Retiring in Spain in 2025: Visas, Cost of Living, Taxes & Best Places

Most non‑EU retirees use the Non‑Lucrative Visa (NLV). The Golden Visa via real estate was abolished in 2025; other investor routes exist but are rare and not typical for retirees. Always check your local Spanish consulate for current requirements.

In 2025, retirees typically need between €2,500 and €2,800/month in major cities like Madrid or Barcelona, but only €1,500 to €1,900/month in smaller towns or rural areas. Your cost will depend heavily on housing, healthcare, and lifestyle choices.

Estimated Monthly Budget (2025):

The official retirement age in Spain in 2025 is 66 years and 8 months, or 65 years for those with 38+ years of contributions. By 2027, the standard age will be fixed at 67 years. Expats can retire earlier if they are self-funded, but won’t qualify for a Spanish state pension unless they’ve contributed for at least 15 years.

Yes. Retirement income, including foreign pensions, is taxable in Spain at progressive rates from 19% to 47%. However, tax treaties with the US, UK, and many EU countries help prevent double taxation.

Five top picks for 2025:

• Valencia – Affordable coastal living, rich culture, mild winters.
• Málaga – Sunshine year-round, vibrant art scene, good transport links.
• Alicante – Friendly expat hub, great beaches, affordable housing.
• Madrid – Cultural capital with world-class amenities and healthcare.
• Costa Blanca – Relaxed coastal vibe, perfect for those seeking quieter towns.

Average monthly budget in these locations ranges from €1,700 in Alicante to €2,800 in Madrid.

Spain’s healthcare system is one of the best in Europe. Retirees can access public healthcare via the S1 scheme (for eligible EU/UK pensioners) or after one year of residency through the Convenio Especial. Private health insurance starts from around €55/month, offering faster access and English-speaking doctors.

Retiring in Spain is more than just moving to a warmer climate — it’s a lifestyle upgrade that blends affordability, culture, and convenience. From sun-drenched beaches to historic city centers, Spain offers a quality of life that rivals any in Europe, often at a fraction of the cost.

Spain enjoys an average of 300 sunny days per year in its southern regions, with mild winters and hot, dry summers. Coastal areas like the Costa del Sol and Costa Blanca benefit from temperate sea breezes, while inland cities offer warm summers and crisp winters. For retirees seeking consistent sunshine and outdoor living, Spain ranks among the top choices worldwide.

Spain is one of the safest countries in Europe, ranking 31st out of 163 nations in the 2024 Global Peace Index. Violent crime rates are low, and most cities offer well-maintained public spaces, reliable emergency services, and a welcoming atmosphere for foreigners. Many retirees find they can comfortably walk through city streets or along coastal promenades late into the evening.

Compared to other Western countries, especially the United States and Northern Europe, Spain’s cost of living is significantly lower. Housing costs, public transport, and groceries remain affordable in most regions, even with recent inflation. Retirees in smaller towns can live comfortably on €1,500–€1,900/month, while even larger cities remain manageable compared to global capitals.

Spain offers a blend of history, art, music, and gastronomy that few destinations can match. From world-famous museums in Madrid to flamenco shows in Seville and pintxos in San Sebastián, every region has its own distinct cultural identity. Festivals like Las Fallas in Valencia or Feria de Abril in Seville provide retirees with year-round opportunities to connect with local traditions.

As of 2025, over 350,000 foreign retirees call Spain home. Large communities of Americans, Brits, Germans, and other Europeans have created support networks, English-speaking clubs, and expat-friendly services. This makes integration easier for newcomers while still allowing them to enjoy authentic Spanish life.

If you’re planning to retire in Spain, the right residency path depends on your nationality and personal circumstances. EU citizens enjoy almost complete freedom of movement, while non-EU retirees — including Americans and Brits post-Brexit — must apply for a visa before moving.

