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Spain has long been a popular destination for retirees seeking a laid-back lifestyle, a pleasant climate, and a lower cost of living compared to certain other parts of Europe. Its rich history, diverse culture, and excellent healthcare system make Spain an attractive option for expats looking to enjoy their golden years.
Retiring in Spain can offer an idyllic lifestyle, with sunny weather and affordable living in a vibrant culture. Whether you’re drawn to the beaches of the Costa del Sol, the cities of Madrid and Barcelona, or the peaceful countryside, Spain has something to offer. Careful planning regarding visas, healthcare, taxes, and learning the language will help ensure a smooth and enjoyable transition to your new life in this beautiful Mediterranean country.
Why Are Foreigners Retiring in Spain?
Everyone has their own set of reasons for picking Spain over other countries in retirement, but interviews with foreigners who have selected this particular country for their retirement show some common themes, including the pleasant climate, affordable living, high-quality healthcare, and an appealing culture and lifestyle. For retirees from other parts of the European Union, the fact that Spain is a EU membership country is also an important factor.
Residency Requirements for Retirees
The process of retiring in Spain depends on your citizenship, so it is important to seek out advice for your specific situation.
EU/EEA/Swiss Citizens
If you’re a citizen of an EU/EEA country or Switzerland, you don’t need a visa to live in Spain. (EEA is comprised of the EU countries + Iceland, Liechtenstein, and Norway.)
If you’re planning to stay for more than 90 days, you’ll need to register with the local authorities and obtain a Certificate of Registration. You’ll also need to apply for a Foreigner’s Identity Number (NIE), which is required for all legal, financial, and administrative matters in Spain.
Other Citizens
If you’re not a citizen of EU/EEA/Switzerland, e.g. a citizen of the United States, Canada, or Australia, you’ll need to apply for a Non-Lucrative Visa to retire in Spain. This visa allows you to live in Spain without working, provided you have sufficient financial means to support yourself.
Examples of requirements that need to be fulfilled for a non-lucrative visa:
- Proof of sufficient income (from pensions, savings, or other sources) to live comfortably without employment. At the time of writing, the general guideline is around €27,115 annually for the main applicant, with an additional €6,778 per dependent.
- Proof of private health insurance that covers you in Spain.
- A clean criminal record and a medical certificate.
A non-lucrative visa is typically valid for one year and can be renewed. After five years, you may apply for permanent residency.
Cost of Living
Spain is one of the more affordable Western European countries to retire in, especially if you stick to smaller cities and rural areas. While larger cities like Madrid and Barcelona can be pricey, regions such as Andalusia, Murcia, and Valencia are known for their lower costs.
Here’s a general overview of living expenses:
- Housing Renting a modest one-bedroom apartment in a smaller city or town can cost between €400-€700 per month, while in larger cities it can range from €800-€1,500. Purchasing property in Spain is also an option, with prices varying significantly based on location and living standard.
- Utilities
Utilities (electricity, water, internet) typically cost around €100-€150 per month for a small home.
- Food
Groceries are relatively inexpensive in Spain, with local markets offering fresh fruits, vegetables, and seafood at affordable prices. A couple can expect to spend around €300-€500 per month on groceries. - Transportation
Public transportation is affordable, with monthly passes costing about €40-€60. - Healthcare
If you don’t qualify for public healthcare, private health insurance can range from €50-€200 per month, depending on the coverage.
For retirees from other parts of Europe, it is typically a big bonus that Spain (unlike warm and sunny retirement countries in other parts of the world) is located in Europe. Flying is generally affordable within Europe, with several low-cost airlines serving the continent. Getting from Spain to any of the major international airports in Europe is typically also quick, and there are a not many different timezones to consider.
Taxes and Pensions
Spain has a tax agreement with many countries, including the UK and the US, to avoid double taxation on pensions and income. It is a good idea to consult with a tax advisor familiar with international tax laws to ensure compliance and to take advantage of any tax benefits.
Many retirees choose to transfer their pensions to a Spanish bank account even though they are only living in Spain part-time. If you’re receiving a government pension from abroad, it may still be taxed in your home country, while your private pension may be taxed in Spain depending on your residency status.
Once you become a tax resident in Spain (living there for more than 183 days in a calendar year), you’re required to pay taxes on your worldwide income. The Spanish income tax rate varies depending on income levels, ranging from 19% to 47%.
Healthcare in Spain
Spain is known for its excellent healthcare system. EU citizens can access public healthcare, while non-EU retirees will need to show proof of private health insurance as part of the visa process.
- Public Healthcare: Spain’s public healthcare system is accessible to EU citizens or residents who contribute to social security or have a health agreement with Spain. Public healthcare is high-quality and typically free at the point of service, though there may be small fees for prescriptions.
