The good news for those retiring to Greece in 2027 is that the 3.9% increase to the UK State pension is currently higher than the projected inflation in Greece in 2027.
Current projections from the Greek Government, European Commission and OECD range between 2.4% and 2.6%.
The United Kingdom’s full new State Pension will be going up to £250.70 a week in April 2027, which is just over £13,000 a year. The rise follows the average wage increase of 3.9% seen in the UK from May to July 2026. Under the triple lock guarantee this percentage is applied to the state pension, as it is the highest of the triple lock percentages. (The other two are the consumer price index (CPI) which has been confirmed as 3.5% this year or a set minimum rate of 2.5%.)
But how comfortably would your life be in Greece on £250.70 a week? We’ve put the Full State Pension up against the everyday costs recorded in the Your Overseas Home Cost of Living Index 2026.
Will it afford you the Greek lifestyle you are dreaming of? And is it enough to qualify for residency in Greece anyway?
Greece vs UK – cost of living
Your Overseas Home Cost of Living Overseas Index 2026 priced more than 50 items and living expenses (excluding rent, mortgage and some bills). Categories included a supermarket shop, travel costs, running a home, leisure, basic healthcare items, such as paracetamol, and other expenses like a haircut and a new pair of jeans.
We took the UK list and compared it to the equivalent items in Greece. I expected Greece to be lower, but was amazed at just how much lower. The total figure in Greece was 24% cheaper than in the UK.
Where your pension goes further in Greece
You can make the biggest savings in Greece on your food shopping. Out of the 13 countries surveyed for the price index, Greece came out cheapest on its supermarket shop and 25% cheaper than the UK. The sample supermarket shop in Greece came to £161, compared to £215 in the UK. That’s a saving of £54 on things you are likely to buy on a regular basis.
What’s cheaper in Greece?
Food grown or produced in Greece is cheaper, fresher and, in my opinion, has more flavour. At the Greek supermarket surveyed in the Price Index, a loaf of bread cost €2.75, the equivalent loaf in the UK was €3. However, a loaf baked that morning at a local bakery in Greece can cost around €1.20. In the supermarket, apples were €1.92 per kg (UK 3.15 per kg) and tomatoes were €1.80 a kilo (UK €2.86).
Drinks are also cheaper in Greek supermarkets, with a 1.5 litre bottle of water costing just 33 cents (UK price €1.26), 1 litre of freshly-squeezed orange juice €1.47 (UK price €4.35) and a bottle of gin less than €21 (UK price €28). But bring your cheap tea bags from the UK.
How can I save more money in Greece?
For a fair comparison these prices were taken from a Greek supermarket chain called “Sklavenitis”. However, for fresh fruit and vegetables you’ll find even better prices and quality at weekly outdoor markets, where they often round down to one euro a kilo on produce in season and grown locally. In Greece, cash is more widely used, so you can see what you are spending and be served by a real person.
If you stop for a coffee on the way home from the market a cappuccino and a croissant costs about €5.00, compared to €7 in the UK. However, ground coffee in the supermarket is over a euro cheaper in Greece, so why not invite a friend back for coffee on your balcony? Or even a glass of wine. In Greek wine regions you will find local shops selling wine in plastic bottles for just a few euros. And they are surprisingly good.
We’ve found one of our biggest expenses is a car. Therefore, being within walking distance of the basic facilities you need is worth considering when house viewing. However, if you have a big plot with trees, you can also save money by using wood from pruning in a woodburning stove.
More leisure time doesn’t have to mean more expense
A favourite pastime in Greece is eating out. Leisurely evenings spent at a taverna watching the sunset over the sea is a magical experience. Often these are family businesses serving local specialities that reflect what is farmed nearby, and the quality can be superb for the price.
You can get a starter, main course and dessert for as little as €21. And a jug of house wine can cost just €8. The trick is to go where the Greek’s go, rather than restaurants aimed at tourists. You will also find some free outdoor cultural events. We’ve seen, religious processions, carnivals, choirs, concerts and Greek dancing.
Hiking and sightseeing is another popular pastime, and it costs nothing. In some cities with expat communities, you might also find walking groups where you can meet people. You could even take up running and enter a half marathon. Many of these marathons take runners through historic sites and great scenery and cost about €30 to enter (UK equivalent €42).
How about the cost of transport in Greece?
