Retiring in Spain: a complete guide

Summary

What are the pros and cons of retiring in Spain?

Spain offers gorgeous, vibrant landscapes, great food, and an excellent healthcare system. However, bureaucracy and a competitive visa waiting list can make retirement in Spain a challenge.  Some of the main pros and cons of retiring in Spain include: 

Pros

Cons

What’s the average cost to retire in Spain? 

In order to comfortably retire in Spain, you need between $2,500 and $2,800 per month or between $24,000 and $26,400 annually. 

While rent and consumer prices are lower in Spain than in the US, the high quality of life requires a similar level of financial input.  

This monthly demand reduces to approximately $1,700 to $1,900 in more rural areas and less touristy towns. Looking at these monthly amounts, we see that the cost of living is notably cheaper in Spain than in the US, especially when comparing expenses in major cities on a like-for-like basis.  

What visa do I need to retire in Spain?

If you’re a US citizen considering relocating to Spain for retirement, it’s probably not surprising to learn that you’ll need to apply for a visa. There’s no specific retirement visa; the most popular alternatives utilized by retirees are ​​the Golden Visa and the Non-Lucrative Visa. 

The Golden Visa grants non-EU (European Union) citizens the right to live in Spain for one year but requires them to invest significantly in the Spanish economy, so it won’t suit everyone. Most often, this investment will take the form of a property purchase or multiple purchases above €500,000, but it could also be: 

The Non-Lucrative Visa (or NLV) doesn’t request investment in the Spanish economy but does ask that you prove your financial self-sufficiency to a certain standard. 

If you can successfully attain an NLV, you won’t be able to work in Spain. In the case of retirees, you must receive a state pension or “a beneficiary of a life annuity, not capitalizable, payable by a public or private institution in convertible currency and/or investment accounts.” Also known as something like an IRA or a 401(k). 

Your NLV will last 90 days, and you’ll need to obtain a Foreigner Identity Card during your first month of living in Spain. This card is valid for one year and has renewal options. 

After five years of living in Spain, foreign retirees will be invited to apply for permanent residency. 

What programs are there for emigrating to Spain?

There are quite a few visa options for expats emigrating to Spain, but most of them involve working and earning a living, such as the digital nomad visa. 

The best program to follow for emigrating to Spain as a retiree is to apply for a non-lucrative visa (also known straightforwardly as the retirement visa).

Where are the best places to retire in Spain?

There are many beautiful, safe, and well-set-up places to retire in Spain.

This country offers serene natural beauty and world-class infrastructure, architecture, and entertainment.

Some of the best places to retire in Spain include:

At what age can you retire in Spain?

You need to be 66 to retire in Spain. If you have at least 37 years of contributions, the age is reduced to 65. As an expat, you won’t have access to Spanish pension or retirement benefits unless you have contributed to Spain’s Social Security for at least 15 years. 

The retirement age will increase every year until it reaches 67 in 2027, after which it will stay the same indefinitely.

Do you pay taxes after retirement in Spain?

A retirement pension is considered income and thus gets taxed, regardless of where it comes from. 

All foreign pensioners who emigrate to Spain must pay income taxes at a rate of 19-37%, depending on how much their monthly income is. 

What are my healthcare options in Spain?

Spain has some of the best healthcare options in the world

For full coverage, private healthcare costs in Spain range from about $55 to $220 a month.  

Once you’ve been resident in Spain for a year, you can apply for the country’s public health insurance scheme, the Convenio Especial. Before this point, or if you can’t access this scheme, you must ensure you have a private plan covering any potential medical expenses. 

After five years of living in Spain, as touched on briefly above, you can apply for permanent residency. If this application is approved, you’ll have access to all the same public healthcare options as a native Spanish citizen.  

What is the housing market in Spain?

As noted earlier in this guide, the cost of living in Spain is lower overall than in the US. But, as is the case in any country, you’ll find much variety in the housing market, and you’ll need to research to find an area in your ideal budget.  

The average house price in Spain is $400,000, or $200 per square foot, with prices ranging a lot from place to place: 

What happens to my retirement benefits if I retire in Spain?  

Thanks to a 1988 agreement between the US and Spain, Social Security payments are protected for expatriates who work or have worked in both countries.  

Therefore, retirees moving to Spain remain eligible for Social Security and other benefits, such as disability and survivor benefits. However, they won’t remain eligible for Medicare or Supplemental Security Income. 

In terms of other retirement accounts, including any IRAs or 401(k)s, you’ll need to determine whether you’d like to empty the account and receive a full payout before you retire and relocate or whether you’d like to transfer the money into a new account. In some cases, due to country-to-country financial red tape, transferring to a new account might be a multi-step process. 

Is Spain a good place to retire?

Spain is internationally regarded as a great place to retire. 

With its warm Mediterranean climate, colorful cuisine, reliable healthcare programs, and high overall quality of life, it can be simultaneously peaceful and invigorating. 

Get expert retirement advice

Retiring in Spain brings many benefits, including beautiful weather, vibrant culture, plenty of expats, and solid public services. However, the visa process isn’t always easy or cheap, so emigrating to Spain can pose some challenges. 

To learn more about how to retire in Spain and plan an efficient, rewarding retirement abroad, get matched with a financial advisor through Unbiased. You’ll receive expert advice tailored to your specific financial situation.