- Private Healthcare: For non-EU retirees or those seeking faster access to specialists, private health insurance is required. Spain has a well-developed private healthcare sector, with high-quality care at much lower costs than in the US, for example. The cost of private insurance varies based on age and coverage, but it’s generally affordable.
Where to Retire in Spain
Spain offers diverse regions with different climates, lifestyles, and costs of living. Here are some examples of areas that have become popular among retirees form abroad.
Costa del Sol
Famous for its sunny weather and beaches, this region attracts many expats, particularly British and Scandinavian retirees. Cities like Málaga, Marbella, and Nerja offer a Mediterranean lifestyle, beautiful beaches, and a strong expat community. Costa del Sol has the largest concentration of golf courses on the European continent and well over a dozen marinas.
Located in southern Spain, within the autonomous community of Andalusia, Costa del Sol lacks any formal definition, but is generally recognized as running from the municipality of La Línea de la Concepción in the west to Nerja in the east, encompassing circa 150 km of coastline.
The largest city in the region is Málaga, with nearly one million people living in the Málaga metropolitan area. The Málaga – Costa del Sol Airport is the third busiest in all of Spain and have excellent connections with many other airports.
For retirees interested in exploring other parts of Spain using Costa del Sol as their base, it is good to know that the costal region is connected with high-speed trains, and getting from Málaga to Madrid takes roughly 2 hours and 45 minutes.
Alicante
Located on the Costa Blanca, Alicante is another popular destination for retirees. It offers a warm climate, good healthcare, and a laid-back lifestyle, with a mix of Spanish and expat communities. Unlike more distinct retiree destinations in Spain, Alicante has a large student population, which impacts the general feel of the city.
Alicante is a historical Mediterranean port with a vibrant cultural life. Each summer, a two-month-long programme of music, dance and theatre can be enjoyed in the Paseo del Puerto. The most important festival of the year here is Hogueras de San Juan, when the summer solstice is celebrated with bonfires, followed by five nights of pyrotechnic contests on Playa del Postiguet.
Valencia
The city of Valencia, Spain’s third-largest, offers a balance of city life and beautiful coastal surroundings. It’s known for its rich culture, excellent healthcare, and more affordable living compared to Madrid or Barcelona. It is still quite expensive compared to more rural parts of Spain.
Valencia is located on the eastern coast of the Iberian Peninsula, on the banks of the Mediterranean Sea. The port of Valencia is the largest one on the western coast of the Mediterranean.
Madrid and Barcelona
For those who enjoy vibrant city life, Madrid and Barcelona offer world-class culture, restaurants, and services, but they come with a higher cost of living. Located in central Spain, Madrid is the country´s capital and most populous city, and it is also the second-largest city in all of the European Union. Barcelona is a costal town in the north-east, and both the capital and largest city of the autonomous community of Catalonia.
The Balearic Islands and the Canary Islands
If you prefer island living, consider Mallorca, Ibiza, or the Canary Islands – like Tenerife and Gran Canaria – which offer beautiful scenery, warm weather, and an island lifestyle.
The Balearic Islands are located in the western Mediterranean Sea, not far from the eastern coast of the Iberian penninsula. The main islands in this archipelago are Mallorca (Majorca), Menorca, Ibiza, and Formentera, which are all popular tourist destinations. Ibiza is known as an international party destination, which is appealing for retirees who seek a vibrant nightlife and renowned DJs. It is well known that many retirees of the baby boom generation are more interested in dancing the night away than conforming to classic 20th century ideas about retirement.
The Canary Islands are located rather far away from mainland Spain, off the coast of western Africa, and the climate is subtropical/tropical instead of Mediterranean. You´ll find this archipelago roughly 100 km west of Morocco and the Western Sahara, and the climate is generally arid, although moderated by the sea and (in the summer months) by the trade winds, and pockets of subtropical humid forrests grow in the central parts of La Gomera, Tenerife, and La Palma.
A majoruity of the population live on either Tenerife or Gran Canaria.
Cultural Adaptation
- Spain offers a relaxed lifestyle, but it can take time to adapt to the slower pace, especially when it comes to things like customer service or business hours.
- While English is widely spoken in tourist areas and among younger generations, learning Spanish will significantly enhance your experience and integration into local life, especially in smaller towns and rural areas. Even basic conversational Spanish will go a long way in making daily tasks easier and helping you connect with locals. There are many language schools throughout Spain offering courses specifically for expats and retirees, both in-person and online.
- Many businesses, especially in smaller towns, close for siesta in the afternoon, from around 2 p.m. to 5 p.m. It’s a cultural tradition that may take some getting used to, but it’s a reminder to slow down and enjoy life.
- Meals are an important social activity in Spain, and dinner is typically served late, between 8 p.m. and 10 p.m.. Embrace the Spanish way of life by enjoying long meals, tapas, and an evening stroll, or paseo, through the town.