More Americans Are Packing Their Bags For Retirement In Europe
I think retiring in Europe might be one of the smartest financial moves an American can make right now. When you look at the numbers, it’s hard to argue.
The average retired US household spends around $5,000 a month to live. The average Social Security check? Just $2,005 as of June 2025.
That’s a $3,000 gap. Every single month. It’s no surprise that more Americans are packing up and heading across the Atlantic.
The Trend Is Accelerating
The number of Americans retiring abroad has tripled over the last 30 years, according to a Monmouth University poll.
Right now, over 700,000 retirees are receiving Social Security payments outside the US.
In 2025, the US recorded its first net negative migration since the 1930s – roughly 150,000 more people left than arrived. US visa applications to both Portugal and France tripled since 2024 alone.
That’s not a coincidence.
So Why Europe?
There are cheaper places in the world – Southeast Asia, Latin America, parts of Africa.
But Europe offers something those places often don’t: stability.
Good infrastructure. Strong healthcare systems. Safe streets. And a cost of living that’s dramatically lower than most American cities.
Monthly living costs for one person, excluding rent, sit at around $776 in Portugal, $818 in Spain, and $901 in Greece. Compare that to what you’re spending now.
Healthcare Is a Huge Part of This
The average annual health insurance premium in the US runs around $18,000 per person, according to the 2025 SIP Health Cost Index.
In Portugal, private health insurance often costs under €100 a month. An emergency department visit in the public system runs between €15 and €20.
One American expat in France paid just €130 out of pocket for an MRI. That same procedure averages $2,000 in the US.
That kind of difference changes retirement planning entirely.
Portugal: The Most Popular Choice
If there’s one country Americans are flocking to, it’s Portugal.
It ranked first in Expatsi’s 2025 survey of where Americans most want to live.
The D7 Passive Income Visa is the main entry point for retirees. You need proof of steady passive income – as little as $1,011 per month – and you’re on your way.
Outside Lisbon and Porto, retirees can live comfortably on €1,500 to €2,000 a month. The Algarve region gets over 300 days of sunshine a year and has become a real hub for American retirees.
Portugal also ranked 4th in the World Health Organization’s 2024 ranking of best countries for healthcare access worldwide.
France Has a Tax Trick Many Americans Don’t Know About
France has a bilateral tax treaty with the US that effectively eliminates French taxes on passive income for American retirees.
Social Security payments, dividends, investment income – taxed at zero in France.
Life in smaller French cities and towns is much cheaper than Paris, and the healthcare system is excellent across the whole country.
Italy: A Flat 7% Tax Rate for Retirees
If you settle in a small town in one of eight southern regions – Sicily, Sardinia, Campania, Puglia, among others – Italy offers a flat 7% tax rate on all your foreign income.
One New Jersey family moved to Sardinia in 2022 for the slower pace and sea views. They traded the New York metro for the coast, and haven’t looked back.
Getting residency in Italy takes more paperwork than Portugal, and the language barrier is a real challenge. But the lifestyle rewards are hard to beat.
Things That Can Catch You Off Guard
The US still taxes its citizens on worldwide income, even after they move abroad. You’ll still file a US tax return every year.
Bilateral tax treaties – like those with France and Portugal – can significantly reduce what you actually owe.
Healthcare access in most European countries requires official residency. Many retirees start with private insurance while their paperwork processes.
And visa rules change. Spain closed its Golden Visa program in April 2025, catching a lot of people off guard. Always check current rules before making plans.
Is This Trend Going to Keep Growing?
Almost certainly yes.
A 2025 Gallup/Monmouth survey found that 42% of Americans have considered leaving the country within the next two years. Among people under 30, that number jumps to 63%.
The reasons driving this, healthcare costs, housing prices, the relentless pace of life, aren’t going anywhere.
Have you ever seriously thought about what retirement in Europe might actually look like for you? For a growing number of Americans, that question is getting easier and easier to answer.