The Non-Lucrative Visa is the most common route for non-EU/EEA retirees. It allows you to live in Spain without working or running a business.

Key Requirements in 2025:

• Minimum monthly income: €2,400 for the main applicant (+€600 for each dependent). Proof via pensions, investments, or savings.
• Private health insurance with full coverage in Spain (no co-payments).
• Clean criminal record from the past five years.
• Medical certificate confirming you are free from contagious diseases.
• Valid passport with at least one year before expiry.

Duration & Renewal:

• Initial validity: 1 year.
• First renewal: 2 years (must still meet income & insurance requirements).
• Second renewal: 2 years.
• After 5 years of continuous residence: eligible for permanent residency.

Until early 2025, Spain offered the Golden Visa to foreign investors who bought at least €500,000 in property.
This program has now been abolished to address housing affordability issues in popular cities.

What’s still possible?

• Non-property investment routes (e.g., €2M in Spanish government bonds or €1M in Spanish company shares) still exist in theory but are rarely used by retirees.
• These options are generally aimed at entrepreneurs or high-net-worth individuals, not typical pensioners.

If you find outdated online guides mentioning the Golden Visa for property purchases, note that it no longer applies to new applications.

• Digital Nomad Visa – If you have remote income (e.g., consultancy, royalties) from outside Spain, you may qualify, even if you’re semi-retired. Requires proof of at least €2,160/month and that your work is for non-Spanish companies.
• Family Reunification Visa – If you have close family members legally residing in Spain.
  

If you’re from an EU or EEA country, you can live and retire in Spain without a visa.

Steps to Register Your Residency:

1. Get your NIE number (Número de Identificación de Extranjero).
2. Register your address at the local town hall (empadronamiento).
3. Apply for your EU registration certificate.
4. Arrange for healthcare coverage (via home country’s system or private insurance).
   

• Choose your preferred city or region.
• Check visa eligibility and prepare all documents.
• Arrange private health insurance (mandatory for most visas).
• Prepare proof of income/savings.
• Apply for your NIE if possible before arrival.
• Book temporary accommodation for your arrival.
• Translate all official documents into Spanish using a certified translator.

Spain remains one of Europe’s most affordable retirement destinations, especially when compared to the US, UK, and Northern Europe. However, costs vary significantly depending on location, lifestyle, and housing choices.

• Housing: €650–€1,300 (1-bedroom apartment, depending on city/area).
• Utilities: €90–€150 (electricity, water, heating, internet).
• Groceries: €200–€320 for fresh produce, meat, dairy, and household basics.
• Transport: €30–€55 (public transport pass; taxis and occasional car hire extra).
• Private Healthcare: from €55/month per person.
• Dining Out: €10–€15 for a casual meal, €40–€60 for two at a mid-range restaurant.

Finding the right home is one of the biggest steps in planning your retirement in Spain. Whether you rent or buy will depend on your budget, long-term plans, and the flexibility you want.

Typical monthly rents (1-bedroom apartment):

• City centre: €750 – €1,300
• Outside centre: €550 – €900

Rental contracts & deposits:

• Standard contracts: 12 months minimum, though short-term options exist for seasonal rentals.
• Security deposit (fianza): Legally 1 month’s rent, but landlords often request 2–3 months for furnished apartments or long stays.
• Utilities: Usually not included in rent (electricity, water, internet billed separately).

Tips for retirees renting in Spain:

• Use reputable agencies or official platforms to avoid scams.
• Always request a written contract (contrato de arrendamiento) in Spanish — and have it translated if necessary.
• Inspect the property before signing, taking photos of existing wear or damage.

Key points:

• You’ll need an NIE (Número de Identificación de Extranjero) before signing a purchase deed.
• Notary fees, registration, and legal costs typically add 10–13% on top of the purchase price.
• Non-EU retirees can buy property freely (but remember: the Golden Visa via property purchase is no longer available in 2025).
  

