The third country on my list to research for retiring abroad is Spain; however, the town that has caught my eye is Marbella on the Costa del Sol.

I will focus on the same six criteria, some of which are specific to the town of Marbella, while others are more general to Spain as a country.

The currency used in Spain is the Euro (€). The exchange rate is $1 = €0.87. The euro is not pegged to the US dollar.

1, Cost of living and financial sustainability

Daily expenses (groceries, utilities)

• Utilities: (electricity, heating/AC, water, gas, internet) for a one- to two-bedroom apartment, average €160 to €220/month.

• Grocery bills: for one person, typically €400 to €700/m. Local markets are far more affordable for fresh produce.

Common grocery prices are:

— Bread (€1.25 to €2.10)

— Milk (€1.55/litre)

— Chicken breasts (€15 to €21/kg)

— Apples (€3.70 to €5.25/kg)

— Eggs (€4.70 to €5/12)

Housing costs (renting or buying)

Rents and property prices in Spain differ by location. Madrid tends to be more expensive, while areas on the Costa del Sol, such as Marbella, generally offer more reasonable prices. In Marbella, property costs are lower in the historic district and higher near or on the promenade.

• Average monthly rent (2025):

One-bedroom apartment (50 sqm):€1,200 to €2,200

Two- bedroom apartment (80 sqm): €1,800 to €3,500

• Average purchase price (2025):

Studio (20 to 30 sqm): €250,000 to €450,000

Two-bedroom apartment (80 sqm): €500,000 to €850,000

Property taxes

• IBI (municipal tax): all owners pay €1,200

• Wealth tax for high-net-worth non-resident owners: progressive tax rate

• Non-resident tax: a tax on the deemed rental income, regardless whether it generates actual income: 24 per cent rate

Tax environment for residents

You are considered a tax resident of Spain if your primary home is there, you spend over 183 days per year in the country, or your main economic interests are based there.

As a resident, Spain taxes your worldwide income (pensions, investments, salaries, etc) at progressive rates up to 47 per cent. However, there is a special tax regime for new residents, allowing a flat rate of 24 per cent for the first six years (excluding Spanish income)

2, Healthcare quality, accessibility, and affordability

• Spain consistently ranks as one of the top countries for retirees in terms of healthcare quality, accessibility, and affordability, offering both public healthcare and low-cost private insurance options.

• Public healthcare is free as long as you are deemed a permanent resident of Spain; otherwise, you must buy private health insurance.

• Private health insurance costs €100 to €250 monthly per person for plans in Spain, which typically have very few deductibles or exclusions.

• Hospitals feature modern facilities and well-trained medical staff.

• Wait times are minimal for doctors if you have private healthcare; otherwise, they will be longer with public healthcare.

• Long-term care under the public system is not good due to lengthy wait times; therefore, most opt for in-home private care, which can range from €1,800 to €3,500 depending on the level required.

3, Climate, environment, and general liveability

Climate

Marbella is a subtropical Mediterranean climate with mild winters (16C to 18C) and warm, comfortable summers (29C to 31C), noting over 320 days of sunshine per year.

Cleanliness of air and water

The town is noted to have good air quality and safe tap water, though many residents prefer bottled or filtered water for taste.

Safety and crime levels

Marbella is considered a safe area in Spain both day and night, however during the summer time there are reports of pickpocketing and property thieving, primarily targeted at tourists.

Gender equality

Spain has a strong, legally-enshrined commitment to gender equality, and is widely regarded as a core national value.

Overall pace of life

The overall pace in Marbella is relaxed, with a lifestyle centred around outdoor living, community activities, and socialising. The environment promotes leisure, with cafés, promenades, golf, and a vibrant expatriate community year-round.

4, Visa and legal residency requirements

Retirement visa

Effective April 2025, the Golden Visa programme for Spain ended; therefore, the main retirement visa for Spain now is the Non-Lucrative Visa. This is designed for non-EU citizens who can demonstrate sufficient passive income or savings (€36,000 per couple). The visa does not permit any form of employment in Spain but offers a clear path to long-term residency.

Pathway to permanent residency and citizenship

• The Non-Lucrative Visa is initially granted for one year, then renewable for two-year periods. After five years of residency, holders may apply for permanent residency.

• After five years as a permanent resident, you become eligible to apply for Spanish citizenship; however, you will need to sit a language fluency test.

Property ownership

Retirees, including non-residents and foreigners, can freely buy property in Spain with few legal restrictions. Additional costs run 10 to 12 per cent above the property price, including transfer taxes (6 to 10 per cent), notary fees, registration, and legal fees.

