As Patricia Mahan and Dan Matarazzo stroll through their village of Kritsa in Crete, watching the Mediterranean sunset paint the sky in brilliant oranges and pinks, they reflect on the decision that changed their lives. The American couple purchased their two-bedroom house for just $150,000 in 2023, trading their previous life for something they describe as nothing short of transformational.
“We wanted to move by the sea,” Mahan explains, “in an affordable place.” What they discovered was so much more.
A New Champion Emerges
Greece has now been named the world’s best place to retire according to International Living’s Annual Global Retirement Index for 2026, dethroning traditional favorites and establishing itself as the premier destination for those seeking their perfect retirement haven.
“For years, Portugal and Spain led the way, but recent visa changes and rising costs have retirees looking elsewhere. Greece now offers what many are seeking, a beautiful, welcoming, and affordable European base with accessible residency options and a lifestyle that feels rich in every sense,” explains Jennifer Stevens, executive editor of International Living.
The Perfect Storm of Retirement Benefits
What makes Greece so compelling isn’t just one factor, it’s the harmonious combination of elements that create an almost perfect retirement ecosystem. Greece’s Golden Visa program, granting a residence permit to foreigners making a minimum real estate investment of 250,000 euros (about $290,000), is one of Europe’s most accessible. It also scored highly on climate, healthcare and housing.
The numbers speak volumes about Greece’s appeal to American retirees. According to the SSA’s latest data in 2024, around 13,251 retired American workers receive their benefits from Greece. This makes Greece the fifth country in Europe that is mostly preferred by American retirees.
Living Well for Less
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The financial advantages of retiring in Greece are substantial and immediate. The cost of living in Greece is 50% lower than in the US. One needs around €1,500 per month to live a comfortable life in Greece, making retirement savings stretch significantly further than in most Western destinations.
For those seeking specific financial planning guidance, retirees may need between €800 to €2,500 per month to cover living expenses, including housing, food, healthcare, and leisure activities, depending on lifestyle choices and location preferences.
A Tax Haven for Retirees
Perhaps one of Greece’s most attractive features for international retirees is its generous tax policy. The 7% flat tax rate is a tax program for foreign pensioners who decide to live in Greece. You do need to get a relevant residence permit in Greece, making it a financially savvy choice for those looking to maximize their retirement income.
Healthcare That Works
Healthcare concerns often top the list of retirement worries, but Greece delivers impressive peace of mind. The WHO ranks Greece’s healthcare system 14th globally for quality of care. Similar to other EU countries, it combines the public and private sectors to provide comprehensive medical services.
The practical benefits are remarkable. The healthcare system emphasises preventive care, regular health screenings, and access to high-quality medical treatments. All of this contributes to improving life expectancy in Greece, which is 82.9 years in 2024. In comparison, it is 79.2 years in other European countries and the US.
Climate and Lifestyle: The Mediterranean Dream
There is limitless sunshine! Some regions enjoy up to 300 days of sun annually. This vitamin D boost is not only good for the spirit but also for the body, supporting bone health and overall well-being. The Mediterranean climate creates opportunities for year-round outdoor activities, from swimming in crystal-clear waters to hiking through ancient olive groves.
Due to Greece’s friendly climate, there are many opportunities for walks, swims, and attend outdoor events, making it easier to live an active and healthy lifestyle.
Multiple Pathways to Paradise
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Greece offers various routes to residency, accommodating different financial situations and preferences. The investment options are: €800,000 for real estate located in prime zones, such as Attica, Thessaloniki, Mykonos, and Santorini; €400,000 for real estate located elsewhere; €250,000 for real estate purchased through the Golden Visa program.
For those preferring not to invest in property, there is also an option for retirees, the “financially independent person” visa, which grants applicants a three-year residence permit in the country. Passive income, which must come from outside Greece, must be of at least €3,500 per month, increased by 20 percent for a spouse and 15 percent per child.
Island Life or City Sophistication
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Greece’s diversity means every retiree can find their perfect setting. Among the best places for retirees are Athens, Thessaloniki, Rhodes, Volos, and Kalamata, each offering their own conveniences.
For those drawn to island life, Crete is the birthplace of the Minoan culture, one of the earliest recorded in Europe. There, you can explore the Palace of Knossos, the mythological labyrinth of the Minotaur, and the archaeological museum in Heraklion.
Crete offers particular advantages for retirees: Unlike other smaller islands, Crete has a big airport, which is second busiest airport in the country, after Athens International Airport. Crete also provides access to healthcare through its hospitals, so you won’t have to worry about catching another boat to the nearest island with a hospital.
Community and Integration
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One of Greece’s hidden gems for retirees is the ease of social integration. Not only do you have the warmth of the Cretan people, but there are plenty of foreigners living on the island, to make friends with. In fact, many expats find it easy to integrate into the community, making social connections a breeze.
The Real-Life Experience
Back in Kritsa, Patricia and Dan’s story illustrates the practical reality of retiring in Greece. The other priorities that influenced their decision were that they “wanted village life” but “needed to be near amenities like state-of-the-art medical facilities, a nearby airport, weekly farmers’ markets and supermarkets and stores of all kinds to furnish our house”.
They found all of this and more—morning swims in the Mediterranean, afternoon visits to ancient ruins, evening dinners featuring fresh local produce, and a cost of living that allows them to live better than they ever imagined possible.
A Growing Movement
More than 20,000 U.S. expats are estimated to live permanently in Greece after moving from the U.S., and many more are likely to join them soon and are currently eyeing the destination. With 1,285 U.S. citizens having expatriated in the first quarter of 2025 alone, up 102 percent from the same period a year earlier, Greece’s appeal is clearly resonating with Americans seeking a better retirement lifestyle.
The Bottom Line
Greece’s affordable living costs and high-quality healthcare system make it an attractive choice for retirees seeking a Mediterranean paradise to spend their golden years. When combined with accessible residency options, favorable tax treatment, perfect climate, rich culture, and welcoming communities, it becomes clear why Greece has earned its crown as the world’s best retirement destination.
For Patricia and Dan in Kritsa, and thousands of other retirees who’ve made the leap, Greece offers something increasingly rare in today’s world: a place where retirement dreams don’t just survive—they flourish.
As the sun sets over the Aegean and the evening breeze carries the scent of jasmine and sea salt, it’s easy to understand why Greece has captured the hearts of retirees worldwide. In a place where ancient history meets modern comfort, where hospitality is a way of life, and where every day feels like a vacation, retirement isn’t just about ending a career, it’s about beginning the most beautiful chapter of life.