Retiring to Spain from the UK: The Complete Guide

27 March 2025

Spain has long been a top destination for UK residents looking to retire abroad. If you’re wondering: can I retire to Spain from the UK? The short answer is yes, though Brexit has introduced new visa, residency and financial requirements that you will need to meet.

Spain has plenty to offer, whether you’re seeking a warmer climate, relaxation or a lower cost of living. In this guide, we’ll explore everything you need to know about retiring to Spain from the UK, including:

• Visa options
• Financial requirements
• Tax obligations
• The best places to retire in Spain
• Key lifestyle considerations

Can UK citizens still retire to Spain from the UK after Brexit?

Yes, you can still retire in Spain after Brexit, but you’ll need to apply for a visa and meet financial requirements. As a British retiree, you’re now considered a non-EU national, meaning you must secure a residency permit and follow specific legal obligations for long-term stays in Spain.¹

What is Spain’s 90-day rule?

As a UK citizen, you can stay in Spain for up to 90 days within 180 days without a visa. To stay longer than that, you’ll need to apply for residency.¹

Understanding Spanish visas for UK retirees

Before retiring to Spain, you will need to apply for a visa.³ Below are the most common options for Spanish visas for UK retirees:

• Non-Lucrative Visa (NLV): The Non-Lucrative Visa (NLV) allows non-EU citizens to live in Spain without working as long as they can demonstrate sufficient financial resources to support themselves.⁴
• Digital Nomad Visa: This visa is for remote workers or self-employed individuals. It requires a valid passport, NIE number, proof of employment, health insurance and a background check.⁵
• Family Reunification Visa: This visa allows UK retirees to bring dependent family members, provided they can prove they have sufficient financial resources.⁶

What should you consider before retiring to Spain from the UK?

Can you use your UK pension in Spain?

As a UK retiree in Spain, you may still receive your state pension if you have met National Insurance contribution requirements and reached retirement age. Additionally, your state pension will increase each year, as Spain is part of the European Economic Area (EEA).⁷

As part of the EEA (European Economic Area), Spain ensures pensions increase in line with UK adjustments.

• Taxation: If you’re a UK retiree living in Spain and classified as a tax resident, you’ll only pay tax on your pension in Spain, not in the UK.⁸ This includes state pensions, private pensions and any rental income you earn.
• Pension transfers: Moving your pension to a QROPS (Qualifying Recognised Overseas Pension Scheme*) can sometimes provide tax advantages and make accessing your funds easier while living abroad.
• Currency exchange risks: Fluctuations in exchange rates can impact pension income. 

*A Qualifying Recognised Overseas Pension Scheme (QROPS) is an HMRC-approved pension scheme that lets you transfer your pension abroad. It can offer tax benefits, currency flexibility and easier access to funds, but eligibility and tax implications vary by country. Visit the Gov.UK website to check the recognised overseas pension schemes notification list. 

Tax implications for UK retirees in Spain

Before retiring in Spain, you will also want to consider the following tax implications: 

• Becoming a tax resident: If you live in Spain for more than 183 days, you’ll likely be considered a tax resident and may need to pay tax on your worldwide income.⁹
• Spanish tax rates and allowances: Spain has a progressive tax system, with income tax rates ranging from 19% to 47%,¹⁰ depending on earnings. Pension income is taxable but may benefit from double taxation agreements.
• Property taxes: Spanish homeowners generally have to pay IBI (property tax) and other levies.
• Inheritance taxes: Inheritance tax rules in Spain differ from the UK and can vary by region.

Since tax laws are complex and region-specific, consider consulting a tax advisor to help manage income and assets in Spain and the UK.

The benefits of retiring in Spain 

Why retire in Spain? Whether seeking a more peaceful way of life or a better climate, Spain has something to offer for every retiree. 

• Climate and lifestyle: Many parts of Spain have a warm climate year-round mixed with laid-back Mediterranean lifestyle, which makes it an ideal retirement destination.   
• Cost of living: Spain generally has a lower cost of living than the UK, which may allow your pension and savings to go further, depending on the region. 
• Quality healthcare: Spain is known for its high-quality healthcare system, offering both public and private options. 
• Location: Frequent flights and transport links make visiting family and friends in the UK easy, so you can stay well-connected while enjoying life in Spain.

