Why Europe?
There are those of us near retirement who dream of exploring—and possibly relocating to—an exotic, scenic country outside the United States. And although Mexico continues to be a prime destination for American retirees, Europe still beckons to those interested in exploring the cultural heritage, sophistication and diversity it has to offer.
The Washington Post reports, "According to the Social Security Administration, 441,693 beneficiaries—or about 1 percent of those in the system—received benefits while abroad as of the end of 2005." There are advantages for those adventurous enough in spirit to make the move across the pond. A country in Europe can serve as a base for retirees interested in seeing the continent the way the natives do. Travel is easy and convenient due to the sleek, fast and reliable rail service linking all major cities, making it possible to go just about anywhere in Europe without hassle.
Get on a train in Paris and arrive in London less than three hours later via the Chunnel Eurostar. France's TGV high-speed train whisks you from Paris to Frankfurt in less than 4 hours. Eurail offers substantial discounts for seniors over 60. For even faster travel, look into flights within Europe, which has become remarkably cheap—sometimes even competitive with rail costs—due to no frills airlines like Ireland's Ryanair and London's Easy Jet.
Where To?
Speak to fifteen different American retirees and you'll get fifteen different "best" European countries from which to choose. But here are four worth considering, chosen for their location, culture and retiree-friendly aspects:
Ireland
The Emerald Isle oozes charm. It is the land of poetry and music, of rolling green hills, numerous golf courses, rugged seas and no language problem as long as you avoid the Gaeltacht areas where Irish is still spoken. Although it is no longer an inexpensive place to live, especially in and around Dublin, you won't have to pay property taxes and once you become a resident, you are entitled to free public health care. In addition, all retirees travel free on the country's transportation system.
France
The restaurants. The Louvre. The wines. The Cote d'Azur. The shopping. Although there are no special incentives for retirees, Americans continue to relocate here due to its incomparable quality of life. France offers a wide diversity of cultures—from the Germanic Alsace to the Basque regions—and geography—from the Atlantic beaches to Mont Blanc, the highest peak in the Alps. In addition, the World Health Organization rates France as the best overall health care system in the world.
Spain
Spain combines the sophistication of cities like Madrid with its world class Prado Museum and Barcelona with its cutting edge art scene along with famous beaches like the Costa del Sol and the Costa Blanca. Although the country's popularity means there are areas with more Germans, British and Americans than there are native Spaniards, there are still unspoiled northern coastlines and fishing villages waiting to be discovered.
Croatia
A little known treasure in central Europe, the former Yugoslavia boasts unspoiled Adriatic beaches, spectacular coastlines and walled medieval cities. This country also has no wealth tax, and pensions received from abroad are tax-exempt.
Before You Go
Rent before you buy. Once you decide on a country, try living there on a short-term basis. Options include renting a timeshare, taking a six-month rental or even doing a house exchange. You'll get the feel of the neighborhood or village and find out if you actually like living abroad. Renting also allows ample time to look for properties and visit other countries.
Finally, do your homework. When researching a country, look carefully at residence visas, taxes and most importantly, health care. Most offer free or low-cost health coverage to their natives, and in some cases, to employed, taxed, expats who are contributing to the country's social security. Often members of the European Union receiving a state pension from their country have access to free health benefits in another country.
But retired Americans will usually need to purchase private medical insurance, and that should be done from home where it is less expensive. The American Association of Americans Resident Overseas (AARO) offers a popular reasonably priced health care program for Americans living abroad.
See below for numerous resources for living abroad:
Rental agencies: www.rentvillas.com
www.villasintl.com
Renting a timeshare: www.Redweek.com
House swapping: www.homeexchange.com
Expatriates online: www.internationalliving.com
www.transitionsabroad.com
Government sources: www.embassy.org
www.state.gov