• IBI (Impuesto sobre Bienes Inmuebles): Annual property tax set by local councils, usually 0.4% – 1.1% of the cadastral value (valor catastral).
• Plusvalía Municipal: Capital gains tax payable when selling property, based on the increase in land value since purchase.
• Wealth Tax: Applies to net assets above €700,000 (with an additional €300,000 exemption for your main residence), rates from 0.2% to 3.5% depending on region.

Spain is known for having one of the best healthcare systems in the world, consistently ranking in the top 10 globally for accessibility and quality. As a retiree, your options will depend on your nationality, length of stay, and residency status.

Spain’s public healthcare system (Sistema Nacional de Salud) offers universal coverage to residents who meet eligibility requirements.

Access routes for retirees:

• EU/EEA Retirees (S1 Form):
  If you’re from an EU or EEA country and receive a state pension from your home country, you can apply for the S1 form. This allows Spain to bill your home country for your care, giving you access to public healthcare at little or no cost.
• Convenio Especial:
  For retirees who aren’t eligible for free public healthcare (including many non-EU citizens), Spain offers the Convenio Especial — a public health insurance scheme for residents.
  • Cost: €60/month (under 65) or €157/month (65 and over).
  • Covers the same services as the public system, but does not include prescriptions.
• Residency-based Access:
  After legally residing in Spain for a certain period (usually one year with proper registration), you may qualify for public healthcare.

Most non-EU retirees — including Americans and Brits post-Brexit — are required to have private health insurance to obtain their visa.

Average cost in 2025:

• From €55 to €200/month per person, depending on age, health history, and coverage level.

Top insurers for expats:

• Sanitas (Bupa Spain)
• Adeslas
• DKV
• Cigna Global
• AXA PPP

Coverage highlights:

• Full access to private hospitals and clinics.
• Shorter waiting times for tests and surgeries.
• Multilingual doctors and staff in expat-heavy areas.
• Emergency care, specialist visits, and hospitalisation included.
  

• Pharmacies (farmacias): Identified by a green cross sign, open Mon–Fri (9:30–14:00 / 17:00–21:00) and Sat mornings. Rotating 24-hour pharmacies are listed on doors/windows.
• Prescriptions: In the public system, pensioners typically pay ~10% with annual caps; private insurance policies vary by plan.
• Emergency number: Dial 112 for medical emergencies — operators can usually connect you to English speakers in tourist areas.
  

While English-speaking doctors are common in Madrid, Barcelona, Valencia, and coastal expat hubs (Costa Blanca, Costa del Sol, Balearics), in rural areas you may need basic Spanish or an interpreter.

When retiring in Spain, it’s essential to understand how your pension, savings, and property will be taxed. Spain taxes residents on worldwide income, but double taxation agreements (DTAs) can help prevent paying twice.

All pensions — whether from Spain or abroad — are treated as general income and taxed progressively.

2025 Spanish Income Tax Brackets for Residents:

• Applies to residents and non-residents with Spanish assets (non-residents are taxed only on assets in Spain).
• General exemption: €700,000 + €300,000 for your main residence.
• Rates: 0.2% – 3.5% depending on asset value and region.
  

• IBI (Impuesto sobre Bienes Inmuebles): Annual municipal property tax, 0.4%–1.1% of the cadastral value.
• Plusvalía Municipal: Paid on property sales, based on increase in land value since purchase.
• Rental Income Tax:
  • EU/EEA residents: 19%
  • Non-EU/EEA residents: 24% (on gross rental income).
    

If you sell a property or investments, you’ll pay capital gains tax at:

• 19% (up to €6,000 gain)
• 21% (€6,000 – €50,000 gain)
• 23% (€50,000 – €200,000 gain)
• 27% (€200,000 – €300,000 gain)
• 30% (over €300,000 gain)
  

Spain has DTAs with over 90 countries, including the US, UK, Canada, Australia, and most EU nations.