Best places to retire in Spain for UK residents

Spain has many popular retirement destinations that offer the ideal blend of affordability, a welcoming expat community and all the amenities you need for a comfortable retirement, such as: 

1.  Costa del Sol

Costa del Sol is known for its year-round warm weather, stunning coastal towns and large expat community. It offers excellent healthcare, international schools and a relaxed lifestyle. Popular towns include Marbella, Fuengirola and Estepona.

2. Alicante

Alicante is a vibrant coastal city with beautiful beaches, excellent healthcare and a strong expat community. It offers affordable living, a well-connected airport and plenty of cultural attractions. 

3. Valencia

Valencia has a great mix of city life and beach living, with a lower cost of living than Barcelona or Madrid. It offers modern amenities as well as a rich cultural scene and excellent healthcare facilities.

4. Balearic Islands (Mallorca, Ibiza, Menorca)

The Balearic Islands are ideal for retirees seeking a quieter island lifestyle. They offer stunning natural landscapes, a relaxed atmosphere and great healthcare, though the cost of living can be higher than in other parts of Spain.

5. Andalusia (Granada, Seville, Malaga)

Andalusia is a region rich in history and culture and is known for its affordable cost of living. Cities like Granada and Seville offer a more traditional Spanish lifestyle, while Malaga provides the perks of a coastal city with strong expat connections.

6. Murcia

Murcia is a lesser-known gem with a low cost of living, a warm climate and a slower pace of life. It’s ideal for those looking for affordable housing and fewer tourists compared to other coastal regions.

Of course, where you choose to retire in Spain will depend on your personal preferences, your budget and retirement lifestyle goals. 

Things to keep in mind when retiring to Spain from the UK

Retiring in Spain offers a fantastic lifestyle, from beautiful weather to a relaxed pace of life. But like any big move, there are practicalities to consider. From navigating paperwork to adjusting to cultural differences, being aware of these factors in advance can help make your transition as smooth as possible. 

• Navigating Spanish Bureaucracy: Residency applications, tax registration, and healthcare paperwork can be complex and take time to process. Retirees often hire a gestor (an administrative expert) to help with the paperwork.
• Language Barriers: While English is spoken in expat communities, official processes, banking and healthcare services are in Spanish. Learning basic phrases may be helpful.
• Cultural Adjustments: Spain operates on a different daily schedule from the UK, with later meal times, afternoon siestas, and different business hours, which may take some getting used to.
• Legal & Tax Complexities: You will need to understand Spanish tax residency rules, pension taxation and inheritance laws to avoid unexpected financial issues. Consider seeking advice from an accountant or tax specialist.
• Distance from Family & Friends: Living abroad means being away from loved ones, which can be difficult. You may want to factor in travel costs and accessibility when choosing your retirement location.
  

Lifestyle and cultural adjustments for UK retirees in Spain

Adapting to life in Spain is an exciting part of retirement, but it helps to know what to expect. 

• Social integration and making friends: Many UK retirees settle in expat-friendly areas, but engaging with local communities, joining clubs and participating in events can help make retirement feel more fulfilling.
• Learning Spanish and adapting to local customs: Even in expat hubs, basic Spanish can make everyday interactions smoother. Adapting to customs like siestas and different meal times is all part of the transition.
• Popular activities and hobbies: Spain has no shortage of ways to enjoy your retirement. Whether it’s golf, hiking, wine tasting, cultural festivals, or simply soaking up the sun by the sea, there is something for everyone.

How much money do you need to retire in Spain?

Living expenses in Spain can vary, but based on expat reports and general cost of living estimates, renting a one-bedroom apartment typically costs between €500-€1,000 per month, with groceries ranging from €300-€500. Costs fluctuate depending on location, lifestyle, and personal circumstances.

If buying, you will want to factor in taxes, legal fees and notary costs. It’s smart to have at least six months of savings for unexpected expenses and long-term financial security.

