To retire in Spain, you generally need to prove an annual passive income of at least €28,800 ($30,000+) for a single person (or ~€36,000-€40,000 for couples) to qualify for a non-lucrative visa in 2026. While a minimum of €40,000 in savings is sometimes cited for initial application, sustaining a comfortable lifestyle typically requires around €2,000–€3,000 monthly, depending on location.
The retirement visa income requirement remains €28,800 (~$31,050) annually, with an extra €7,200 (~$7,763) per dependent. Spain's tax rates for 2025 range from 19% to 47% for ordinary income and 19% to 30% for savings income.
Normally, persons who are not U.S. citizens may receive U.S. Social Security benefits while outside the U.S. only if they meet certain requirements. Under the agreement, however, you may receive benefits as long as you reside in Spain regardless of your nationality.
Non-working (Non-lucrative) residence visa
The IPREM for 2025 is €600 per month, and you need to prove 400% of the IPREM is received into your bank account annually. If you plan on taking any dependants to live in Spain with you, each will require 100% of the IPREM.
✅ Taxed Only in the US: US Social Security benefits do not pay direct tax in Spain. 🇪🇸 Exempt by Treaty: Article 20 of the Double Taxation Treaty makes it exempt in Spain. 📝 Mandatory Declaration: Despite being exempt, you must declare it on your Spanish Personal Income Tax (IRPF) return.
Key Takeaways for Retiring in Spain
An EU citizen can live, work, study, and retire in Spain without restrictions. If you are a non-EU or US citizen, you need to have a residence permit, which is a Non-Lucrative retirement visa. Spain's retirement visa requires a minimum of €2,400 monthly income, €28,800 annual income.
What's Spain's 100% Tax All About? The proposed 100% property tax means that non-EU buyers, including British nationals, would need to pay a tax equal to the property's purchase price. So, let's say you choose to purchase a villa costing €200,000, you will need to pay an extra €200,000 in taxes.
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.
Economic means may be accredited by presenting cash, traveller's cheques, a credit card accompanied by a bank account statement, an up-to-date bank book, or any other resource that accredits the amount available, such as a credit statement regarding the card or bank account.
Retirees in Spain optimise their living costs, enjoy a relaxed pace of life by the sea, and take advantage of local services and amenities. Some downsides to getting used to are a slow bureaucratic system, a unique schedule, and high taxes.
Spain's "2-year rule" generally refers to a major 2025 immigration reform that reduced the required continuous legal residency for Arraigo Social (social roots) and Arraigo Sociolaboral (labor roots) regularization from three years to two, allowing easier access to work permits for those integrated into Spanish society. Additionally, nationals from Latin American countries, the Philippines, Portugal, Andorra, Equatorial Guinea, and Sephardic Jews can apply for Spanish citizenship after just two years of legal residency, a significant reduction from the standard ten years.
The 3 cheapest cities to live in Spain in 2026
You are still entitled to your UK state pension if you retire in Spain, provided you have made sufficient national insurance contributions and are of retirement age. As the country is in the European Economic Area (EEA), it will increase in line with any rises in the UK.
The new residency rules, uncertainty around healthcare, tightening financial situations, and job market difficulties are just a few of the problems they face. These issues have transformed what was once an ideal expat experience into a situation filled with red tape and cultural hurdles.
The "£97 rule" in Spain refers to a Schengen area entry requirement (now around €118/day or €1,065 minimum) for non-EU citizens, requiring proof of sufficient funds for their stay, though Spanish officials call the media hype a "hoax," stating it's rarely enforced for typical tourists but applies to all Schengen countries, not just Spain, and requires showing funds, accommodation, and return tickets.
Healthcare. Okay, first things first, healthcare is significantly better in Spain than it is in the States. Spain's healthcare system is ranked 26th in the world by Statista, with the U.S. coming in at a lowly 69th place.
How Much Money Do You Need? For non-EU citizens—including Britons post-Brexit—the minimum required income is €2,400 per month or €28,800 per year. This is based on the IPREM (Indicador Público de Renta de Efectos Múltiples), which remains at €600 per month in 2025.
Can I get residency in Spain if I buy a house? Yes, if you are a non-EU citizen, you can obtain a residence permit in Spain valid for 3 years as long as the property you purchase is valued at over €500,000. This residency is famously called golden visa, and comes with great advantages (which we will explore below).
Average income and cost of living in Spain
The average monthly salary in Spain is about €2,250, which may seem modest. However, a single person can comfortably live on just €1,000 per month.
It allowed sellers to claim CGT exemption for the final 36 months of ownership, even if they had moved out. However, this was reduced to 18 months in 2014 and further to 9 months in 2020, which remains the rule today. This general law is in place as it prevents short-term transaction benefits concerning taxation.
For qualifying U.S. expats, Spain's Beckham Law offers something rare in international tax: simplicity and savings. A flat 24% tax rate on Spanish income—and no Spanish tax on your global earnings—can mean thousands saved over six years. But making it work means understanding more than just Spanish tax law.