How to retire in Spain: Visas, taxes and more for US expats

Thinking about how to retire in Spain? You’re not alone. With its sunny climate, rich culture, excellent healthcare, and laid-back lifestyle, Spain has become a top retirement destination for Americans.

Whether you're dreaming of coastal living in Mallorca or exploring historic cities like Valencia or Barcelona, Spain offers a unique combination of modern conveniences and Old World charm.

However, retiring to Spain from the US comes with important considerations: visa requirements, taxes, healthcare, and financial planning.

This guide walks you through everything you need to know – from choosing a Spain retirement visa to avoiding common pitfalls of retiring to Spain.

Visa options for retiring to Spain

If you're an American considering how to retire in Spain, navigating visa options is the first and most critical step.

Spain offers several attractive residency options, but choosing the right one depends on your finances, lifestyle goals, and whether you plan to work or just relax and enjoy retirement.

Non-Lucrative Visa (NLV)

The Non-Lucrative Visa is by far the most popular choice for Americans retiring in Spain. It’s designed for those who won’t work locally but have enough income to support themselves.

Key requirements include:

• Proof of passive income (pensions, Social Security, investments, rental income, savings).
• Minimum annual income of approx. €28,800 ($31,000), plus €7,200 ($7,700) for each dependent.
• Private health insurance that covers you in Spain (no co-pays or deductibles).
• Clean FBI background check and medical certificate.

How to apply:

• File through the Spanish consulate in your home country.
• Submit required documents (translated and legalized).
• Once granted, receive a 1-year residence permit, renewable in 2-year increments, and after 5 years, you may apply for permanent residency.

Golden Visa

If you’re ready to invest significantly in Spain, the Golden Visa could be a perfect fit – offering flexibility and fewer restrictions compared to other visa types.

To qualify, you must invest at least:

• €500,000 in real estate, or
• Equivalent amounts in Spanish businesses, government bonds, or bank deposits.

Advantages of the Golden Visa:

• Allows you to work and start businesses in Spain.
• Fast-track processing, typically completed within 2–3 months.
• Includes immediate family members, such as spouses and dependent children.
• Freedom to travel throughout the EU Schengen zone without additional visas.

How to apply:

• Begin by completing the investment (real estate purchase or other approved investments).
• Collect documentation proving your investment, clean criminal record, health insurance, and financial capacity.
• Submit your application to a designated Spanish immigration office or through the Spanish consulate in the US.
• Once approved, you’ll receive a residency card, valid for one year initially, and renewable every five years if the investment is maintained.

Digital Nomad Visa

Launched in 2023, Spain’s Digital Nomad Visa targets remote workers and freelancers earning income from outside Spain – but many financially independent individuals are using it as a stepping stone to long-term residency before retirement.

Requirements include:

• Proof of remote employment or freelance contracts from non-Spanish companies or clients.
• Minimum monthly income of approximately €2,200 (higher if applying with dependents).
• Private health insurance valid in Spain.
• Background checks (criminal record certificate) and a medical certificate.

How to apply:

• Gather required documents, including employment contracts, proof of income, and insurance.
• File your application through the Spanish consulate in the US, or directly within Spain under some circumstances.
• Once approved, you’ll receive a one-year residency permit, which can be renewed for up to five years.
• After five years, you may become eligible for permanent residency or even citizenship, if desired.

Best places to retire in Spain

Where is the best place to retire in Spain? It really depends on your lifestyle, budget, and social needs – whether you seek a bustling city, a quiet beach town, or a charming village.

Some retirees prioritize access to healthcare and expat communities, while others focus on affordability and climate.

Here are top retirement destinations to consider:

Other popular options include:

• Alicante for its mild winters and strong UK expat community.
• Seville for lovers of history, culture, and a more "authentic" Spanish feel.
• Bilbao or San Sebastián in the north for cooler climates and stunning coastlines.

Factors to consider when choosing where to retire in Spain:

• Cost of living: Major cities like Madrid and Barcelona are more expensive, while smaller coastal towns are more affordable.
• Proximity to healthcare: Larger cities have better access to hospitals and specialists.
• Expat community: A strong expat network can help ease the transition, especially if you’re not fluent in Spanish.
• Public transport access: Cities like Valencia and Málaga have excellent public transport systems.
• Climate: Southern Spain enjoys warmer, sunnier weather, while the north has a cooler, wetter climate – perfect if you prefer mild summers.

