Many retirees are opting to move abroad due to cheaper living costs and lower taxes. Greece is becoming increasingly popular among German pensioners due to its tax laws. If someone spends more than half the year in Greece, they have to pay tax there, including on their pension, which is only at a rate of 7%, making it an attractive option for pensioners on a budget.
A couple from Ulm, Manfred and Karin Reuter, decided to leave Germany and move to Sitia, a popular holiday island in Greece. For a rent of only 550 euros, they now live in a 140 square meter apartment with three terraces and a sea view, just 10 minutes from the beach. Their monthly living expenses (excluding rent) amount to 571 euros, and their total monthly expenses for a couple come to 1,196 euros, leaving them with a surplus of 500 euros each month.
However, emigrating to a foreign country requires a lot of preparation, such as obtaining residence cards, social security, and bank accounts. German pensioners should also inform the pension insurance as they have to transfer the money to another country. It is important to consider the quality of local medical care, as well as social support and language barriers. Additionally, one must be prepared to leave family, friends, and social connections behind.
While the prospect of a cheaper and sunnier lifestyle in retirement may be tempting, it is important to take into account all the factors before making such a significant decision.
