Is Spain affordable for retirees?
A retirement in Spain can be lived outdoors – an active life full of walks to the beach, picnics in the campo or inexpensive games of padel.
Healthcare can be virtually free (read on to see how), and annual living costs can be lower, even before the big savings on winter fuel bills are considered.
That’s all well and good, but can you afford to make the move? Here we have looked into the numbers to help you decide.
How much does property cost in Spain?
House prices in Spain might be increasing at a higher rate than in parts of the UK, but your pound still goes a lot further in many areas of Spain.
The average cost of an apartment in Spain is around €3,134 per sq m, so for a two-bedroom apartment at 50 sq m that is €156,700. You won’t find many such apartments in the UK for £135,000 (converted at current rates).
Taking the most popular areas of Spain for retirement, you can certainly find some great apartments, but also townhouses and villas for €150,000 in Alicante province, or indeed the Valencia region.
In the popular Ciudad Quesada on the Southern Costa Blanca, you can find a two-bedroom semi-detached townhouse in good condition for €145,000, but your money can go further inland or in Murcia or Almería.
Don’t forget to factor in buying costs of 10–14%, depending on which region: in the Valencia region it drops from 10% to 9% on 1 June 2026.
How much does a Spanish Non-Lucrative Visa cost?
Unless you have an EU passport – or a spouse with one – you will need to pay to get a visa. For retirees the usual option is the Non-Lucrative Visa (NLV).
The cost of the visa will depend on your age and how many dependants you have.
Whilst the visa itself might cost €700–1,200 per person to obtain (less if you manage to apply without professional services), you will also need to show proof of financial resources.
This is €28,800 per year for the main applicant plus €7,200 for each dependant.
Key things to know about Spain's Non-Lucrative Visa (NLV)
How much does healthcare cost in Spain?
You will need to factor in the cost of private healthcare cover if you are under UK state pension age – this is a condition of the visa application. For those aged 55 it might be around €150–160 per month; for those over 60, around €180.
Those over UK state pension age can apply for an S1 Certificate and save thousands.
For those not quite eligible for the S1 form, there’s also a pay-in scheme called the Convenio Especial which allows you to access the Spanish healthcare system by paying a monthly fee (around €60), but it doesn't cover everything, including prescriptions.
Find out more about healthcare in Spain
What is the cost of living in Spain?
Spain is still more affordable than the UK, though inflation has pushed up prices.
According to numbeo.com, the cost of living in the UK is 30% higher than in Spain, though rent prices are around 37% higher and restaurants around 30% more expensive.
Certainly, life outside the tourist hotspots can be a lot more affordable, with weekly food markets and menú del día offers (often €10 or €15 pp) allowing retirees to live on modest incomes.
Expats report that the cost of running a car is generally lower in Spain than in the UK, with lower annual taxes, lower insurance costs and lower fuel prices (although prices rose sharply in March due to the Iran war, as in other European locations).
Public transport costs also tend to be lower – especially local bus or train services to Alicante or Malaga airports – although some are free for pensioners. In Spain, the over-60s get 20–45% discounts on national trains.
What taxes do retirees pay in Spain?
You will need to consider how you will be taxed in Spain. Once you become resident there, you will be subject to Spanish tax rates. Unlike Cyprus and Greece, for example, Spain doesn’t offer any special tax breaks for foreign retirees.
You may end up paying tax on your UK state pension – around 10% on £12,547 (the new full UK state pension for April 2026) – but seek advice from a tax adviser. Spanish income tax bands are progressive, but there is a low tax-free allowance and rates start rising more quickly than UK tax bands.
On the plus side, you will pay much lower annual property taxes (IBI is broadly the equivalent of UK council tax), which might be €400–500 annually (yes, annually!).
Certain autonomous regions offer beneficial tax rates when it comes to inheritance or wealth tax – seek advice.
Find out more about taxes in Spain
What discounts do pensioners get in Spain?
Spanish residents over 60 or 65 (depending on the item or service) can receive discounts on public transport, entertainment (theatres etc), sports facilities and even holidays, and all permanent residents receive hefty discounts on internal Spanish flights.
Thinking about retiring to Spain?
From visas and healthcare to property prices and tax considerations, planning ahead can make your move much smoother.
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