Americans: why you should retire on the Costa del Sol and how to do it

I have written previously about the growing number of Americans who are coming to Spain, both as tourists and as residents. Those articles were focused on the general trend, which has seen the American population in Spain increase by 13% between 2019 and 2022.

There’s plenty of reasons for that growth, not least, the significant increase in American tourism, which saw over 300k Americans visit Andalusia in 2022. People come, fall in love (with good reason) and decide to stay.

American Population in Malaga

There are now over 3,000 Americans living in Malaga province. In 2022 the number was 2,692 and, according to Sur in English, 737 immigrated to Malaga in 2023. That means the American population grew by almost 30% in one year, suggesting an accelerating growth rate.

Cost of Living Comparison

The age and occupation stats on those 3400+ residents aren’t available. But we can assume that a significant number of them are retirees, given that it is much less complicated to move to Spain as a retiree than it is for a family of four with school-age children.

According to Investopedia, Spain is amongst the top ten countries in the world to which American retirees are moving. And based on their research, it is easy to see why.

Spain has cheaper housing than the USA, by at least 17%. That’s an overall ranking as well. If you compare big cities, the numbers are even more stark. For instance, New York City’s rental costs are 130% higher than even in Marbella. Los Angeles has rental prices that are 56% higher.

Healthcare and Living Costs

It has cheaper, high-quality healthcare – 40% cheaper than in the USA and number 7 in the world in terms of efficiency. Even if you get private healthcare – which you must if you move to Spain on a non-lucrative residency visa – it will seem a bargain to Americans. According to one insurer:

Most policies in Spain cost around €45 to €200 per month, but the average is €60 for adults and €30 for children. In Spain, there are never any deductibles. If you ever have a copay – which is rare – it’s extremely inexpensive, usually just a few euros. With a standard Spanish plan, all costs – including emergencies and hospitalizations – are covered.

The same can be said for other costs of living, such as for food. The main things that Americans will find more expensive in Spain are gasoline and consumer electronics.

Safety and Crime Rate

Spain is still far behind Mexico, which is number one in terms of the population of US expats. It has ten times more, with over half a million. Mexico has the advantage of being both cheaper and much closer to the USA.

However, with the rise in direct flights to Spain, the distance is getting shorter every year. Spain has something that Mexico doesn’t: a low crime rate.

The crime rate in Spain is lower even than in the USA. In terms of intentional homicides, Mexico is number 16 in the world, the USA is ranked at 54, and Spain is ranked at number 172. By incarceration rates, the USA is 6th in the world, while Spain is far down that list at 132.

Quality of Life and Infrastructure

Safety is, of course, important. The last thing you want in your retirement is to worry about robberies or being frightened to go outside. But having a good quality of life is more than just freedom from fear. It’s also about the positive freedoms, the freedom to live as you please. That means access to quality infrastructure, activities that suit your lifestyle, good weather, good food, and more.

In recent years, Spain has been actively building out its infrastructure to serve the large number of tourists and its own population. People think of France as the European country with the most high-speed rail (HSR) service. But Spain, with 4,000 km, has the largest HSR network in Europe, second only to China.

Taking HSR from Malaga to Madrid gets you there in two and a half hours, literally halfway across the country. Assuming no traffic, that’s not much longer than a trip from New York to Philadelphia. The trains are new, clean and comfortable.

For this reason, the number of people travelling by train in Spain is skyrocketing. In 2023, the number of HSR trains grew by 17%, prices came down, and the number of travellers grew by 35% compared to 2022.

Spain also has great public and toll highways that are well-maintained, if a little curvy (it’s a mountainous country, after all). Malaga has an international airport with direct flights from New York City that take just over eight hours. Many other cities have direct flights to Madrid, from where connecting flights are easy to find, or a high-speed train to Malaga.

Weather and Activities

One of the draws of Mexico is the weather and Spain has the same appeal. On the Costa del Sol there are 325 days of sunshine each year. That allows retirees to get in a lot of healthy sports, like a round of golf at one of the 70 golf courses on the Costa.

In all of Andalusia you will find over 800 tennis courts. While there is no definitive list of the number of tennis clubs on the Costa del Sol, there are many great ones.

In most neighbourhoods, you can also find a municipal sports centre known as a polideportivo. Many have tennis courts, padel courts, gymnasiums, and swimming pools. These can be found listed in your local town hall or ayuntamiento. They are often free or very cheap to book.

Besides these organised activities, there are plentiful beaches, hiking trails, bicycle paths and more.

Cuisine and Dining

Spain is also a country known for great, locally grown food, world-class wines from many regions, cheeses, and olive oil. According to US News, Spain has the second-best cuisine in the world and according to CNN it is number four.

Visa and Residency Requirements

Of course, there are some challenges and peculiarities that you have to manage when you decide to retire to Spain. The first is that you need a visa to stay for more than three months at a time.

There are different types of long-term visas, but the one that will most interest retirees is likely the non-lucrative residency visa. This allows the bearers to live for one year in Spain. At the end of one year, if you have been in the country for at least 183 days (6 months), you can renew your visa for two years from within Spain.

