Soon, I'll be retiring from the military in my 40's with a $3k a month pension. I'll also have close to $900,000 invested between retirement accounts and regular brokerage index funds. At a conservative withdrawal rate, I should be able to have a grand total of $5k to $6k a month in passive income. Is moving to Spain, Italy, or Romania realistic in terms of my budget and the ability to obtain a visa? Internet searches say yes, but I'm skeptical.
For two people, Italy’s ERV (elective residency or “retirement” visa - no work allowed) is I think €38K per year for two people in steady cash flows you can show over a long period of time (pension plus dividend maybe). It’s the minimum requirement set by the Ministry but each consulate has discretion if they want more. You can’t work even remotely until 5 years with permanent residency. Have you explored ancestry (anywhere in EU)?
If you have verifiable pension income of $3,000 per month, you should consider applying for Spain's NLV.
One of the requirements is that one should have €2400 per month in verified passive income or €28,800 per annum in total savings.
Not sure about Romania and Italy though..
I do have a wife. I know that 2 people change the calculations. It's not just the visa. Is this enough to live well? It doesn't go very far in much of the US
Depends on what you mean by “live well”. Do a rough budget, starting with the cost of housing. 5k/month is a lot higher than most locals make, but depending on your tastes it may not be enough in Madrid or Barcelona.
If that's the case, then there will be an additional $600 per month or $7200 per year. Which amounts to $36,000 per year. If you can demonstrate that, with 5K to 6K passive income per month, then it shouldn't be an issue.
When it comes to lifestyle, to be honest, it really depends on you, on how and where you plan to live in Spain and how willing are you to adjust your lifestyle in Spain. Your current lifestyle in the US will not be the same in the Spain. If you plan to live in Barcelona, Madrid, or Valencia - it will be expensive since these cities are on the upper side in term of COL, though you will still have some spare savings on the side.
From what I have understood from others and I personally understood, a couple could get by comfortably with an average of €2,300 per month. The said amount is above an average Spanish income, though below on how you live in the US.
Consider looking at second tier cities i.e Santander, Ovideo, Ourense (Northern Spain) to Jerez de la Frontera, Malaga, Cordoba (Southern Spain) etc - there are high speed train linking to Madrid and flights linking to major cities in Europe.
Just somethings to consider if you consider Spain
Here are some links to share with you. Ask around so that you'll have a rough idea. I'm planning to do the same soon.
FB : Americans retiring in Spain
FB : Americans Moving To Spain
FB : Spanish NLV
YouTube : Cost of Living Spain: Average Monthly Expenses Breakdown (2025)
YouTube : How Much Does it Cost to Live in Spain? Average Monthly Expenses Breakdown
There are subreddits you can look at too
Going To Spain
Moved To Spain
Needed to retype as I was typing on my phone and also needed to be in the right headspace to respond back to your comment.
It's more than enough for Croatia, look up Pula, Istria. It's by the sea, close to Italy to Alps and Austria.
Slavic languages are much harder than Romance. I have B1 Spanish already. Learning Italian or Romanian should be achievable with real effort.
Have you ever thought about South America, Brazil for example? You could live very well with your income. If I'm not mistaken, the retirement visa has requirements of $2,000 per month and a real estate investment of 700,000 reais in the North and Northeast regions and 1,000,000 reais in the rest of the country.
its OK for Spain to qualify for NLV, you can use your investments to demonstrate 4X IPREM financial sufficiency in combination with your pension. You will need to get qualifying private health insurance with no copays and deductibles but it is pretty affordable. $5K for 2 people is fine, even in Madrid and Barcelona (assuming a 1 bedroom apartment)
This is very relative to what lifestyle you live-but I find many places in Spain are much more affordable than places in the US.
I'm about your age, and my wife and I have lived abroad and traveled extensively in Europe including a 1-year long-stay visa in France. Your post and comments sound like you have a good head on your shoulders, so I will ignore the financial aspect. FWIW there are other counties with passive income visas at your level: Panama, Costa Rica, Belize, Portugal, Greece, Thailand (these are off the top of my head so do your own research).
Don't forget the living aspect. A few months in Romania would be a novel travel experience. 5 or 10 years or more is a whole other ballgame.
You say you're married; that's good. Make no mistake - living abroad is isolating. Your in your 40s. What are you going to do all day? What will your wife do all day? I've done several "sabbaticals" and retirement sounds great but can get boring after about 3 months.
