Retiring in Spain as an American: The Ultimate Guide for US Retirees

Imagining a retirement in Spain can feel exciting and a little unreal at the same time. Maybe you’ve seen pictures of sunny plazas, imagined long lunches and peaceful walks by the sea, and wondered what it would actually be like to live there rather than just visit for a week or two.

For many Americans, Spain feels surprisingly practical once you start looking into it. The lifestyle is relaxed, the cost of living can be reasonable, and everyday life often feels simpler than back home. Yet, there are real questions to work through, of course. Visas, health insurance, taxes, Social Security, and choosing where to live all matter. But none of it is impossible once you understand how the pieces fit together.

This guide walks you through what retirement in Spain really looks like. You will learn where retirees tend to live, how far your money can go, how healthcare works, what happens with Social Security, and which documents you may need along the way.

By the end, you should have a clearer picture of whether Spain feels like the right place to spend this next season of life, and what it would take to get there.

In this guide, we will discuss the following topics:

Why Spain Is the Top Destination for American Retirees

For many Americans, Spain feels like the version of retirement they always imagined but were not sure actually existed. Sunshine, seaside cafés, lively plazas, slow meals, and a rhythm of life that invites you to enjoy your days instead of rushing through them.

From cosmopolitan cities like Madrid, Valencia, and Barcelona to coastal hubs like Málaga and Alicante, Spain blends old-world charm with modern comforts. You will find centuries of history, world-class art museums, colorful festivals, and neighborhoods where daily life happens outdoors in markets, cafés, and tree-lined streets.

Then there is the landscape. More than 3,000 miles of coastline offer beaches for every taste, while inland mountains provide hiking, skiing, and cool summer escapes. Add fresh seafood, seasonal produce, and a Mediterranean diet that is as delicious as it is healthy, and it becomes easy to see why so many retirees feel better and often more active after moving.

Another wonderful benefit of retiring in Spain is how close the rest of Europe suddenly feels. Quick flights and high-speed trains make it easy to visit France, Portugal, Italy, and many other destinations, turning travel into something you can enjoy often rather than only on rare occasions.

Spain delivers a combination of advantages that many retirees find hard to match.

• A warm Mediterranean climate
• Safe, walkable cities and towns
• Slower pace of life
• Excellent public transportation
• High-quality healthcare
• Travel throughout Europe
• Strong expat communities
• Affordable cost of living compared to many United States cities

But lifestyle is not the only reason Spain stands out.

Retirees are often surprised at how affordable everyday living can feel compared to many parts of the United States. Groceries, dining out, utilities, and even private health insurance can be much more manageable. In many cities, you can skip the expense of owning a car altogether thanks to excellent public transportation and walkable, compact neighborhoods.

Spain also offers something truly valuable. Community. Expat groups, language exchanges, clubs, and social activities make it easy to meet people. Locals are usually friendly and welcoming, and many are happy to help you practice Spanish while also speaking English when needed. For many retirees, their social life becomes richer instead of smaller.

As you look more closely, Spain continues to impress with strong healthcare, clear residency options, choices for renting or buying property, protections under the tax agreement between the United States and Spain, and systems that make it possible to receive Social Security while living abroad.

All of this leads to a simple conclusion. Spain delivers the retirement many people dream about, with comfort, connection, and a genuinely enjoyable pace of life.

Can Americans Collect Social Security if They Move to Spain?

The short answer is yes. If you are eligible for Social Security benefits, you can generally continue receiving them while living in Spain. This makes planning your retirement abroad much easier, because you can count on a reliable income from the United States.

The Social Security Administration offers an online Payments Abroad screening tool. By answering a few questions about your benefit type and location, the tool shows whether your payments will continue, face restrictions, or stop. It works for retirement, disability, and survivor benefits and is available on the Social Security website on the page called “Payments Outside the U.S.”

If your situation is a bit more complex, you can also get guidance directly from Social Security. While you are still in the United States, the easiest way is to call or visit your local office.

If you are already living abroad, the Social Security Administration’s Office of Earnings & International Operations handles international cases. You can also contact the U.S. Embassy & Consulate in Madrid for guidance on benefits, help with forms, reporting address changes, or assistance with requirements such as proof of life. The embassy also maintains a dedicated Federal Benefits webpage with information and resources for Americans living overseas.

Receiving Social Security in Spain is usually straightforward, but it’s important to keep a few things in mind. You will still need to file U.S. taxes each year, and fluctuations in exchange rates can affect how much your benefits are worth when converted to euros for spending in Spain.

Some retirees may need to submit Form SSA-7162, sometimes called the “proof of life” form, from time to time to verify their eligibility for Social Security benefits. These are simple steps, but staying on top of them helps ensure your payments continue without interruption.

