How to Retire in Europe from USA: Best Countries for American Retirees

European retirement destinations for Americans

For affluent Americans, retirement in Europe is usually not about finding the cheapest place to live. It is about securing a better quality of life, more predictable planning and a legal base outside the US.

Europe offers several legal routes to residence. For American retirees, the most relevant options are usually based on passive income, financial independence or investment. For example, Spain’s Non-Lucrative Visa suits retirees who can support themselves without working locally. Greece, Portugal and Malta offer investment-based residence routes for applicants who want asset-based paths.

The suitable route depends on the applicant’s income, savings, family plans, tax position and preferred country of residence.

Top 10 European retirement destinations for Americans compared

#	Country	Main route	Financial threshold	Status validity	Time to permanent residence
1	Portugal	D7 Visa Golden Visa	€920+ monthly income €250,000+	5 years to permanent residence	5 years to permanent residence
2	Greece	Golden Visa	€250,000+	7 years to citizenship	5 years to permanent residence
3	Spain	Non-Lucrative Visa	€28,800+	5 years to permanent residence	5 years to permanent residence
4	Malta	MPRP GRP	€169,000+ €30,000+	Permanent residence under MPRP	5 years to permanent residence
5	France	Visitor Visa	€1,800+ monthly income	5 years to permanent residence	5 years to permanent residence
6	Italy	Elective Residence Investor Visa	€31,160+ €250,000+	5 years to permanent residence	5 years to permanent residence
7	Cyprus	Golden Visa	€300,000+	Permanent residence	8 years to citizenship
8	Austria	Financially independent residence	Proof of funds	Renewal residence permit	10 years to permanent residence
9	Hungary	Golden Visa	€300,000+	Residence for 10 years with renewal	8 years to permanent residence
10	Andorra	Golden Visa	€50,000+ annual income	Retirement permission	10 years to permanent residence

Residence options for Americans retiring in Europe

For Americans who retire in Europe from the USA, the right route depends on what they want the status to provide: a long-term legal base, access to healthcare, tax planning flexibility, family relocation, or a path to permanent residence and citizenship. Some applicants want permanent residence from the start. Others choose a temporary residence permit first and later plan permanent residence or citizenship by naturalization.

1. Retiring in Portugal: Golden Visa for investors

Portugal also has a visible American community. According to AIMA, Portugal had 19,258 residents with US citizenship in 2024, and 4,941 residence permits were issued to US citizens during the year ^[1] Source: American residents — AIMA, Relatório de Migrações e Asilo 2024 . This supports Portugal’s position as one of the most established European destinations for Americans planning long-term relocation.

Portugal Golden Visa is a residence by investment program. It may suit retirees who want to obtain residence by investment and include close family members in the application. The residence permit is renewed every 2 years.

Applicants may choose one of 5 investment options:

1. Support of cultural projects — €250,000+.
2. Purchase of investment fund units — €500,000+.
3. Business investment — €500,000;
4. Investment in Portuguese scientific projects — €500,000+.
5. Creation of 10 jobs in Portugal.

The real estate purchase option is no longer available under the Portugal Golden Visa. 

The Portugal D7 Visa is a non-investment route for financially independent applicants. It is intended for foreigners with passive income from abroad, such as a pension, dividends, royalties or rental income. 

To qualify for the D7 visa, applicants need to show:

• passive income of at least €920 per month;
• savings of at least €11,040 in a Portuguese bank account;
• owned or rented accommodation in Portugal;
• health insurance;
• no criminal record.

The minimum income requirement increases by 50% for a spouse or parent and by 30% for each child included in the application. The D7 residence permit is initially valid for 2 years and may be extended if the applicant continues to meet the conditions.

Both routes may support a long-term path to Portuguese citizenship by naturalization in 10 years, provided the applicant maintains legal residence and meets the conditions in force at the citizenship stage. 

2. Retiring in Greece: Golden Visa for Mediterranean relocation

Greece ranks 1st in International Living’s 2026 Annual Global Retirement Index ^[2] Source: Retirement ranking — Annual Global Retirement Index 2026 . It compares retirement destinations by factors such as cost of living, healthcare, housing, climate, visas and ease of transition.

