Retiring in Spain: Visas, Taxes, and Healthcare for Expats 

Dreaming of spending your golden years under the Spanish sun? Spain offers a delightful mix of rich culture, a pleasant climate, and a relaxed lifestyle, making it a top choice for retirees. In this guide, we’ll explore everything you need to know to make your retirement in Spain a reality. 

Why Retire in Spain? 

Spain has long been a favorite destination for retirees, and it’s easy to see why. Benefits include: 

Pleasant Climate 

Spain boasts a diverse climate, but many regions, especially along the Mediterranean coast, enjoy mild winters and warm summers. This favorable weather allows for year-round outdoor activities and a generally comfortable lifestyle. 

Rich Cultural Heritage 

From flamenco dancing in Seville to the architectural wonders of Barcelona, Spain offers a wealth of cultural experiences. The country’s history is reflected in its festivals, art, and traditions, providing endless opportunities for exploration and enjoyment. 

High Quality of Life 

Spain emphasizes a balanced lifestyle, with a focus on leisure, family, and community. The concept of “siesta” and the importance placed on social gatherings contribute to a relaxed and fulfilling way of life. 

Affordable Cost of Living 

Spain offers a lower cost of living than the US and most of Western Europe. This applies to housing, food, and transportation, allowing retirees to enjoy a comfortable lifestyle without breaking the bank. 

Excellent Healthcare System 

Spain’s healthcare system is renowned for its quality and accessibility. Both public and private healthcare services are available, ensuring that retirees have access to the medical care they need. 

Popular Retirement Destinations in Spain 

Spain offers a variety of great places to retire, whether you prefer coastal living, city life, or a more tranquil setting. 

Valencia 

Valencia is often ranked as one of the best places to retire in Spain. It offers a vibrant city atmosphere but is less crowded and more affordable than Madrid or Barcelona. The city’s beaches, historic old town, and modern amenities make it a great option for retirees who want a mix of culture and relaxation. The cost of living is reasonable, with rent prices significantly lower than in larger cities. Valencia is also known for its Turia Gardens, a massive green space that runs through the city, perfect for walks and outdoor activities. 

Alicante (Costa Blanca) 

Alicante is a coastal city with a large expat community, making it an easy transition for retirees. The city offers over 300 days of sunshine per year, beautiful beaches, and a relaxed atmosphere. It’s a budget-friendly option compared to other coastal cities, and its international airport makes it easy to travel around Europe. Many English-speaking services are available, and the healthcare system is excellent. 

Málaga (Costa del Sol) 

Málaga combines rich history, modern amenities, and a relaxed coastal vibe. It has top-tier healthcare facilities, a strong expat presence, and plenty of cultural attractions, including museums, historic sites, and theaters. The cost of living is slightly higher than in Alicante or Valencia but remains affordable compared to the US. 

Canary Islands 

The Canary Islands, particularly Tenerife and Gran Canaria, are perfect for retirees looking for a warm climate year-round. The cost of living is lower than in mainland Spain, and the islands have tax advantages, making them financially appealing. The expat communities are strong, and English is widely spoken in many areas. 

Barcelona & Madrid 

For retirees who prefer city life, Barcelona and Madrid offer world-class culture, entertainment, and healthcare. These cities aren’t as budget-friendly as other Spanish destinations, but they remain great options for those who love big-city living. 

The Non-Lucrative Visa: The Standard for Retirees 

Non-EU citizens must obtain a residency visa to retire in Spain. The most common option is the Non-Lucrative Visa (NLV). This visa is ideal for retirees who can demonstrate sufficient financial means to support themselves without working in Spain. Key requirements include: 

• Financial means: In 2025, applicants must show a minimum annual income of €28,800 (400% of the Public Multiple Effects Income Indicator or IPREM) for the main applicant. An additional €7,200 (100% of the IPREM) is required for each dependent. 
• Health Insurance: Comprehensive private health insurance coverage is valid in Spain. 
• Clean criminal record: Applicants must provide a certificate proving the absence of a criminal record. 
• Proof of accommodation: Evidence of a place to live in Spain, whether rented or owned. 

The NLV is initially valid for one year and can be renewed for successive two-year periods, provided the applicant continues to meet the requirements. After five years of residency, retirees may apply for permanent residency. 

Healthcare in Spain for Retirees 

Spain’s healthcare system is consistently ranked among the best globally, thanks to its universal coverage, high-quality medical professionals, and well-equipped hospitals. The system is divided into two main sectors: 

• Public healthcare (Sistema Nacional de Salud – SNS): A taxpayer-funded, universal healthcare system available to Spanish residents. It covers doctor visits, hospital care, surgeries, and prescriptions at little to no cost. 
• Private healthcare: Many expats choose private health insurance for faster access to specialists, shorter wait times, and English-speaking doctors. Private healthcare in Spain is affordable compared to the US and offers high-quality medical services. 

Can Retirees Access Public Healthcare in Spain? 

