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 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.
Good infrastructure & accessibility
Spain boasts modern infrastructure, reliable public transport, and excellent connections to the rest of Europe. With international airports in most major cities, travel is easy and affordable.
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.
Hiring a relocation advisor or gestor can make the process smoother.
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. It’s wise to consult a tax advisor familiar with international and Spanish tax laws.
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.
Visit different areas and compare prices before deciding where to settle.
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.
2025 financial requirements for retirees (non-lucrative visa):
- Single applicant: Approx. €2,400/month or €28,800/year
- Couple: Approx. €36,000–€40,000/year
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. Private health insurance is also required as part of the application.
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 2025:
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.
Final thoughts on the cost of retiring to Spain
Retiring in Spain in 2025 is both achievable and appealing for expats from the UK, USA, and beyond. With a lower cost of living, excellent healthcare, beautiful weather, and vibrant communities, Spain continues to be one of the top retirement destinations in Europe.
Whether you're planning to live on a modest pension or enjoy a more luxurious lifestyle, success lies in planning ahead, understanding the visa and tax rules, and choosing the right location to match your budget and lifestyle.
With the right preparation, your dream of retiring to Spain can become a smooth and enjoyable reality.
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 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 €2,000–€2,500/month for a comfortable lifestyle. 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 $2,000–$2,500/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)