Key treaties:

• US–Spain Tax Treaty (1988): Prevents double taxation on pensions, social security, and investment income.
• UK–Spain Tax Treaty: Similar protections for UK pensions and savings.
• Canada–Spain Tax Treaty: Covers pensions, annuities, and capital gains.
  

Even with a DTA, US citizens must file a US tax return annually. Tools to reduce your US tax bill:

• Foreign Tax Credit (Form 1116): Claim credit for taxes paid to Spain.
• Foreign Earned Income Exclusion (Form 2555): Not usually applicable to pensions, but relevant for part-time work income.
• Foreign Bank Account Report (FBAR): Required if foreign accounts exceed $10,000 at any point in the year.
  

• Work with a cross-border tax advisor familiar with both Spanish and your home country’s tax laws.
• Plan withdrawals from pensions strategically to avoid jumping into higher tax brackets.
  

Spain offers a diverse choice of retirement locations — from bustling cosmopolitan hubs to quiet coastal villages. The best fit will depend on your budget, climate preference, and how much you value an established expat community.

1. Valencia

• Pros: Excellent balance of culture, beaches, and affordability; well-connected airport; rich culinary scene (home of paella).
• Cons: Summers can be humid; English less common outside city centre.
• Average Monthly Budget: €1,900 – €2,400 for a single retiree.

2. Málaga

• Pros: Year-round sunshine, historic charm, art museums (Picasso Museum), modern airport with global connections.
• Cons: Higher housing prices in prime areas; busy tourist seasons.
• Average Monthly Budget: €2,000 – €2,500.

3. Alicante

• Pros: Mild climate, sandy beaches, affordable housing, large English-speaking expat community.
• Cons: Smaller cultural scene than bigger cities.
• Average Monthly Budget: €1,700 – €2,100.

4. Madrid

• Pros: Vibrant capital with world-class healthcare, museums, restaurants, and transport links.
• Cons: No beaches; higher rental costs.
• Average Monthly Budget: €2,300 – €2,800.

5. Costa Blanca (Javea & Denia)

• Pros: Stunning coastline, small-town charm, active expat clubs and activities.
• Cons: Seasonal crowds in summer; limited winter flights.
• Average Monthly Budget: €1,800 – €2,300.

6. Almería

• Pros: One of the cheapest coastal cities in Spain; over 300 sunny days/year; authentic Andalusian feel.
• Cons: Fewer English speakers; smaller expat scene.
• Average Monthly Budget: €1,500 – €1,900.

7. Lugo (Galicia)

• Pros: Very low cost of living, historic Roman walls (UNESCO), lush green landscapes.
• Cons: Wetter, cooler climate; fewer direct transport links.
• Average Monthly Budget: €1,400 – €1,800.

8. San Sebastián

• Pros: Gourmet capital of Spain, beautiful beaches (La Concha), mild summers.
• Cons: One of the most expensive cities in Spain for housing.
• Average Monthly Budget: €2,500 – €3,200.
  

Retiring in Spain is not just about sunshine and lower costs — it’s about immersing yourself in a vibrant culture and feeling at home in your new community. The better you integrate, the more rewarding your retirement will be.

While many expats get by in English — especially in coastal areas — learning basic Spanish will significantly improve your quality of life.

• Benefits: Easier communication with neighbours, healthcare providers, and local shops; deeper cultural immersion.
• Options:
  • Municipal Escuelas Oficiales de Idiomas offer affordable courses.
  • Private language schools and online platforms like Italki or Duolingo.
  • Language exchange meetups (intercambios) in cafés and libraries.
    

Spain has thriving expat networks, especially in the Costa Blanca, Costa del Sol, Valencia, and Málaga.

• Benefits: Social support, activity clubs, and English-speaking services.
• How to connect:
  • Join Facebook groups like Expats in Spain or Americans in Costa Blanca.
  • Participate in local charity events or hobby clubs (photography, hiking, cooking).
  • Attend meetups via platforms like Meetup.com.
    

