Here’s your insider's guide to retiring like a local in Spain

Spain, often praised as the perfect haven for expat retirees, offers an idyllic blend of a prime location, robust economy, and affordable living compared to other European nations. The lenient visa options add to its appeal, enabling foreign residents to savor a quality life at reasonable costs. The country's culinary delights and modest property prices further sweeten the deal, prompting many to question why they didn't retire in Spain sooner. With a burgeoning foreign-born population reaching 6.5 million, this guide explores the Spanish lifestyle, covering living expenses and showcasing prime retirement cities, alongside insights into immigration programs like the Spain Non Lucrative Visa and Golden Visa.

Retiring in Spain Guide

Who is eligible for Spanish retirement? 

EU nationals can retire in Spain hassle-free due to their EU membership. No visa or residence permit is needed for EU citizens to live, work, retire, or study. They only need to register at the Central Register of Foreigners in Spain for a Foreigner Identity Number. 

Non-EU nationals have two visa options: Long-Stay Visa for periods beyond 90 days (renewable annually) and Residence Visa for stays exceeding one year. 

What are the best ways to retire in Spain?

Choosing the right residence option in Spain as a non-EU citizen hinges on the duration of stay – temporary or permanent. Most opt for long-term visas, with the Spanish Non-lucrative Visa and Golden Visa being popular choices, especially among British nationals.

Golden Visa

This visa program facilitates a renewable residence permit for non-EU nationals investing a minimum of €500,000 in Spain, either through real estate, bank deposits, or job-creating ventures. Initially valid for two years, it renews every three years, offering benefits like Schengen zone mobility, family inclusion, no minimum stay requirement, and a pathway to Spanish citizenship after a decade of residency.

Qualification involves a 1 million euro capital transfer, a 1 million euro business investment, or a 500,000 euro real estate investment. Taxpayers in Spain enjoy specific deductions, with personal allowances ranging from 5,550 to 8,100 euros based on age. Additional allowances are available for dependent children under 25, ranging from 2,400 to 4,500 euros, with an extra 2,800 for those under three years old.

Non-lucrative Visa 

The Non-Lucrative Visa in Spain is a sought-after opportunity for non-EU nationals desiring retirement in Spain sans work commitments. This visa facilitates an extended stay of up to three years, allowing retirees to relish the Spanish lifestyle. However, applicants must demonstrate financial sufficiency to support themselves during their stay.

Families can rejoice as the visa permits a spouse or partner, dependent children, and relatives in the ascending line to accompany the primary applicant. Applicants must meet specific financial criteria to qualify, proving an absence of intent to work in Spain.

The application process involves meticulous steps, including accurately completing the national visa form, possessing a valid passport, submitting compliant photos, obtaining a recent medical certificate, securing Spanish health insurance, providing a current police clearance certificate, and obtaining a unique NIE number from the Spanish consulate.

Financial documentation requires proof of a minimum monthly income of €2,450, with an additional €600 for each dependent. Acceptable evidence includes bank statements, employment letters, investment proof, or other income sources. Dependent applicants must also submit relevant certificates.

Successful renewal and five years of residency pave the way for a permanent residence permit under both the Golden Visa and Non-Lucrative Visa. An additional five years of residency opens the door to Spanish citizenship, subject to meeting standard criteria, including language proficiency and adherence to customs and traditions. The Non-Lucrative Visa, therefore, not only provides a peaceful retirement in Spain but also a potential pathway to long-term residency and citizenship. 

The top reasons to retire in Spain 

In your golden years, the allure of leisure time grows, and Spain emerges as an ideal haven with its deeply ingrained culture of embracing relaxation. The country unfolds a tapestry of festivals and celebrations, including Semana Santa, Bata//a de Vino, La Tomatina, and Concurs de Castel/s, offering retirees a unique chance to immerse themselves in Spanish culture while adopting a laid-back lifestyle.

Spain proves to be a paradise for outdoor enthusiasts, catering to diverse interests with options like skiing in the Sierra Nevada, snorkeling in the Canary Islands, or exploring caves in Andalusia. As you transition from the hustle of work to the tranquility of retirement, Spain provides an idyllic setting where leisure takes precedence.

The healthcare system further enhances the appeal for retirees, offering excellent healthcare universally accessible to all citizens, including foreign residents with permanent residency. Expats from the US will discover that private healthcare insurance is notably more affordable, ensuring a comparable standard of service.

Retiring in Spain comes with a myriad of advantages. The climate in popular retirement destinations like Costa Blanca and Costa del Sol boasts a warm and tranquil Mediterranean ambiance, with more sunshine and less average rainfall than many European counterparts. The laid-back lifestyle contributes to the country's reputation as one of the world's healthiest.

The rich cultural history, showcased in breathtaking architecture, world-class museums, and a vibrant arts scene, makes it a captivating destination. The renowned gastronomy, featuring iconic dishes like paella and delightful tapas, offers a culinary experience like no other. The low cost of living, especially in certain regions, adds to the allure, making Spain financially accessible for expat retirees.

