Europeans have long discovered Spain as an ideal country for life in retirement. Climate, prices, infrastructure – in many respects Spain turns out to be more convenient and more advantageous than other European countries. On the Costa Blanca, Costa Calida and Costa del Sol, many residential developments were originally built not for local buyers, but specifically for European retirees – the British, Germans, Scandinavians. In recent years all the advantages of Spain have also been appreciated by retirees from other parts of the world: more and more older people are moving here permanently from the USA, China and the former Soviet republics. In this article we explain which visas and permits foreign retirees need to move to Spain, whether they can not only live but also work in the country, and how they can access healthcare.

How to move to Spain as a retiree: visas and residence permits

How can a retiree move to Spain? The answer to this question will depend on the retiree’s status: whether they are a citizen of an EU country (including Norway, Iceland, Liechtenstein and Switzerland), or hold a passport of another state. The movement and residence of EU citizens and their family members within the European Union are regulated by special legislation – rules and restrictions are minimal and bureaucratic procedures are kept to a minimum.

EU citizens do not need any visas to enter Spain: they can enter and freely stay in Spain for up to three months with a valid passport and national ID card of their country.

Spain for retirees: retired couple doing Nordic walking

EU citizens who want to spend more time in Spain must obtain a special certificate – the Certificado de Registro de Ciudadano de la Unión Europea. This certificate confirms that an EU citizen is registered in the Central Register of Foreign Nationals in Spain. The application is submitted to the police at the place of residence within 90 days of entering the country and must be accompanied by the following documents:

As a rule, the certificate is issued on the spot in the applicant’s presence; in rare cases – within 24 hours from the moment of application, but police appointments are strictly by prior booking. The applicant will be assigned an NIE number, which is both the foreigner’s identification number and their tax number. The initial certificate is valid for 5 years; afterwards a permanent certificate with a 10-year validity period is issued.

Non-EU retirees will face more complexities and bureaucratic procedures. To move to Spain for permanent residence in retirement they must obtain a full residence permit. The most popular residence type is a non-lucrative residence permit, i.e. residence without the right to work, based on financial independence. In the first case you must prove that you have a legal and stable source of income and sufficient funds to live in Spain for the entire period of the initial residence permit (1 year), in an amount four times the IPREM; you must also have housing (it does not have to be your own property – long-term rental is allowed). In the second case the requirements are the same, but you additionally confirm that you own your home. In addition, a whole package of other required documents must be prepared: a police clearance certificate, a medical certificate confirming the absence of dangerous diseases, financial documents proving the source of income, tax returns, bank statements, property ownership documents if you have passive income, and – without fail – a full-coverage medical insurance policy. All documents are submitted to the Spanish consulate at the place of residence in your home country.

If the decision is positive, a long-stay visa D is issued. Upon arrival in Spain you need to make an appointment at the police to have your fingerprints taken and obtain the resident’s plastic card (TIE). In the future, the residence permit must be renewed within the prescribed deadlines, each time confirming your financial solvency, place of residence and health insurance coverage.

Taxes in Spain

In Spain the retirement age is relatively high and is in the process of being raised to 67 by 2027. Foreign retirees who earned their pension in their home country are free to spend it in Spain. Taxation is determined individually in each case, as it depends on the retiree’s status (tax resident/non-resident), the existence of a double taxation avoidance agreement concluded between Spain and their country, and, in some cases, bilateral social security agreements. The nature of the pension also matters – private pension contributions or a state pension. As a rule, in situations of double taxation Spain, as the country of permanent residence of the foreign retiree, is responsible for applying tax credits. In some cases the Convention may provide for an exemption of the pension from tax in the country of residence (Spain), but with the application of a progressive tax scale, which means that the tax-exempt income is added to other income when calculating the tax rate applicable to the remaining income. It is also important to remember that tax residents must declare all of their worldwide income, and there are certain income thresholds above which submitting a tax return becomes mandatory rather than optional.

Spain for retirees: happy woman with grandchildren

At the same time, foreign retirees who have moved to Spain are allowed to work here. EU citizens do not need to take any additional steps for this: it is enough to obtain the certificate mentioned above, sign an employment contract and register with the social security authorities (all registration actions are carried out by the employer). Taxes on employment income are paid at the place of work, i.e. in Spain. The same applies if the retiree is self-employed, working as an autónomo.

