Spain ranked third best country for retirement in 2025

Spain has placed third in the 2025 Global Retirement Index, reflecting strong healthcare outcomes, day‑to‑day liveability and comparatively steady finances for retirees. Spain’s result keeps it among Europe’s front‑runners, along with Portugal, which ranked number one. For retirees already in Spain or weighing a move, it signals solid fundamentals, with the finer points — costs, taxes and regional differences — shaping the picture.

Global Citizen Solutions' Global Retirement Report: measures and how it is calculated

The Global Citizen Solutions report assesses 44 countries that offer passive income visas or retirement residence permits, combining 20 indicators to produce a final composite score.

• Data sources: established datasets including Numbeo (cost of living, rent, climate, healthcare ratings), Global Peace Index, Migrants Acceptance Index and English Proficiency Index.
• Accessibility and tax: additional weighting for flight availability/distance and tax optimisation factors such as double‑tax treaties, special expat regimes and treatment of foreign‑earned income.
• For the US‑retiree lens used within the report, seven target indicators are grouped into three thematic sub‑indices — quality of life, security and integration, and economic conditions — to reflect considerations specific to Americans abroad.

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Why Spain ranked third in 2025

Spain’s bronze finish reflects standout lifestyle metrics and smooth residency pathways, tempered by a less competitive tax set‑up and a softer economic backdrop.

• Quality of Life: 1st — Spain leads on day‑to‑day liveability, underpinning its overall position.
• Safety and Integration: 5th — strong safety profile and integration factors support retirees settling in.
• Procedure: 2nd — accessible visa routes for retirees, such as the Non‑Lucrative Visa, with a €2,400 monthly income, three‑month processing, and family inclusion, lift Spain’s score.
• Citizenship and Mobility: 6th — long‑term stability with a path to citizenship (generally 10 years; two for selected nationalities) and dual citizenship allowed.

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Where British retirees settle in Spain

British retirees, like many expats, gravitate to the Mediterranean and the south coast. The areas Brits specifically choose to retire to in Spain tend to have year‑round sun, easygoing routines and direct flights home. Coastal hubs still draw the crowds, but mid‑sized cities with strong services and softer costs are climbing the preference list. The Mediterranean city of Valencia was recently named the best city to retire to in Spain.

The best place to retire in Spain for 2025 really depends on your budget and lifestyle choices. However, some areas of the country appeal more than others thanks to the climate, integration and cost of living.

Spain or Portugal for retirement in 2025: weighing the trade‑offs

For many retirees, the Iberian choice comes down to lifestyle fit and the maths. However, choosing whether to retire in Spain or Portugal is a common dilemma for people attracted to this sunny part of Europe. The two countries share sunshine, solid healthcare and good flight connections, but diverge on taxes, residency routes and day‑to‑day costs. 

Weighing up the pros and cons of retiring in Spain is a good place to start, before deciding whether you agree with the claim that Portugal is the world's best retirement destination. Plus, the cost of retiring in Spain is another key factor to consider, as prices are constantly fluctuating, and 2025 sees higher costs than ever.

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