OK, so you don’t get a free bus pass, but better weather means you will walk more. Owning a car can add a lot to your monthly costs, in insurance etc. so always bear this in mind when looking at property. A location where you can manage without a car will save you a fortune.
If you plan to make regular trips back to the UK, take into account the cost of flights and airport transfers when choosing where to buy a property. When you aren’t tied to a work schedule you will be able to be more flexible on your travel dates and find cheaper flights.
Towns that are on train or bus routes benefit from public transport at good prices. For example, from the seaside town of Corinth you can catch a train into Athens for the day, for just €17 return (journey time one hour). If you are over 65 you can get a 25% discount by showing ID with proof of age. You can check out the fares on the Hellenic Train website.
Converting to euros
Once you start living in Greece you’ll need to begin thinking in euros. When calculating your budget remember that any money you transfer over from the UK will be converted into euros. The conversion rate can make a big difference. This is why I recommend speaking to Smart Currency Exchange before you even put an offer on a house.
They can advise you on when to get the best exchange rate. As a rough guide £13,000 a year state pension might get you €15,500, but do bear in mind that the conversion rate does go up and down. On a big purchase, like a house, fluctuating rates can greatly alter your calculations. When you are relying on regular money transfers to cover bills it can greatly affect how much cash you have in your pocket.
Better together
If you are a couple that are both receiving a full state pension that doubles your income. So, a couple could be looking at €31,000 a year in euros. Which is over 2,583 per month. When you consider many household expenses don’t double just because there is one extra person, couples with two pension incomes will be in a stronger position.
Will I pay tax on my UK state pension in Greece?
Under the UK- Greece Double Taxation Agreement pensions are taxable in the country of residence. Greece’s 7% flat tax (Article 5B) on all foreign income for 15 years is one of the best retiree tax deals in the EU right now. For those who qualify, it can be applied to pensions and passive income from the UK.
Therefore, on a full UK state pension of €15,500 per year (£13,000) you will pay €1.085 in tax, leaving you with €14,415. Divided by 12 months that equates to €1,201 a month. Which would cover all the monthly expenses in the Cost of Living Price Index, with €160 to spare.
However, under the Treaty agreement there are some UK pensions that must be taxed in the UK, such as government service pensions (armed forces, police, civil service and teachers.)
Progressive Greek income tax
Any income generated in Greece will come under the Progressive Greek income tax and you can opt to also have your pension taxed in this way.
In this case a €15,500 pension income would fall in the tax bracket €10,001- €20,000. Therefore, on the first 10,000 you pay 9% (€900) and the remaining €5,500 is taxed at 20% (€1.100) totalling €2,000, which will leave you with €13,500 a year, €1,125 a month. If in a month you bought everything on the Price index that would still leave you with €84.
If other income sources put you into higher tax brackets you pay:
• €20,001 – €30,000: 26%
• €30,001 – €40,000: 34%
• €40,001 – €60,000: 39%
• Above €60,000: 44%
Other expenses to consider
As most of you are planning to be cash buyers in Greece, rent or mortgage payments weren’t included in the Price index. While a Full state pension should cover your general expenses, such as food and drink, electricity, some DIY and the cost of fuel for a car, it will depend how extravagant you are with eating out, using the air-con, and taking long trips.
The price index doesn’t include property taxes, the cost of running a car, internet packages, the maintenance of the property or replacing expensive electrical goods when they breakdown. The cost of living also depends greatly on location. For example, Mykonos is far more expensive than the Peloponnese. If applying for a Greek FIP Visa you will also need to show you have private health insurance, which can cost from around €80 a year.
What lifestyle will my pension afford in Greece?
This depends whether you choose to live in a busy tourist town, in a village or countryside. In my experience, less shops and entertainment facilities mean less temptation to spend money. In the UK as soon as you step out the door it feels like your bank card is being demanded at every turn; Fuel, Beep! Car park charge, Beep! Garden centre, Beep!, Lunch out, Beep! Without even seeing the notes and coins leave your hand.
Are you used to popping to the shop at any time of day, or calling for a food delivery in the evening. These may be things you’ll miss in Greece, but it will improve your diet and bank account tremendously. Even after many years out of the UK, my husband will sometimes turn to me in the evening and say “I really fancy an Indian takeaway delivered right now”. But he’s got pretty good at making his own.