For a non-EU retiree, simply wishing to work is not enough: they must obtain a work permit. The simplest option is to declare the intention to work as a self-employed individual and prepare a realistic business plan, which must be approved.

Personal income tax (IRPF) in Spain is progressive and may vary from region to region. For example, income tax in Catalonia is charged at rates from 20 to 50%, in the Valencian Community – from 18.50 to 54%, in Madrid – from 18 to 45%, in Andalusia – from 19 to 47%. The general tax-free allowance is 5,500 €, which increases by 1,150 € for retirees over 65 and by a further 1,400 € for retirees over 75 (these amounts may differ slightly in some autonomous communities).

Healthcare in Spain for retirees

Foreign retirees who work in Spain and pay social security contributions have access to the public healthcare system. Non-working EU retirees can also be treated at public clinics and hospitals if their national medical insurance (for example, German, Swedish, etc.) includes appropriate coverage throughout the EU. In other words, foreign citizens receiving state pensions are not obliged to sign a special agreement if they can present a certificate confirming that they are entitled to healthcare at the expense of the state paying their pension.

If, for some reason, an EU retiree does not have access to public healthcare either under national legislation or under EU regulations or any bilateral agreements, they can gain access to Spain’s public system on a paid basis. To do so they must have a registration (empadronamiento), prove one year of continuous residence in Spain, sign a special agreement and start paying social contributions themselves: for people under 65 – 60 € per month; for those aged 65 and over – 157 € per month.

Non-EU retirees are, in most cases, required to have private medical insurance with full coverage, especially since it is mandatory when first obtaining and subsequently renewing a residence permit. This obligation disappears only if the retiree starts working as an autónomo and pays the corresponding social security contributions; if they move to Spain not via financial independence, but through family reunification with their child and are attached to the child’s public health insurance; if they move to Spain under the scheme of temporary protection for Ukrainian citizens; or if they become entitled to a Spanish pension (for example, due to disability with a loss of working capacity of more than 65%, having lived in Spain for at least 5 years and with income not exceeding certain limits).

But let us return to the most common situation – private medical insurance. It must be issued by an insurance company operating throughout Spain and provide full coverage without limits and co-payments. Very few Spanish insurance companies issue policies to clients aged 65 and over, and the price can vary widely – from 100 to 300 € per month.

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Transferring your pension to Spain

Until recently, the Pension Fund of the Russian Federation, upon a personal application from a retiree, could transfer their pension in euros to Spanish banks. At the moment this option is frozen due to a ban on international bank transfers. Ukrainian retirees can receive their pensions abroad through Ukrposhta via international postal transfers. Ukrainian retirees temporarily living abroad may also be required to undergo identification through the web portal of the Pension Fund of Ukraine, by video conference, through a diplomatic mission, or in person at a Pension Fund office or bank branch. In 2025 this identification must be completed by December 31 so that the pension is not frozen from January 1, 2026.

US citizens can receive their pension abroad, but must provide updated information about their place of residence every year. To receive US Social Security benefits abroad, you must notify the Social Security Administration of your move and provide your bank account details for international transfers. There are no restrictions on pension transfers to EU countries, including Spain.

As for Canada, Canadian citizens who have lived in Canada for at least 20 years after the age of 18 can receive a Canadian pension outside the country. British retirees can use QROPS – a special pension scheme that allows expats to transfer their pensions abroad, invest their savings by building an individual portfolio and receive income.

The situation with pensions from Israel is somewhat more complex. Israel and Spain have not signed a bilateral social protection convention, so to maintain the right to an old-age benefit after moving abroad you must meet a number of conditions regarding age, citizenship and insurance period. In any case, Israeli retirees living abroad must once a year provide a life certificate to the old-age benefit department of the National Insurance Institute. They must also notify the Institute in writing of any trip outside Israel lasting more than 3 months.

Within the EU, pension accrual is regulated by EU regulations. As a rule, if you have worked in several European countries, your periods of insurance are aggregated, and when you reach retirement age each country pays its share of the pension in proportion to the time worked there. There is no need to apply to the pension services of several states; the application is submitted at your place of residence in your country of residence. If your entire pension has been earned in another EU country, to transfer it to Spain you must submit an application to your pension fund notifying your change of residence and providing your bank details.

