs about $230 per square foot.
Slovakia
Slovakia isn't usually an ex-pat's first choice as a retirement destination, and that's typically because of the likelihood of running into a language barrier. Slovak isn't the most widely spoken language in the world, but it's definitely needed to keep life from being too lonely there.
However, those with a knack for languages or who have some ancestral connection to Slovakia will be hard pressed to find a more affordable retirement destination. According to Numbeo, the general monthly cost of living in Slovakia averages out to about $800. Even in major city centers, a one bedroom apartment tends to cost just $645 a month.
Lithuania
Compared to some more famously scenic destinations like Mexico, Montenegro, or Portugal, many parts of Lithuania can look a little drab. It's also true that Lithuanian language skills are going to be essential there, as it's the mother tongue of the vast majority of citizens.
However, it's also a place that someone can comfortably and affordably retire in if these caveats aren't intimidating. According to Numbeo, the average cost of living there is about $787, while a small apartment in even the most convenient locations can cost about $668 a month. It's a smart choice for someone on a budget.
Turkey
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In recent decades, Istanbul has been consistently regarded as a lovely city to visit. However, Travel + Leisure noted that it isn't the only place in Turkey that ex-pats love. Antalya and Bodrum are also popular cities and while living in Turkey can have some economic challenges, many of them aren't relevant for those who are already retired.
For retirees, Turkey is widely considered the most affordable place in Europe, as the magazine noted that the average cost of living there is about $527 a month. As for rent, Numbeo noted that a one-bedroom apartment in the city center only costs about $578 a month. The prices seem outrageous in Turkish lira, but the U.S. dollar can stretch far there.
Argentina
While some warn about the high cost of living in Argentina, International Living noted that this depends heavily on a person's location. Although some of the swankier areas of Buenos Aires can cost up to $4,000 a month to live in, the outlet noted that it's hardly impossible to live comfortably on between $1,200 and $1,500 a month.
For that cost, retirees can enjoy a nation with a special retirement visa, ultra-modern infrastructure, few restrictions on buying property, and a quality healthcare system that's supposed to be free for all. Argentina is also considered one of the safest countries in South America. It certainly helps to know Spanish, though.
Bulgaria
According to International Living, Bulgaria may well be Europe's most underrated retirement destination. In addition to its rich history, lively local culture, diverse cuisine, and charming, cozy locales, this is largely because the country boasts a pretty low cost of living.
Although it can be hard to get around and shop without knowing Bulgarian, those who do understand the language will it pretty easy to live affordably there. It's entirely possible to live a very comfortable lifestyle with monthly costs of around $1,644. This includes rent, utilities, and even entertainment.
Belgium
Although it tends to be understood that the experience in a given country will vary from town to town, Yahoo! Finance particularly positioned Antwerp, Belgium, as one of the best places to retire in Europe. Not only is it scenic, full of rich history, hosts a delectable local cuisine, and very walkable, but there are some more material benefits to living here too.
Not only is Antwerp an excellent conduit for the nation's healthcare system but its also known to have a reasonable cost of living. To take care of their monthly needs, a retiree moving here can expect to pay $1,732.
Nicaragua
According to International Living, Nicaragua has one of the sweetest deals in the world for people looking to retire there. Not only does one just need to prove $600 in monthly income and be over 45 years old, but they won't be taxed on out-of-country income, can bring a car and $20,000 worth of household goods over without paying taxes or duties on them, and open local bank accounts.
Building a home is also easier here than in other places, as there's a sales tax exemption on building materials up to the first $50,000. However, perhaps the biggest boon is the cost of living here, as someone can live comfortably (including hiring maids and gardeners) for less than $900 a month. If a person is renting, it's possible to get an apartment between $300 and $400 a month.
Czechia
Also called the Czech Republic, one of Czechia's biggest global touchstones is the city of Prague. It's called the city of a thousand spires due to its unique, classic architecture that includes structures dating back to medieval times. However, it's not just a good city to aim for in retirement because it's pretty.
According to Yahoo! Finance, it's generally expected that a person can live on about $1,479 a month there without having to worry. It's worth noting that one dollar is worth the same as 23.18 Czech Koruna, so the prices an American ex-pat is likely to encounter there aren't as steep as they seem.
Paraguay
Paraguay is not only an easy country to achieve permanent residency in, but also one where citizenship isn't so hard to come by. According to Nomad Capitalist, the nation has less stringent physical presence requirements and applications for citizenship can be made after just three years of permanent residency. In addition, it's considered a very tax-friendly nation to retire in.
Although the blog also noted Paraguay's low cost of living, Numbeo was a little more specific. Not only does the general cost of living average out at just $441 a month but even a three-bedroom apartment in a city center costs just $729 a month. A one-bedroom apartment in the same area costs about $400 a month.
Romania
According to Romania Insider, the eastern European nation has emerged as one of the best places in the world to retire in recent years. As is often the case for many of the nations listed here, this has a lot to do with the relative ease of obtaining a visa and the high quality of life one can expect there.
However, it's also hard not to factor in the famously low cost of living in Romania. According to Numbeo, the average cost of living without factoring in rent amounts to about $632. As for rent, a one-bedroom apartment located near a city center will likely cost around $439 a month.
Austria
Although Austria is known to be a little pricier to live in than some other countries in Europe, there seems to be a significant sliding scale for how expensive Vienna can be. As Yahoo! Finance noted, the monthly cost of living there can vary between $1,631 and $2,047 per person.
That said, those who can afford life in Vienna will have a lot to enjoy there. It provides access to an excellent healthcare system, the air is clean, and public transportation is plentiful. It also has a café culture as vibrant as the one in Paris, only without the cost of living in one of the biggest cities in the world.
Netherlands
Although the Netherlands is often positioned as similarly affordable to Portugal and was named as Europe's greatest place to retire, both of these claims can be a little misleading. For one thing, the nation's pension benefits are top notch, but they're for people who already lived and worked there.
As for the cost of living, Numbeo set the record straight. Although the nation has public health care and basic insurance tends to cost about $100, rent can be as high as $1,181 a month even for a one-bedroom apartment away from city centers. Still, the general cost of living (which averages $1,037 a month) is often lower than in the United States or Canada.
Luxembourg
Compared to some other destinations, the small European nation of Luxembourg is a bit of a mixed bag. The Getaway credited the country for being a multicultural nation popular among ex-pats, and noted that it's easier to transfer one's pension to Luxembourg than it is for many other destinations.
However, it's also true that expenses can get a little steep there, especially when it comes to rent. According to Numbeo, Luxembourg's cost of living is relatively low at an average of $1,025 per month, while even an apartment outside of a city center can cost $1,415 a month. Budget wisely when coming here.
