The Ultimate Guide To Living In Spain For Expats, Retirees, and Digital Nomads

Spain is also a remarkably affordable retirement destination. Expat retirees moving to Spain get access to a top-ranked healthcare system, excellent public transportation system, and affordable prices. While Spain's most expensive cities (Madrid and Barcelona) can be too pricey for a moderate budget, an expat can enjoy a comfortable life in a medium cost of living city (Valencia or Sevilla) on ~$1,700 per month or less than $20,500 per year.

Whether you immigrate to Spain for the wine and weather or costs and culture, expat life in Spain has pros and cons. Expat life here is not an extended vacation. The slow pace of life is not for everyone. The taxes can make retired life expensive. And the bureaucracy can test the patience of a Buddhist monk.

This Ultimate Guide will help expats moving to Spain understand the benefits and avoid the potential drawbacks of moving to Spain. In addition, the guide will help lead you through the visas process, research the "real" cost of expat life, expat health insurance requirements, and tax consequences of moving to Spain as an American expat.

Other Guides On Expat Life In Spain

Who is this guide meant for?

The power of Nomadic FIRE is combining Financial Knowledge with Minimalist Principles and leveraging Geographic Arbitrage to reach Financial Freedom in 10 years or less.

I have designed this series of Ultimate Overseas Living Guides for 3 types of people: 

This post may contain affiliate links. I may get a commission if you purchase something using my link. Please note, there is NO ADDITIONAL COST to you. For more information, please see my disclosure.

How hard is it to learn Spanish?

The Spanish language is considered Category 1 (easiest) level of difficulty. As a Latin language, French, Italian, and Portuguese speakers can pick up Spanish easier than other languages. Even English-speaking US citizens with significant exposure to Spanish speakers in the United States can recognize words and phrases in Spanish.

Is It safe for expats to live in Spain?

Spain is a safe country, with petty crime being the primary concern. The country ranks 24th in the world for safety and security. You are 6 times more like to be assaulted in the US. Only 39.18 people per 100,000 in Spain experience a violent crime rate. Compared to 246.84 per 100,000 in the United States.

The country has a problem with pickpockets in tourist hotspots and petty crime in large cities; otherwise, living in Spain as a foreigner is very safe.

Spain is ranked 31st in the 2021 Global Peace Index, while the United States came in at 122th.

Tips for Moving to Spain

Learn Some Spanish Basics

Spanish is the most spoken language within Europe and the second most spoken in the world. Check out our free lesson to start learning Spanish.

Get on Spanish Time

I'm not talking about adjusting your clock to the Central European Timezone. I'm talking about the schedule of life in Spain. If you are coming from the US and expect to walk into a Walmart at 2 am on a Sunday to buy groceries, you will be shocked. You will not find many businesses open 24 hours a day/7 days a week.

Generally, business hours are 10 am and close at 8 pm. Finding something open on the weekends is hit or miss depending on the business. Saturdays usually have reduced hours, and Sundays are more likely closed.

Accept the Siesta

Want to run some quick errands at lunchtime? Not going to happen in Spain. Spanish people take a long 2-hour break for lunch. Smaller businesses will literally close in the middle of the day.

Get used to big lunches and late dinners

The Spanish meal sizes and meal times are vastly different from the US and Europe, so expats in Spain need to adjust their eating schedules.

• Breakfast (Desayuno) starts at around 8 am. The meal is small, generally coffee and toast or pastry.
• Mid-Morning Snack (Almuerzo) is eaten before Noon. A light snack- think small sandwich, not a foot-long sub.
• Late Lunch (Comida) is the biggest meal and is eaten between 2 pm to 4 pm. Menu del Dia is a multi-course meal, appropriately followed by a siesta (nap).
• Afternoon Snack (Merienda) is another snack meal eaten around 6 pm to tide you over until dinner. Sweets and pastries are common or cured meats and cheese.
• Dinner (Cena) in Spain is a lighter meal than you would expect in the US. Tapas shared with friends and eaten around 10 pm is common.

Do I Need A Tourist Visa?