I should put this in all capital letters: Do not move anywhere you are not prepared to become fluent in the local language. We REALLY tried hard to learn French, and even after a year could only do the basics. We had to use Google Translate for advanced conversations at the doctor, post office, etc. We got used to steeling ourselves to go outside to navigate the world in a foreign language and culture. It's tough. And this was France, not exactly the most exotic locale.
The 20-year military pension is an awesome setup and I would do exactly the same as you if I were in your shoes. (I would probably nix Romania for the language barrier, and I would strongly consider Central America). Just please don't forget the fact that wherever you move to...you have to live there.
I've been eyeing Boquete, Panama as it sounds idyllic for expats. If Trump does in fact embark on armed conflict in Latin America do you imagine these cultures will continue to welcome us?
Spain's "Non Lucrative Visa" requires an annual income for a couple of around €33k (exact amount varies with year and is based on a similar calculation to how their minimum wages is calculated), so between your pension and investment, you should easily make that requirement. Google "Non Lucrative Visa" and you will get lots of info.
You cannot work on that visa, and you will need private health cover, which for a healthy couple aged about 60 will be approx €130 a month. That will not include drugs which have to be bought at full commercial rate but that will be less than in the US. There is a scheme whereby once you have been resident for a year, you can buy into the Spanish health system for a comparable amount of money - although unlike a local you would still not get a discount on drugs, but everything else would be covered automatically with no excesses, co-pays and all the major hospitals included.
You will need to prove you have somewhere to live (a property you own, or a signed rental contract).
How much housing costs varies with where you end up living - choose a popular place it costs more obviously. I live in a pretty village in Cádiz province and a nice two bed property to buy in the old town for €100k is achievable, double that and you will get a very nice place. Go down to the coast though and you will more than double those numbers.
Given you are in your 40s how are you going to access your retirement funds before 59.5? The options to do so all have pretty significant limitations. Or do you have enough in taxable to cover you until then? Also while much digital ink is spilled on arguing over safe withdrawal rates I am not sure an annual 4% withdrawal in your 40s (3k per month as your upper estimate from $900k) is conservative. It may be fine but I personally would not consider it conservative.
1/3rd of my portfolio ($300k) is in normal taxable brokerage index funds. Another $200k are in a Roth, which I understand I can access early via SEPP rule 72t. The remaining is traditional 401k which I will access last once I reach 60. Also, if my wife and I both access Social Security at age 62, it will be another $1200 a piece, which should be a backstop to sub average returns that the 4% rule isn't prepared for. Also, my current residence has about $200k in equity that I could access if I sold when I moved overseas.
Something to plan around is that many countries consider ROTH withdrawals and gains from home sales as taxable income. Some planners suggest moving the ROTH to a brokerage account before moving and in some cases investing in low or no dividend value or growth stocks so you can control when to take capital gains etc; and to take gain on sale of home before being subject to foreign taxes. It’s a complex topic worth assessing.
Awesome it sounds like you have thought it through. I was personally never comfortable with 72t withdrawals because of their inflexibility but my personal situation was going to be entirely relying on withdrawals and pushing my pension out until older. The only other things I'd investigate in you situation is taxation on the new country side particularly your retirement savings along with healthcare. Private health insurance in many European countries is like pre-ACA in the US so can be complicated if you have preexisting conditions and in at least some countries assuming you get access to the national health system it may have issues. Of course if you military retirement health coverage covers you overseas even better.
Have you considered Malta? English is the official language there.
If you can obtain a visa, that's plenty for Romania. I'd also look into France as they wouldn't tax any of your pension or SS income. My wife and I just moved to RO (she's a RO citizen, so my visa was easy) and we can easily get by on $2500/mo. We spend more but will be traveling around and eating out a lot.
RO's downside would be quality of healthcare. It's improved, but nowhere near France-level. France is my top choice and we may end up there yet due to healthcare costs and quality of care should we need it.
Check out the IRS's website on tax treaties to understand the tax costs you'd incur. Spain is not so good on the tax front.
Upvote for Romania. Transylvania is where it's at.
Food in Eastern Europe are… sad
But I love traveling Transylvania!
You have not been to the right places. Food in Transylvania is amazing. Hungarian, Romanian, Turkish and Slavic fusion. Next time, experiment with some high end Romanian cuisine restaurants using local produce. Your mind will be blown.
