The idea of jetting off in retirement and embarking on a new chapter is a fantasy many of us share. Especially with the increasingly high cost of living in the UK quickly eating into the £12.5k State pension.
Fortunately, we're here to help. We’ve spoken to the experts and gathered the best European countries to move to in order to stretch every penny, so you can enjoy the stress-free retirement you deserve.
With more affordable housing, lower living costs and more, moving to one of these fabulous destinations may be the best thing you can do to maximise your retirement pot, while also experiencing the adventure of a lifetime.
Read on to discover the five countries that will truly make the most of your pension. You'll be booking your flight in no time!
1. Spain
First on the list is a popular choice for retiring abroad – Spain.
Jonny Christie, co-founder of The Property Buying Company, recommends Spain for British retirees, noting that housing and the cost of living are cheaper while still being well set up for people in the UK.
‘Spain is probably one of the strongest all-round options for British retirees. It has an established British expat community, good infrastructure and healthcare, and there are still parts of the country where property is considerably more affordable than at home,' he says.
While cities such as Barcelona, Madrid and Malaga can be expensive, moving to slightly less popular areas can mean getting a lot more for your money.
Jonny recommends Murcia, Alicante and Almería as spots that offer particularly good value: "Murcia, for example, has properties available from around the £130,000 mark, which is less than half the current UK average house price of roughly £271,000,' he adds.
Research examining the most attractive locations for British retirees, carried out by the international wealth management and financial advisory firm Hoxton Wealth in 2025, supports that Spain is an ideal place to relocate.
Rated 81/100 in total, Spain scored particularly highly in 'travel connectivity', which was rated 10/10, offering ‘unrivalled UK access’ thanks to its frequent flights and budget options, and cost of living and healthcare, which were both rated 9/10.
Apartment in Murcia, Spain, £123,077 (€144,000)
2. Portugal
Another country Jonny recommends for Britons wishing to retire abroad is Portugal.
However, with the current housing crisis – the OECD's 2026 economic survey of Portugal reporting that the rise in house prices has exceeded that of the majority of other eurozone members since 2013 – he advises that retirees be 'selective' when considering where to move.
'Places such as Lisbon and parts of the Algarve have become significantly more expensive, so Portugal shouldn't automatically be viewed as the bargain it once was. Looking towards smaller cities, inland areas and less tourist-heavy parts of the country can make a pension stretch much further while still providing the climate and lifestyle people are moving there for,' he explains.
Despite this, Hoxton Wealth's research still found Portugal to be more affordable and straightforward when it comes to purchasing a property compared to other countries in Western Europe.
Their research also concluded that the cost of living in the country was 'extremely affordable', and awarded 'travel connectivity' a score of 9/10.
Considering the availability and affordability of travel is vital if you’re thinking about retiring abroad, because you don’t want future UK visits to incur considerable expenses you haven’t accounted for.
House in Graça, Pedrógão Grande, Portugal, £175,281 (€204,500)
3. Greece
Greece is another location that Jonny recommends for British retirees, aside from the considerably more expensive capital.
'Greece can offer even more property for your money outside Athens and the best-known islands. Mainland Greece and some of the less tourist-driven islands can provide a much lower entry point into the property market, and that can make an enormous difference to somebody retiring on a fixed income,' he says.
One major selling point for Britons is Greece's pension tax regime. Eligible retirees who become tax residents can benefit from a flat tax rate of just 7% on their pensions, which is one of the lowest tax rates on foreign pensions in Europe.
Hoxton Wealth's report also highlights Greece as an attractive location for British retirees – the extremely competitive flat tax of 7% earning it a '9/10' for taxation.
Cost of living also scores highly (8/10), with the report highlighting that it is more affordable than in the UK, making it accessible even if people don't have a large pension pot, and more affordable than many other countries in southern Europe.
It also states that while property in popular holiday destinations can be expensive, there is incredible value for money in coastal and rural areas.
Finally, Greece offers budget flights year-round, making travel affordable and convenient.
House in Crete, Greece, £323,266 (€378,000)
4. Cyprus
Scoring an impressive 85/100 for desirability for British retirees in Hoxton Wealth's study, Cyprus is an extremely attractive option for retirees who want to make their pension go further.
The two highest scorers in the breakdown for Cyprus in Hoxton Wealth's research on this country were on property ownership and taxation, both earning 9/10.
For property ownership, the study showed that buying in Cyprus is popular among Britons and therefore well established.
There are affordable locations where housing is affordable to buy, but some locations, particularly places like Limassol, can be more expensive. So doing your research is essential. Small towns that are less populated offer excellent prices.
Cyprus is also one of the most tax-friendly locations for British retirees. For example, individuals whose pension income surpasses €3,420 a year can opt to have their pension taxed at the extremely competitive flat rate of 5%. Additionally, Cyprus also does not have wealth or inheritance tax.
The cost of living is also lower in Cyprus, so retirees can see their money go further on groceries, utilities and dining out.
However, this again varies according to location, with popular destinations such as Limassol and Nicosia being particularly expensive.
House in Cyprus, £274,624 (€320,000)
5. Bulgaria
Bulgaria is a convenient option to move to, as it only takes just over 3 hours to fly straight from London to its capital of Sofia.
Boasting breathtaking scenery, from beautiful mountain ranges to crystal clear waters of the Black sea, as well as a deep history, it offers so much to explore.
But on top of its diverse landscapes and rich culture, Bulgaria is one of the best options for getting the most bang from your buck when it comes to your pension.
Bulgaria is the cheapest country in the European Union and had the lowest household consumption price levels in the EU in 2025 (i.e. 63% of the EU average). So it's a fantastic choice if you want to remain relatively close to the UK while making the most of a far lower cost of living.
In fact, according to Numbeo, you can save up to 67% on rent per month, with a 1 bed apartment outside of the city centre costing £271.91 (€317.38) on average in Bulgaria, compared to £819.93 in the UK (at time of publishing).
The cost of living is equally affordable, with basic utilities totalling just £99.69 (€116.36) a month – less than half the cost in the UK (around £241.67).
And if you're a foodie, you're in luck! Numbeo estimates that the average meal in an affordable restaurant is just £8.76 (€10.23), compared to £16 in the UK.
Jonny Christie believes Bulgaria is a location that is 'overlooked' when it comes to relocating, but this comes with both pros and cons.
He explains: 'Property and rental costs can be substantially lower than in Western Europe, so for somebody whose priority is making their retirement income stretch as far as possible, it deserves consideration. The trade-off is that it doesn't have quite the same established British retirement infrastructure as Spain or Portugal, so affordability shouldn't be the only consideration.'
So if your top priority is making your savings go further, Bulgaria might be your best bet. However, if you'd feel more comfortable in a location that caters more to British retirees, you'll likely prefer one of the other options.
House in Novachene, Sofiya, Bulgaria, £20,500
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