• Leisure: Golf, sailing, hiking, cycling, and flamenco classes are all popular with retirees.
• Cultural life: Local fiestas, concerts, and art exhibitions are common year-round.
• Gastronomy: Spain is a food lover’s paradise — fresh produce markets, tapas bars, and Michelin-starred restaurants. Don’t miss paella valenciana, jamón ibérico, and churros con chocolate.
• Wine & tapas culture: Affordable wine (often under €5 a bottle) and lively tapas nights help foster social interaction.
  

Spain ranks among the safest countries in Europe for retirees.

• Crime: Petty theft (pickpocketing) can be an issue in tourist-heavy cities, but violent crime rates are low.
• Healthcare: Public hospitals maintain high standards; emergency services are efficient.
• Transport: Extensive and affordable public transport networks — buses, trams, metros, and high-speed trains.
  

Planning your retirement in Spain can feel overwhelming, but breaking it down into clear steps makes the process much smoother. Here’s your action plan to go from dream to reality.

• Research climate, cost of living, healthcare access, and expat communities.
• Visit your top choices off-season to get a real feel for daily life.
  

Tip: Valencia, Málaga, Alicante, and smaller towns like Javea or Almería each offer very different lifestyles.

• Consider monthly living costs (housing, utilities, healthcare, transport, leisure).
• Account for one-off moving costs (visa fees, flights, shipping belongings).
• Keep an emergency fund equivalent to 6–12 months of expenses.
  

• Non-Lucrative Visa (NLV): Most common for non-EU retirees; requires proof of financial self-sufficiency.
• EU/EEA citizens: Benefit from freedom of movement but still need to register as residents.
• Gather documents early (bank statements, health insurance, police clearance, medical certificate).
  

• Rent first: Test the area before committing to a purchase.
• Understand rental contracts (contratos de arrendamiento) and deposit rules (usually 1–2 months’ rent).
• If buying, research taxes like IBI and potential capital gains rules.
  

• Rent first: Test the area before committing to a purchase.
• Understand rental contracts (contratos de arrendamiento) and deposit rules (usually 1–2 months’ rent).
• If buying, research taxes like IBI and potential capital gains rules.
  

• EU/EEA retirees: Apply for public healthcare via the S1 form.
• Non-EU retirees: Private health insurance required for visa; later consider Convenio Especial for public coverage.
  

• Needed for paying utilities, rent, and local taxes.
• Requires your NIE (Número de Identificación de Extranjero), proof of address, and ID.
  

• Learn basic Spanish for daily interactions.
• Join local clubs, volunteer, or participate in cultural events.
• Use expat networks to make friends and get practical advice.
  

Choosing between Spain, Portugal, and Italy can be tricky — all three offer sunshine, rich culture, and delicious cuisine. But when you compare costs, visas, healthcare, and climate, clear differences emerge.

Choosing between Spain, Portugal, and Italy can be tricky — all three offer sunshine, rich culture, and delicious cuisine. But when you compare costs, visas, healthcare, and climate, clear differences emerge.

• Spain: Best for retirees seeking a balance of affordable cost, world-class healthcare, and cultural diversity, with both bustling cities and quiet coastal villages. Ideal for those who enjoy an active lifestyle, rich gastronomy, and a large expat network.
• Portugal: Best for retirees wanting the most tax-friendly option for foreign pensions, especially under the Non-Habitual Resident (NHR) scheme. Ideal for English-speaking retirees looking for a slightly lower cost of living and mild climate year-round.
• Italy: Best for retirees who prioritise romantic landscapes, art, and history over cost savings. Great for those with higher budgets who want to immerse themselves in authentic Italian culture and cuisine.

Over the past five years, Spain has remained an attractive retirement destination, but like most of Europe, it has faced inflationary pressures — particularly in housing, utilities, and private healthcare.

