1. Montpellier, France. The highest density of gay men in any city in Europe. You can get a one bedroom apartment in the nice part of town for 600 euros a month. There are more than 17,000 Native English speakers in town so you don't have to speak any French to make friends.
2. Madrid, Spain. Perhaps the most gay friendly capital in Europe. High quality inexpensive restaurants. You can get a pint of beer in the best part of town for about three euros and the male brothels are very affordable.
3. Nice, France. More expensive than Montpellier, but a thriving gay and expat population and it's easy to get to Italy.
4. Rome, Italy. The birthplace of civilization, low sales taxes mean cheap groceries and there are plenty of gay bars.
Berlin, Germany. Perhaps the least expensive capital in Europe to live in. It also has the most vibrant gay scene in Europe and even has a public park where it is legal for gay men to cruise and bang each other.