Is Spain a Good Place to Retire?
- Warm winter climate
- Beautiful cities like Madrid and Seville
- Beaches along the Costa del Sol
- Modern transportation system with bullet trains
- Lower cost of living
- Healthy lifestyle
- Excellent healthcare system
Spain is a very good place to retire for the thousands of Europeans and Americans who come here. The popularity is due in large part to its warm winter climate, beautiful cities and small towns, and the great beaches along the Costa del Sol. The economy is strong. People love it modern transportation system with intercity bullet trains and Metros in the cities. Its citizens love the free universal health care system. Updated Nov. 2023.
Spain Retirement Guide
Can U.S. citizens retire in Spain? Anyone can live in Spain for up to 90 days. It is possible for USA citizens to reside in Spain longer than 90 days (out of every 180), by applying for a “Non-working residence visa”, provided they can justify they have the financial means to do so. However, if they live in Spain more than 180 days a year, they become fiscal residents there. As many other countries, Spain has a tax treaty with the USA, so that one does not have to pay taxes in both countries. However, one still has to file a tax report every year in each country. Uncle Sam is, together with Eritrea (!), the only country whose citizens have to declare taxes every year, no matter where they live.
Spain is ending its Golden Visa program, which allowed non-EU citizens like those from the U.S. to become permanent residents if they invested at least 500,000 Euros in real estate. The unintended consequence was to drive up real estate prices in the most desirable areas, and price local out of the market. It is possible that the other financial investments might continue to help get a long term visa. if you are a citizen of the EU it is very easy to become a legal resident. In most cases you need to apply and provide proof that you can support yourself, a current passport, photos, and (sometimes) with a medical certificate. Here is more information.
What are taxes like for a retired person in Spain. Generally if you live in the country more than 180 days you need to pay income taxes. But the laws against double taxation vary from country to country, so you should consult a tax professional to make sure you are doing the correct thing. A new (2013) law has greatly disturbed many expats living in Spain, many of whom are contemplating returning home to the UK as a result. The law requires that anyone living in Spain for more than half the year (183) with assets worth more than 50,000 Euros must declare them to the Spanish government. Spain has tough inheritance laws so you should become familiar with them.
Is Spain a safe place to retire. Spain is considered a very safe country, with very little violent crime. This is what the gov.UK says about this issue: “Most visits to Spain are trouble-free, but you should be alert to the existence of street crime, especially thieves using distraction techniques. Thieves often work in teams of two or more people and tend to target money and passports.” There are instances of criminals posing as police officers asking to see your wallet or purse. Ask for their identification, real officers wouldn’t make such a request – and only show your identification. Motorists traveling in the countryside should be wary of bogus inspections or unsolicited offers of help.
Does Spain have a good healthcare system? Citizens of the European Union probably have health care insurance that works in Spain. People not covered by the state run plan might be able to purchase insurance. US Medicare is not honored in Spain. However. medical care is first rate and relatively inexpensive. See this gov.uk link for more on health care.
Is Spain a good place to retire on a budget? The answer is yes, its cost of living is much lower than in the U.S. and the rest of Europe. Spain has the 57th highest cost of living in the world, which compares to the U.S. at #12.
Does Spain have a good climate? Spain is the warmest country in Europe, which is one of the reasons it has attracted so many northern Europeans as winter residents. Along its extensive coast it is fairly mild all year round, although dry. It can get very hot inland. In the mountains the winters can be chillier.
What are some of the Best Places to Live in Spain? See the list of the Spanish cities we have reviewed in the top right hand column. Many retirees prefer to live along the coast for the beaches and atmosphere, while others prefer quaint villages in the hills. Cities like Barcelona, Seville, Toledo, and Madrid have plenty to do, although they will generally be more expensive. Some of the more desirable areas for retirees include Murcia and the Costa del Sol, the Balearic Islands, Marbella, the Costa Blanca, and the Costa Brava. Smaller hill towns like Ronda (pictured above) and Cormona have beautiful Roman ruins and are attractive places to retire.
What are the Plusses and Minuses of retiring in Spain? Spain is a cheaper alternative than the UK and France. The weather is warmer than just about anywhere in Europe. There are any number of places to live where expats will feel comfortable. It is farther away, if you coming from the UK. The economy has been on a rough ride with very high levels of unemployment, particularly among the young.
See our Spanish Directory for a list of possible retirement towns and active communities.