Yes, but only under certain conditions. Retirees who become legal residents in Spain have a few options for accessing the public healthcare system: 

• If you worked and contributed to social security in Spain: If you take a job in Spain and pay into the Spanish social security system, you will have automatic access to public healthcare. 
• If you are a retiree without a Spanish work history (most US expats): Retirees who do not qualify for free public healthcare have two options: 
• Join the Convenio Especial: A public healthcare buy-in program for non-working residents. Costs are €60 per month for those under 65 and €157 per month for those 65 and older. It covers most medical services but not prescriptions or dental care. 
• Use private health insurance: This is the most common option for US retirees and is required for most visas. 

Private Health Insurance for Retirees 

Private health insurance is the best option for retirees who do not qualify for free public healthcare. Spain has a robust private healthcare sector with modern hospitals, English-speaking doctors, and shorter wait times for specialists. 

• Cost: Private insurance plans start at around €50–€200 per month, depending on age, coverage, and medical history. 
• What it covers: Most private plans cover general healthcare, specialists, hospitalizations, surgeries, and sometimes dental and vision care. 
• Advantages over public healthcare: Faster appointments, English-speaking doctors, access to top-tier private hospitals, and coverage for services not included in the public system. 

Tips for Enrolling in Healthcare in Spain 

• Register for residency first: you must be a legal resident before applying for public or private healthcare. 
• Choose your insurance plan before applying for a visa: private health insurance is mandatory for most long-term visas, including the Non-Lucrative Visa. 
• Find an English-speaking doctor: many major cities and expat areas have doctors who speak English, but it’s helpful to learn some basic Spanish medical terms. 

Taxes for Expats Retiring in Spain 

Spain has a different tax system than the US, and as a retiree, you may need to file taxes in both countries. 

Tax Residency Rules 

Spain considers you a tax resident if you meet any of the following criteria: 

• You spend more than 183 days per year in Spain. 
• Your primary economic interests (such as property, business, or investments) are in Spain. 
• Your spouse or dependent children reside in Spain. 

If you don’t meet any of these standards, you will be considered a non-resident for tax purposes. 

Taxation of Foreign Income 

If you are classified as a tax resident, you must report and pay taxes on your worldwide income, including pensions, investments, and rental income. If you are a non-resident, you are only taxed on income earned in Spain (such as rental income from a Spanish property). 

However, even if you are a tax resident, the Spain-US tax treaty and totalization agreement will help prevent double taxation. Various IRS tax benefits for US expats can also help with this. 

Cost of Living in Spain for Retirees 

Spain offers a comfortable retirement at a lower cost compared to the US, the UK, and much of Western Europe. However, expenses vary greatly depending on location and lifestyle. 

Housing Costs 

Housing is typically the largest expense. In cities like Alicante or Valencia, a one-bedroom apartment rents for €700–€1,200 per month ($750–$1,300), while in Madrid or Barcelona, prices start at €1,500 or more ($1,600+). Buying property is also affordable compared to the US, especially outside major cities. 

Daily Expenses 

Groceries, dining, and entertainment are reasonably priced. A retired couple can expect to spend €300–€500 per month ($320–$540) on groceries, while a meal at a mid-range restaurant costs €10–€15 per person ($11–$16). Public transportation is inexpensive and reliable, with monthly passes available for €40–€60 ($43–$65). 

Healthcare Costs 

Public healthcare is low-cost or free for residents. Those using private insurance pay €50–€200 per month ($54–$215), depending on age and coverage. Even out-of-pocket medical expenses are significantly lower than in the US. 

Total Estimated Budget 

In smaller cities like Alicante, Granada, or Valencia, a retired couple can live well on €1,500–€2,500 per month ($1,600–$2,700). In Madrid, Barcelona, or Marbella, the same lifestyle may require €3,000–€4,500 per month ($3,200–$4,800). 

Lifestyle and Practical Tips for Retirees in Spain 

Moving to a new country is exciting, but adjusting to life in Spain comes with its own set of challenges. Here are some essential tips to make your transition smoother. 

Learn Basic Spanish 

While many locals speak English in tourist areas, knowing basic Spanish will make daily life much easier, especially when dealing with banking, government offices, and healthcare providers. 

Rent Before You Buy 

The Spanish real estate market varies widely by region. It’s smart to rent for at least 6 months before committing to buying a home. 

Join Expat Communities 

Spain has large English-speaking expat groups, particularly in coastal areas. Joining Facebook groups, InterNations, or local clubs can help you settle in and make new friends. 

Be Prepared for Bureaucracy 

Spain’s government offices can be slow and paperwork-heavy. Whether you’re dealing with residency, banking, or healthcare, expect delays and bring multiple copies of all documents (often notarized and translated). 

Adjust to Spanish Timetables 

Lunch is around 2–3 PM, and dinner is often not until 9 PM or later. Many businesses close in the afternoon (siesta time, 2–5 PM) — this takes some getting used to! 

How Greenback Expat Tax Services Can Help 

Retiring in Spain comes with exciting opportunities — but it also means navigating complex tax obligations in both Spain and the US. Greenback Expat Tax Services specializes in helping US expats stay compliant with IRS and Spanish tax laws, ensuring you avoid double taxation and maximize your tax benefits. 

With transparent pricing and hassle-free online filing, we take the stress out of expat taxes so you can focus on enjoying your retirement. Get started today with Greenback! 

Have questions about the process or next steps? Contact us, and one of our Customer Champions will happily address all your concerns.