Spain has established itself as a premier retirement destination for expatriates with its sunny climate, stunning landscapes, cultural richness, reasonable living expenses and superb healthcare as well as a wide spectrum of options tailored to all preferences and priorities.
InterNations crowned Málagas as the premier European destination for expatriate living in 2023 following a survey of more than 12,000 expats. Two additional Spanish cities—Alicante and Valencia—ascended to the second and third positions, respectively. Since the survey started in 2014, Spain has continually secured a position within the top 10. Overall, an impressive 87% of expats express satisfaction with their life in Spain, significantly higher than the global average of 72%.
The warm weather is the top reason for choosing Spain to retire. The majority of the country has a Mediterranean climate characterised by mild winters and hot summers, making it an ideal destination for individuals seeking year-round warmth and sunshine with minimal rainfall and no harsh cold weather. Retirees can enjoy their days exploring the countryside, unwinding on beaches and savouring the cuisine and wines of the region.
The cost of living in Spain, especially in some coastal towns and rural areas, offers significant advantages. Property prices in Spain are typically lower compared to those in the UK, USA, CANADA and many European cities. The overall expenses for utilities, household bills and daily purchases are more budget-friendly while expenses such as road tax and heating costs are notably reduced. Retirees with pensions from other countries will find that their funds stretch further in Spain.
Another compelling aspect of retiring to Spain is the country’s exemplary healthcare system, renowned for its quality across both public and private sectors. Citizens, EU members and residents who have contributed to the Spanish Social Security system or through the S1 form, can avail themselves of public healthcare services. Alternatively, those ineligible for public care can access Spain’s excellent private healthcare sector. Even among those eligible for public care, many opt for private insurance to circumvent lengthy wait times. Whether utilising public or private providers, Spain maintains a favourable ratio of doctors to residents throughout the nation. Medical professionals in both sectors often speak English fluently and are equipped with state-of-the-art technology.
Public transportation in Spain is of exceptional value and convenience. RENFE, the country’s renowned rail service, is known for its excellence in engineering and customer satisfaction. The high-speed train, AVE, connects major cities in under 3 hours. Spain has over 40 airports and a range of airlines catering to different budgets. Even traveling by bus is comfortable and affordable and it remains a popular choice for both locals and tourists.
Acquiring residency in Spain comes with numerous benefits, including visa-free travel to 26 European cities. Spain offers a specialised non-European residency visa designed for retirees, known as the “non-lucrative”. This visa permits residence in Spain without the need for employment or economic activities and is initially granted for one year with the option for subsequent renewals for an additional two years.Following the third renewal period you can apply for a longer-term, five-year permit as a permanent resident.
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The UNESCO Creative Cities Network (UCCN), founded in 2004, is dedicated to fostering creativity and supporting cultural industries. Presently, nine Spanish cities are integral members of this network, including:
Terrassa and Valladolid have emerged as hubs for independent film production and education. They provide support to artists through creativity grants, particularly for experimental audiovisual projects. With a commitment to utilising cinema for education, integration and socioeconomic advancement, the cultural businesses in these cities play a substantial role in their local economies.
Over sixty cities across the EU and beyond have been designated European Capitals of Culture, with four Spanish cities among them:
Looking ahead to 2031, Burgos, Caceres, Granada and Jerez de la Frontera stand as potential candidates for the title of European Capital of Culture.
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Renowned as one of Spain’s warmest cities, Calpe beckons retirees with its abundance of sunny days, vibrant activities and a thriving expatriate community comprising over half of its residents.
Highlighted by ‘International Living’ magazine, Mijas is a preferred spot for retirees from various countries, including Britain, the Netherlands, Scandinavia and the United States. Noted for its beauty, climate and recreational offerings, including access to the renowned ‘golf valley’ of the Costa del Sol, Mijas appeals to outdoor enthusiasts and those seeking a leisurely lifestyle.
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In Spain, retirees do not have a dedicated visa. EU retirees simply need to register with the Foreigners’ Citizens Registry and acquire a residence permit, demonstrating adequate pension income to reside in Spain.
Do you need a professional help to retire in Spain for expats?
For retirees from the EU who wish to settle and enjoy their retirement in Spain, it’s worth noting that they do not need a visa to enter the country. Instead, they must follow a different procedure, which involves registering with the Central Registry of Foreigners, provided they meet certain requirements.
