Retiring in Spain: Complete Guide for US, UK, and International Retirees

Key Takeaways

• Spain offers the Non-Lucrative Visa as the primary pathway for retirees from non-EU countries including the US, UK, Canada, Australia, and New Zealand.
• The cost of living in Spain is 30-40% lower than the US, UK, or Australia, making retirement savings stretch further.
• Spain's healthcare system ranks among Europe's best, with affordable private insurance options for retirees.
• Popular retirement destinations include the Costa del Sol, Costa Blanca, Barcelona, and the Canary Islands.

Why Retire in Spain?

Spain consistently ranks among the world's top retirement destinations. With over 300 days of sunshine annually, a rich cultural heritage, excellent healthcare, and a cost of living significantly lower than North America, the UK, or Australia, it's easy to see why.

The relaxed Mediterranean lifestyle, world-class cuisine, and welcoming expat communities make Spain particularly attractive for English-speaking retirees. Whether you dream of coastal living, vibrant city life, or quiet countryside retreats, Spain offers options for every preference.

Visa Options for Non-EU Retirees

Spain doesn't offer a specific "retirement visa." Instead, retirees from non-EU countries typically apply for the Non-Lucrative Visa, which permits residence without the right to work.

Non-Lucrative Visa Requirements

• Proof of income: Approximately €2,400/month (€28,800/year) from pensions, investments, or savings
• Health insurance: Private coverage valid in Spain with no copays
• Clean criminal record: From your home country and any country you've lived in for 5+ years
• No work permitted: You cannot be employed or self-employed in Spain

The visa is initially granted for one year, then renewed for two-year periods. After five years of legal residence, you can apply for permanent residency.

Spain Golden Visa (Ended April 2025)

Spain's Golden Visa program, which previously offered residency through €500,000+ real estate investments, ended in April 2025. If you're looking for investment-based residency in Europe, consider alternative Golden Visa countries.

Country-Specific Considerations

Retiring from the United States

American retirees benefit from the US-Spain tax treaty, which helps avoid double taxation on pensions and Social Security. You'll need to:

• Continue filing US taxes (citizenship-based taxation)
• Report Spanish bank accounts via FBAR if balances exceed $10,000
• Consider implications for Medicare (not valid in Spain)

Retiring from the UK

Post-Brexit, UK citizens need a visa to retire in Spain. Your UK State Pension can be paid directly to a Spanish bank account and increases annually. Key considerations:

• S1 form for healthcare access (if receiving UK State Pension)
• Driving license exchange required within 6 months
• Tax residency shifts to Spain after 183 days

Retiring from Australia

Australian retirees should note there's no social security agreement between Australia and Spain. Consider:

• Superannuation access rules if under 65
• Australian Age Pension portability (reduced rates after 26 weeks abroad)
• Private health insurance required (Medicare doesn't cover you in Spain)

Retiring from Canada

Canada and Spain have a social security agreement, which helps with pension calculations. Canadian retirees should:

• Inform Service Canada of your move
• Understand CPP/OAS payment options abroad
• Consider currency exchange strategies (CAD to EUR)

Retiring from New Zealand

New Zealand Superannuation can be paid overseas, but with specific rules:

• Notify Work and Income of your move
• NZ Super is payable in Spain at the full rate
• No social security agreement exists with Spain

Cost of Living for Retirees

Spain offers excellent value for retirees. Monthly costs vary by location:

• Madrid/Barcelona: €2,000-3,000/month for a comfortable lifestyle
• Costa del Sol: €1,500-2,500/month
• Smaller cities (Valencia, Seville): €1,200-2,000/month
• Rural areas: €1,000-1,500/month

Housing is the biggest variable. Renting a two-bedroom apartment ranges from €600/month in smaller towns to €1,500+ in Barcelona or Madrid city centers.

Healthcare in Spain

Spain's healthcare system ranks 7th globally. Options for retirees include:

• Private insurance: Required for Non-Lucrative Visa. Costs €100-300/month depending on age and coverage.
• Public healthcare: Accessible after gaining residency and paying into social security, or via bilateral agreements (UK S1 form holders).

Most retirees maintain private insurance for faster access and English-speaking doctors, while using public healthcare for emergencies.

Best Places to Retire in Spain

Popular retirement destinations include:

• Costa del Sol (Málaga, Marbella): Largest expat community, excellent weather, established infrastructure
• Costa Blanca (Alicante, Valencia): More affordable than Costa del Sol, good healthcare facilities
• Canary Islands: Year-round mild climate, tax advantages, island lifestyle
• Barcelona: Culture, cuisine, beach access, but higher costs
• Andalusia interior (Granada, Seville): Authentic Spain, lower costs, hot summers

Tax Considerations

Spending more than 183 days in Spain makes you a tax resident. Key points:

• Worldwide income becomes taxable in Spain
• The Beckham Law doesn't apply to retirees (requires employment)
• Wealth tax applies in most regions (varies by autonomous community)
• Inheritance tax can be significant—plan accordingly

Consult a cross-border tax specialist before moving. See our guide to taxes in Spain.

Next Steps

Ready to start your Spanish retirement journey?

• Review the Non-Lucrative Visa requirements
• Calculate your budget using our cost of living guide
• Connect with immigration lawyers in Spain for visa assistance