Finally, in the case of Latin American countries, domestic legislation and existing agreements with Spain must be taken into account. For example, Colombian retirees must submit an application to Colpensiones expressing their intention to receive their pension in another country. After that the pension will be paid in two stages: first into one of the authorised Colombian banks, and then to the chosen Spanish bank – monthly or quarterly – with double conversion (from Colombian pesos to US dollars and then to euros). In the case of Argentina, Spain and Argentina have signed a bilateral social security agreement. If you have both Argentine and Spanish contributions, they will be aggregated for pension calculation. If your pension has been earned entirely in Argentina, to receive it in Spain you must authorise Banco de la Nación in Argentina to make international transfers. In addition, twice a year (January/February and July/August) you must provide a life certificate to Banco de la Nación Argentina and ANSES (the National Social Security Administration).

The best cities in Spain for retirees

Spain is a country for those who love an unhurried, measured pace of life, a mild climate, accessible healthcare, safety and a good environment. It is also very comfortable for people who enjoy life’s little pleasures: weekly markets with seasonal fruit and vegetables, cosy cafés on the beachfront, promenades for walking, a pets-friendly atmosphere and many other subtle but important elements of a comfortable lifestyle. We will focus on three cities that are ideal for retirees: a small city – Torrevieja, a medium-sized one – Alicante, and a large city – Valencia. All of them are located within the Valencian Community and all share the special atmosphere of Spain’s Mediterranean coast.

Torrevieja is a city where everything you need is within walking distance: beaches, the seafront promenade, supermarkets and shopping centres, clinics and hospitals. You can do without a car if you choose housing not on the outskirts. Until recently Torrevieja was considered a “retirees’ town” that came alive in summer and went quiet in winter. Today everything has changed: the permanent population has grown, many young families have moved here, the infrastructure has expanded rapidly, and new shops, service centres, bars and restaurants have appeared. Property prices are rising here, as they are throughout Spain, but they are still affordable: if you set yourself the goal, you can find very attractive resale options. A new construction boom has also begun in the city, and you can buy property from developers at different stages of construction.

Alicante is the capital of the province of the same name, an important transport hub and simply a beautiful city. Alicante is a compromise between a large city and a resort town – an ideal option for those who value urban comforts and, at the same time, a calm, relaxed lifestyle. On the one hand, Alicante is a fully developed city, though not a megapolis – the 10th largest in Spain – with excellent infrastructure and a good transport network. Alicante has an international airport, a railway station and a port, and the local public transport system works well. On the other hand, Alicante is a resort city stretched along the coast, allowing you to enjoy beach holidays almost all year round. Property prices vary from neighbourhood to neighbourhood. To the north Alicante borders the municipality of San Juan de Alicante (Sant Joan d’Alacant), which has every chance of becoming the most in-demand and prestigious suburb.

Valencia is the capital of the Valencian Community, Spain’s third-largest city and the leader in numerous recent world rankings as one of the best destinations for expats. Valencia offers an ideal combination of infrastructure, prices and quality of life. It is a large city on the coast with its own international airport, connected by high-speed trains to Madrid and Barcelona. Valencia boasts a rich cultural programme, a wonderful climate, spacious green parks, a beautiful historic centre, a high level of service and public utilities, and a wide choice of medical clinics. At the same time, unlike Barcelona and Madrid, Valencia does not suffer from overwhelming traffic and year-round tourist crowds. Property prices here are also considerably lower than in those two capitals.

Cost of living in Spain in retirement

The cost of living in Spain in retirement depends heavily on your housing situation: fully owned property with no mortgage, property with a mortgage, or rented accommodation. The size of the mortgage is directly linked to the amount of financing you’ve received and averages from 300 to 500 € per month. Rent is currently more expensive and, depending on the city, can be in the range of 600–1,200 € per month.

The cost of a basic food basket for one person, including all staple foods, is around 300 € per month. Accordingly, for two people you should plan a budget starting from 600 €. Any meals out – restaurant dinners, breakfast in a café, snacks at a bar – are additional expenses. Utility bills, including electricity, water, internet and mobile phones, will amount to 150–200 € per month for two people. Spring and autumn are more economical periods, but in summer and winter air-conditioning and heating will affect your total bills.

Add to this medical insurance, a gym or dance class membership, language course fees (you will definitely need them), and expenses for pets. And if you own property and a car – annual taxes and insurance for both.