Receiving Social Security in Spain makes the move easier, letting you enjoy daily life, explore new cities, and take trips around Europe without worrying about your income.

It’s good to keep in mind that in some situations, Spanish authorities may ask for documents such as benefit letters or certificates to be translated into Spanish by a sworn translator. This simply ensures the paperwork is legally valid and processed without delays. And if you ever need help with this step, we also offer sworn translation services starting at $39 per page.

Which Documents for Retiring in Spain Require a Sworn Translation?

If you plan to retire in Spain, some of your paperwork must be translated into Spanish by a sworn translator who is officially recognized by the Spanish Ministry of Foreign Affairs.

Retirees often need more translations than other applicants because they may have several income sources and may also buy property once they arrive.

Documents that commonly need sworn translation include:

• Social Security benefit letters.
• Pension statements.
• Marriage certificates when a dependent spouse is included in the application.
• Medical records or doctors’ letters that may be needed for health insurance applications.
• Power of attorney documents for managing finances or property in Spain.

To make sure these documents are accepted by Spanish authorities, follow this order:

1. Get the original document in the United States.
2. Have the document apostilled by the appropriate U.S. authority.
3. Request a sworn translation into Spanish from a translator accredited by the Spanish Ministry of Foreign Affairs.

In some cases, additional paperwork such as bank records, property documents, or insurance papers may also need sworn translation. Requirements can vary, so it is always best to review the latest instructions from the Spanish consulate handling your visa.

Order Your Sworn TranslationWhat is a Sworn Translation?

How U.S. Retirement Income Is Taxed Under the U.S. and Spain Tax Treaty

If you’re a U.S. citizen living in Spain, it’s important to understand how taxes work so you don’t end up paying twice on the same income. The U.S. and Spain have a double taxation treaty that helps prevent this, but it doesn’t remove your obligation to file a U.S. tax return and report your worldwide income. Basically, you can get a credit in Spain for taxes you pay there, which can offset what you owe to the IRS.

Whether you qualify for these benefits depends on your tax residency. If you could be considered a resident of both countries, the treaty uses tie-breaker rules: first, it looks at where your permanent home is, then where your personal and economic ties are strongest, and finally, where you spend most of your time.

The treaty covers things like dividends, interest, capital gains, and pensions:

• Dividends from U.S. companies can be taxed in Spain, but the U.S. can also tax them. For most individuals, the U.S. tax on dividends is capped at 15 percent, and for companies owning at least 25 percent of the U.S. company, it is capped at 10 percent. Special rules apply if the dividends are linked to a business or permanent establishment in the U.S.
• Interest from U.S. sources can be taxed in Spain, but the U.S. can also tax it up to 10 percent for Spanish residents. Certain types, like long-term loans or government debt, are taxed only in the owner’s country.
• Capital gains from Spanish real estate, shares in companies mainly made up of Spanish property, or assets tied to a Spanish business can be taxed in Spain, while most other U.S. investments are taxed only in the U.S. Tax credits help prevent double taxation when both countries have taxing rights.
• Pensions and annuities are generally taxed only in the country where the recipient lives or where the pension was earned. U.S. government pensions and Social Security benefits may still be taxed by the U.S., with some exemptions applying.

Social Security has its own rules that work alongside the tax treaty. The U.S. and Spain have a totalization agreement to make sure people who work in both countries don’t pay into both systems at once.

For self-employed workers, Social Security taxes are paid based on where they live. For retirees already collecting benefits, this mainly affects how your work history counts toward your Social Security payments rather than changing how your benefits are taxed.

Finally, keep in mind the treaty doesn’t cover everything. Spanish wealth tax, inheritance and gift taxes, exit taxes, and temporary solidarity taxes are still something expats may need to pay. And the “saving clause” means the U.S. can still tax its citizens as if the treaty didn’t exist, though credits and exclusions like the foreign earned income exclusion can help reduce what you owe.

All in all, for most retirees, this means that while you’ll still need to file in both countries, the treaty and the totalization agreement make it much less likely that you’ll be taxed twice on the same income. Credits, exemptions, and careful planning can help make your retirement income go further, letting you focus more on enjoying life in Spain and less on worrying about paperwork.

Medicare Does Not Work in Spain and Private Insurance Is Required

This might seem obvious but it’s worth pointing out. Medicare only works in the United States, so if you move to Spain it will not cover doctor visits, hospital stays, or prescriptions.