Greece Golden Visa is a residence by investment program. The first residence permit is issued for 5 years. It can be renewed every 5 years if the investor keeps the investment. 

Greece offers several investment options:

• real estate purchase — €250,000+;
• investment in funds — €350,000+;
• real estate lease — €400,000+;
• bank deposit — €500,000+;
• purchase of securities — €500,000+.

For real estate, the threshold depends on the location and property type:

1. €250,000 — for industrial properties converted into residential use or buildings for renovation.
2. €800,000 in Attica, Thessaloniki, Mykonos, Santorini and islands with a population of at least 3,100.
3. €400,000 — in other regions.

Greek citizenship by naturalization may become available after 7 years of continuous residence. Applicants do not need to obtain permanent residence before applying for citizenship. They must also pass exams on the Greek language, history and culture.

3. Retiring in Malta: permanent residence or tax-focused relocation

Malta has a highly international resident population, which may make relocation easier for English-speaking retirees. According to Malta’s National Statistics Office, Malta and Gozo had 574,250 residents at the end of 2024, and non-Maltese citizens made up 29.4% of the population ^[3] Source: International population — National Statistics Office Malta . Net migration was the main driver of population growth in 2024.

Malta offers two main routes for American retirees.

Malta Permanent Residence Programme, MPRP, is designed for applicants who want permanent residence status from the start. To qualify, applicants need to meet several financial conditions:

• purchase residential property worth at least €375,000 or rent residential property for at least €14,000 per year for a minimum 5-year period;
• make a government contribution of around €37,000;
• pay an administration fee of around €60,000;
• make a charitable donation of €2,000 to a registered Maltese NGO;
• show assets of at least €500,000, including a required amount of liquid assets, or €650,000 with a lower liquid component.

Malta Global Residence Permit is a tax residence framework for financially independent applicants. It may suit retirees who plan to relocate and structure their lifestyle around Malta.

The main GRP tax conditions include:

• foreign income remitted to Malta is taxed at 15%;
• minimum annual tax is €15,000 per family;
• foreign income not transferred to Malta is not taxed there;
• capital gains earned outside Malta are exempt from Maltese tax, even if brought into Malta;
• income and capital gains arising in Malta are taxed at standard rates up to 35%;
• no inheritance tax is charged on assets.

For citizenship planning, Malta requires genuine residence. Applicants generally need at least 5 years of residence in Malta within the 6 years before the final 12 months preceding the application. They also need continuous residence in Malta for the 12 months immediately before applying.

4. Retiring in Spain: Non-Lucrative Visa for financially independent retirees

Spain ranked 8th in International Living’s 2026 Annual Global Retirement Index ^[4] Source: Retirement ranking — Annual Global Retirement Index 2026 . The ranking highlights Spain as one of the leading European retirement destinations, together with Greece, Portugal, Italy and France.

Spain Non-Lucrative Visa is a residence route for financially independent applicants who want to live in Spain without working there. It may suit American retirees who have passive income, savings, a pension, rental income or dividends. 

The first residence permit card is issued for 1 year. It can then be renewed twice, each time for 2 years. Renewal applications are submitted 60 days before the permit expires, but no later than 90 days after expiry.

Applicants need to prove annual income of at least €28,800, or €2,400 per month. The requirement increases by €7,200 per year for each additional family member. 

For renewal, residents need to confirm income for 2 years: at least €57,600 for the main applicant and €14,400 for each additional family member.

Applicants must also prove a registered address in Spain by renting or purchasing property. The program does not set minimum requirements for the property value or rental amount.

Permanent residence may become available after 5 years of living in Spain with a residence permit. Spanish citizenship by naturalization may become available after 10 years of residence. 

5. Retiring in Cyprus: permanent residence by investment

Cyprus has an international resident base, which may make relocation more familiar for American retirees. According to the 2021 Census, 74.6% of the population in the government-controlled areas of Cyprus were born in Cyprus, 9.3% in other EU countries, and 15.4% in non-EU countries ^[5] Source: International population — Cyprus Statistical Service . 

CYSTAT also publishes a citizenship table where the United States is listed as a separate country of citizenship ^[6] Source: US citizens data — Population by Country of Citizenship .

Cyprus permanent residence by investment is a route for non-EU investors who want long-term residence in Cyprus. The minimum investment is €300,000 in real estate or eligible securities. 

