Inflation has caused a problem in the U.S. recently, so many are looking for less expensive locales for retirement. While Europe has also experienced some inflation, it is not in core areas like the U.S. Read on for five places that rate high on both factors: satisfaction with lifestyle AND satisfaction with expense. Each offers a combination of affordability, picturesque surroundings, and a friendly community. Here’s a closer look at why these spots are so popular and what you can expect in terms of living costs.

1. Tavira, Portugal

Monthly Expenses: A retired couple can expect to spend approximately $1,800–$2,400 per month, including rent, food, and utilities. You can live luxuriously for $3,000.

Why It’s Popular: Nestled along Portugal’s Algarve coast, Tavira offers retirees a mix of charming old-world architecture, pristine beaches, and a mild climate. The town’s cobbled streets, riverside cafes, and friendly expat community make it a top choice for those seeking a quiet yet culturally vibrant lifestyle. With a lower cost of living than more famous Algarve destinations, Tavira allows retirees to enjoy the perks of coastal Portugal without breaking the bank.

• Rent: Around $700–$1,000 for a comfortable one or two-bedroom apartment.
• Food and Utilities: Roughly $600–$900, with fresh local produce and seafood at the heart of daily meals.

2. Kotor, Montenegro

Monthly Expenses: Expect to spend between $1,500–$2,000 per month.

Why It’s Popular: Kotor is a UNESCO World Heritage site surrounded by rugged mountains and the deep blue waters of the Bay of Kotor. Retirees love this historic town for its affordability, breathtaking landscapes, and laid-back lifestyle. While Montenegro has yet to join the EU, it offers residency options and a lower cost of living compared to other European coastal cities. When I was there recently, everything was priced in Euros.

• Rent: A one or two-bedroom apartment typically costs between $400–$800 per month.
• Food and Utilities: Local markets keep food costs around $400–$700, making it easy to eat well without spending much.

3. Abruzzo, Italy

Monthly Expenses: A retired couple can comfortably live on $1,800–$2,200 per month.

Why It’s Popular: Abruzzo is Italy’s hidden gem, known for its rolling hills, medieval towns, and proximity to both mountains and the Adriatic coast. It’s a more affordable alternative to Tuscany or Umbria, with a strong local culture and unspoiled natural beauty. Retirees are drawn to its traditional Italian lifestyle, with outdoor markets, vineyards, and a slower pace of life.

• Rent: $500–$800 for a one or two-bedroom apartment in smaller towns.
• Food and Utilities: Around $600–$800 per month, with locally sourced food and inexpensive wine contributing to a high quality of life on a budget.

4. Gozo, Malta

Monthly Expenses: Around $2,000–$2,600 per month.

Why It’s Popular: Gozo, Malta’s second-largest island, offers a peaceful, rural lifestyle combined with access to modern amenities. The island is known for its crystal-clear waters, quiet fishing villages, and a tight-knit community of locals and expats. English is widely spoken (it’s an official language), and Malta’s excellent healthcare system and favorable tax policies add to Gozo’s appeal for retirees.

• Rent: A one or two-bedroom apartment typically costs $700–$1,200 per month.
• Food and Utilities: Expect to spend $600–$800, with a focus on fresh Mediterranean ingredients and locally sourced fish.

5. Turkish Republic of Northern Cyprus (TRNC)

Monthly Expenses: A couple can live comfortably on $1,600–$2,000 per month.

Why It’s Popular: Northern Cyprus, especially areas like Kyrenia, offers retirees low-cost living, stunning beaches, and a warm Mediterranean climate. It’s a quieter alternative to Southern Cyprus, with less tourism and more affordability. The region has a rich history and welcoming atmosphere, making it attractive to retirees looking for a blend of culture and tranquility.

• Rent: A one or two-bedroom apartment can be rented for $400–$700 per month.
• Food and Utilities: Around $500–$800 per month, with fresh local produce and reasonably priced dining options making it easy to keep expenses low.

Final Thoughts

Each of these five locations offers retirees a unique lifestyle in a beautiful European setting without the high costs of major cities. Whether it’s the coastal charm of Tavira, the historic ambiance of Kotor, or the peaceful island life of Gozo, retirees can find a slice of paradise while sticking to a modest budget. Considerations like healthcare, residency options, and quality of life make these destinations not only affordable but also enriching for your golden years.