Retire on €1000 a month in Monaco of Spanish America

Louise Brown May 27, 2025 Travel Guides Leave a comment

We all want sunshine, golden sand, and to get more value for our money.

So, you’re nearing retirement and looking for a worry-free place where 100 euros go further than in Europe? You might just find it in South America. More and more expatriates, including Spaniards and Britons, are choosing to cross the ocean so their money can stretch further than it does in Europe.

If you’ve ever dreamed of retiring somewhere beautiful, by the sea, with great weather and even better food — but without draining your savings — there’s a place you might not have considered yet: Punta del Este, Uruguay.

Welcome to Punta del Este!

Think Saint-Tropez vibe, Miami Beach sunsets, and the charm of the Mediterranean (even though it’s the Atlantic), all wrapped into one peaceful corner of South America.

Often dubbed the “Monaco of South America,” Punta del Este has that seaside resort feel — the yachts, the skyline, the beach clubs — but at a fraction of the cost. Located along Uruguay’s southeastern coast, this town of just around 19,000 residents is fast becoming a magnet for European retirees looking to stretch their pensions in style.

You’ll find two nice coastlines in Punta del Este: Playa Mansa with its gentle, swimmable waters, and Playa Brava, where surfers chase waves beneath the iconic sculpture La Mano (yes, that hand rising from the sand).

Retire in style: Live the high life on €1000 a month in ‘Monaco of Spanish America’
Credit: Creative Commons

All in all, the town mixes laid-back beach life with upscale restaurants, modern medical care, art galleries and jazz festivals.

Can you really live well on €1000?

Surprisingly, yes. Despite its jet-set reputation, Punta del Este is still affordable, especially compared to many European cities.

With a typical Spanish or British pension of around €1,400/month, you’ll have room to breathe — and maybe splurge.

Here’s a realistic monthly budget for one person living in Punta del Este, based on various online sources:

Rent (1-bed apartment, depending if it’s central or not): €500–€1,000
Utilities & Internet: €100–€200
Groceries (local produce, fresh fish): €200–€300
Private healthcare (“mutualista” plan): €80–€100

Night view of Punta del Este.
Credit: Creative Commons

For reference, here are some average prices of everyday items in Punta del Este, according to Expatistan website:

Basic lunchtime menu at restaurant (including a drink): €16
Combo meal at a fast food restaurant (Big Mac or similar): €10
Boneless chicken breast (500g / 1 lb.): €4.29
Whole fat milk (1 liter / 1 quart): €1.03
Large eggs (12 count): €3.88
Tomatoes (1 kg / 2 lbs): €2.45
Local cheese (500g / 16 oz): €6.00
Domestic beer (0.5 liter / 16 oz): €2.00
Bottle of good quality red table wine: €10
Bread for two people (1 day): €1.74

That means you could live quite comfortably from just €1000 to €1,200 a month, depending on your lifestyle. And if you rent out your home back in Europe? Even better.

Easy residence & quality healthcare

Uruguay, sometimes called the Switzerland of South America, rolls out the red carpet for Europeans. Spaniards, Britons, Italians and other EU citizens face minimal hassle when applying for residency. You’ll need a passport, birth certificate, proof of income (your pension will do), and a clean criminal record.

Another strong point, healthcare is a big plus here. Uruguay’s private health system is excellent, and most retirees sign up with mutualistas — private medical plans that cost around €80/month and offer access to some of the best clinics in the region.

Safety and feeling European

Punta del Este is a peaceful place. While Montevideo, the capital, has areas you might want to avoid at night, Punta feels more like a relaxed European resort town.

Reddit threads and expat forums are full of positive reviews, with retirees praising the slow pace, clean streets, friendly locals, and overall safety.

And yes — it’s not the cheapest place in Latin America, and imported goods can cost a bit more. But it still does the trick for many Europeans.

If you’re planning your retirement and want more than just good weather — think safety, culture, healthcare, and a slice of luxury — Punta del Este is really worth a serious look. It’s the kind of place where sunsets last forever and where your pension feels a little bit bigger.