Cyprus grants permanent residence rather than a temporary residence permit. Residents may live in Cyprus without restrictions. To maintain the status, they need to visit Cyprus at least once every 2 years.

Cyprus offers 4 investment options:

1. Residential real estate purchase — €300,000+.
2. Commercial real estate purchase — €300,000+.
3. Purchase of shares in Cypriot companies — €300,000+.
4. Purchase of securities — €300,000+.

For residential real estate, the investor may buy 1 or 2 properties with a total value of at least €300,000, excluding VAT. Only primary market properties from developers are eligible. For commercial real estate, both primary and secondary market properties are allowed.

Cyprus citizenship by naturalization may become available after 8 years of residence. The applicant must have legally lived in Cyprus for 8 out of the past 11 years. In the final year before applying, absences from Cyprus must not exceed 90 days in total.

6. Retiring in France: Visitor Visa for financially independent applicants

France ranked 7th in International Living’s 2026 Annual Global Retirement Index ^[7] Source: Retirement ranking — Annual Global Retirement Index 2026 . For retirees, France is usually valued for lifestyle, healthcare, culture and long-term residence planning rather than for a low-cost relocation strategy.

France Visitor Visa is intended for financially independent applicants who want to live in France without working locally.

The main requirements include:

• sufficient income of at least €1,800 per month for a single applicant;
• higher income for couples or dependants;
• adequate accommodation in France for the whole visa period;
• health insurance valid in France for the applicant and family members.

Applicants may become eligible for French citizenship after about 5 years. Continuous residence means genuine living in France each year. In practice, applicants should plan France as their real place of residence if citizenship is part of the long-term goal.

7. Retiring in Italy: Elective Residence or Investor Visa

Italy ranked 6th in International Living’s 2026 Annual Global Retirement Index ^[8] Source: Retirement ranking — Annual Global Retirement Index 2026 . These rankings support Italy’s role as a lifestyle-led retirement destination, although residence and citizenship planning require long-term relocation.

Italy offers both investment and non-investment options for American retirees.

Italy Investor Visa is a residence by investment route. The minimum investment starts at €250,000, depending on the option chosen. It is intended for investors who want a long-term base in the European Union rather than a fast citizenship route.

Italy Elective Residence is a non-investment route for financially independent applicants. It suits retirees who can support themselves without working in Italy.

As a general benchmark, applicants for Italy Elective Residence need:

• passive income of at least €32,000 per year;
• suitable accommodation in Italy;
• sufficient financial independence to live without employment in Italy.

The route is designed for long-term relocation. It does not allow employment in Italy.

Italian citizenship by naturalization requires 10 years of lawful residence. Applicants need to maintain legal residence, spend most of each year in Italy and meet integration requirements, which may include language and documentation at the citizenship stage.

8. Retiring in Austria: residence for financially independent applicants

Austria has a large international resident population, although official public statistics do not isolate American retirees as a separate group. According to Statistics Austria, 1,890,740 foreign citizens lived in Austria on January 1st, 2026, equal to 20.5% of the total population ^[9] Source: International population — Statistics Austria .

Austrian residence permit is a route for financially independent non-EU citizens who want to live in Austria without working there. It may suit retirees who have stable income from outside Austria and want a high-quality European base with access to healthcare, education and the Schengen Area. 

The first residence permit is valid for 1 year. The second card is also valid for 1 year. After 2 years of living in Austria, a resident may receive a card valid for 3 years. After 5 years of residence, the applicant and family members may apply for Austria permanent residence.

The applicant must have:

• legal income from outside Austria;
• owned or rented housing in Austria;
• medical insurance;
• German language proficiency at A1 level or higher;
• no criminal record.

Applicants need to prove financial independence. The required amount depends on family composition and is usually calculated as double the minimum cost of living for the year before application. The minimum annual income for 1 applicant is €23,208.

Applicants also need suitable accommodation. There is no minimum property value, but the size and layout must match the family composition. A lease agreement must be concluded for at least 1 year. 