Living in Spain means you will need private health insurance to cover medical care. Luckily, most expats go this route, and you can often start with coverage for as little as $50 per month. Costs depend on your age, health, and the type of plan you choose. Younger, healthy adults might pay $50 to $250 per month for basic coverage, while older retirees or those who want more comprehensive protection, including emergency and hospitalization coverage, could pay $400 to $600 or more per month.

When choosing a plan, think about how you will use it for doctor visits, prescriptions, or emergencies. It’s a good idea to have coverage in place before you move since proper health insurance is usually required for residency permits in Spain.

For context, Spain’s official guidance lists about €30,000 as a benchmark for adequate coverage. While not a strict rule, many insurers and authorities use this number when evaluating policies.

Best Cities and Regions for Retirees in Spain

Spain has something for every lifestyle, from sunny beaches to lively cities and scenic islands. This guide focuses on cities that make daily life easy for retirees.

We’ve grouped them by what they’re best known for: sunny coasts, islands with mild year-round climates, and culturally rich cities. When choosing a city, look for walkability, access to hospitals, airports nearby, outdoor activities, and a vibrant food scene.

Best Sunny Coastal Cities in Spain for Retirees

• Málaga (Costa del Sol) With over 300 days of sun a year, Málaga is perfect for retirees who love beaches and city life. The old town is walkable, packed with restaurants, cafes, and markets. Hospitals are modern and accessible, and Málaga Airport is just 20 minutes outside of town, making travel easy. You can enjoy seaside promenades, calm Mediterranean waters, golf, and plenty of outdoor activities.

• Alicante (Costa Blanca)
  Alicante blends affordability with beautiful beaches and a relaxed pace. The city is compact and walkable, with local markets, tapas bars, and a lively food scene. Hospitals are nearby, and Alicante-Elche Miguel Hernández Airport connects to many European destinations. Hiking trails and natural parks are close for nature lovers.

• Murcia (Costa Cálida)
  Murcia offers sunny, budget-friendly living for retirees. The city is smaller and quieter than Málaga or Alicante, with accessible medical care, supermarkets, and local restaurants. Región de Murcia International Airport provides easy travel, and the region is ideal for those seeking calm beaches and nature nearby.

• Cádiz (Costa de la Luz)
  Cádiz combines historic charm with tranquil beaches. The old town is walkable, full of seafood restaurants and local markets. Hospitals are within reach, and Seville Airport connects the area to international flights. This slower pace suits retirees who want to enjoy culture, the calm sea, and Spanish heritage.

Islands in Spain with Mild Year-Round Climates for Retirees

• Palma de Mallorca (Balearic Islands)
  Though part of Spain, Mallorca is an island located in the Mediterranean Sea and offers stunning beaches, mountains, and scenic towns. The city center is walkable, the food scene is lively, and hospitals are easy to access. Palma de Mallorca Airport makes travel convenient for European trips, though there is no direct train access to mainland Europe and you will need a flight or ferry.

• Puerto de Mogán (Gran Canaria, Canary Islands)
  Puerto de Mogán is part of the Canary Islands in the Atlantic Ocean, off the Atlantic coast of southern Morocco, to the southwest of mainland Spain. Despite being distant, the same Spanish rules for residency, taxes, and retirement benefits apply. The town is charming, with canals, walkable streets, shops, and accessible health centers. Gran Canaria Airport makes it easy to fly to mainland Europe and beyond.

Spanish Cities with Vibrant Culture and Lifestyle

• Valencia
  Valencia attracts many retirees because it offers big-city services without the stress of Madrid or Barcelona. It sits on the Mediterranean, with beaches like La Malvarrosa and Patacona that you can reach by tram. Daily life is practical, with neighborhood markets, pharmacies, and several major hospitals nearby. Public transit is easy to use, and Valencia Airport is about 20 minutes from the city center, making short trips around Spain and Europe simple.

• Bilbao (Basque Country)
  Bilbao is the first city on our list along Spain’s northern coast, and it appeals to people who like culture, food, and a cooler, brisker climate. The city boasts well-regarded hospitals, the Guggenheim anchors the museum scene, and pintxo bars are everywhere. Weekend trips are simple, with mountains and the Bay of Biscay close by, and Bilbao Airport sits just outside the city, making short flights around Spain and Europe convenient.

• Madrid
  Madrid is a good fit for retirees who want a true major city. With more than 3 million residents, it’s metropolitan enough that you can find almost anything you need, from specialty doctors to international grocers. World-class museums and parks are easy to reach by metro or on foot, and healthcare is excellent across the city. Adolfo Suárez Madrid-Barajas Airport offers frequent flights across Europe and beyond, though living costs are higher than in many other parts of Spain.