3K a month is enough anywhere in Southern Europe that isn’t a big expensive city or a tourist area if you live relatively simply. I do think the bigger problem is just not doing anything for work for 30 or 40 years.
Why are you looking at those countries? If it's just for ease of immigration and decent lifestyle you should consider the Caribbean. Curaçao particularly is very easy even if you don't have a lot of money. I know, I did it 😆
Make sure you understand what your taxes will be. IRA withdrawals are taxed from the first dollar in the US, and then will also be taxed by the European country you live in. Depending on the amount, that can be 20%+ on top of US taxes. So, while living expenses in many parts of Spain are likely lower than those in the US, make sure and do the math before going!
Italian bureaucracy is a nightmare. If you already have a B1 Spanish level, seems like a better fit.
It's very easy to move to Belize. English is even the official language. Funny how all the tolerant liberals only want to go to the white countries though.
Im a tolerant liberal here in Belize. Becoming a minority in a poor country is too humbling for some. I usually never even suggest it to people. Most of them want to go to the cays and live American.
Consider Albania. Certainly, there are trade-offs, but that kind of money will allow you to live incredibly well there, and immigration is comparably real easy for Americans.
Just here to comment that you should file a VA service connected disability claim for all the wear and tear from over the years. The income would be US tax free and reduce your pension by 50% of your service connected pay, but it'll save you on taxes. Plus, depending on your condition, you can also file a SSDI claim, but I don't know much about that process.
I know you're looking at Europe but I'm looking at Colombia. I deployed there and the big cities are wonderful. Medellín even has a new hospital that accepts VA healthcare. Speaking Spanish is a must though.
If this person's unit was worth their salt they would have pushed him to do all that 6+ months before getting out. But it's also best to do it within a year of getting out. Everything is fresh and documentation is readily available.
I know some people "think" they don't need it or push it off till they are retired but by then it'll become an uphill battle to prove you actually suffer from illnesses and issues from service and not just from getting old and they will hit you with the dreaded non-service connected letter.
This! "Your ankles hurt, well maybe you did something dumb after your service". I had a doc look me square in the eyes and repeatedly say "well it's not in your record" during an eval. I did the endoscopy and boom the issues were documented and it's still non-service connected, but I'm over the 100% p&t hurdle so I just hope that doc gets heartburn often.
100% service connected would also be more money than the pension that OP mentioned. You're right, his unit should have pushed for both and educate him on what to claim (hint, it's everything). 50% pension and 100% service would easily put him around $5,500/month. Then CHAMPVA would cover the spouse and family healthcare. Dental, vision, hearing... all covered. Hell, my Podiatrist gives me 2 pair of Hoka shoes a year. Toss in SSDI and spousal claims then it really adds up so I hope OP or a fellow Vet sees this. Don't forget at 100% you get access to therapy, chiropractic, and professional massage care. You took a lifetime of beatings so at least try to get something back and you'll get paid to have access to all of it.
Have you considered Portugal? D7 is easily achievable
You did WELL with your investments. Kudos to you. Spain/Italy will be a stretch unless it's in a rural province. You'd do well in Romania, perhaps even Slovenia.
Spain/Italy a stretch in what way? Budget?
Yea, taxes and COL. Honestly, I'd shoot for Kosovo or Albania. You'd be royalty.
How do you have 6k a month in passive income with 900k invested?
If you worry about budget can always choose South East Asia
$3k a month is military pension
Do you have emergency funds? Try working a little bit more and get emergency fund up and you pretty much can Fire
Why not Portugal?
Did you have tours abroad? If so your experiences retiring overseas will be different from US citizens who never lived overseas. You already know what it is like, and as a retiree would have PX privileges, maybe even mail. if you retire near a base there will be more people who retired from DOD or service who chose to retire there.
Would you consider working as a civilian at one of the bases before retiring for good in country?
You don’t need to do this, but it is a path that would be easier to go as a military retiree than someone who isn’t.
I think there may only be bases in Italy at this point.
Oh absolutely ! Spain is your best bet, we live here. This guide breaks down everything regarding retirement in Spain. Very helpful
https://www.globalexpatsupport.com/post/spain-non-lucrative-visa-ultimate-guide
Go to Romania
Visa, I don't know. Money? Absolutely.