9. Retiring in Hungary: Guest Investor route

Hungary has a smaller American community than Portugal or Spain, but US citizens are present in the country’s official migration statistics. According to the Hungarian Central Statistical Office, about 4,800 foreign citizens with US citizenship lived in Hungary on January 1st, 2026 ^[10] Source: American residents — Hungarian Central Statistical Office . The data is not retiree-specific, but it shows that Hungary has an established, though relatively niche, American resident base.

Hungary Golden Visa is a residence by investment program for non-EU and non-EEA investors. It allows applicants to obtain Hungarian residence by investing in the country’s economy. The minimum investment starts at €250,000, and the obtaining period usually starts at 5 months.

The residence permit is issued immediately for 10 years. It can be renewed once for another 10 years if the applicant continues to meet the program conditions. Renewal is submitted from within Hungary through the Enter Hungary online platform at least 30 days before the permit expires.

Hungary offers 2 investment options:

1. Purchase of fund units — €250,000+;
2. University donation — €1,000,000+.

Under the fund option, the investor buys units in a real estate investment fund licensed by the Central Bank of Hungary. The certificate must be valid for at least 5 years. The investor also needs a registered address in Hungary, confirmed through property purchase or rental.

Under the donation option, the investment supports education, scientific research or artistic creativity. The applicant also needs to confirm a registered address in Hungary. 

Hungarian citizenship cannot be obtained directly by investment. Hungarian citizenship through naturalization generally requires 8 years of continuous legal residence in Hungary.

10. Retiring in Andorra: residence by investment for financially independent retirees

Andorra has a highly international population, which may make relocation more familiar for foreign retirees. According to Andorra in Data 2025, the country had 88,649 residents, and 54.7% of them were foreign nationals ^[11] Source: International population — Andorra in Data 2025 . 

Andorra residence by investment is a passive residence route for foreigners who want to live in Andorra without working locally. The route may suit financially independent retirees who want a European base with a high quality of life, low tax rates and access to local banks, hospitals and schools.

The first residence card is issued for 2 years. The next card is valid for 3 years, and subsequent cards are valid for 10 years. To maintain the status, residents must live in Andorra for at least 90 days a year.

Andorra offers several investment options:

• contribution to the Housing Fund — €400,000+;
• property purchase — €800,000+;
• purchase of financial assets — €1,000,000+.

The Housing Fund option is not yet available, according to Passportivity’s March 2026 update. For property purchase, the investor buys one or more properties, and each property must be worth at least €800,000. If the property costs less than €1,000,000, the investor purchases financial assets to reach this amount.

Andorra citizenship is a long-term route. A resident may become eligible to apply after 20 years. Andorra is not an EU member state, so this route should be assessed as a lifestyle and tax-planning option, not as a path to EU citizenship.

Criteria and country matches for Americans retiring in Europe

A residence route should match the applicant’s real plans. Golden Visas, financially independent visas and permanent residence programs can all support long-term residence, but citizenship depends on renewals, lawful stay, physical presence, language and integration requirements.

Residence route and renewal conditions

The first criterion is the type of legal status. Some routes are designed for investors, while others suit retirees with passive income, pensions, savings or rental income.

For retirees who plan to live in the country, financially independent routes may be more relevant than investment routes. Examples include the Portugal D7 visa, Spain Non-Lucrative Visa, France Visitor Visa, Italy Elective Residence, and Austria residence for financially independent applicants.

Investment routes may suit retirees who want to combine relocation planning with capital allocation. Relevant options include Portugal Golden Visa, Greece Golden Visa, Malta Permanent Residence Programme, Cyprus permanent residence by investment and Hungary Golden Visa.

The main points to check are:

• how long the first residence permit is valid;
• how the permit is renewed;
• whether a spouse and dependent family members can be included;
• whether the route allows work or only passive income;
• whether permanent residence or citizenship is possible later.

Monthly budget and housing costs

Budget planning should start with the city, not only the country. Capital cities and coastal resort areas can be much more expensive than smaller towns or inland regions.

Hungary may be relevant for retirees who want to compare lower-cost EU options. Eurostat reported that, in 2024, Hungary had one of the lowest price levels in the EU for restaurants and hotels, at 72% of the EU average ^[12] Source: Hungary price levels — Eurostat . This does not show a full retirement budget, but it is a useful price-level indicator for lifestyle expenses.