Estate laws (very important)

Spanish estate law operates under forced heirship rules, which mandate that a portion of your worldwide assets (if you are a resident) or your Spanish assets (if you are a non-resident) must be left to your direct descendants.

The reserved portions are:

• One child: 50 per cent

• Two children: 66 per cent (split equally)

• Three or more children: 75 per cent (split equally)

You may only freely dispose of the remaining portion of your estate. Inheritance tax rates vary greatly, therefore seeking specialist cross-border legal advice is essential.

5, Infrastructure, amenities, and ease of integration

Transportation — public and private

Spain has an excellent public transport network in the big cities (Madrid, Barcelona etc), however there are limitations with the small towns, including Marbella.

For private cars, strong government incentives for new hybrid and electric vehicles often make them a more financially attractive option than buying a second-hand car.

Brand new vehicles

— Compact: Fiat 500, Volkswagen Polo, €19,000 to €26,000

— Mid-range: Toyota Corolla, Audi A3, €28,000 to €40,000

— SUV: Audi A4, BMW X3, €55,000 to €70,000

Annual cost of car ownership

— Insurance: €400 to €1,000

— Road tax: €100 to €600

— Tolls: €1,500

— Fuel: €1,200 to €2,500

— Service and maintenance: €300 to €800

— Parking (residents parking permit): €1,200

Amenities

• Supermarkets: residents primarily use local outdoor markets for daily fresh food purchases. However there are supermercados including Mercadona, Dia, and upmarket options like El Corte Inglés.

• Cinemas and malls: Marbella offers diverse shopping and cinema options, including La Cañada for convenient, all-in-one shopping and movies, Puerto Banús for a luxurious experience with designer boutiques and boutique cinemas, and El Corte Inglés for practical, everyday shopping needs.

• Social clubs: social clubs are common in Marbella and most of Spain, however most are driven by outdoor recreation interests. Additionally, there are numerous local public events like festivals, cycling races and golf tournaments, which also provide a way to meet new people and build a social circle.

• Banking: in Spain's predominantly cashless banking system, you can use international or local banks that provide secure multicurrency accounts. Many accounts require a minimum balance (often €800 to €1,500) to avoid monthly fees. Important to note, it is necessary to have your pension or retirement income paid directly into your bank account in Spain.

• Local culture open to foreigners: Spain offers a fantastic quality of life for those willing to adapt. If you make a genuine effort to learn the language, respect the customs, and engage with the community, you will be rewarded with a warm welcome and a rich, fulfilling experience.

6, Proximity to family, friends, and travel links

Relocating abroad often means starting with a small social circle, which can be isolating, especially for first-time movers. Since connections are often made through work, retirees must actively “retrain” their approach and make a conscious effort to build a new social network.

Air travel

The primary airport for Marbella is Malaga (AGP), Spain's fourth-largest airport. It is primarily a short-haul airport, mainly servicing Europe and the UK. All other destinations are accessed through major hubs like Madrid.

7, Conclusion

A successful retirement in Marbella and/or Spain is ideal for active retirees seeking an outdoor lifestyle, who enjoy vibrant local fiestas and a slower pace of living. It would not be suitable for retirees who prefer a private, home-centric life and have no desire to build a new social circle from scratch.

Spain is vibrant and noisy; public social life is built slowly over long conversations in a plaza or café, which for some may feel intrusive and draining rather than inviting.

For a couple to live comfortably in Spain in 2025 while renting, a minimum annual income of €52,000 (approximately $59,770) is a prudent benchmark.

References

Peddicord, K. (2024). Forbes — Available from: https://www.forbes.com/sites/kathleenpeddicord/2024/12/12/retirement-in-spain-one-of-the-worlds-top-expat-havens/

Brignal, M. (2025). Telegraph. Available from: https://www.telegraph.co.uk/money/retirement/true-cost-retire-spain-living-property-tax/

Buswell, G. (2023). Expatica Available from: https://www.expatica.com/es/healthcare/healthcare-basics/healthcare-in-spain-101467

Bloom, C. (2025). Stylenest. Available from: https://www.stylenest.co.uk/travel/travel-notes/5-big-reasons-why-brits-are-choosing-to-retire-in-spain

Blacktower Financial Management Group (2025). Available from: https://www.blacktowerfm.com/news/retirement-planning-for-expats-in-spain/

Unbiased (2025) Available from: https://www.unbiased.co.uk/discover/pensions-retirement/planning-for-retirement/retiring-to-spain-from-the-uk-a-complete-guide

• Carla Seely has 25 years of experience in international financial services, wealth management, and insurance. She holds an MSc in Business and Management and multiple professional designations, including ACSI, QAFP, and AINS, along with several investment licences

• For further inquiries or suggested topics, e-mail justaskcarla@outlook.com