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Retiring in Spain usually means the non-lucrative visa, which in 2026 asks for €28,800 a year in savings or passive income for one person and €36,000 for a couple, and doesn’t let you work. After that, a handful of numbers decide whether a Spanish retirement works: how many days you must spend in Spain, what healthcare costs before and after your first year, how your pension is taxed, and which of your assets Spain wants declared.
This guide works through those numbers with the official sources behind each, for American and British retirees alike, and points to the detailed guides where your nationality changes the answer.
Retiring in Spain: the visa income bar
The non-lucrative visa needs 400% of the IPREM index for the applicant and 100% for each family member: €28,800 a year for one person, €36,000 for a couple (Real Decreto 1155/2024, article 62). The regulation accepts either enough funds for the permit period or a regular income, and the first permit lasts a year.
That bar is much higher than Portugal’s, where a single D7 applicant needs roughly €11,000 of yearly income. If your retirement income sits between the two, our guide to retiring in Portugal is the natural comparison. The full rules, documents and fees are in our non-lucrative visa guide.
The 183-day rule
Renewing the non-lucrative permit requires more than 183 days a year of real residence in Spain, and renewals then run for two years at a time (article 64). That rules out the half-and-half life some retirees plan, splitting the year with family at home.
The same threshold, crossed within a calendar year, also triggers Spanish tax residence under article 9 of the income tax act, so in practice the visa and tax residence arrive together.
Healthcare: €60 or €157 a month after the first year
Retirees without an S1 start on private insurance and, once they’ve been resident and registered for twelve months, can buy into public care via the convenio especial for €60 monthly before 65 and €157 after (Ministerio de Sanidad).
| Stage | Cover | Cost |
|---|---|---|
| Visa application and first year | Private insurance with an insurer authorised in Spain | Market price; some consulates bar copayments |
| Year two onward, no other cover | Convenio especial | €60 monthly (under 65) or €157 (65+) |
| UK State Pension recipients | S1 may give UK-funded access | Paid by the UK |
Under the convenio you pay the full price of outpatient medicines. Americans should also decide about Medicare Part B before leaving (see Spain for Americans); British retirees will find the S1 rules in our UK guide.
How your pension is taxed
Spain taxes pensions as work income, in the general tax base: with the state charging 9.5% to 24.5% and each autonomous community adding its own scale (Ley 35/2006, articles 17 and 63). Savings income is taxed on a separate scale of 19% to 30% combined.
| Income (2026) | Spanish tax base | Rates |
|---|---|---|
| Public-scheme pensions and pension-plan benefits | General base | State 9.5% to 24.5%, plus regional scale |
| Savings income | Savings base | 19% to 30% |
Which country taxes a given pension depends on your treaty with Spain. Broadly, a private pension follows your residence, a government-service pension stays with the paying state, and US Social Security has a treaty wording that leaves Spain’s position unclear. The nationality guides above set this out with the article numbers. The Beckham flat-tax regime is unlikely to help, since its qualifying reasons all involve work or business.
Declaring assets: Modelo 720 and wealth tax
Spanish residents declare foreign assets on Modelo 720 once any one class of overseas holdings (accounts, securities or property) passes €50,000 and its penalties were reformed in 2022 (Agencia Tributaria). Retirees who keep savings at home should check whether theirs pass the threshold.
Wealth tax is regional too; €700,000 is the fallback allowance for regions without their own (Ley 19/1991), and heirs resident in Spain pay inheritance tax on assets anywhere, again under regional rules (Ley 29/1987). Because both vary so much by region, the region you choose can matter as much as the city.
Budgeting and choosing where to live
INE’s 2025 survey found households spending €35,101 a year, of which about €1,953 a month went on everything except housing and utilities (INE). That’s an average across all Spanish households, not a retiree budget, so adjust it, then add rent, private insurance in the first year and travel home; our cost of living in Spain guide has the details.
Rents rose sharply between 2015 and 2023 in coastal cities such as Valencia (28.9%), Málaga (26.1%) and Alicante (21.3%) (INE). Before choosing, compare current rents in specific neighbourhoods and check the region’s wealth and inheritance tax rules.
Frequently asked questions
What retirees ask most about Spain.
How much money do I need to retire in Spain?
For the non-lucrative visa, €28,800 a year for one person or €36,000 for a couple in 2026. A comfortable budget depends mostly on your rent.
Can I retire in Spain on Social Security alone?
Only if your benefits, with any savings, clear the visa threshold: €2,400 a month for one person or €3,000 for a couple in 2026.
Do retirees get free healthcare in Spain?
UK State Pension recipients may get it through an S1. Others start with private insurance and can join the convenio especial after a year, at €60 to €157 a month.
How are pensions taxed in Spain?
As work income on the general scale, 9.5% to 24.5% at state level plus a regional scale. Your treaty decides which pensions Spain can tax.
Can I spend summers back home if I retire in Spain?
Yes, within limits: you must still live in Spain for more than half of each year to renew.
Is Spain or Portugal better for retirement?
Portugal’s D7 asks for far less income, about €11,000 a year for one person against Spain’s €28,800. Spain suits retirees with higher incomes who want its cities and regions.
Retiring in Spain works when the numbers line up: income comfortably above €28,800 a year for one person, a plan to live there more than half the year, healthcare covered from private insurance to the convenio especial, and advice on how your pensions and assets will be taxed in your chosen region.
Sources
This guide is general information, not legal, tax or financial advice. Immigration and tax rules change often and depend on your circumstances. Check the official sources above and speak to a licensed professional before you apply or move. Read how we research and review in our editorial guidelines.
