Why Retired Americans Are Moving to Spain

Why Retired Americans Are Moving to Spain

As retirement becomes increasingly unaffordable for many Americans, a growing number are turning their eyes overseas. With looming Social Security cuts, ballooning costs across U.S. states, and healthcare systems under pressure, Spain is rapidly emerging as a top retirement destination for those seeking a better life at a lower price. Here’s why.

Retiring in the U.S. Is Becoming Unsustainable

Recent data highlights a stark reality: to retire comfortably without relying on full Social Security benefits, Americans need anywhere between $1.3 million and $3.7 million depending on the state they live in. Hawaii tops the list, followed by California, Massachusetts, and New York. Even lower-cost states like West Virginia require retirees to accumulate over $1 million in savings.

At the same time, Social Security’s trust funds are on track to be depleted by 2034. Without congressional intervention, benefits could be slashed by up to 19%. Medicare isn’t faring much better — its hospital insurance fund could be insolvent by 2033, forcing retirees to cover more of their healthcare costs out of pocket.

Combined, these factors paint a grim picture for middle-class retirees hoping to age comfortably within the U.S.

Spain: A Better Life for Less

Against this backdrop, Spain is quickly becoming a haven for retired Americans. Not only does it offer a lower cost of living, but its lifestyle, safety, and climate are hard to beat. Many retirees report living well on just €2,000 to €2,500 a month — including rent, utilities, food, transport, and healthcare.

Spain’s tax system for non-residents is generally more favourable than the U.S., particularly if you plan carefully. And if you’re planning to invest or become self-employed, there are clear processes for setting up as autónomo.

Spain’s public healthcare system is ranked among the best in the world, far outranking the U.S. in both quality and accessibility. For Americans who don't yet qualify for public healthcare, private health insurance plans remain affordable and visa-compliant.

From the sunny coastlines of Andalucía to the cultural capital of Madrid and the Mediterranean charm of Valencia, Spain offers a wealth of options for every taste and budget. English-speaking expat communities, great public transport, and low crime rates only add to its appeal.

The Non-Lucrative Visa Makes It Possible

Retiring in Spain is easier than many assume. The non-lucrative visa allows Americans to live in Spain without working, provided they can show stable income — typically around €2,400/month for individuals or €2,900/month for couples. This income can come from pensions, savings, or Social Security benefits (even if partially reduced).

Applicants also need private health insurance with no co-payments and full coverage — a key requirement that’s easy to meet with a reputable provider. Once granted, the visa is valid for one year and can be renewed for longer stays.

During the process, you’ll also need to get an NIE number — Spain’s all-purpose foreigner ID. Here's a full breakdown on how to get your NIE number in Spain.

The Global Shift in Retirement Planning

What was once a fringe idea is becoming mainstream: retiring abroad isn’t just adventurous — it’s financially smart. For Americans worried about dwindling retirement income and healthcare access, moving to Spain offers relief, security, and a higher quality of life.

As more retirees make the leap, Spain’s expat support infrastructure continues to grow — making the process smoother than ever before. The cost savings alone can extend retirement funds by a decade or more compared to high-cost U.S. states.

Thinking About Retiring in Spain? Here’s Where to Start

If you’re considering the move, here are your first steps:

• Research cities and cost-of-living comparisons

• Apply for a non-lucrative visa (start 3–6 months before your planned move) — see our guide to non lucrative visas

• Secure visa-compliant private health insurance

• Rent long-term before buying property

• Consult a cross-border tax advisor to manage U.S.–Spain obligations

Planning to Retire in Spain?

If you're considering relocating to Spain for retirement, you’ll need private health insurance that meets visa requirements. Our range of health insurance plans without co-payments offer comprehensive coverage — ideal for non-lucrative visa applicants and retirees. Let us help you make your move easier.

Get your visa-ready quote today