Thinking about retiring in Spain? The Costa Blanca is a top choice for many, thanks to its year-round sunshine, relaxed lifestyle and affordable living costs. From stunning beaches to excellent healthcare, it offers everything you need for a comfortable and enjoyable retirement. But is it the right fit for you? In this guide, we’ll break down the pros and cons, cost of living, best places to settle and key things to consider before making the move to the Costa Blanca.
Why choose the Costa Blanca for retirement?
Climate and lifestyle
The Costa Blanca enjoys a mild Mediterranean climate, with over 300 days of sunshine annually. This pleasant weather supports an active lifestyle, allowing retirees to engage in outdoor activities like golf, walking, cycling, tennis and water sports throughout the year.
Natural beauty and cultural attractions
The region is home to diverse natural parks and scenic landscapes. For example, the Montgó Natural Park offers hiking trails with panoramic coastal views, while the Albufera de Elche Natural Park is a haven for birdwatchers, featuring a freshwater lagoon teeming with birdlife and unique vegetation. Additionally, towns like Altea, with its white-washed buildings and amazing church, provide cultural and historical experiences.
Healthcare facilities
Spain's healthcare system is known for its quality and accessibility. The Costa Blanca offers both public and private healthcare facilities, ensuring that retirees have access to comprehensive medical services. The region's favorable climate also contributes to health benefits, improving conditions such as arthritis and rheumatism.
Tip: don’t end your health insurance in your current country of residence before you have everything arranged in Spain.
Healthcare is essential and gaps in coverage can leave you vulnerable. Before canceling your health insurance in your home country, ensure you have either public or private healthcare arranged in Spain. If you're applying for residency, private health insurance is often required. Having coverage in place will give you peace of mind and prevent unexpected medical costs.
Cost of living and financial considerations
Accommodation
Renting a one-bedroom apartment varies by location:
In cities like Alicante: €500 – €900 per month.
In popular tourist areas like Benidorm: €1,600+ for a 100m² apartment.
The average city-center rent in Costa Blanca: €858 per month.
Utilities for one person
Monthly utilities including electricity, heating, water and garbage collection, typically amount to an average of €138 for an 85-square-meter apartment.
High-speed internet: around €32 per month
Tip: Arrange your NIE number as soon as possible to set up essential services.
Your Número de Identidad de Extranjero (NIE) is required for many important tasks, such as opening a bank account, buying or renting a property, setting up utilities like electricity and water, and even purchasing a car. Without it, handling daily necessities in Spain can be challenging. Getting your NIE early will help you settle in smoothly.
Groceries for one person
A single person’s grocery bill would be around €150 – €300 per month, depending on eating habits
Example prices:
1L of milk: €1.10
Loaf of fresh bread: €1.20
1kg of local cheese: €9.80
Dining out
Meal at an inexpensive restaurant: €13
Three-course meal for two at a mid-range restaurant: €45
Transportation
Public transportation is affordable:
One-way local transport ticket: €1.50
Monthly public transport pass: €28
Healthcare costs
Spain offers both public and private healthcare:
Public healthcare (Social Seguridad):
Available to legal residents paying into the system
Monthly contributions: €60 – €157, depending on age and income
Private health insurance: €50 – €200 per month, depending on coverage
Becoming a Spanish resident
To apply for residence as a citizen of an EU member state or a country that is part of the European Economic Area (EER) in Spain, you must meet certain conditions. For a pensioner that means, among other things, that you have:
sufficient financial means (at least €7.200)
a public or private (sin copago) health insurance that provides coverage in Spain.
Tip: arrange your Residencia. We can help you with that.
If you plan to live in Spain long-term, obtaining Residencia is a must. It formalizes your legal status and allows you access to healthcare, tax benefits and other essential services. The process can be complex, but we’re here to guide you through every step to make it smooth and stress-free.
Tax implications
Spanish residents must declare worldwide and consulting a tax professional is recommended. Income tax rates:
19% – 47% on ordinary income
19% – 30% on savings income
Comparison with other European countries
Costa Blanca is generally more affordable than the Netherlands, Germany, Belgium, France, Norway, Sweden and Denmark:
Rent: Significantly lower (e.g., a 1-bedroom apartment in Amsterdam or Paris can cost €1,500+)
Groceries: Cheaper in Spain, especially for fresh produce and local products
Dining out: Restaurants are 30 – 50% cheaper than in Northern Europe
Healthcare: Public healthcare in Spain is more affordable and accessible than in many other European countries
Retiring in Costa Blanca offers a comfortable and cost-effective lifestyle compared to Northern and Western Europe. While prices vary by location, careful financial planning ensures a stress-free retirement in this sunny and welcoming region.