Ultimately, visiting a few areas before settling can help you find the best city to retire in Spain that truly matches your personal needs.

Cost of retiring in Spain

Minimum income to retire in Spain

To qualify for a Spain retirement visa, you’ll need proof of an income of at least €28,800/year ($31,000).

Keep in mind that regional variations can affect cost of living, especially in major cities or coastal resort areas, where prices may be higher than in smaller inland towns.

Housing costs

Renting:

• One-bedroom apartment in city center: €800–€1,200/month.
• Outside city center: €600–€900/month.

Buying:

• Coastal towns and cities: €2,000–€3,500 per sq. meter.

Daily expenses

• Groceries: €200–€400/month for two people, depending on location and shopping habits.
• Transportation: Monthly public transit pass €40–€60.
• Entertainment & dining: Eating out is affordable – an average meal costs around €15, and many local spots offer daily "menu del día" specials for less.

US retiree taxes in Spain

Pension taxation

Spain taxes worldwide income for residents, including foreign pensions and US Social Security benefits.

Depending on your total income, tax rates range from 19% to 47%.

Although pensions are taxable, some types of government pensions may receive favorable treatment under the US–Spain tax treaty, so it’s important to check specific provisions.

Wealth tax

Spain applies a wealth tax on global assets exceeding certain thresholds, which vary by region.

Exemptions may apply for primary residences up to €300,000.

Avoiding double taxation

To avoid paying taxes twice on the same income, Americans can claim:

• Foreign Tax Credit (Form 1116) for taxes paid to Spain.
• Foreign Earned Income Exclusion (Form 2555) in some cases, though pensions may not qualify.

Estate tax considerations

Spain imposes inheritance and gift taxes, which are progressive and depend on relationships and residency. Advanced planning can help reduce these liabilities.

Healthcare in Spain for US retirees

Public healthcare vs. private insurance

Spain’s public healthcare system is universally recognized for its high quality and low cost, but retirees on a Non-Lucrative Visa (NLV) are required to maintain private health insurance during their initial residency period.

Public healthcare typically becomes accessible after one year of residency through programs like “ convenio especial ” , which allows access to the national system for a modest monthly fee.

Private insurance costs & coverage

Private health insurance, mandatory for NLV holders, costs approximately €1,200–€1,500 per year, depending on age and coverage.

These plans often include comprehensive care, specialist visits, and shorter wait times.

Cost & quality

Spain’s healthcare is ranked among the top globally (WHO), offering modern facilities and excellent doctors, and is much more affordable than US healthcare, making it attractive for retirees seeking quality care on a budget.

Retirement in Spain: Pros and cons

NOTE! While the quality of life is high, proper planning for taxes and visas is essential to avoid surprises.

Step-by-step guide: How to retire to Spain from the USA

Step 1: Choose the right visa

Start by deciding which visa best suits your situation – whether it's the Non-Lucrative Visa for retirees with passive income, the Golden Visa if you’re investing in property or business, or the Digital Nomad Visa if you have ongoing remote work and want a pathway to residency before fully retiring.

Each visa has different financial and documentation requirements, so choose based on your goals.

Step 2: Prepare financial and supporting documents

Gather all necessary paperwork, including proof of income or investment, bank statements, private health insurance coverage, criminal background check, and a medical certificate.

If applying for an NLV or Digital Nomad Visa, ensure that income levels meet the minimum thresholds.

Step 3: Apply for a visa and plan your move

Submit your completed application to the Spanish consulate in the US, along with translations and legalizations of documents. Attend any required interviews.

Once approved, you’ll receive a residency visa that allows entry and initial stay.

Step 4: Find housing and register for healthcare

After arriving, secure long-term housing (rental or purchase), and register for private health insurance.

After one year, you may become eligible to join public healthcare via convenio especial.

Step 5: Enjoy your retirement in Spain!

Join local expat communities, explore vibrant cities like Valencia, Mallorca, or Málaga, and embrace the Mediterranean lifestyle – from delicious tapas to sunny beaches.

Conclusion

Retiring in Spain as an American offers a vibrant, affordable, and high-quality lifestyle.

With careful planning around visas, taxes, and healthcare, Spain remains one of the best places to retire abroad – with sunny days and rich cultural experiences awaiting.