As you can see, Spain has something for every retiree. Sunny coastal towns, mild islands, and vibrant cities like Valencia, Bilbao, and Madrid offer walkability, hospitals, travel access, and plenty of culture. Whether you value beaches, outdoor life, or city amenities, Spain has a place for you to enjoy a comfortable retirement.

Retiring in Spain on €1,500 to €2,500 a Month

For many retirees, a realistic monthly budget in Spain can fall between €1,500 and €2,500. Life may not be luxurious at this level, but it is comfortable.

A modest apartment can be quite affordable in smaller or less popular Spanish cities. For example, rent for a one-bedroom apartment often falls between €600 and €1,000 per month. Utilities usually add €120 to €180. Groceries for one or two people often run €250 to €400 if you shop local markets. Eating out is reasonable too, since a menú del día — which includes an appetizer, a main and dessert or coffee — in many areas costs about €12 to €18.

Public transportation is widely available and inexpensive, so many retirees do not need a car. Expect roughly €30 to €60 per month for passes and occasional taxis. Health care costs are usually manageable. Many retirees choose private insurance to supplement public coverage, often between €200 and €300 per month, depending on age and plan.

There should still be room for small extras. Coffee at a café. A train ride to another city. Entertainment, festivals, or museum visits. These small quality-of-life expenses usually add up €220 to €330 per month or more.

Sample Monthly Budget for a Retiree in Spain:

• Rent in an affordable city: €700 to €1,000
• Utilities such as electricity, water, and internet: €140 to €190
• Mobile phone plan: €20 to €40
• Groceries and household items: €280 to €380
• Eating out and cafés: €150 to €220
• Public transport or fuel: €60 to €100
• Private health insurance: €200 to €300
• Entertainment, day trips, hobbies: €220 to €330

Estimated total: about €1,770 to €2,560 per month

With big cities like Madrid and Barcelona or very popular coastal areas, prices tend to climb, while smaller inland towns are often far more affordable. With about €1,500 to €2,500 per month, many retirees can comfortably cover housing, food, health care, and transportation, and still have room to enjoy daily life without feeling stretched.

Healthcare Quality in Spain Compared to the United States

Spain is consistently ranked as one of the healthiest countries in the world and is recognized among the top countries for healthcare. Public hospitals and clinics are modern, well-staffed, and often more affordable than in the United States. Waiting times for non-emergency care can be longer in the public system, but many retirees use a mix of public and private insurance to access faster care when needed.

Compared to the U.S., Spain excels in overall life expectancy, preventive care, and cost efficiency. Routine doctor visits, specialist care, and hospital stays are generally less expensive, and the quality of care is high. Pharmacies are widespread and easy to access, and prescription medication costs are typically lower.

Private health insurance can further reduce wait times and provide more flexible options, making it a popular choice for expats. Many retirees find that they can receive excellent care at a fraction of the cost they would expect in the United States while still having access to modern hospitals and experienced medical professionals.

Expat Retirement Communities and Social Life in Spain

One of the best things about retiring in Spain is the social scene. Many retirees find it easy to make friends through expat groups and local clubs.

Cities and towns across the country, from Palma de Mallorca to Cádiz and from Valencia to Bilbao, have active communities where you can join events, dinners, and hobby groups. For example, InterNations Spain hosts meetups in major cities, and Americans in Spain connects U.S. expats with social events and local tips.

Language exchanges, walking clubs, and casual meetups through Meetup or local Facebook groups make it easy to meet people with shared interests. Whether you enjoy cultural outings, hiking, or just relaxed coffee chats, Spain’s expat communities make it simple to stay connected and enjoy an active social life.

Do Retirees in Spain Need to Speak Spanish?

For retirees moving to Spain, language plays an important role in day-to-day comfort and independence. While English is widely spoken in major cities and tourist areas, having at least a basic command of Spanish makes everyday activities, such as shopping, visiting the doctor, or handling administrative paperwork, significantly easier.

Although learning a new language later in life can feel intimidating, it is also deeply rewarding. Studies show that language learning in retirement can strengthen cognitive health and mental sharpness, while also encouraging social interaction and long-term engagement. Even mastering a few practical phrases can greatly improve confidence and quality of life.

Spain offers many accessible options for older learners, including local language schools, community centers, and online courses tailored to adults. Many retirees also find that participating in expat groups and local activities helps them practice Spanish naturally while building meaningful connections—one of the key ways learning a second language in retirement supports social connection and overall well-being.