Primarily, they must demonstrate sufficient financial resources both for themselves and, if applicable, for any accompanying family members residing in Spain. Retirees can typically prove this through documentation of their pension payments.
For both EU and non-EU retirees, this necessity is typically met through the acquisition of the S1 form, which is issued in their country of origin. This form serves as a certification, facilitating the transfer of their healthcare entitlements from their home nation to Spain.
It validates their eligibility for public and cost-free healthcare within Spain, under the coverage of their home country’s healthcare system. This documentation assures that individuals relocating to Spain are covered medically and, as per international agreements, are entitled to healthcare benefits within the Spanish Social Security system.
This residency application would entail tax implications in Spain, which we’ll discuss shortly.
Lastly, retirees who have been legal residents in Spain for 5 consecutive years can opt to apply for permanent residency in the country.
For non-EU retirees, it’s crucial to note that once residency is acquired in Spain, it enables visa-free travel within the cities of the Schengen Area.
Non-EU citizens, particularly retirees seeking to settle in Spain, have two main visa options:
The primary requirements to qualify for this visa include:
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Many retirees from both EU and non-EU countries dream of establishing permanent residency in Spain, a situation that entails fulfilling tax obligations as a tax resident in Spain.
According to Article 9 of the Income Tax Law, individuals who spend more than 183 days in Spanish territory or possess significant economic interests in Spain are deemed tax residents. Consequently, as tax residents in Spain, they are obligated to adhere to the following tax requirements:
To alleviate the risk of double taxation, a bilateral tax treaty between Spain and their country of origin is employed to prevent income from being taxed in both jurisdictions.
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When considering retirement in Spain, the non-lucrative visa stands out as a popular choice among expatriates. Tailored for individuals with sufficient passive income or savings, this visa option offers a pathway to legal residency in the country. To qualify for Spain’s retirement visa, applicants must meet specific criteria:
Once approved, the retiree, their spouse/partner and dependent family members can reside in Spain legally. However, holders of this visa are not permitted to engage in any form of employment. Upon issuance, the visa grants a one-year residence card, renewable for up to two additional years. After five years in the country, retirees can apply for permanent residency.
One of the primary attractions for retirees considering Spain is its renowned healthcare system. Retirees under non-lucrative and Golden visas typically opt for private healthcare. Spain’s public healthcare system, the Sistema Nacional de Salud (SNS), offers nearly cost-free medical services to its citizens. Expatriates in Spain have the option to access this state-funded service if eligible, by enrolling in the Convenio Especial insurance scheme, which covers pre-existing conditions, by paying a monthly fee. Those preferring private medical care can purchase private insurance, which may include coverage for non-emergency dental treatments, not covered by the public system.
For expats choosing not to register with the Convenio Especial insurance scheme, proof of adequate private medical coverage is necessary for visa/residency purposes.
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Relocating to a different country poses its own set of hurdles, as departing from familiar faces and embarking on a new chapter can be daunting. However, in Spain, this transition is eased by a multitude of opportunities for social inclusion. Life in Spain underscores the importance of seizing the moment, embracing a slower pace and cherishing communal experiences. Integrating into Spanish society requires more than just linguistic proficiency, though mastering Spanish can certainly expedite the process. It also entails embracing and appreciating the cultural diversity and lifestyle that contribute to the enriching experience of settling in Spain. Spanish culture and traditions remain deeply intertwined with religion and its architecture is largely rooted in religious heritage, with over 90 cathedrals gracing the country’s landscape, more than 60% of Spaniards regularly attend church services.
One of the cherished customs in Spanish culture is the siesta—a leisurely midday nap. So cherished, in fact, that many businesses shut down for a couple of hours each day, allowing their employees to recharge their energy for the remainder of the afternoon.
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Tax, immigration, and real estate matters in Spain can be challenging for foreign individuals without the right guidance. At Tejada Solicitors, we approach your case from a 360-degree perspective. Our immigration specialist, tax lawyer, and property conveyancing expert will jointly study and analyze your case. We are here to streamline this process, reduce stress, and ensure your move to Spain is a success. Trust in the confidence and support of our team of specialized lawyers with extensive experience in these procedures.
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