Portugal, Greece, Spain and Italy often suit retirees who want a balance between lifestyle and cost control. Austria and Switzerland may suit high-net-worth retirees who prioritise safety, infrastructure and quality of life over low monthly expenses.

Healthcare and insurance

Medicare generally does not pay for healthcare or medical supplies outside the US, except in limited cases ^[13] Source: Medicare abroad — Medicare gov . American retirees therefore need private insurance, access to a local healthcare system, or both.

Spain, Italy and France deserve attention for retirees who prioritise health indicators. Eurostat estimated EU life expectancy at 81.7 years in 2024; among EU countries, Italy had one of the highest figures at 84.1 years, and Spain followed closely at 84.0 years ^[14] Source: Life expectancy — Eurostat .

For retirees with chronic conditions, the country choice should include an insurance review. The key questions are whether private insurance is available at the applicant’s age, whether pre-existing conditions are covered, and how prescription medicines and long-term treatment are organised.

Taxation and double-tax treaties

Tax planning is essential for US citizens. The IRS states that US citizens and resident aliens abroad have US filing and reporting obligations, and foreign accounts may trigger additional reporting.

Some countries have specific regimes that may be relevant for retirees or high-net-worth applicants. Greece offers an alternative tax regime for foreign pensioners who transfer tax residence to Greece: the official AADE guidance states that qualifying pensioners pay 7% tax on foreign income for up to 15 tax years ^[15] Source: Greece pension tax — AADE .

Italy also has a special regime for foreign pensioners who transfer tax residence to qualifying municipalities. The Italian Revenue Agency states that eligible pensioners may pay a 7% substitute tax on foreign income for each of the 9 tax periods covered by the option.

Malta may suit tax-focused relocation planning through the Malta Global Residence Programme. Malta’s tax authority describes the GRP as a program for non-EU, non-EEA and non-Swiss nationals who meet the required conditions.

US tax treaties also need a separate review ^[16] Source: US tax treaties — Internal Revenue Service . The IRS provides tables of income tax treaties, and Hungary needs special attention because IRS Publication 901 states that the US terminated the income tax treaty with Hungary.

Social Security and Medicare

Social Security and Medicare are separate issues. Most US citizens can receive Social Security benefits while living in many foreign countries, but the answer depends on the country, benefit type and individual circumstances ^[17] Source: Social Security abroad — Social Security Administration . The Social Security Administration provides a Payments Abroad Screening Tool for this purpose.

Medicare usually does not follow retirees to Europe. This makes healthcare planning more important for Americans than for many other nationalities.

A practical shortlist should answer 3 questions:

• whether Social Security payments can continue in the chosen country;
• whether Medicare should be kept for possible treatment in the US;
• which local or private insurance option covers healthcare in Europe.

Language, expat community and everyday integration

Language affects everyday life, healthcare, banking and document processing. Malta and Ireland are the most straightforward options for English-speaking retirees. In Malta, English is one of the official languages under the Constitution.

The EF English Proficiency Index can help compare non-English-speaking countries ^[18] Source: English language — EF English Proficiency Index . In the 2025 ranking, Austria was 3rd globally, Portugal 6th, Greece 20th and Hungary 22nd among countries and regions ranked by English skills.

For retirees who want smoother integration, Malta, Ireland, Portugal and Austria may be easier starting points. Spain, France, Italy, Greece, Cyprus and Hungary can still work well, but language planning should be part of the relocation process.

Housing in Europe

Housing should be checked before choosing a residence route. For retirees, the right location is not only about property price. It also affects healthcare access, transport, daily comfort, tax residence and renewal documents.

Malta may suit American retirees who want an English-speaking European base, a mild climate and a compact island lifestyle. The choice of area depends on whether the retiree prioritises city access, sea views, privacy or a quieter daily routine.

Climate and lifestyle

Climate matters because retirement is a long-term lifestyle decision. Retirees should assess whether they want coastal living, mountain areas, island life, large cities or quieter towns.

Portugal, Greece, Spain, Cyprus, Malta and parts of Italy are natural options for retirees who want sea access and a warmer climate. Greece is especially strong in retirement rankings: International Living placed Greece 1st in its 2026 Annual Global Retirement Index ^[19] Source: Retirement ranking — Annual Global Retirement Index 2026 . The index compares destinations by housing, cost of living, healthcare, visas, climate and ease of transition.

