Retiring to Spain is a dream come true for many Brits. The country offers a fantastic combination of sunshine, affordability, and a laid-back lifestyle that’s hard to beat. No wonder Spain came top of the list of countries Brits would most like to move to in our 2024 Expat Report.
In this guide, we’ll walk you through everything from visa options and living costs to healthcare, housing, and common pitfalls to avoid.
Can UK citizens still retire to Spain after Brexit?
Yes, UK citizens and retirees can still move to Spain after Brexit, but the process has changed.
Since the UK left the EU, British citizens no longer have the automatic right to move to Spain. Instead, they must apply for a Spanish visa and meet specific requirements, such as demonstrating sufficient financial means and securing healthcare coverage.
What visa do you need to retire in Spain?
Most UK retirees opt for the non-lucrative visa, which allows them to live in Spain without working. This visa is ideal for retirees because it permits long-term residency, provided they can support themselves financially without working in Spain.
Key features of the non-lucrative visa
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Designed for individuals who do not intend to work in Spain.
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Applicants must prove they have sufficient financial resources to support themselves.
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The application process is handled through the Spanish consulate in the UK and typically takes one to three months.
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The visa can be renewed and may eventually lead to permanent residency.
Financial and healthcare requirements
To qualify for this visa, applicants must show a stable income. In 2026, the general requirements are:
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Single applicant – approximately €28,800 per year
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Couple – around €36,000 or more per year
Income can come from pensions, savings, or passive income sources, but you’ll need proof and documentation.
You must also have comprehensive private health insurance from a provider authorised to operate in Spain.
Can British retirees apply for a Golden Visa in Spain?
Unfortunately, the Golden Visa, which granted residency to those who invested €500,000 in property in Spain, ended on 3 April 2025. This route is no longer available to new applicants.
If you want to find out more about obtaining a Spanish visa, as well as how to get residency and citizenship, read our full guide on visas and residency in Spain for UK expats.
Cost of living in Spain for retirees
How much money do you need to retire in Spain?
Spain is generally more affordable than the UK for retirees, especially when it comes to everyday essentials. Costs vary widely depending on your lifestyle and location, but here are the average estimated monthly costs for 2026:
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Single retiree – €1,800 to €2,200. This covers rent for a modest apartment, utilities, groceries, dining out occasionally, and leisure activities.
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Couple – €2,500 to €3,000. Many expenses, such as rent and utilities, are shared, making it slightly more cost-effective.
For a more detailed breakdown, read our article on the cost of living in Spain.
Managing your finances in Spain
Accessing your UK pension
You can still receive your UK state pension while living in Spain, and there are two main choices to consider.
You can leave your pension in the UK and transfer money to Spain as needed, for example through regular monthly or quarterly payments.
Alternatively, you might consider transferring your pension to an overseas scheme. These schemes allow you to move your UK pension to an international provider, which can offer potential tax advantages and more control over your investments.
But these transfers can be complex – and irreversible – so it's essential to speak to a qualified financial adviser before proceeding to find out what’s best for you.
Banking and money transfers
Opening a Spanish bank account is helpful for managing daily expenses, especially if you plan to pay bills, rent, or receive a local income. The setup process is usually straightforward but will require documentation such as ID, your NIE number, and proof of address.
When transferring money between the UK and Spain – for example, pension payments or savings – be aware that bank fees and poor exchange rates can eat into your funds. Specialist currency providers may offer better rates, lower fees, and useful tools to help you get more from your money. Get in touch with us if you want to find out more.
Tax implications for UK retirees in Spain
Once your finances are in order, it’s important to understand how living in Spain could affect your tax situation.
If you become a tax resident in Spain (typically by spending more than 183 days per year there), you'll be taxed on your worldwide income, including pensions and savings.
Here are the main taxes to be aware of:
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Income tax: Spain has a progressive system, with rates from 19% to 47%. This includes tax on state and private pensions. Rates vary slightly between regions.
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Wealth tax: Applies to assets over €700,000 (excluding up to €300,000 of your main residence). Rates range from 0.2% to 3.5%, though some regions offer exemptions.
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Property taxes: If you’re buying your retirement property, you’ll need to take Spanish property taxes into account when budgeting.
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Inheritance tax: Tax on inherited assets varies by region. Direct family members usually pay less, and many regions offer significant reductions for spouses and children.
It’s worth noting that Spanish inheritance laws include forced heirship, meaning certain relatives may have a legal right to part of your estate. To ensure your wishes are respected, it’s advisable to create a Spanish will for any assets located in Spain. This can help avoid legal complications and make things easier for your heirs.
Healthcare for UK retirees in Spain
Spain offers a great healthcare system with both public and private options, allowing you to choose the level of coverage that suits you best.
We’ve written a more detailed post on healthcare and insurance for UK expats in Spain, but below is a general overview for retirees.
Do UK retirees in Spain need private health insurance?
Yes – at least at the beginning. If you’re applying for a non-lucrative visa, Spain requires you to have private health insurance with full coverage and no co-pays. This is a mandatory visa condition, even if you plan to use the public system later.