Popular expat communities in the Costa Blanca
The Costa Blanca has long been a magnet for expatriates seeking a blend of sunny beaches, rich culture and a relaxed lifestyle. Several towns and cities within this region have developed broad expat communities, each offering unique experiences. We will share some of the most popular destinations with you:
Town | About the destination |
Torrevieja | With 44.6% of its population being expats, Torrevieja is one of Spain’s most international cities. It offers affordable living, beautiful beaches and a lively multicultural community. |
Benidorm | A favorite among British expats, Benidorm combines high-rise city life with stunning beaches and an active nightlife. Despite its party reputation, it also provides excellent amenities and a strong expat network. |
Moraira | Known for its luxury villas and peaceful atmosphere, Moraira attracts retirees and families seeking a quiet Mediterranean lifestyle. The town offers pretty coastal views and a well-established expat community. |
Denia | Denia blends rich history with modern amenities, featuring two ports, sandy beaches and an expanding international community. Its location between Alicante and Valencia makes it an accessible and attractive choice for expats. |
Javea (Xabia) | Javea is a beautiful coastal town with lovely beaches, a charming old town and a strong expat presence. It’s popular among families and retirees looking for a mix of Spanish culture and international comforts. |
Els Poblets | A quiet town with a significant German population, Els Poblets offers a relaxed lifestyle tailored to retirees. Many local businesses cater to German-speaking residents, making integration easy. |
Orihuela | Located at the foot of the mountains, Orihuela is known for its historical charm, traditional Spanish lifestyle and famous Easter celebrations. It’s ideal for expats seeking culture, history and an authentic Spanish experience. |
Altea | With its white-washed houses, artistic vibe and scenic coastal setting, Altea is a favorite among creatives and retirees. The town’s relaxed atmosphere and cultural appeal make it a charming place to live. |
Quality of life
Community and social integration
This region boasts a lively international community, making social integration for retirees more accessible. Numerous expatriate clubs, social groups and community organizations are available, offering activities ranging from language classes to cultural excursions. This active social scene fosters a sense of belonging and provides opportunities to build supportive networks.
Safety and infrastructure
The Costa Blanca is known for its safety and well-developed infrastructure. The region has one of the lowest crime rates in the world, making it a safe destination for both tourists and residents. The area is also recognized for its excellent infrastructure, including good transport links such as Alicante-El Altet Airport and the AVE high-speed train, which connects to Madrid and other major Spanish cities. These factors contribute to a high quality of life, offering peace and tranquility without sacrificing modern amenities.
Considerations before making the move
Retiring to Spain's Costa Blanca offers numerous benefits, but it's essential to consider several factors to ensure a smooth transition and fulfilling experience.
Legal and residency requirements
Non-EU citizens, including those from the UK and US, must obtain a residence visa to retire in Spain. The non-lucrative visa is a common choice, requiring proof of sufficient financial means and comprehensive health insurance. It's advisable to consult with legal experts to navigate the application process effectively.
Financial planning and taxation
Understanding Spain's tax system is crucial, as residents are taxed on their worldwide income. Tax rates vary based on income levels, and there may be implications for pensions and other income sources. Consulting with a tax advisor familiar with both your home country's and Spain's tax laws can help optimize your financial planning.
Language and cultural adaptation
While many Spaniards in tourist areas speak English, learning Spanish can significantly enhance your integration and daily interactions. Embracing local customs and traditions will enrich your experience and help build meaningful relationships within the community.
Social connections and loneliness
Building a social network is vital to counter potential feelings of loneliness, which some retirees experience after relocating. Engaging in local activities, joining clubs and participating in community events can foster a sense of belonging and mitigate social isolation.
Tip: social connections are important, even if you're not into social media.
Building a new life in Spain is not only about paperwork, it’s about feeling Happy, Healthy and at Home. Even if you're not a fan of social media, Facebook groups can be a great way to meet like-minded people. Additionally, check out your local ayuntamiento (town hall), as they often organize events and meetups for residents. Don’t be afraid to strike up a conversation with people: you’ll find that many expats and locals are open to making new connections. For more tips, check out our blog on how to build a social network in the Costa Blanca.
Healthcare accessibility
While Spain offers excellent healthcare services, understanding how to access them is essential. Registering for public healthcare or securing private health insurance should be prioritized to ensure medical needs are met promptly.
Timing of the move
The timing of your move can have financial implications, particularly concerning tax residency and property purchases. Strategically planning your relocation date can optimize tax benefits and align with favorable property market conditions.
Retiring in the Costa Blanca offers a harmonious blend of favorable climate, affordable living and rich cultural experiences. However, it's essential to consider factors such as residency requirements, language and taxation. Thorough research and planning can pave the way for a fulfilling retirement in this Mediterranean paradise.
Note: Financial figures and requirements are subject to change. It's recommended to consult official sources or financial advisors for the most current information.
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