How Much Money Do You Need to Retire in Greece?

Retiring in Greece offers a blend of rich cultural heritage, a desirable Mediterranean climate, and a relaxed lifestyle. Proper financial planning is crucial to navigate the costs of living, residency requirements, healthcare, and tax obligations. This article provides a clear overview of the financial considerations involved in making Greece your retirement home.

Understanding the Cost of Living in Greece

The cost of living in Greece can be significantly lower than in many Western countries, allowing retirement savings to extend further. Expenses vary based on location, with major cities and popular islands generally being more expensive than rural areas. A single person might spend €1,000 to €1,500 per month, excluding rent, while a couple could budget €1,500 to €2,500 monthly, depending on their lifestyle choices.

Housing represents a substantial portion of any budget. Rental costs for a one-bedroom apartment range from €400 to €600 per month in smaller towns, and €700 to €1,200 in larger urban centers like Athens or Thessaloniki. Two or three-bedroom flats in cities could cost €1,000 to €2,000 monthly. Purchasing property is also an option, with prices varying from around €160,000 in Nafplio to approximately €295,000 for a furnished two-bedroom apartment in Athens.

Utility expenses are reasonable. For an average-sized apartment, monthly bills for electricity, water, and garbage collection range from €45 to €170, depending on heating and cooling usage. Electricity bills arrive every two months and include local property taxes for rubbish removal and municipal services. Water costs average about €32 per month. Internet and basic cable television packages typically cost around €45 per month, and mobile phone services are approximately €21.50 monthly.

Food costs are a significant part of the budget. An average grocery budget for two people is approximately €345 per month for a retiree, ranging from €250 to €400. Dining out is relatively affordable; a meal for two at an average restaurant, including wine, costs around €40. An inexpensive restaurant meal might be €10 to €15 per person, while a three-course meal at a mid-range establishment could be €30 to €50 per person.

Transportation expenses are manageable, especially with public transit. A monthly public transportation pass costs around €30 to €40. Taxi fares start at approximately €3.50, with a cost of about €1.77 per mile.

Financial Requirements for Greek Residency

For non-European Union citizens, obtaining a long-term residency permit, such as the Financially Independent Person (FIP) visa, is a prerequisite for extended stays. This visa requires applicants to demonstrate sufficient financial resources to cover living expenses without engaging in employment in Greece. The primary applicant must prove a stable passive income of at least €3,500 per month. This monthly income requirement increases by 20% for a spouse and an additional 15% for each dependent child.

As an alternative, applicants can show a lump sum bank deposit to cover expenses for the permit’s duration. For the three-year FIP visa, a bank deposit of at least €126,000 is recommended, with similar percentage increases for accompanying family members. Acceptable forms of proof include:
Pension statements
Bank account balances
Social security pension statements
Investment portfolio summaries
Other legal evidence

The FIP visa application process involves specific financial outlays. There is an application cost of €1,000 for permit stamp duties, with an additional €16 for the electronic residence card. Applicants must first obtain a Type D visa from a Greek Consulate or Embassy in their home country before applying for the FIP residence permit in Greece.

Healthcare Costs and Coverage for Retirees

While Greece has a public healthcare system, the National Healthcare System (ESY), access for foreign retirees from non-EU countries is generally limited without specific contributions or agreements. For foreign retirees, comprehensive private health insurance is often a mandatory requirement for obtaining and maintaining a residency visa. This insurance must cover basic healthcare needs within Greece. Monthly premiums for private health insurance plans suitable for retirees can start around €120 for individuals under 75 years of age.

Retirees should anticipate potential out-of-pocket expenses. These could include costs for certain prescriptions, specialist visits, or procedures not fully covered by their insurance plan or the public system.

Tax Considerations for Foreign Retirees

Foreign retirees establishing residency in Greece need to understand the local tax implications for their income and assets. An individual is considered a tax resident in Greece if they spend more than 183 days within the country in a calendar year. This status subjects their worldwide income to Greek taxation, unless specific exemptions or treaties apply.

Greece offers a special tax regime for foreign retirees. Eligible individuals can benefit from a flat annual tax rate of 7% on all foreign-sourced income for up to 15 years. This rate applies to various types of foreign income, including pensions, dividends, interest, and capital gains. To qualify, retirees must not have been a Greek tax resident for at least five out of the six years preceding their move and must transfer their tax residence from a country with a double taxation treaty or a tax cooperation agreement with Greece.

Double Taxation Treaties prevent income from being taxed twice. Greece has such agreements with many countries, including the United States, which clarifies taxing rights on income streams like pensions. Any foreign tax paid abroad on foreign-sourced income may be claimed back as a foreign tax credit against the 7% tax due in Greece, depending on the treaty.

Other taxes are relevant for retirees. Property owners are subject to an annual Unified Property Ownership Tax (ENFIA), calculated based on the property’s size and location, with rates ranging from €2 to €16.20 per square meter for buildings. Inheritance tax in Greece is progressive, ranging from 1% to 40% depending on the relationship between the deceased and the heir. There are significant tax-free amounts, such as up to €400,000 for spouses and children, provided certain conditions are met.

Estimating Your Total Retirement Budget

Synthesizing the financial considerations provides a clearer picture of the total estimated retirement budget. While costs fluctuate, a comfortable lifestyle for a single retiree often requires a monthly budget ranging from €1,200 to €2,000, including rent. For a couple, this estimate falls between €1,500 and €2,500 per month. These figures encompass typical living expenses, a portion of healthcare costs, and a buffer for miscellaneous expenditures.

The actual amount needed is influenced by lifestyle and chosen location. Residing in a city like Athens or on popular islands will incur higher housing and leisure costs than settling in a rural area. The 7% flat tax on foreign-sourced income can significantly reduce the overall tax burden, allowing for greater disposable income.

Creating a personalized budget is an important step. It is advisable to account for potential inflation and to maintain an emergency fund for unforeseen circumstances.