Why should I retire in Spain ?
Retirement is a time that people eagerly anticipate. It's the moment when you can finally leave the sound of the alarm clock behind, waking up at your own pace and crafting your own agenda for the day. But what if you're dreaming of something even more fulfilling during your retirement? The answer might just lie in retiring to sunny Spain!
While retirement is often longed for, it can also evoke feelings of loss. For many, work becomes a core part of their identity. “What do you do?” is a common question when meeting someone new, and we’ve all mastered our replies. After years of wishing for longer weekends and endless bank holidays, it can come as a surprise when retirement finally arrives.
This new chapter might prompt you to reassess your future, leading some to make the exciting decision to retire in Spain. So, why choose Spain?
The competition for the best retirement destination is fierce, yet Spain remains a top choice—and for excellent reasons! The weather is delightfully sunny and clear for most days of the year, even in winter. With pleasant temperatures year-round, you can enjoy outdoor activities, savour meals al fresco, and indulge in leisurely evening strolls.
Moreover, the cost of living is relatively low. The property market here offers fantastic options compared to other European countries. Spain is just a few hours’ flight from most European nations, boasting a captivating history, rich culture, and stunning architecture. You’ll have countless opportunities to explore its vibrant towns, cities, and picturesque countryside during your retirement years.
How can you retire to Spain?
If your heart is set on making the move, what steps should you take? Naturally, the process depends on your country of origin. Your passport dictates the documents and information you'll need to make Spain your retirement haven. For EU nationals, the pathway to retirement in Spain is relatively straightforward. However, there are alternative routes for those hailing from non-EU countries.
Retiring from a non-EU country
To apply for a Spanish visa as a non-EU citizen, you'll need the following:
- Proof of financial stability
- Private medical insurance
- A criminal record check
- A medical certificate
- A marriage certificate (if applying as a couple)
- A birth certificate (for minors)
First and foremost, you must demonstrate that you have sufficient income to support yourself without relying on a Spanish job. The current threshold is just over €34,000 per year. For each additional family member, you’ll need an extra € 12.000. This income can come from savings, pensions, or dividends.
Tax implications in Spain
The amount of tax you may owe will vary based on your individual circumstances, so seeking advice is essential to ensure you make informed decisions regarding which assets to retain in the UK after relocating to Spain.
A Government service pension is taxed solely in the UK and is not directly taxable in Spain. However, it is considered when calculating your overall tax rate, along with any other income.
As a resident of Spain, UK occupational and state pensions are taxed only in Spain. The state retirement pension is sent as a gross amount, and you'll pay income tax based on any additional earnings.
Next steps for retiring in Spain
If you feel this is the right move for you and your finances are in order, what’s next? Firstly, seek personalised advice; every situation is unique, and consulting a specialist can guide you through the application process.
Next, consider where in Spain you'd like to retire. If you already own a holiday home here, fantastic! If not, many choose to rent initially. This allows you to discover what suits you best while ensuring you’re prepared for permanent living.
If you decide to rent, keep in mind that selling your property in your home country may incur capital gains tax unless you do so before becoming a tax resident in Spain. Again, seeking advice is wise before making significant decisions.
Take ample time to discuss your retirement plans with family and friends. It’s a monumental choice, and their perspectives can be invaluable. You'll also find numerous resources from those who have successfully made the move, often sharing uplifting experiences and opportunities for a vibrant, healthy lifestyle in Spain.
Of course, you may also hear stories of mistakes and challenges from others for whom the move didn’t quite work out. In many cases, these issues stem from misunderstandings about what life in Spain entails. This is why thorough research, visiting various locations, and weighing the pros and cons are crucial before taking the leap to retire in Spain.
With the right preparation, your retirement could blossom into a wonderful journey filled with exciting new experiences and adventures—transforming these days into some of the best of your life!