Do you dream of a retirement in a warm climate?



Afternoons of sangria, tapas and paella…


Weekends full of parties, flamenco and fireworks…


Living in some of the most cosmopolitan cities in the world: Madrid, ValenciaBarcelona, ​​Bilbao, Malaga


With more than 5,000 kilometers of coastline, fresh seafood and a warm climate all year round…


And mountain ranges that offer more than 3,000 meters of altitude for hiking, skiing and sightseeing…


The reality of life in Spain is as rich as the fantasy… this country does not disappoint when it comes to delivering on everything it has become famous for.




Why is Spain a popular retirement destination?


As the second largest country in Western Europe, Spain has a diverse geography, which means unlimited lifestyle options: beach, mountain, urban, rural…


This varied geography also means climate options that are completely customizable: cool on the northern Atlantic coast, cold and snowy in the Pyrenees, warm on the southern Mediterranean coast and everything in between.




Add to this the wealth of history, art and culture that you will find throughout the country…


The fresh seafood, fantastic regional cuisine and wine that’s cheaper than soft drinks…


The fiesta attitude that reigns supreme, both in the big cities and in the small villages…


Plus the fact that these incredible lifestyles come at such affordable prices…


It’s no wonder that Spain is the most popular expat location in Europe. In reality, Expat insider ranked it as the best place to live in Europe, and the fourth best country for expats in the world.


Why is Spain such a popular retirement destination?



Spain has so much to recommend it, but the abundant sunshine and warmth are probably the main reasons cited for retiring in Spain.


With more than 300 days of sunshine on the Mediterranean coast and temperatures that rarely drop below 65 degrees, even in January and February, southern Spain is a comfortable place to live if you’re looking for consistent heat.


The great weather all year round also means an active outdoor lifestyle. In fact, many retirees here say that between the walking they do every day and the Mediterranean diet, they lose weight and gain better health without even trying.


Speaking of the diet… the fresh seafood, the plentiful organic produce brought from the fields to the market every day, and the culture surrounding food are another reason why so many fall in love with their new life in Spain.



When it comes to healthcare, Spain offers some of the best in the world, with an easily accessible system that is accessible to everyone. Spain has the 26th best healthcare in the world according to the Healthcare Index 2023 (as a frame of reference, the United States ranks 69th on the same list). The medical services here are of the highest quality and, above all, very affordable.



The fact that British retirees have been coming here for decades means that English is widely spoken in tourist and foreigner hotspots, and it’s easy to find an English-speaking community almost anywhere in the country. Spain is an easy place to make friends and integrate into local life.


Owning a car can be an important part of your annual budget, but in many towns and beach communities in Spain it can be ignore those costs absolutely. Many retirees in Spain appreciate being able to take advantage of excellent public transport, while also enjoying the chance to incorporate more walking into their daily lives, as most towns here are compact, flat and very walkable.


How many Americans are retired in Spain?


Spain has an estimated population of around 9 million foreigners, of which around 300,000 are from Britain, meaning it’s not difficult to find fellow speakers of English here.


Americans are coming to Spain in greater numbers every year, both for retirement and to work remotely, and it is thought that approx 41,000 Americans in the country from 2024.


Expats are concentrated along the south coast, but also in the main cities including Barcelona, ​​Madrid, Valencia and Seville.



And although the number of North American retirees here is smaller than the number of Brits, it is easy to commute for those coming from the United States or Canada, with two huge international airports in Madrid and Barcelona.



What are the disadvantages of retirement in Spain?


Although you can live in Spain with much less, the income requirement to qualify for a residence permit is relatively high at 2,400 euros per month.


The bureaucracy is much heavier than what you are used to in North America. Whether it is applying for residency, obtaining a local driver’s license, opening a bank account or anything else in the administrative field, you will be amazed at the amount of paperwork, the time it takes to get things done and the number of problems you need to solve. You’ll have to jump through them to accomplish things here.


Not necessarily a disadvantage, but something to take into account: you need to learn Spanish to really appreciate life here. Unless you’re moving to one of the big cities or resort areas, you won’t find many locals who speak English, and those that do are typically in the service industry.



And you’ll have to get used to the local meals, which are very different from those in the United States… Lunch is usually no earlier than 2 p.m., and dinner is rarely before 9 p.m.


How does retiring in Spain affect your taxes?


Taxes in Spain are a serious consideration for a potential resident.


The tax burden here is about 9% higher than the OECD average… On the other hand, Germany, Greece, France and Italy all have a higher total tax burden.


Tax rates at a glance:


· Sales tax: 4% to 21%



· Income tax: varies by region; average 21.1%


· Capital gains: 10% to 26%


· Real estate tax: varies per municipality; 0.4% to 1.1%


Wealth tax: calculated on a sliding scale from 0.2% to 3.5%


Inheritance/gift tax: calculated on a sliding scale from 7.65% to 34%


Spain levies taxes on worldwide income, but you are not in danger of double taxation as treaties have been signed with Great Britain, Canada and the United States to prevent this.



On the other hand, you get access to the excellent healthcare system and receive inheritance and estate tax reimbursements. Many tax exemptions are given, including for personal exemptions, for people over 65, even more for people over 75, and for people with children.


For taxpayers (those who spend more than 180 days a year in Spain), total taxes in Spain are higher than in the United States or Canada. But because of the lifestyle it offers – and the free healthcare that comes with being a tax resident – ​​many expats find it a worthwhile trade-off.



Do you need a visa for retirement in Spain?


If you want to stay in Spain after your 90-day tourist visa, you will need to apply for a residence permit, but unlike most countries, you do not need to apply for long-term residency before leaving your home country. Once you land in Spain, you have 60 days to apply to change your immigration status from tourist to resident.


The most common visa used by US retirees to stay in Spain is the non-lucrative visa (NLV), also known as the passive income visa, which simply requires the main applicant to prove an income of around 2,400 euros per month, plus another 600 euros extra. one month for each dependent (before 2024). You are not allowed to work with this visa.



The NLV is valid for one year and can be extended for another four years, provided you still meet the requirements.


Is retirement in Spain ethical?


Several coastal cities in Spain have experienced rapid housing inflation in recent years, driven by foreign renters and buyers. This is a global problem that is starting to affect many cities around the world.


Although some destinations in Spain have recently come out strongly against tourism, particularly the Balearic and Canary Islands, Barcelona and Málaga, foreign residents do not report feeling discriminated against.


The best way to show your respect for a culture you are visiting, whether as a tourist or a resident, is to make an effort to speak the local language. And once you’ve moved to a new country, take the time to notice and absorb the local customs and routines, and adapt to them accordingly.




Who should consider retiring in Spain?


Spain is a culturally and historically rich country, but also a melting pot of different cultures that have left their mark over the centuries. Between the different coastlines, the mountain ranges, the top cities and the varied climates, Spain has something for everyone…


With one of the lowest costs of living in Western Europe, retiring in Spain is a bargain for the enviable lifestyle it offers.


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