Access to high-quality healthcare, stunning natural landscapes, favorable tax rates, and the overall lifestyle make retiring in Spain an attractive proposition. While Spain may not be the lowest tax country, its favorable financial environment, with an average pension tax rate of 7.7 percent, ensures retirees can remain tax-efficient, creating a well-rounded package for those seeking an enriching and relaxed retirement. 

Where can you best retire in Spain? 

Spain offers diverse retirement options based on personal preferences and financial considerations. 

Madrid, the vibrant capital, is a blend of tradition, culture, and history. With excellent metro connectivity, it boasts beautiful parks like Retiro Park, where you can enjoy nature and affordable pubs. Madrid attracts expats, including retirees, with a sizable English-speaking community.

Alicante, a charming coastal town on the eastern Mediterranean, is ideal for a laid-back retirement. Despite its small size, it offers an international airport, warm weather year-round, and a picturesque old town with cobblestone streets and vibrant markets. The proximity to the beach enhances the quality of life, allowing for leisurely strolls and a bustling social scene.

Valencia strikes a balance between a metropolis and a beach town, featuring numerous amenities like hospitals, universities, and parks. The city maintains an old-world charm with street music and boasts cultural attractions like museums and historic centers.

Malaga, known for its pedestrian-only city center, offers a clean and green environment. The daily sunshine, seaside location, and proximity to the Sierra Nevada mountain range make it an appealing destination. The city's relaxed lifestyle and vibrant atmosphere contribute to its allure.

Barcelona, Spain's second-largest city, captivates you with its rich culture, creativity, and iconic landmarks like Gaudi's architecture. The city offers a myriad of attractions, from beaches and nightlife to museums and fine dining. Placa de Catalunya adds a unique charm with its flower stalls and street entertainers.

Bilbao, located on the green north coast, has undergone urban renewal, transforming from an industrial port to a cultural hub. The city's modern architecture, pedestrian bridges, and waterfront promenade make it an attractive option for retirees who appreciate a mix of history and contemporary living.

What is the cost of retiring in Spain? 

Living in Spain is a cost-effective choice compared to many European countries. You can maintain a comfortable lifestyle in major cities for 2,000-2,200 dollars per month or 1,700-1,900 outside urban hubs. 

Rental prices in Spain are reasonable, with Madrid's city center featuring one-bedroom apartments at 1,030 euros monthly, while moving away drops prices to 580 euros. Seville offers even more affordable options, averaging 680 euros for a one-bedroom apartment. 

Property purchases are financially attractive, especially for retirees. Foreigners face no restrictions on buying property in Spain. The real estate market rebounded after the 2008-2009 downturn, drawing retirees. Average house prices range from 3,000-5,000 euros per square meter in Madrid or Barcelona to 2,050 euros per square meter in Costa del Sol. Notably, real estate investments exceeding 500,000 euros can qualify for the Spanish Golden Visa; granting a residence permit and maintaining it can lead to permanent residency after five years. Spain's appeal lies in its affordability, diverse property options, and the potential for a fulfilling retirement experience.

Healthcare cost

Spain's universal healthcare system is ranked among the world's best. It is free and accessible to citizens and permanent residents. Spanish hospitals and health centers offer excellent care and services. 

Spain offers Convenio Especial, a nationalized medical insurance for temporary residents contributing to the social security system. Retirees pay €60 if under 65 and €157 if over 65. While Spain provides excellent public healthcare, retirees may opt for private insurance from providers like Allianz Care and Cigna Global, costing €50 to €200 monthly, ensuring prompt treatment and specialized care as they age.

Retiring in Spain FAQs

Can a US citizen retire in Spain? 

Americans can retire in Spain by securing residency through the Spain Golden Visa or Non-lucrative Visa. The Golden Visa demands a €500,000 investment, while the Non-lucrative Visa needs a €2,400 monthly income.

Can I find a retired expat society in Spain? 

Spain hosts expat retirees in Madrid, Barcelona, and Alicante, with many from the UK, Germany, France, the US, and Australia. 

What are some of the drawbacks of retiring to Spain? 

Living in Spain has its perks, but drawbacks exist based on lifestyle preferences. The siesta culture is embraced by many, yet may pose challenges for those unaccustomed to it or prefer daytime errands. While English is spoken in tourist hubs like Barcelona and Madrid, proficiency varies regionally, posing a challenge for those relying solely on English. 

This article was written in cooperation with My Spain Visa. It is a prominent legal firm based in Spain, aiming to turn the aspiration of residing in Spain into actuality. Boasting more than ten years of expertise in Spanish immigration, they've facilitated the establishment of 150+ enterprises and the relocation of 250+ content families to Spain. Their commitment to quality is evident in stellar ratings and reviews on Google, Trustpilot, and Facebook. One of the happy customers, a British national named Bryan, says, “Lucia has been a total professional, very knowledgeable, totally responsive to any queries, often answering well into the evening, considerate and understanding.”