Thinking about retiring to Spain? With a laid-back lifestyle, year-round sunshine, and excellent healthcare, Spain continues to attract thousands of British and American expats each year. But how much does it really cost to retire in Spain — and is it affordable on a pension?
In this guide, we’ll explore the cost of retiring to Spain, including the pros and cons, typical monthly expenses, visa requirements, and the best regions to consider. Whether you’re planning a modest retirement or a luxurious lifestyle, knowing the true cost is key to making your move a success.
What are the benefits of retiring in Spain?
Lower cost of living
Like everything, retiring in Spain has it's pros and cons. Spain offers a significantly lower cost of living than many Western countries, especially for day-to-day expenses like groceries, public transport, and dining out.
Housing is also relatively affordable. Property prices and rental rates in many Spanish regions are lower than in the UK or US, making it possible to enjoy a comfortable lifestyle on a modest pension.
Excellent healthcare
Spain has one of the best healthcare systems in Europe. If you obtain legal residency, you can often access state healthcare for a low monthly fee.
Expats without residency can still receive high-quality treatment through private health insurance, which is generally more affordable than in the US or UK.
Sunny climate & outdoor lifestyle
Many areas in Spain enjoy over 300 days of sunshine per year. The pleasant weather encourages an active lifestyle, with options for walking, cycling, golf, and swimming all year round.
Vibrant expat communities
Popular regions for retirees like the Costa Blanca, Costa del Sol, and Balearic Islands have large English-speaking expat populations, making it easier to settle in and form social connections.
What are the downsides of retiring in Spain?
Spanish bureaucracy
Spain’s visa and residency processes can be complex. Navigating paperwork, appointments, and documentation may feel overwhelming, particularly if you don’t speak the language.
Language barrier
While English is spoken in popular areas, speaking basic Spanish is essential — especially for dealing with healthcare providers, local authorities, and everyday tasks.
Tax on worldwide income
Spain taxes residents on their global income, including pensions from abroad. Tax rules vary depending on your country of origin and your residency status.
Regional price differences
Living costs vary significantly by region. Madrid, Barcelona, and popular islands like Mallorca tend to be more expensive than inland cities or small coastal towns.
Can you retire in Spain on a pension?
Yes, many British and American expats retire to Spain using their pension income. However, you’ll need to show sufficient financial means to meet visa and residency requirements.
2026 financial requirements for retirees:
To qualify for the Spanish Non‑Lucrative Visa (NLV) as a retiree, you must show that you have sufficient guaranteed income to support yourself (and any dependents) without working in Spain.
Financial stability
The income requirement is tied to Spain’s IPREM (Indicador Público de Rentas de Efectos Múltiples). In 2024, this equated to:
- Single applicant: €28,800/year
- Each additional dependent: €7,200/year
For 2026 applications, consulates are expected to require at least the equivalent of 400% of the current IPREM for the main applicant, plus 100% of IPREM per dependent.
This income can come from:
- State or private pensions
- Rental income
- Savings or investments
Applicants must provide bank statements, pension award letters, and other supporting documents to prove this income.
Where are the best places to retire in Spain?
Spain offers something for every retiree — from sunny beach towns to vibrant cities and quiet countryside villages. These are some of the best places to retire in Spain in 2026:
Costa del Sol
A favourite among British retirees. Towns like Marbella, Estepona, and Nerja offer warm weather, a lively social scene, and excellent healthcare facilities.
Alicante & Costa Blanca
Ideal for budget-conscious retirees. The region offers affordable housing, golden beaches, and a large English-speaking community.
Valencia
A cultural city by the sea with great transport links and a lower cost of living than Madrid or Barcelona. Valencia strikes a perfect balance between urban life and coastal charm.
Mallorca (Balearic Islands)
A premium option for those seeking luxury retirement. Mallorca combines Mediterranean beauty with world-class amenities, but it comes at a higher price point.
FAQs about retiring to Spain
Where is the cheapest place to retire in Spain?
Smaller inland cities like Jaén, Lugo, and Zamora offer some of the lowest living costs in the country. These areas provide a good quality of life at a more affordable price than coastal hotspots.
How much do I need per month to retire in Spain from the UK?
On average, British retirees should budget €2,100–€2,500/month to live comfortably in Spain. This includes rent, groceries, utilities, transport, and leisure. Homeowners with no mortgage may need less.
Add extra for:
- Health insurance: €100–€200/month per person
- Travel costs
- Tax obligations on pension or investment income
How much do I need per month to retire in Spain from the US?
US retirees should budget around $2,700–$3,000/month, depending on location and lifestyle. Legal fees, visa costs, and health insurance may be slightly higher for Americans.
Don’t forget to factor in:
- Exchange rates
- Foreign transaction and banking fees
- International healthcare cover (if applicable)
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