Between 2020 and 2025, property prices have risen sharply in high-demand coastal cities and islands, while inland towns have seen slower growth.

• Average increase nationwide: +18%
• Hotspots: Costa del Sol, Balearic Islands, and Madrid saw +25–30% growth.
• Rents: Up 15–20% in expat-heavy cities like Málaga and Valencia due to demand from both retirees and digital nomads.
  

From 2020 to 2025, Spain’s inflation averaged 4.2% annually, peaking in 2022 due to energy prices and global supply chain issues.

• Groceries: Up ~20% overall, but still cheaper than most of Western Europe.
• Dining out: Average meal at a mid-range restaurant rose from €35 (2020) to €42 (2025) for two people.
• Utilities: Energy prices increased by ~25% since 2020, though recent subsidies have stabilised bills.
  

While Spain’s public healthcare remains free for eligible residents, private health insurance costs have increased due to demand from non-EU retirees and longer life expectancy.

• Private insurance 2020: €45–€90/month.
• Private insurance 2025: €55–€120/month for comparable coverage.
• Drivers: Increased enrolment of retirees needing immediate specialist access, plus inflation in medical services.
  

• Still affordable compared to US, UK, France, and Italy.
• Budget-conscious retirees may prefer smaller inland towns or lesser-known coastal regions to offset cost increases.
• Locking in long-term rental contracts (5+ years) can help protect against steep rent hikes.
  

Hearing from people who’ve actually made the move can help you understand what to expect — and what to avoid.

Linda moved from Arizona to Málaga in 2022.

• Why Spain? Affordable healthcare, warm climate, and vibrant expat community.
• Biggest Challenge: Navigating the visa paperwork — she underestimated the time needed.
• Best Decision: Renting first for a year before buying her apartment.
  

After Brexit, the couple relocated to Alicante in 2023 using the Non-Lucrative Visa.

• Why Alicante? Low cost of living, sunny weather, and large English-speaking community.
• Biggest Challenge: Adapting to slower Spanish bureaucracy compared to the UK.
• Best Decision: Joining a local hiking club — they made friends and improved their Spanish.
  

As an EU citizen, Sophie moved to Valencia without visa restrictions in 2021.

• Why Valencia? Culture, safety, and easy transport links to Paris.
• Biggest Challenge: Managing property purchase remotely.
• Best Decision: Hiring a bilingual lawyer to handle all real estate paperwork.
  

1. Underestimating Visa Timelines – Non-EU retirees should start paperwork 6–9 months in advance.
2. Not Learning Basic Spanish – Limits integration and increases daily frustration.
3. Ignoring Healthcare Requirements – Private insurance must be fully comprehensive for visa approval.
4. Buying Property Too Soon – Always rent first to test the area.
5. Forgetting Tax Implications – Double-check with a tax advisor familiar with both countries’ laws.
6. Overlooking Seasonal Differences – Coastal towns can be crowded in summer but very quiet in winter.

Retiring in Spain offers an enviable mix of sunshine, culture, and affordability that’s hard to beat. With a high standard of healthcare, diverse housing options, and a welcoming atmosphere for expats, it’s no wonder Spain consistently ranks among the top retirement destinations worldwide. Whether you dream of a bustling city like Madrid, a historic gem like Valencia, or a peaceful coastal retreat in Alicante, there’s a place that can fit your lifestyle and budget.

That said, success in making the move depends on careful planning. From visa applications to understanding healthcare rules, tax obligations, and housing markets, each step requires time and attention to detail. Bureaucracy can be slow, and costs — especially in popular areas — have risen since 2020.

Key takeaway: Start planning early, ideally 6–12 months before your intended move. This gives you time to choose the right location, secure your visa, arrange healthcare, and budget realistically.

If you approach the process methodically, retiring in Spain can turn your golden years into exactly what they should be — a time to enjoy life, explore, and live at your own pace under the Mediterranean sun.