There are detailed instructions, qualifications and links to forms on the government website dedicated to applying for the visa. For instance, you must demonstrate that you have no criminal record and that you are able to support yourself without needing to work in Spain.

Getting all the material together and taking it to your local consulate can be a pain—there’s no point lying about that. But it’s not so much difficult as it is time-consuming. And almost every major American city has a Spanish consulate.

If you’re no good at forms and bureaucracy, you can find people online who will help you – for a fee, of course. Best to have a recommendation or to at least find reviews of a service before paying anyone any money. Once everything is submitted it should take from a few weeks to two months to receive your visa.

Additional Considerations

That’s the biggest hurdle, and it’s not insurmountable. But it’s not the only one. Besides the logistics of setting up a home in another country, some Spanish peculiarities are both good and bad.

Once you get your visa, you must arrive in Spain within three months. You must also get your TIE, or Foreigner Identity Card, within one month of arriving. To get that, you must have a residence verified by registering with your local town council. This is a process known as empadronamiento.

Again, it can help to find a reputable, English-speaking lawyer or specialist to help facilitate the process. However, many town halls (ayuntamientos) have now put the process online, making it much simpler than it used to be.

Here’s a good peculiarity about renting an apartment in Spain: most are furnished, unlike in North America. Not having to buy pots, pans, sofas, and beds is a big relief when you first arrive. Even if you decide to purchase a house or apartment and furnish it yourself, you can be settled by then.

Speaking of buying a house, I don’t recommend buying without having been to Spain. I know that some people do it using online platforms like idealista.com, and others have had luck. But if you don’t know the city or village where you want to buy, don’t know a nice area vs an area that is inconvenient and lacks amenities, you might be in for a nasty surprise.

I would strongly recommend spending some time in your chosen city/town for a while and getting a feel for it. Also, visit houses and apartments in person alongside a real estate agent who knows the area. Photos can be very deceiving. A real estate agent will also be able to help you with the process, including the notario (with whom you sign the papers), finding a lawyer and so on.

Driving and Health Care

Back to peculiarities, your US driver’s licence isn’t valid in Spain after six months. Spain and the USA have many treaties on healthcare, pensions, taxation and more. For some reason, there is no treaty for transferable driver’s licenses. You need to get a Spanish driver’s license if you want to drive in Spain. If you don’t you can get a big fine.

Luckily, you can do your written test in English and often your driving test as well. In big cities, you will also find driving schools where they speak English. You must use a driving school in Spain, which costs several hundred euros. On the other hand, they will do all the paperwork for you, including organizing the date of your tests.

On the other hand, US citizens are eligible for public healthcare due to an obscure treaty that includes Canada and Japan. This isn’t widely known and doesn’t negate the fact that you must get private health insurance to meet the immigration criteria.

But you can go to a public health clinic (Centro de Salud) in your neighbourhood and speak with the social worker there. They can apply for you to get your health card. In Spain, because public health sector doctors are state employees, they work in state health clinics, not their own practice. These clinics will typically have several services – doctors who take various samples for tests (blood, urine, etc.), paediatrics, social workers, etc.

Although you might rely primarily on your private health insurance, knowing that you can also visit a public hospital and see a local doctor at the clinic down the street can provide an added layer of security.

Having a health card also means that you can use Spain’s pharmacare system, which gets you big discounts on drugs. If you get a prescription through the private system, you can even take it to your public clinic doctor and have them issue it through the public system.

Taxes and Professional Help

Finally, there is the question of taxes. Spain expects that if you live in the country and use services, roads etc. that you will pay Spanish taxes to help finance those things. Income taxes in Spain are somewhat higher in Spain than in the USA but not egregiously so.

There is a double tax treaty between Spain and the USA, meaning that if you pay taxes in Spain, you don’t have to pay taxes in the USA. Legally, you’re supposed to begin paying taxes the moment you move to Spain. Realistically, many people take some time to get settled in before tackling that process.

When it comes to taxes in Spain, it is a complicated system, and you will want to hire a gestor (an accountant) to submit your declarations. It’s preferable to use one who does international taxes and can submit your forms in the USA as well but that’s a personal decision.

Many law offices in Spain will provide a variety of services, and if you find a good one, they can often fill out your immigration forms, your taxes, and the legal side of your home purchase. There are several big firms online as well, located in major cities like Madrid and Barcelona. These companies all have English capabilities. Get reviews and recommendations before choosing one. You can even set up video consults to discuss your situation before committing.

A guide on moving to Spain to retire could spin out into an entire book. In fact, there are more than one. There are also blogs dedicated to this process, typically connected to consultants and services that will help manage your move.

Such services can help you get set up with an apartment and the empadronamiento process. Remember to always do your due diligence before sending someone money and find out what you get for what you pay.

Final Thoughts

The main takeaway, however, is that the rewards of moving to Spain, particularly the Costa del Sol, can be immense. There’s a reason so many Brits and other Europeans do it and why a growing number of Americans are moving to Spain.

Spain is stunningly beautiful, with great weather and an open and friendly culture. Its laid-back lifestyle is much cheaper than the cost of living in any American city. More Americans should consider Spain as a retirement destination.

By Adam Neale | Opinion | August 19th, 2024

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