However, to live in Spain long-term (more than 90 days), all third-country nationals, including Americans, need to apply for a long-term visa (Visado Nacionale) or a Residence Visa (Visado Residencia)

Long-Term Visa

A long-stay visa grants temporary residence in the country. This type of visa is renewable annually, as long as you spend at least six months per year in Spain. Depending on the type of residency permit, you may be allowed to work, study, retire, or simply live in Spain.

• Residency: For expat who want to live in Spain without working. Spain's retirement visa falls under this category.
• Work and Residency: For expats working and living in Spain. Spain's unmarried partnership visa fits here.
• Student: An international student can live in Spain while pursuing a degree, doing research, or as an intern.

After five straight years of living in Spain as a temporary resident, expats can apply for permanent residency. After five years of permanent residency, it is possible to apply for Spanish citizenship.

Does Spain Have A Retirement Visa?

Yes, Spain's Non Lucrative Visa acts as a retirement visa. You can read all the requirements in my article below. 

Does Spain Have A Digital Nomad Visa?

No. In the past, digital nomads working in Spain used a non-lucrative visa. The Spanish Authorities considered working remotely for clients outside of Spain as a "gray area." This gray area allowed digital nomads to work in Spain without a work visa.

However, Spanish Consulates and Embassies have been denying non-lucrative visa applications by digital nomads in the last few years.

Digital nomads who wish to live in Spain have two residency visa options:

• Freelancer Visa- targeting self-employed (Autónomo) workers
• Entrepreneur Visa- targeting start-ups "innovative in nature 

What Other Visas Are Available?

A quick yet expensive way non-EU citizens obtain a Spain permanent residence permit is through Spain's "Golden Visa" program. However, the minimum investment required is 500,000 Euro for Spanish property investment up to 2,000,000 Euro for a government bond purchase.

If your partner is an EU citizen, a lower-cost visa option is an Unmarried Partner Visa.

What are the visa requirements for expats living in Spain?

Each long-stay visa has different requirements; however, there are some standard visa requirements:

• Pass a criminal background check in all countries you have lived in the last five years.
• Have private health insurance from Spanish insurance company.
• Proof of sufficient financial resources to support you and your family.

Roughly $2500 USD / 2130 EUR per month for one person plus ~$626 / 532 euro for each family member.

Average Salary and Minimum Salary In Spain

You are unlikely to be reading a blog about financial independence and making a minimum salary. However, knowing Spain's average wage gives you a good benchmark for the country's actual cost of daily life. Logically, if your monthly income is greater than or equal to the average salary in Spain, then you can afford a middle-class lifestyle in most major cities in the Spanish territory.

What are the average salaries in Spain?

The average salary in Spain is about 45% LESS than the average salary in the US. This savings is a high-level estimate. Salaries vary greatly depending on the type of work and the location. As an example, the highest-paid region in Spain pays 147% more than the lowest-paid region.

To put salary in better perspective, let's look at a medium cost Spanish city, Valencia. The financial requirement for an expat on a long-term stay visa is ~$2500. The average salary in Valencia for a Software Engineer is $2,220 per month.

Already the minimum income required for an expat is $600 greater than a Spanish middle-class professional salary. It is not a stretch to assume an expat living in Spain will automatically have a standard of living higher than the average Spanish citizen residing in a medium-cost city.

What is the minimum salary in Spain?

The 2021 minimum wage (Salario Mínimo Interprofesional) is 950 euros per month divided into 14 payments (by law, employers pay a 13th and 14th-month salary as an annual bonus).

The low average wages, high unemployment rate, and low prices make living in Spain affordable for most expats.

The best cities in Spain for expats are different. The most popular expat cities Barcelona and Madrid, are the two most expensive cities in Spain. Plus, Barcelona and Madrid are popular expat hubs because of the potential job market.

Expat retirees looking for cheaper expat destinations should explore these three Spanish cities with fantastic amenities, great weather, rich cultural history, and an affordable living cost.

What are the best cities to live in Spain as an expat retiree?

