With its excellent infrastructure—including an array of public transit that includes trains, buses, trams, and light rail—and diverse landscapes ranging from the mountainous Iberian Peninsula in the northwest to the black- and white-sand beaches of the Canary Islands off the coast of Africa, Spain is a country that’s becoming increasingly attractive to foreign retirees. Its Golden Visa is a residency-by-investment program. Basically, non-EU citizens are granted a one-year stay based on a significant investment to the country. This might be purchasing property worth approximately $536,797 or more, or investing over $1 million in Spanish companies.
However, expat retirees with a more limited networth can opt for Spain’s Non-Lucrative Visa. In order to apply, an individual must have sufficient financial means (e.g. through a pension or rental property) to live within the country without having to work. In 2024, applicants must prove a minimum monthly income of approximately $2,576, or 400% of Spain’s Multiplier for the Public Income Index (IPREM)—a system that’s used as a reference point for determining the country’s required monthly living wage. Each beneficiary, whether it be a spouse or child, is required to match those funds by 100%.
Requirements: You only have to be 18 years of age or older to apply for one of Spain’s two retiree visas. In both cases, the purchase of a private healthcare policy is also necessary. After five years of living in Spain, Non-Lucrative visa holders can apply for citizenship. When it comes to the Golden Visa, the number of years is 10. However, once becoming a permanent resident, both types of visa holders will have complete access to Spain’s highly touted public healthcare system.
For those hoping to benefit from the country’s non-contributory retirement pension, you must be 66 or older and have lived in Spain for at least 10 of the last 16 years. (Use this as an extra incentive to relocate there sooner rather than later).
Tax incentives for US expat retirees include the IRS’s Foreign Tax Credit (FTC), which provides dollar-for-dollar credits on any paid income tax in Spain. Not only does this greatly reduce any US tax liability, it often wipes it out completely. There’s also the Foreign Housing Exclusion (FHE), which allows American expats to write off an array of qualifying housing expenses abroad, including rent and utilities, so that it’s no longer taxable.
