One Of The Best European Cities For Retirees Costs $1,500 Or Less A Month

One of the most affordable places for American retirees to live is a mountainous city close to the northern Spain-Portugal border that is dominated by a 12^th Century medieval castle, at least according to International Living. In Bragança, Portugal, a city of about 34,000 people, a couple can live reasonably well on about $1,500 a month — a figure that includes up to $500 on rent, $150 on utilities, $400 on food, and $100 on health care.

Plus, Bragança is not a boring place to live, either. There are festivals held throughout the year, along with plenty of restaurants with moderately priced menus, abundant places to shop, a thriving arts scene, a private hospital, and parks such as the Parque Natural de Montesinho. There are also an abundance of historical buildings, including the aforementioned centuries old Castelo de Bragança, which sits tall on a hill in the center of town. 

There is a lot to love about retiring in Portugal. First and foremost, even with new senior deductions on income tax, it has become increasingly more expensive for Americans to afford to retire in the U.S. thanks to increases in housing and the overall cost of living. This can make it particularly appealing to consider living abroad, especially in your golden years. Plus, more than 760,000 people on Social Security receive their benefits while living in other countries every year, according to the Social Security Administration. Of that, about 10,000 Americans live in Portugal according to government data, per Global Citizens Solutions, a 239% increase from 2017.

Before booking a flight, make sure to do your research. For starters, you should work on obtaining a two-year D7 Visa, which requires applicants to have private health insurance, a clean criminal record, and steady income of at least €870, or about $1,020, a month. To renew, a visa holder must have stayed in the country at least 16 months, have a minimum balance of €10,440, or $12,250, in a Portuguese bank, and not be arrested. Wealthy individuals can pursue the country's five-year Golden Visa Program. However, in order to get this, you must invest a minimum of €250,000, or roughly $293,000 — although most pathways require over €500,000, or $586,000 — in Portugal. 

There are also some specific drawbacks to consider before retiring in Portugal. The country places taxes on global income at a rate between 14.5% and 48%, according to Forbes. This includes pensions and retirement funds that are sent directly to your bank in Portugal. In addition, this is not a country for people with mobility issues as many buildings are not handicap accessible, and its cobblestone streets and sidewalks can be hard to walk on. In particular, Bragança is a rugged, hilly, and somewhat isolated city — located over 300 miles from the country's capital city of Lisbon.