Greece’s official tourism portal also describes the country as having a Mediterranean climate with plenty of sunshine, mild temperatures and limited rainfall.

Austria, Switzerland and Ireland suit a different lifestyle. They may be more relevant for retirees who value infrastructure, stability, nature and safety over a Mediterranean climate.

Path to permanent residence and citizenship

Applicants who want permanent residence or citizenship should check the long-term path before choosing the first residence route. Greece and France are often discussed as shorter naturalization routes, while Spain, Italy, Austria and Hungary usually require longer residence periods. 

Cyprus permanent residence can work as a long-term base, but citizenship requires years of genuine residence and compliance.

The key issue is not only the number of years. Applicants usually need to: 

• maintain lawful residence; 
• renew the permit on time;
• meet physical presence rules;
• pass language or integration requirements;
• keep a clean compliance record.

For this reason, the best place to retire in Europe for Americans depends on the full strategy. A retiree who wants lifestyle and healthcare may choose Spain, France or Italy. A retiree who wants investment residence may prefer Greece, Malta, Cyprus or Hungary. A family that wants an English-speaking base may shortlist Malta or Ireland.

Common mistakes Americans make when retiring in Europe

Americans who retire in Europe usually plan several issues at once: residence, housing, healthcare, taxes, banking and family logistics. Mistakes often happen when the country is chosen by lifestyle alone, without checking legal and financial consequences.

Choosing a country by lifestyle only

Climate, sea access and culture matter, but they should not be the only criteria. A retiree also needs to check residence rules, renewal conditions, healthcare access, tax exposure and the path to permanent residence or citizenship.

A residence permit may be only the first step. Citizenship by naturalization usually requires years of lawful residence, renewals, language knowledge and integration.

Assuming Medicare works in Europe

Medicare usually has limited coverage outside the US. Retirees who move to Europe normally need private health insurance, access to a local healthcare system, or both.

This should be checked before signing a lease or buying property. Older applicants may also need to review age limits, pre-existing conditions, prescription medicines and long-term care.

Ignoring US tax filing obligations

Moving to Europe does not usually end US tax filing obligations. The IRS states that US citizens and resident aliens living abroad generally follow the same filing rules as those living in the US.

For affluent retirees, this may affect brokerage accounts, pensions, IRAs, rental income, trusts, foreign accounts and gifts. Tax questions should be reviewed with a US CPA before choosing a residence route.

Confusing residence, permanent residence and citizenship

A residence permit gives the right to live in a specific country under the conditions of the permit. Permanent residence and citizenship are separate statuses.

Investment residence and financially independent visas may support a long-term naturalization path, but they do not grant citizenship automatically. Applicants usually need to maintain lawful residence and meet national requirements.

Underestimating banking and source of funds checks

Investment residence applications usually involve compliance checks. Authorities and banks may review income history, business activity, sale of assets, tax records and the origin of investment funds.

This is especially important for US retirees with complex assets. Trusts, LLCs, brokerage portfolios and real estate income may require additional explanation and documents.

Not planning Social Security and healthcare together

Social Security and Medicare should be reviewed separately. The Social Security Administration provides a Payments Abroad Screening Tool to help beneficiaries check whether payments may continue outside the US.

A retiree may be able to receive Social Security abroad, while Medicare coverage remains limited outside the US. This difference should be reflected in the relocation budget.

Final thoughts: where should Americans retire in Europe?

1. The best place to retire in Europe for Americans depends on the purpose of relocation. 
2. Portugal, Greece, Spain and Italy may suit retirees who want a warmer climate and Mediterranean lifestyle. 
3. Malta and Ireland may be more convenient for English-speaking retirees. 
4. Austria and Andorra may suit applicants who prioritize safety, infrastructure and a high quality of life.
5. Americans can legalize their stay in Europe through several residence routes. Retirees with passive income may consider the Portugal D7 visa, Spain Non-Lucrative Visa, France Visitor Visa or Italy Elective Residence. 
6. Investors may choose residence by investment programs in Greece, Malta, Cyprus, Hungary or Portugal. 
7. A residence permit may lead to permanent residence or citizenship by naturalization, but this is not automatic.