As a result, Eastern Europe is emerging as one of the best places to retire in Europe given their lower costs of living. Mediterranean Southern Europe was the most affordable to place to retire in Western Europe. Today, Southeast Europe is becoming a popular retirement destination due to the low cost of living and a moderate climate.

For purposes of this article Southeast Europe is considered to include the following countries: Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Macedonia, Montenegro, Romania, Serbia and Slovenia. For the most part, these were countries that were part of or had ties with the Soviet Eastern bloc during the Cold War era. Many of these countries made up the former Yugoslavia.
In the late 1980’s the “Eastern bloc” countries began to separate from the Soviet Union and chose to follow the more democratic and market based economies of Western Europe. All indications suggested that this has been more successful for economic development than the communist model.

Today, that transformation continues to take place, but progress has been more difficult than originally imagined. These countries have had to slowly change the entire fabric of their society. Private ownership laws and institutions needed to be created to replace the socialist collective ownership model. Industry needed to be reoriented away from heavy industries to light industries, a service based economy, and production of consumer goods. A centrally planned political model had to be replaced by democratic institutions and more market oriented institutions.

For the prospective retiree who is considering living abroad, the Eastern European countries continue to have a lower cost of living than Western Europe or the United States. They are however more developed than other popular retirement destinations in Central America and Southeast Asia and should prove popular to a segment of the population of retirees who will consider a retirement abroad.

Southeast Europe Retirement – Overview of the Physical Landscape

Location of Southeast Europe for Retirement: The countries of southeast Europe are on a peninsula surrounded on three sides by the Adriatic, the Mediterranean and the Black Seas. Inland areas are mountainous and dominated by the Balkan Mountains. Historically, the mountains have made travel through the region difficult and have kept people separated in small ethnic groupings. The region is often called a shatter belt for this reason and is reflected in the many small countries in the peninsula that are very diverse ethnically.

Southeast Europe’s location makes it ideal for visiting the more expensive Western European countries for tourism, shopping or healthcare. For day-to-day living, the retiree can then return to a more affordable retirement lifestyle in Southeast Europe.

The countries of Southeast Europe are on a peninsula surrounded on three sides by the Adriatic, the Mediterranean and the Black Seas. Inland areas are mountainous and dominated by the Balkan Mountains. Historically, the mountains have made travel through the region difficult and have kept people separated into small ethnic groupings. The region is often called a shatter belt for this reason and that is reflected in the many small countries in the peninsula that are very diverse ethnically.

Climate of Southeastern Europe for Retirement: In southern coastal regions, the climate is a typical Mediterranean type of climate – mild in temperature combined with a wet and dry season. As you move inland and further north, the climate becomes more continental. Continental climates experience pronounced variations in temperature from season to season. And of course, throughout the region, the climate becomes much cooler as you move up into the mountains.

Geology of Southeast Europe for Retirement: The region offers retirees with a range of climates and environments. However, the region is also geologically active and prone to earthquake activity due to the many tectonic plates in the region. Earthquakes combined with a mountainous region heavily impacted by man also create risks for landslides. Typical natural resources for a region like this are forests, minerals, and hydroelectric power. Good agricultural land is scarcer due to the mountainous terrain.

Although the Balkan mountains make travel through the region difficult, Southeast Europe has always been a critical crossroads between Europe and Asia and has been shaped by the ebb and flow of various European and Asiatic empires throughout history.

Southeast Europe Retirement – Overview of the Cultural Landscape

Demographics of Southeast Europe for Retirement: Today, this European region is a shatterbelt with respect to religions, with the Catholic, Eastern Orthodox, and Islamic religions being the dominant religions in the area. Croatia and Slovenia have as a majority the Catholic religion. Albania and Bosnia and Herzegovina are predominantly Islamic. The Eastern Orthodox religion is the major religion in Bulgaria, Romania, Macedonia, Montenegro and Serbia.

Ethnically, each country has a majority national ethnic group, but often with several significant minority ethnic groups as defined by language, religion or national origin. While the diversity definitely makes the region a fascinating one, it has also greatly contributed to the political instability of the region. Even when under Soviet domination, Albania and the Yugoslavian countries managed to retain some degree of independence. Later, as the Soviet empire fell, Yugoslavia ultimately broke up into several smaller states around different ethnic groups.

As the Soviet empire dissolved, Southeast Europe also experienced a number of growing pains as ethnic unrest and separatist movements lead to the breakup of Yugoslavia. However, today the region appears to have stabilized significantly and is making progress more in terms of economic development than and seems to be a good destinations for anyone who might want to retire abroad in this region.

Southeast Europe Retirement – Overview of the Economic Landscape

Per capita incomes for the region are: Albania ($6,600), Bosnia and Herzegovina ($7,700), Bulgaria ($11,200), Croatia ($15,000), Macedonia ($8,500), Montenegro ($10,300), Romania ($11,000), Serbia ($10,200), and Slovenia ($26,600). In comparative terms, countries that are economically closer to Western Europe are Croatia and Slovenia. Portugal in Western Europe for example, has a per capita income of $20,900.

The remaining Southeast Europe countries have per capita incomes that fall in a range similar to that of many Central American countries. Costa Rica, for example has a per capita income of $10,700 and is similar to most of the countries in this region.

The two countries that are the furthest behind economically are Albania and Bosnia and Herzegovina. These two countries are more similar to the more advanced developing nations in Southeast Asia. Thailand, for example has a per capita income of $7,900.

However, when looking at these countries from the perspective of their educational, medical and economic infrastructure, most of these countries rank as countries with a high human development index. From that perspective then, international living in Southeastern Europe may be suited for retirement or raising a family.

Southeast Europe Retirement – Summary of the Retirement Landscape

The fall of the Soviet empire has opened up Southeast Europe as a potential retirement destination. However, the collapse of the Soviet empire introduced two major challenges to the region. The first major challenge was the restructuring of the socialist economy to a more capitalistic market oriented economy. This has not been easy since it involved the revamping of the country’s political and legal systems, property ownership, and industries. For many people, the transition to a market economy has not been an easy one.

The second major challenge to the region has been the “devolution” of large states like Yugoslavia into a number of smaller states along ethnic lines. On some occasions, the devolution was marred by fighting and political unrest. Today, things seem to have stabilized a great deal and are in less political turmoil than a decade ago.

The gradual development of the region provides the potential retiree with lower costs of living which helps to make it an attractive region to retire in Europe. However, the infrastructure is not as strong as those in the Western Mediterranean countries. Most of these countries are gravitating towards becoming part of the European Union and access to advanced markets, healthcare and other amenities are not all that difficult since travel to Western Europe is relatively easy.

Although not on the radar of most retirees, Southeast Europe is definitely emerging as one of the best places to retire in Europe and giving the traditional Mediterranean retirement destinations in Western Europe more competition.

(Photos by:   Expert Infantry)

References and Bibliography:

Definitional Dilemma, Southeastern Europe as a Culture Area, Balkanologie

Southeast Europe, Ask.Com

Southeast Europe History Pages

Southeast Europe: People and Culture

Southeast European Politics