Aside from commonly known words such as hola, por favor, and gracias, learning a few practical Spanish phrases can make a noticeable difference in everyday situations. These expressions are especially helpful for shopping, dining out, asking for directions, and handling basic health-related needs:

• How much does this cost? – ¿Cuánto cuesta?
• Where is the bathroom? – ¿Dónde está el baño?
• I need help. – Necesito ayuda.
• I do not speak Spanish well. – No hablo bien español.
• Can you speak English? – ¿Hablas inglés?
• I would like a menu. – Quisiera ver la carta por favor.
• I am allergic to … – Soy alérgico/a a …
• I need a doctor. – Necesito un médico.
• Where is the pharmacy? – ¿Dónde está la farmacia?
• Could you write that down? – ¿Podrías apuntarlo?

Together, these phrases cover many everyday interactions, from routine errands to medical visits, helping older adults feel more confident and independent as they navigate daily life in Spain.

Buying vs. Renting Property in Spain for Retirees

Buying a home in Spain can offer retirees stability and control. You’ll be able to customize your space, enjoy long-term cost savings once a mortgage is paid, and potentially earn rental income when you’re away. Plus, popular areas like Valencia, Alicante, and Málaga have shown steady property value growth, making ownership a solid investment.

For retirees looking to buy a one-bedroom apartment in Spain, prices vary widely by city and location. In central Madrid, expect to pay around $285,000, while in Barcelona it’s closer to $257,000.

Valencia and Seville are much more affordable, with city-center apartments around $165,000 to $170,000 and cheaper options outside the center dropping to $85,000 to $112,000. This makes smaller cities and outskirts an appealing option for retirees seeking a comfortable home without breaking the bank.

On the other hand, renting offers flexibility and lower upfront costs. You can move easily if your preferences change or explore different regions without the commitment of a mortgage. Renters are not responsible for major repairs and avoid fluctuations in property value, making this a stress-free option while still enjoying the same quality of life.

Financially, buying usually involves a larger initial investment with taxes, notary fees, and maintenance, while renting requires only a deposit and monthly rent. Over time, owners may benefit from property appreciation, while renters retain liquidity for travel, hobbies, or unexpected expenses. Both choices have pros and cons, but the decision often depends on lifestyle, health, and long-term plans.

Estate Planning and Inheritance Taxes for Retirees in Spain

If you retire in Spain and later pass away, how your property and assets are handled depends on Spanish inheritance law and taxes. Most assets located in Spain, such as a home or bank accounts, are subject to the Impuesto sobre Sucesiones y Donaciones, the Spanish inheritance and gift tax. This applies whether you are a resident or a non‑resident, although non‑residents are taxed only on assets located in Spain.

As such, it is usually advisable for retirees to have a Spanish will, even if you already have one elsewhere. A local will clarifies how Spanish assets should pass to heirs and avoids delays or complications when assets are transferred after death. Working with a Spanish lawyer can also make the process smoother, since they understand local laws and procedures and can guide you based on your wishes so your plans are more likely to be carried out as intended.

Inheritance tax is calculated on the value of what each heir receives. National tax rates range from around 7.65 percent up to 34 percent before deductions, and the final amount can vary significantly after allowances and regional rules are applied.

Importantly, Spain’s autonomous communities have the authority to offer substantial local reductions or exemptions for close family members, and many have very generous reliefs. For example, in Valencia and Andalusia, children and spouses may pay very little or no tax on typical inheritances under current rules, while other regions also offer high allowances and discounts.

It’s also worth noting that Spanish inheritance tax must generally be declared and paid by heirs within six months of the date of death, though extensions are sometimes possible if requested early.

When dealing with wills, inheritance paperwork, property records, or tax documents from the United States, Spanish authorities usually require sworn translations. A sworn translator makes the document legally valid in Spain, which helps avoid confusion, delays, and extra appointments. Since these are important legal matters, having documents translated correctly can make the entire process smoother.

What to Remember Before Retiring in Spain

Spain offers retirees a lifestyle that balances comfort, culture, and convenience. Beautiful cities, excellent healthcare, and a calmer pace of life make it easy to see why so many Americans choose to settle there.

That said, the relocation process still involves paperwork, and some aspects can become technical. Visas, taxes, healthcare forms, and official documents often require accurate, professional translation, including sworn translations when requested by Spanish authorities. Having these documents translated correctly from the start can help avoid delays and unnecessary complications.

With the right preparation and reliable translation support, the process becomes far more manageable. Step by step, Spain can begin to feel less like a distant dream and more like a realistic new home.

Keep an eye out for our next article, where we will cover the Spain Digital Nomad Visa for remote W-2 employees. We will outline eligibility requirements, employer documentation, tax considerations, sworn translation requirements as defined by authorities, and what applicants can expect during the process.

Author: Aaron Randolph | LinkedIn