Many retirees keep their private policy long-term – not just for peace of mind, but because it’s often still required when renewing the visa. Others choose to maintain it for faster access to specialists or the comfort and convenience of private clinics.
Accessing public healthcare in Spain
Even though Spain’s public healthcare system is excellent, UK retirees moving to Spain can’t access it straight away – unless they qualify through the S1 form.
The S1 form is essentially your gateway to Spain’s public system. It’s issued by the UK government to state pensioners who are entitled to NHS healthcare and planning to live abroad. Once registered in Spain with the S1, you’ll have access to public healthcare much like a local resident.
Housing options for retirees in Spain
Should you rent or buy a property in Spain?
One of the biggest decisions you'll face when retiring to Spain is whether to rent or buy your home. There’s no one-size-fits-all answer – the right choice will depend on your long-term plans, financial situation, and how settled you feel about the move.
Renting can be a smart choice if you're just arriving in Spain or still deciding where you want to live. It offers flexibility and less commitment, allowing you to try out different regions before putting down permanent roots. Renting also means you won’t need to worry about maintenance or repair costs.
However, rent in popular expat areas like the Costa del Sol or Balearic Islands can be pricey. And of course your monthly payments go to a landlord rather than building equity in a property of your own.
Buying Spanish property, on the other hand, may be more attractive if you’re planning to stay long-term. Property prices remain lower than in much of the UK, and owning a home can offer stability, a sense of permanence, and the potential for long-term financial gain.
That said, buyers should budget for extra costs, such as legal fees, taxes, and ongoing maintenance.
If you’re unsure, many retirees choose to rent first, then buy once they’re confident about the location and lifestyle that suits them best.
Where do most Brits retire in Spain?
When deciding on where to settle down in Spain, British retirees are spoilt for choice.
We’ve written a piece covering the best places to live in Spain, but here’s a shortlist of popular locations for retirees. These regions are known for their sunny climates, proximity to beaches, and vibrant expat communities.
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Costa del Sol – This region encompasses lively resorts and peaceful towns, offering both entertainment and relaxation.
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Costa Blanca – Especially popular around towns like Jávea, Altea, and Torrevieja, this region is known for its beautiful beaches, mild winters, and thriving British expat population.
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Alicante – This city offers a charming atmosphere, excellent public transport and a stunning coastline.
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Balearic Islands (Mallorca, Ibiza, Menorca) – These destinations are known for their laid-back lifestyles, world-class beaches, and welcoming expat communities.
Building a social life in Spain as a retiree
One of the joys of retiring to Spain is the chance to build a rich social life. Many towns and cities host active expat communities, with clubs and groups that cater to a wide range of interests – from walking and gardening to art, languages, and volunteering.
Joining these groups is a great way to meet like-minded people and settle into your new surroundings. Regular meetups, cultural outings, and community events offer opportunities to connect, especially in areas with large British populations.
But don’t just stick to the expat bubble. Getting involved in local Spanish life – whether that’s volunteering, taking part in neighbourhood events, or joining local festivals – can lead to more meaningful, lasting connections.
While many locals in expat hubs speak English, learning some Spanish will make your experience smoother, from navigating admin to making local friends.
Common pitfalls of retiring to Spain and how to avoid them
Bureaucracy and paperwork
Spanish bureaucracy has a reputation for being slow and complex. Whether you're applying for residency, registering for healthcare, or handling taxes, the paperwork can be a challenge (especially if your Spanish is limited).
The key is to stay organised and gather the correct documents before starting any process. In many towns, especially those popular with expats, you’ll find English-speaking staff at official offices who can help.
For peace of mind, consider hiring a gestor – a local professional who specialises in administrative tasks. They can guide you through forms, appointments, and deadlines, saving you time and reducing stress.
Financial missteps
A common mistake among retirees is underestimating the cost of living. While Spain is generally more affordable than the UK, daily expenses, healthcare costs, and housing in popular regions can still add up.
Creating a realistic monthly budget and setting aside funds for occasional treats and emergencies will help you manage your finances with confidence.
Legal oversights
Post-Brexit, UK citizens need to meet specific visa requirements to retire in Spain. This includes demonstrating sufficient income and health coverage. Missing key steps can lead to fines or delays, so make sure you apply for the correct residency visa well in advance.
If you're buying a property, be aware of taxes and legal fees – such as property transfer tax, notary fees, and stamp duty. Always seek professional legal and financial advice before making big decisions. Spanish property law can be very different from what you're used to in the UK.
Is retiring in Spain right for you?
Retiring to Spain is a major life decision, and one that deserves careful thought. For many, the warm climate, relaxed pace of life, and lower living costs are incredibly appealing. But it’s important to weigh those benefits against the realities of navigating a new country, especially if you don’t speak Spanish or aren’t familiar with the legal and bureaucratic systems.
If you're looking for sunshine, a slower rhythm, and a fresh chapter – and you're prepared to put in a bit of planning and patience – then retiring to Spain could be the perfect move.
Want to know more about how we can help with the currency transfer side of overseas retirement? Get in touch with the Currencies Direct team. You can call us on +44 (0) 20 7847 9400 or email [email protected].