Buying assets in Spain as a UK resident

Buying property in Spain can be a great investment, but understanding the process is key:

• Top regions: Popular spots for retirees include Costa del Sol, Alicante and Valencia for their climate, expat communities and amenities.
• Legal considerations: You may want to work with a Spanish lawyer to handle contracts, verify ownership and navigate property laws.
• Costs to consider: You may also want to budget for property transfer tax (6-10%), notary fees (€2,000-€3,000), and annual property tax (varies by region).¹¹
• Hiring professionals: It’s important to use a licensed real estate agent and an independent lawyer to ensure a secure purchase.

Estate planning and inheritance laws in Spain for UK residents

It’s also important to understand inheritance laws in Spain to ensure your financial plans and family arrangements are well-prepared.

• Spanish inheritance laws vs. UK laws: Spain has forced heirship rules, which means that a portion of your estate may automatically go to certain family members. This differs from UK inheritance laws, where you can allocate your estate more freely.
• Setting up a will in Spain: As a UK retiree, you may want to draft a Spanish will to ensure their assets in Spain are distributed according to their wishes.

Tax considerations: Inheritance tax varies by region and relationship to the deceased. Some regions offer inheritance tax exemptions for spouses and children.

Steps to retire to Spain from the UK

1. Research and plan your move

Start by exploring different regions, considering cost of living, healthcare, and lifestyle preferences.

2. Apply for the appropriate visa

Choose the right visa for your situation. The Non-Lucrative Visa is the most common for retirees. 

3. Secure healthcare coverage

Determine whether you qualify for Spain’s public healthcare system (via the S1 form¹²) or need private health insurance.

4. Open a Spanish bank account

A local Spanish bank account is required for paying rent, utilities and other expenses.

5. Find and purchase or rent property

Decide whether to rent first or purchase a property. You may want to work with a licensed real estate agent and lawyer to navigate the process.

6. Register for residency and tax purposes

Once in Spain, register as a resident, obtain your NIE (Número de Identificación de Extranjero¹³), and set up tax residency.

Lumon: Overseas retirement made simple

Retiring abroad is a big step, and managing your finances effectively is essential. At Lumon, we simplify the currency side of your retirement, helping you transfer funds overseas with confidence and ensuring your payments align with your financial plans.

Our service is built around your currency needs, providing market insights and bank beating exchange rates so you get great value when sending money to Spain.

When it comes to making transfers, the choice is yours

Is retiring to Spain right for you?

Retiring in Spain has many advantages, from lower living costs to a warm climate and high quality of life. However, you’ll want to carefully plan your finances, tax considerations and residency requirements. Consulting with financial advisors and immigration experts can help ensure a smooth transition.

Frequently Asked Questions

How much income do I need to retire to Spain from the UK?

To qualify for the Non-Lucrative Visa, a single applicant must have a minimum annual income of €28,800 plus €7,200 per dependent.

Can a British citizen live in Spain permanently?

Yes, you can live in Spain permanently with the right residency permit, such as the Non-Lucrative Visa, which can be renewed and later converted into long-term residency.

What is the downside of retiring in Spain?

Challenges of retiring in Spain can include navigating Spanish bureaucracy, language barriers, cultural adjustments and potential tax obligations for UK pensions and worldwide income.

How long can I stay in Spain if I own a property?

Owning property in Spain does not automatically grant residency; without a visa, you are still subject to the 90-day rule for non-EU visitors

Sources Used:

1. UK Government – Living in Spain – Visas & Residency
2. UK Government – Check Your Pension Age
3. UK Government – Living in Spain – Visas & Residency
4. Spanish Ministry of Foreign Affairs – Non-Lucrative Residence Visa
5. Spanish Ministry of Foreign Affairs – Digital Nomad Visa
6. Spanish Ministry of Foreign Affairs – General scheme for the family reunification visa
7. Spanish Government – Tax Agency, UK
8. Spanish Government – Tax Agency, UK
9. Spanish Government – Tax Agency, Tax Rates
10. UK Government – Spain: Buying and renting property
11. UK Government – Healthcare in Spain
12. Spanish Ministry of Foreign Affairs – Foreigner Identity Number

Sources last checked on date: (27/03/2025) 

This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Lumon or its subsidiaries, and it is not intended as a substitute for obtaining advice from the relevant professional services. We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.