Locations in five countries in Europe are offering financial incentives to new residents meeting specific qualifications, according to a report from InternationalLiving.com. The countries — including Italy, Spain, Greece, Ireland and Portugal — have available grants, subsidized housing or long-term tax incentives that can meaningfully reduce the cost of relocating abroad when paired with the right visa.
“For retirees, these incentives can meaningfully reduce the upfront cost of starting a new life overseas,” says Jennifer Stevens, executive editor of International Living. “Whether it's a tax break in Italy or Greece, a housing refurbishment grant in Ireland, or relocation support in Portugal, these programs can help stretch retirement savings further.”
But, as the report makes clear: Make sure you understand the details before moving. Because there's always a catch.
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Report author Ted Baumann says, “One of the most important details to consider is that in many cases, it's not actually the country offering an incentive — it's a small town or a region of a country. And while the incentive may suit you well, keep in mind you'd still need to qualify for residency with that country's federal government.”
1. Italy
Italy is known for €1 home schemes. Usually located in rural or shrinking towns, these schemes typically offer dilapidated houses for as low as €1 if the buyer fixes them up within a fixed timeframe and puts down a deposit to guarantee the work is completed. Some towns also offer rent or energy subsidies to newcomers. “If you can combine this with a pathway to residency and you don't mind living in a rural area, this can be a great option,” Baumann says.
aerial view of the medieval village of Radicondoli, built on a ridge of a hill in the heart of the Colline Metallifere
Some regions offer larger incentives: Trentino has granted up to €100,000 toward the purchase and renovation of a home, provided the recipient lives in it. The town of Radicondoli, south of Florence, offers grants and subsidies with a requirement that new residents live there for at least 10 years.
Italy's most significant nationwide incentive is tax-based. “If you settle in specific southern municipalities and regions, Italy will give you a 7% flat tax concession that lasts 10 years,” Baumann says. With top marginal tax rates exceeding 40%, he notes, “this is a hefty incentive.”
Read more: Retire in Italy for Culture and Beauty & Want to Move to Italy? What to Consider Financially
2. Spain
Spain offers financial incentives through rural municipalities. These can include cash grants, free or discounted land, and other benefits — but they come with strings attached.
“You need to be listed on the municipal register as a resident and taxpayer and promise to make it your main home for a minimum period,” Baumann explains.
Examples include the town of Ponga in Asturias in Spain's northwest, which offers about €3,000 to new residents, and the Extremadura region in the central-west, next to Portugal, which provides relocating digital nomads with grants of up to €15,000.
Spain's most powerful incentive is also tax-related. Baumann points to “Beckham's Law,” a special expat tax strategy that offers a flat rate on certain employment income, along with exemptions on some foreign-source income.
Read more: Retire in Spain for Rich Culture, Cuisine and Coastal Bliss
3. Ireland
Ireland's incentive programs are tied to housing restoration rather than relocation cash. The national government offers grants of up to €70,000 to refurbish vacant or derelict houses. On offshore islands, that amount can rise to €84,000.
“The catch is that you must refurbish it to live in as your principal residence or make it available to rent,” Baumann says. “And you must own it in your own name.”
As with similar programs elsewhere, he adds, “This isn't cash for your own pocket; it's money that must be used to restore property.”
Read more: Retire in Ireland for Lush, Green Landscapes and Bustling Cities
4. Greece
Some small islands have offered housing, land and monthly stipends to attract residents and essential workers. “The most famous is Antikythera, which will give you a house and a plot of land as well as €500 per month for up to five years,” Baumann says.
Greece also offers a significant tax incentive: “a 7% flat tax rate for up to 15 years for new residents,” Baumann says, calling it a major draw given Greece's high marginal tax rates.
Read more: Retire in Greece for Relaxed Living With a Cinematic Backdrop & Can You Afford Retirement in Greece? 3 Tax Benefits Make It Possible
5. Portugal
Under the government-backed Emprego Interior Mais program, eligible applicants can receive a grant of up to €6,000 to help cover moving and other costs associated with relocating to the countryside. Households may also qualify for an additional 20% per dependent who joins the move.
“If you're a foreigner, you first need to have residency, which in this case would mean the D8 digital nomad visa — having a job is a prerequisite for the relocation grant,” says Baumann. “The D8 requires an income of around €3,500 a month.”
Read more: Where to Retire: Living in Portugal as a US Retiree & Want to Move to Portugal? What to Consider Financially
Note: This item first appeared in Kiplinger Retirement Report, our popular monthly periodical that covers key concerns of affluent older Americans who are retired or preparing for retirement. Subscribe for retirement advice that's right on the money.