Alicante

Alicante, located in southeast Spain, showcases life on the Mediterranean coast. Found in the heart of Spain's Costa Blanca (White Coast), the city is near several beautiful beaches, including Playa San Juan, located just 5 miles from Alicante's historic city center.

Not just a city for suntans and beaches, food lovers can find reasonably priced restaurants with fresh seafood, amazing views, and breathtaking sunsets. All foodies, both expat or Spaniard, love Mercado Central (Alicante Central Market) at the end of La Rambla. Vendors here offer authentic Spanish products, including fresh fruits from the Levantine orchards and freshly caught seafood off the Mediterranean Sea.

Valencia

Valencia has a lot to offer in terms of sights, social life, and activities. Spain's third-largest city is quickly becoming an alternative expat destination for foreigners looking for a big city feel at lower average costs.

Valencia is also an excellent place for an expat family. Valencia has miles of beautiful family-friendly beaches nearby, including the famous Malvarrosa Beach, with fine golden sand and a seaside promenade. The beach even has an exercise area for elderly people.

The city is home to the world-renowned Valencia oranges. In addition, Valencia is the birthplace of paella, one of Spain's iconic dishes. With a thriving food scene, gastronomy lovers will find themselves eating out on a regular basis.

Seville (Sevilla in Spanish)

Seville is the capital of Andalusia (Andalucia in Spanish), a region in southern Spain known for its rich history and culture. Seville was the capital of Moorish rule for several centuries. Today, Seville has become an expat destination and vibrant cultural hub full of museums, art galleries, and festivals.

At over 2,200 years old, Seville is one of Europe's oldest continuously inhabited cities. Located along the Guadalquivir River, it boasts some of the best-preserved architecture in all of southern Europe. The city boasts three major UNESCO World Heritage Sites: the Cathedral, Alcazar palace complex, and Archivo de Indias.

If you'd instead explore the local nightlife scene, you'll find loads of dance and music clubs in Seville's Barrio de Triana, the legendary birthplace of Spanish flamenco. Or head to Seville's large historic city center (Barrio de Santa Cruz), where locals and expats sit outside enjoying tapas and drinks.

Stunning monuments, ruins, churches, and palaces fill a country with the 4th most UNESCO World Heritage sites globally (49 total). Combined with some of the world's most beautiful beaches, Spain is one of the most visited countries in Europe. Whether you choose the mountains of the Sierra Nevadas or the sunshine of the Costa del Sol; Regardless if you are into sipping on sangrias on the beach, exploring ancients monuments, or learning a sexy new Flamengo move; Spain has you covered.

What you can see or do in Spain is as varied as the landscape. Here is a glimpse of some of the must-see attractions in Spain.

• The Alhambra in Granada- Located in the Andalusia region of Southern Spain, Alhambra and Generalife Gardens are considered one of Spain's significant cultural achievements. Now open for tourists, the palace was once the exclusive summer home of the Moorish King Muhammad I's family.
• The Sagrada Familia in Barcelona- This a famous landmark is the work of architect Antoni Gaudi. The Sagrada Familia took more than 50 years to complete. Gaudi died before seeing his masterpiece completed. This church is considered one of the best examples of modernist architecture.
• Hike the Camino de Santiago- This hike traces a 8th century pilgrimage route by Saint James the Great that ends at Santiago de Compostela in northwestern Spain. There are many hiking paths; some routes take weeks and cover roughly 50 miles, while other Camino paths can take three months to cover over 550 miles.
  
• The Canary Islands (Islas Canarias)- Expats here enjoy the island lifestyle, surfable waves, and hot summers. The Canary Islands, which are only 62 miles(100 km) off the coast of Morocco, are closer to Africa than Spain's Iberian peninsula. One of the most beautiful places in Europe, movies and TV shows use the Canaries as film locations, including the Game Of Thrones prequels, which will shoot on Tenerife and Gran Canaria. 
• La Tomatina- Buñol- Starting in the early morning, 40,000 revelers descend upon the small town of Buñol on the last Wednesday of every August for the world's biggest food fight. Festival goers spend the two hours throwing 150 TONS of spoiled tomatoes at each other start while running around like crazy, screaming and laughing hysterically. 

