Spain's state pension varies significantly, with recent averages around €1,500/month for retirement (2025 data), minimums around €720-€900/month depending on family situation (2022/2023 figures), and a maximum pushing €3,200+/month (2025 projections). Pensions are revalued annually with inflation (CPI) plus a small extra, with 14 annual payments, and depend on your contribution history, with higher amounts for long-term earners and specific sectors like mining.
Spain came in second place, with the country's state pension system paying out an of €1,481.35 (£1,233.51) per month. Coupled with the country's low cost of living, pensioners can expect a comfortable retirement in the sun.
The higher rate (80% of the average wage against an OECD average of 62%) is mainly the result of a relatively high initial public pension in relation to the last wage received, but it should be borne in mind that this percentage is supplemented in some European countries, such as the UK, by private pension ...
The country with the best State Pension in Europe is Iceland, where the average pension expenditure per beneficiary is €35,959, or around £30,251. This figure is more than double the average State Pension in EU countries of €16,138 (£13,580) and also the full UK State Pension of €14,227 (£11,973).
Mandatory state pension scheme
There are two categories of pension in Spain: contributory and non-contributory. The pensions system is financed by a payroll tax on salaries. The employee pays 4.7% of their salary while employers must pay the equivalent of 23.6% of an employee's salary into the scheme.
By 2027, individuals will qualify for a full pension at the age of 67 or at the age of 65 if they've been contributing toward their pension for at least 38.5 years. To qualify for the minimum state pension rate, you'll need at least 15 years (5,475 days) of contributions to the social security system in Spain.
Under the agreement, however, you may receive benefits as long as you reside in Spain regardless of your nationality. If you are not a U.S. or Spanish citizen and live in another country, you may not be able to receive benefits.
The average monthly benefit in the United States is approximately $1,950. However, there is a benefit to waiting to begin claiming Social Security Benefits. Those who wait until they reach full retirement age typically claim a higher monthly payment.
Which Countries Have the Most Sustainable Pension Systems? Iceland, Denmark, and the Netherlands have the most financially sustainable pension systems due to well-balanced contribution rates and participation.
Cons of Living in Spain. While Spain offers many advantages, it's essential to consider the challenges that come with living here. Language barriers can make daily interactions difficult for non-Spanish speakers, and bureaucratic processes can be complex and time-consuming. The job market is very competitive.
As of 2025, Portugal's non-lucrative visa requires a minimum income of €870 (~$910) per month vs. €2,400 per month for Spain. Portugal remains more affordable, with average monthly living costs for a single person around €1,700 ($1,789) vs. €1,822 ($1,904) in Spain.
If you're a US citizen considering relocating to Spain for retirement, it's probably not surprising to learn that you'll need to apply for a visa. There's no specific retirement visa; the most popular alternatives utilized by retirees are the Golden Visa and the Non-Lucrative Visa.
How much do I need per month to retire in Spain from the US? US retirees should budget around $2,000–$2,500/month, depending on location and lifestyle. Legal fees, visa costs, and health insurance may be slightly higher for Americans.
How Much Do Spanish Pensioners Get? Nowadays, the average pension is about 900 euros a month. The contributory retirement pension (Pension por Jubilacion Ordinaria) represents the main source of retirement income for approximately 8.75 million pensioners in Spain.
Here are the 20 best cities to retire on $10,000 a month anywhere in the world:
If a Spanish employer sent you to work in the US for over five years, your Social Security is taxed in the US. If you're sent to work in the US for less than five years, your Social Security is taxed in Spain. If you're hired in the US, you pay Social Security tax in the US.
Passport Validity: Your passport must be valid for at least 3 months beyond your planned departure from the EU. Ensure your passport is valid for your entire stay plus an additional 3 months. Tourism or business visits: With a valid U.S. passport, you can stay up to 90 days during any 180-day period.