After spending what felt like an eternity building up your career and growing your wealth, it’s finally time to retire.
Naturally, you decide to try some of that travel that you’ve been hearing about all these years.
Asia? Too far.
Africa? High crime rates.
South America? Close but there are plenty of beaches within driving distance.
For many people, Europe is the obvious choice.
It’s a safe starting point for rookie tourists who want to see something new without being thrust into full-blown culture shock.
Determined to spend your retirement traveling across a diverse, culture-rich, and historically significant continent you start calculating the costs of such an exodus.
Your savings, investments, and pension are enough to go wherever you want but that doesn’t mean you’re comfortable paying $1,900/month for a one-bedroom apartment in Paris.
While Romania may not be as popular as Paris — outside of vampire pop culture at least — it has a lot more going for it than just cheaper rent (though the housing prices are great too.) Let’s dive deeper into the many benefits of retiring in Romania.
Table of Contents
Affordable Housing
If you live in the US, Canada, or any other country that has seen housing prices skyrocket over the past few decades then “affordable housing” may sound like an oxymoron at this point. Fortunately, the same can’t be said for Romania.
According to data from Numbeo, the world’s largest cost of living database, you can rent a three-bedroom apartment in the city center for under $600/month.
If you’re comfortable in a one-bedroom apartment outside the city center then your rent drops to a staggeringly cheap $240/month.
Finding a suitable home won’t be difficult either since Airbnb has thousands of home listings in Romania for both short-term stays and long-term rentals. Here are over 1,000 in the capital city of Bucharest alone.
Low Taxes
If you’re still receiving income from your investment portfolio then you’ll be glad to know that Romania has plenty of tax benefits too. Romanian citizens only pay a flat 10% income tax to the government (the 25% social insurance contribution only applies to employees.)
Of course, citizens of the United States, Hungary, Eritrea, Tajikistan, and Myanmar are still taxed on foreign income even if they no longer reside in their country of origin.
In such cases, you may want to consider renouncing your primary citizenship after becoming a naturalized Romanian citizen. I’m NOT a financial advisor, tax attorney, or immigration lawyer so be sure to check with a licensed professional before making any drastic decisions.
Public Healthcare
Under Article 34 of Romania’s constitution, “The right to health care is guaranteed.”
As such, all Romanian citizens are entitled to free* and unrestricted medical procedures.
Note the asterisk since citizens are required to pay a 10% health insurance contribution but that’s still cheaper than dealing with private insurance providers or crippling medical bills — not to mention much less of a hassle.
As of 2019, there were 532 hospitals in Romania (155 of which were private).
Education
For expats seeking higher education, Romania has plenty of renowned universities to choose from. Particularly, the Universitaria Consortium is made up of the five largest universities in Romania:
- University of Bucharest (Bucharest)
- Babeș-Bolyai University (Cluj-Napoca)
- Alexandru Ioan Cuza University (Iași)
- West University of Timișoara (Timișoara)
- Academy of Economic Studies (Bucharest)
Romania’s student visa program is also quite accommodating, with over 27,000 international students studying in Romania during the 2019-2020 school year. The government even has a website and mobile application that help students find the right study program for them.
Diverse Cities
The cities of Romania are very diverse both in terms of culture and demographics. If we look at Timișoara — designated as the European Capital of Culture for 2023 — you’ll find that there are thousands of Hungarians, Serbs, Germans, and Romani.
This likely stems from the fact that Timișoara is less than 100km from both the Hungarian and Serbian borders. Often being called the Little Vienna of Eastern Europe, Timișoara is also a popular pitstop for travelers heading to the nation’s capital: Bucharest.
Bucharest, with its population of almost two million people, has a bustling IT industry with global giants like Oracle, IBM, Amazon, and Microsoft. This shouldn’t be too surprising since Romania is one of the best countries when it comes to average internet speeds and pricing.
In fact, Romania Insider reported that you can get 1 Gbps download speeds for just €8/month.
Whether you want to go shopping at large malls, admire classic European architecture, tour castles, or spend a day binge-watching Netflix it’s clear that the diverse cities of Romania have it all.
To learn more about the top cities in Romania, watch the eight-minute video below:
Conclusion
With surprisingly cheap rent prices, low income tax, accessible healthcare, great universities, and lots to do across the country there’s no doubt that Romania is an attractive retirement spot. At the very least, you should definitely stop by as a tourist the next time you’re in Europe.
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