Spain has become one of the best destinations for retirement in Europe in recent years. It attracts retirees globally drawn to its Mediterranean charm, sunny shores, and relaxed lifestyle. With its enticing cuisine and affordable real estate, you might question why you didn't make the move sooner. EU and EEA citizens find it straightforward to retire in Spain, bypassing the need for visas or residence permits. Yet, non EU individuals must secure a retirement visa, known as the Spanish Non Lucrative Visa, valid initially for one year and renewable for an additional two years.
Two primary pathways exist for individuals from outside the European Union who wish to retire in Spain, a choice commonly made by American and British retirees residing there.
Spain Non-Lucrative Visa (Spanish Retirement Visa)
Often referred to as retirement visa Spain, NLV aligns seamlessly with retirement plans, encapsulated by six key considerations:
1. Demonstrating a consistent income derived from passive sources, such as pensions, annuities, or investments, is essential.
- Principal applicant: Annual income exceeding €28,800 (4 times IPREM).
- Each dependent: Annual income surpassing €7,200 (1 times IPREM).
2. Employment, whether in Spain or abroad, is prohibited.
3. The application may encompass immediate family members.
4. Subscription to qualifying private health insurance within Spain is obligatory, as public healthcare entitlement is not applicable.
5. Applying for a non lucrative visa must occur in the applicant's home country before relocating to Spain.
6. This visa serves as a route to permanent residency (P.R.), Spanish citizenship, and acquisition of an E.U. passport.
Consider the Spanish Golden Residency as a viable choice for global retirees seeking property in Spain. There are six key considerations:
1. A minimum investment of 500k euros in real estate (or 1000k euros in alternative investments) is required.
2. Employment options encompass work in Spain or abroad, whether as an employee, business owner, or freelancer.
3. Immediate family members can be included in your application.
4. Possession of qualifying private health insurance in Spain is mandatory. Public healthcare eligibility is contingent upon employment and social security contributions.
5. Application for the Golden Residency must be made in your home country prior to relocating to Spain.
6. The Golden Residency serves as a gateway to permanent residency, Spanish citizenship, and a European Union passport.
You must have contributed to Spain's social security system for a minimum of 15 years to be eligible for the basic state pension, and you'll need at least 37 years of contributions for a complete state pension. Additionally, Spain offers supplementary pensions like workplace and private pensions, though private pensions are less prevalent compared to other European nations.
Transferring an international pension to Spain
When relocating to Spain, the possibility of transferring your pension hinges on agreements between your home country and Spain, alongside potential tax ramifications. Seeking guidance from your pension provider or a financial advisor is advisable. Schemes like QROPS, utilized by many UK expats, facilitate consolidating pensions for simpler management and protection against currency exchange fluctuations. Despite Brexit in 2021, British nationals moving to EU nations can still receive their UK state pension without interruption.
Where to retire in Spain?
If you’re looking for ideal retirement destinations in Spain, you'll find a plethora of options. Inland residences near the coast and mountains offer affordability, while settling down in Malaga comes at a higher cost, though still less than a UK property.
Considering whether you prefer residing in a traditional Spanish community, alongside fellow expatriates, by the seaside, amidst the countryside, or within a town or city is crucial. These variables dictate the price and category of property available when scouting for the finest retirement spots in Spain.
When selling your UK property and calculating your retirement budget in Spain, keep in mind that you're likely to have surplus funds. This enables you to purchase a larger property to accommodate visiting guests or downsize for greater disposable income.
Best places for Expats to retire in Spain
The ideal retirement spot in Spain varies based on your preferred lifestyle. If you envision mornings filled with Mediterranean breezes, places like Badajoz or Toledo might not suit you. It's crucial to align your choice with your desired lifestyle since Spain offers diverse options. Additionally, property prices should be factored in if you're considering purchasing. According to Tinsa's Local Market Index, as of mid-2021, the average cost per square meter is €1,421, with coastal areas generally commanding higher prices. In particular, the Balearic and Canary Islands witnessed an 8% price hike in the same period.
According to a report from an international property organization called Spot Blue, the top five destinations for retirees relocating to Spain include:
• Alicante: With around 320 sunny days annually, this sought-after spot on the Costa Blanca offers stunning beaches, vibrant nightlife, and ample shopping and entertainment options.
• Javea: Another favorite along the Costa Blanca, Javea offers a relaxed, traditional atmosphere with a moderate climate and a sizable community of English speakers.
• Malaga: This bustling coastal city provides a rich history, a thriving arts scene, beautiful beaches, and convenient transportation connections.
• Marbella: The locality boasts upscale boutiques, fine dining, and a blend of modern and historical charm.
• Torrevieja: This place is beloved by both Spanish locals and expatriate retirees for its pleasant climate and appealing amenities.