When your free-time is really free
With the mild climate you can get out and enjoy natures beauty for free, almost every day. Take a walk round the village, sit by the port and watch the boats come in and out, go sightseeing, swim in the sea, take a picnic to the beach, go hiking or cycling, and do those hobbies you could never find time for.
Can you get residency in Greece with just a UK state pension?
As things currently stand in 2026, (following Brexit) if you are a UK Citizen on a full state pension and it is your only income, then this wont be enough to meet the required amount of passive income to get residency in Greece. If you have a sizeable lump sum to buy a property in Greece the other option is a golden visa.
Option 1 – Financially Independent permit
A retired UK citizen wanting to move to Greece can apply for the Financially Independent Person Permit. For which you will need to prove you have sufficient money coming in to cover living expenses. Although we know that you can live fairly cheaply in many parts of Greece, for this permit they have set a high minimum requirement.
In most cases applicants will be required to have a minimum monthly income of €3,500, roughly £3,000. This is the equivalent of €42,000 a year (£36,000) with an additional 20% for a spouse. So, for a couple you would need to find over €50,400 a year (£43,260), which is €4,200 (£3,605) per month.
Can I work?
Here is the tricky part, passive income cannot be from “salaried work or exercising any independent economic activity”. Therefore, you won’t be allowed to find work locally, run a business, or any other economic activity inside Greece.
Where can your income come from?
What is referred to as “passive income” includes state and private pensions, returns on investments such as stock dividends and bonds, and money from renting out a property outside Greece.
An example might be a couple who have inherited a second house in the UK, which they rent out. But also have a mortgage free main residence to sell to finance buying a property in Greece. On top of their rental income and state pension they might also have an income from a private pension or other investments.
Another scenario might be a couple approaching retirement deciding to downsize, selling a high value home to finance buying a cheaper home in the UK and a low cost property in Greece. On retirement they could rent out the UK property and apply for residency in Greece. If this still didn’t generate enough income to qualify for residency then they might have to settle for Option 3.
Option 2 – The Golden Visa
For this you need the money up front. Property Investment options are:
€250,000 – Limited to the conversion of commercial or industrial properties into residential use, or the restoration of listed/heritage buildings. (The conversion and restoration costs will go on top of this)
€400,000 – Minimum property investment for less sort after regions of Greece not listed in the 800,000 category.
€800,000 – Minimum property investment required for prime areas such Attica region, Thessaloniki, Mykonos, Santorini and other islands with a population over 3,100. Such as Rhodes, Corfu, Crete etc. (Note: Short term letting of your Greek property is not allowed).
Option 3 – Split your time between UK and Greece
If your passive income doesn’t reach the required amount to be accepted for residency in Greece, and you don’t quite have the finances for the Golden visa. Then option three is splitting your time between properties in the UK and Greece. UK citizens are allowed 90 days in 180 in Greece. You can use free online calculators to plan how you allocate your time.
You can split your 90 days however you wish, but a good example for a retired couple might be April, May, June, and then October, November, December in Greece. You would avoid the summer heat in Greece and possibly get an income from renting out your Greek home. You could work it to be back in the UK for Christmas, UK central heating, and visits to the doctor, dentist and opticians, and find cheaper Spring and Autumn flights. I’ve met people that have a part ownership apartment or static caravan in the UK and a property in Greece. With living costs being cheaper in Greece, and a flight to Greece often costing less than a UK train trip it’s worth even spending half the year there.
Can you afford to retire to Greece?
Retirement is something that creeps up on you, and needs careful planning in advance to get yourself into the best position to fulfil your dreams of a life in sunny Greece. I have attempted to give you an idea of how it might work, but there are so many variables to consider, and information can go out of date overnight. I highly recommend getting professional advice for your individual situation. Contact one of the team at Your Overseas Home and they will be happy to put you in touch with experts that have helped people in your position before and come recommended.
As those of us living outside the UK before Brexit know, situations, rules and the cost of living can change. If you plan to use the UK state pension part of your passive income for your everyday expenses, you can currently expect to live quite comfortably on that in Greece. Much of Greece offers a relaxed lifestyle away from the pressures to spend money. Buying groceries becomes a pleasure rather than a price shock. If your heart is telling you Greece is where you want to be, it’s a goal worth working towards.