Thus, by the most conservative estimates, if you own your home outright, a family budget for two people will start from 1,100–1,200 € per month. A mortgage or rent will significantly increase this figure, as will eating out and travelling. Nevertheless, among European countries Spain still remains one of the most affordable and attractive in terms of prices. The Mediterranean climate means you do not need an extensive winter wardrobe, the huge variety of local seasonal fruit and vegetables helps you maintain a healthy diet without putting too much strain on your wallet, and private healthcare remains accessible for many residents.

FAQ: Frequently asked questions from retirees about moving to Spain

What residence options do retirees have for moving to Spain?

Retirees from non-EU countries most often apply for a non-lucrative residence permit based on financial independence. Whatever option you choose, you need to prove legal income, sufficient financial means (calculated from IPREM), housing and full-coverage medical insurance. Documents are submitted to the Spanish consulate in your country of residence; after approval, a D visa is issued, and upon arrival in Spain you obtain your TIE resident card.

How does the process differ for retirees from the EU and from non-EU countries?

EU citizens do not need a visa to enter Spain, and for long-term residence it is enough to obtain an EU citizen registration certificate (Certificado de Registro de Ciudadano de la Unión Europea) and an NIE number. Retirees from non-EU countries must go through the full residence permit procedure, with a more extensive document package and subsequent renewals of their status.

Can a foreign retiree work in Spain?

Yes, retirees can work. EU citizens can work under an employment contract or register as self-employed (autónomo), needing only the standard set of documents and registration in the social security system. Retirees from non-EU countries must obtain a separate work permit or a residence permit that allows them to carry out business activities (with a business plan and proof of economic solvency).

Do I have to pay tax in Spain on my pension?

Taxation is determined individually and depends on your tax status (resident or non-resident), the type of pension (state or private) and the existence of a double taxation agreement between Spain and the country where the pension was earned. As a rule, in cases of double taxation Spain applies tax credits or exemptions, but taking into account the progressive tax scale. Tax residents of Spain must declare their worldwide income if it exceeds the established thresholds.

What income tax applies in Spain for working retirees?

Spain has a progressive personal income tax (IRPF), and rates vary by region. In different autonomous communities they range roughly from 18–20% up to 45–54% for the highest incomes. There is a tax-free allowance that increases for retirees over 65 and over 75, although the exact figures differ slightly from one autonomous community to another.

Does a retiree in Spain need private medical insurance?

For non-EU retirees, full-coverage private medical insurance is practically mandatory: it is required when first applying for a residence permit and at every renewal. The obligation to have private insurance may be lifted if the retiree starts working officially and pays social security contributions, moves under family reunification and is added to a family member’s public health insurance, or becomes entitled to a Spanish state pension.

Can retirees from EU countries use public healthcare in Spain?

Yes. If their national health insurance covers treatment in other EU countries and provides for medical care abroad, they can use Spain’s public healthcare system. If they do not have such coverage, an EU retiree can sign a paid agreement with the Spanish public health system (provided they have a registration and can confirm one year of continuous residence) and pay a fixed monthly contribution, the amount of which depends on age.

Is it possible to receive a pension from my home country while living in Spain?

In many countries it is possible to receive a pension abroad, but the conditions differ. In some cases there are direct international transfers to EU banks; in others – transfers through national banks, postal services or special pension schemes, and sometimes additional requirements such as annual “proof of life” and notification of trips abroad. Within the EU, periods of insurance are usually aggregated, and each country pays its share of the pension according to common regulations.

Which Spanish cities are especially suitable for retirement living?

This article looks in detail at Torrevieja, Alicante and Valencia. Torrevieja is convenient due to its compact size and proximity of all services, Alicante combines the advantages of a large city and a seaside resort with developed infrastructure, and Valencia is considered one of the best cities in Spain for expats thanks to its balance of prices, quality of life, transport and healthcare. All three cities are located in the Valencian Community and are characterised by a mild climate and coastal Mediterranean atmosphere.

What is the minimum budget for living in Spain in retirement?

By conservative estimates, with fully owned housing a two-person household budget starts from about 1,100–1,200 € per month. This includes a basic food basket, utilities, communications and minimal additional expenses. With a mortgage or rent, frequent visits to cafés and restaurants, active travel and hobbies, the budget increases noticeably.

Is it essential to have a good command of Spanish to move?

Formally, language proficiency is not always a requirement for obtaining a residence permit as a retiree, but in practice it is difficult to fully integrate without Spanish: you will need it to communicate with doctors, handle everyday issues and participate in local community life. That is why your budget should include language course expenses and you should plan for gradual language learning after the move.

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