What do you need to do to retire to Spain from the UK?
Spain is the most popular place for British retirees for many good reasons. A sun-soaked and more affordable lifestyle has long been a key driver, along with well-established expat communities in many areas of the country.
Spain is a hugely diverse country, well served by thousands of flights too. From the well-developed Spanish Costas of the south to the whitewashed villages inland, the vibrant cities and the cooler, ‘green’ north, there are so many options, and that’s even before the islands.
The Canaries and Balearics are two very different groups of islands, with the Canaries being much better suited to year-round sun and, indeed, lifestyle.
But once you have decided where, what are the steps to retiring there?
How should you plan your retirement to Spain?
Know the steps you will need to take so you can plan a timeframe. Key things to consider are: when do you want to move? Do you need to sell your UK home first? Will you buy a home in Spain first, or rent somewhere?
As parts of the UK have sluggish property markets, especially London, consider how long it will take to sell your home. Should that be your priority, and then rent an Airbnb until you make the move? Plenty of people do this.
What should you do with your finances before retiring to Spain?
Selling your UK home before you become tax resident in Spain may be a savvy choice. Discuss this and also how you might move your assets to Spain. Bear in mind that Spanish income tax rates tend to be higher than those in the UK.
What impact will a move have on your pensions? It is often wise to withdraw tax-free lump sums before you change residency.
It’s better to start planning early rather than realise too late what you should have put in place.
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What should you organise before moving to Spain?
Before you head out to view properties, there’s a lot of other useful preparation you can do. This includes knowing what the purchase process might entail, finding a lawyer, discussing mortgages and getting set up ready to transfer funds to Spain via A Place in the Sun Currency.
Currently, mortgage rates are very competitive in Spain, and many buyers are getting small mortgages so they do not tie up all their savings in their home. Note that the NLV requires you to show you have the minimum annual income for each of the first five years (see visas).
You can also find out about removals and how to move your pet to Spain.
Virtually all of this can be achieved with a trip to A Place in the Sun Live.
Book tickets for A Place in the Sun Live
Where are the best places to retire in Spain?
Take a few trips out to Spain to find out which part will suit you best, even if you have already decided on the province.
You might know you want the Costa Blanca South for its mix of climate, affordability and choice of resorts, but which resort? How far from the coast would suit you?
Many retirees prefer practical locations that offer year-round communities rather than coastal resorts. Do you want to be on a development, or in a village? Do you need to be somewhere with good local transport? Where is the nearest hospital?
Take time to explore at different times of the year.
Explore where to buy property in Spain
How much does property cost in Spain?
Arrange to meet some local agents and view properties, or even go on a viewing trip.
Viewing trips can be a good way to familiarise yourself with pockets of an area, but you do need to have decided roughly where you want to be.
Search properties and find agents. The average cost of a 90 sq. m house in Spain is around €250,000, according to Idealista.com, but you will need to drive away from the coast to find anything for that budget.
You might have more choice of townhouses on urbanisations (if this is your wish) for a similar budget, or less, in developed areas like Ciudad Quesada on the Costa Blanca South.
Don’t forget to budget for buying costs of around 10-14% on a resale property. This varies by region.
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What visa do you need to retire to Spain from the UK?
Unless you are lucky enough to have an EU passport, or a spouse with one, you will need to apply and pay for a visa, which is not necessarily a difficult or expensive process.
The Non-Lucrative Visa (NLV) is applied for before you leave the UK, and it is advised that you start planning a good six months before you plan to go, maybe a little more.
It requires you to show passive sources of income of at least €28,800 per year for a single person, or €36,000 for a married couple (2026 figures). Passive income means savings interest, dividends, rental income or a pension.
The visa is applied for in the UK through the Spanish Consulates in London or Manchester (there is a third-party facilitator called BLS International).
The visa costs around £550 via BLS, but many people find it much quicker and easier to use a specialist relocation agent in Spain to handle the process, which can push the cost up to €1,000-€2,000 per couple, depending on status and circumstances.
Beware of processing times, which differ between consulates and Spanish regions. You might need to wait two or three months to get a consulate appointment once you have all your paperwork in place.
An NLV is granted for a year, then can be renewed.
Find out more about visas for Spain
What healthcare do UK retirees need in Spain?
A condition of the visa is that you have healthcare cover. Once you are established and eligible, you can register with the public healthcare system (SNS) and access healthcare as a resident of Spain.
Those over UK State Pension age can apply for an S1 Certificate from the NHS before they leave for Spain. This means they can use it when they register with the SNS and access healthcare from the outset.
Find out more about healthcare in Spain
What taxes do retirees pay in Spain?
Once you become resident there, you will be subject to Spanish tax rates. Spain does not offer any special tax breaks for newly arriving foreign retirees.
Pensions will be taxed at progressive income tax rates that are split between national and regional rates. Rates start at 19% on income up to €12,450 and progress, with the 45% rate kicking in at €60,000.
Inheritance tax varies by region. There are progressive rates for capital gains tax too, starting at 19% on gains up to €6,000. Rates differ between residents and non-residents.
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How should you plan your move to Spain?
Make your life stress-free by getting a specialist removals company to help you. If you have sold your UK home already, removals firms can help you store your belongings until your moving day.
You might wish to make it a stress-free move for your dog or cat by using a specialist pet removals company such as PetAir.
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Find out more about moving pets to Spain
Ready to start planning your retirement in Spain?
From finding the right location to understanding the buying process, explore our properties and expert guides to help you plan your next steps.
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