Getting Healthcare Coverage In Spain

Immigrating to Spain requires private healthcare coverage from a Spanish insurance company or another medical insurance equivalent to Spain's public healthcare system that explicitly covers you while you are a Spanish resident. Travel health insurance does not meet that requirement.

Public health insurance for expats

If you are a retired American living in Spain (or any non-EEA citizen), you can buy into Spain's public healthcare insurance under Convenio Especial.

Public healthcare in Spain is "universal," but not "free." You get access to Spain's health care when you start paying into the system, either through employment by a Spanish company, by registering as a freelancer (autónomo), retiring to Spain with an EU pension, or buying into the convenio especial.

Convenio Especial provides basic healthcare for a monthly fee of ~$70 / €60 if you are under 65 and $185 / €157 for those over 65 years old.

Each autonomous region manages Convenio Especial, so specific coverage depends on where you reside in Spain.

Will My Home Country Health Insurance Cover Me?

No. Most US-based health insurance does not provide adequate medical coverage in a foreign country. You will either need to get coverage from a Spanish insurance company or get Expat Health Insurance. Either option will be cheaper than what you pay for medical insurance in the US. My insurance from a Spanish company was roughly $65 per month for full coverage.

Spain uses the Euro (EUR) for currency. At the time of this writing, the exchange rate is 1 US Dollar = .85 EURO. For reference, 1 Euro = .86 GBP. 

• $1000 = €851
• €1000 =  £855

Moving Money

Foreign exchange and international wire transfers play a crucial role in expats' daily lives. It’s important to understand how foreign exchange works and the effects international transfer fees can have on your cost of living.

Getting paid in USD, but paying bills in a foreign currency can kill your local buying power, especially if your bank gives you crappy exchange rates and charges you foreign transaction fees or international wire transfer fees. 

Wise.com is the easiest banking solution I've found for living abroad

Receive money as if you were still at home.

You don't need to hassle with multiple bank accounts. Receive your rental income, salary, pension, etc., using your Wise banking details.

Move your money between countries.

You can send money to more than 70 countries, always with a low and transparent fee. With Direct Debits in the US, UK, Europe, and Canada, paying your bills and subscriptions across currencies is easier.

Spend in local currency with your card.

Don't worry about currency rates when changing money. You can use a Wise debit card to always get the best exchange rate and avoid sneaky bank foreign transaction fees.

Save even more for big-dollar transfers.

Need to show a large cash reserve for a visa requirement? Maybe you are buying property or a business. If you need to transfer large amounts of money abroad, Wise is about 5x cheaper than major US banks. And with tiered pricing for large amounts, you get an even lower fee on any transfers over 100,000 GBP or equivalent in USD (~$141,000).

Do I Pay Taxes If I Live In Spain?

Expats living in Spain must pay non-residents' income tax (NRIT) on any income from Spain. In addition, anyone considered a tax resident in Spain must pay personal income tax (PIT) on worldwide income. 

Digital Nomad and Expat Taxes 

You may be exempt from paying Spanish PIT on 60,100 euros (EUR) of income, if the following requirements are met:

• You have tax residency in Spain.
• Your work is effectively carried out outside Spain.
• The work is carried out for a company, entity, or PE that is not resident in Spain for tax purposes.
• A tax which is identical or similar to Spanish PIT is levied in the country where the employee carries out the work.

Tax residency in Spain

You may responsible for income tax in Spain, if you meet at one of the following criteria:

• Spend more than 183 days in Spain in a calendar year. Leaving Spain temporarily still counts toward your 183 days, unless you become a tax resident in another country. 
• Spain is your "center of interest": including economic interest or having family residing in spain. 

Life here does have some downsides and expats moving to Spain should balance the advantages and disadvantages. Let's examine some of the less obvious Pros and Cons of living in Spain.

Useful Official Spain Websites

• Spanish Embassy In Washington, DC
• US Embassy in Madrid
• Spanish Ministry of Work, Immigration, and Social Services- Applications for Residency and Work Permits
• Spanish Consulate of New York- Information on Long Term Visas
• BLS International- Visa Application and Processing Center