Blessed with pleasant climates, exquisite food, and a friendly blend of residents and international settlers, it's no wonder Spain stands out as a prime choice for individuals transitioning into retirement from Europe, the United States, and beyond. However, prior to embarking on this significant journey and establishing yourself in a sunlit existence, thorough investigation is imperative. Attend to essential procedures to guarantee a seamless transition into your retired life.
A Guide to Retire in Spain
Who can retire in Spain?
Retiring to Spain is straightforward for EU/EEA nationals, who don't require a visa or residence permit. But non-EU citizens need a residence visa, initially valid for one year, and renewable for two years thereafter.
Best visa options to retire in Spain
Considering retiring in Spain as a US citizen? You'll need to navigate the process of a Spain retirement visa for US citizens. Instead of a specific retirement visa, two common options are the Golden Visa and the Non-Lucrative Visa. The Golden Visa allows non-EU citizens to reside in Spain for a year, contingent upon significant investment in the economy, often through property purchases exceeding €500,000, investments in Spanish securities or stocks, or establishing a business in Spain.
The Non Lucrative Visa requires no investment in the Spanish economy but mandates demonstrating financial self-sufficiency to a specified standard. Holding an NLV prohibits employment in Spain; retirees must receive a state pension or a similar annuity. NLVs are valid for 90 days, with applicants required to obtain a Foreigner Identity Card within the first month of residence, renewable annually. Foreign retirees residing in Spain for five years become eligible to apply for permanent residency.
What’s the typical expense to retire in Spain?
Ensure financial readiness for retirement relocation, including visa application fees, shipping belongings, and sustaining daily expenses abroad. For larger Spanish cities, a monthly income of $2,000 to $2,200 ($25,000 to $27,000 annually) from retirement savings and other sources is typically required. In rural or less touristy areas, this decreases to about $1,700 to $1,900 monthly. Spain offers a notably lower cost of living compared to the US, particularly in major cities.
Where are the top places in Spain to retire?
The ideal retirement destination in Spain varies based on your envisioned retirement lifestyle. If your dream involves waking up to a gentle Mediterranean breeze, places like Badajoz or Toledo might not align with your preferences. It's crucial to define your desired lifestyle before making a decision, considering Spain's diverse options. Spain, being a sizable country, caters to various tastes.
When contemplating property acquisition in Spain, evaluating housing costs is essential. According to Tinsa's Local Market Index (available in Spanish), the average property price per square meter in Spain stands at €1,421 as of Q2 2021. Popular coastal regions generally have higher real estate prices. Notably, the Balearic and Canary Islands experienced an 8% price surge in Q2 2021.
A recent report from the global real estate organization Spot Blue identifies the top five destinations for individuals considering relocation to Spain during their retirement:
• Alicante: This favored spot on the Costa Blanca enjoys approximately 320 sunny days annually, featuring stunning beaches, lively nightlife, and abundant shopping and entertainment options.
• Javea: Another beloved destination on the Costa Blanca, Javea offers a traditional, relaxed ambiance with a slightly milder climate and a sizable community of English speakers.
• Malaga: Situated on the renowned Costa del Sol, this expansive coastal city presents a rich history, a thriving arts scene, beautiful beaches, and excellent transportation connections.
• Marbella: The US citizens recognize it as one of Spain's most sophisticated locales. Marbella features upscale boutiques, restaurants, and a blend of modern and historic charm.
• Torrevieja: A sought-after town for retirees in the Alicante province, Torrevieja boasts an appealing climate and enjoys popularity among both Spanish locals and expatriate retirees.
Pensions in Spain
When considering retirement in Spain, pension options are crucial. A minimum Spanish state pension requires 15 years of social security contributions in Spain, while a full pension demands 37 years of contributions. Supplementary pensions like workplace and private pensions are accessible, though private pensions are less prevalent compared to other European nations.
Shifting an international pension to Spain
Moving to Spain may involve transferring your pension, depending on agreements between your home country and Spain. Tax implications should be considered beforehand, and advice from your pension provider or financial advisor sought. Schemes like QROPS aid in consolidating pensions for easier management and protection against exchange rate fluctuations. Despite Brexit, British nationals moving to an EU country can still receive their British state pension.
