Retiring on the Costa del Sol: the advantages and what you need to know

Every year, thousands of retirees from all over the world, from Scandinavia and the Netherlands to France, Belgium, Germany, Switzerland, the UK, Ireland and North America, choose the Costa del Sol for their new life. The reasons are easy to see: a mild climate all year, the sea, golf and mountains on the doorstep, excellent healthcare and an international community where you are never far from your own language. For many, the search starts with properties for sale in Marbella and the towns around it.

This guide explains the advantages of retiring on the Costa del Sol, the practical steps to settle here, how healthcare and taxes work for retirees, and which areas and homes suit this new chapter best.

Retiring on the Costa del Sol at a glance

The climate

The Costa del Sol has one of the mildest climates in Europe, with about 2,900 hours of sunshine a year at Málaga. Winters are short and gentle, with January averages of around 12–13°C, and you can often have lunch on a terrace in December. Summers are hot, but the sea breeze keeps the coast more comfortable than inland Spain. See our guide to winter in Marbella for what the cooler months are really like.

An active, outdoor life

Life here is lived outdoors. Long promenades by the sea, more than 70 golf courses on the coast, tennis, padel, swimming, walking in the mountains and a lively cultural calendar make it easy to stay active and sociable. For ideas, see our guides to golf in Marbella and hiking on the Costa del Sol.

An international community

The Costa del Sol has one of the largest international communities in Spain, with residents from more than a hundred countries. Scandinavians, Dutch, Belgians, French, Germans, Swiss, British, Irish, Americans and many others have their own associations, clubs, churches, shops and restaurants, and many doctors, lawyers and services work in several languages. It is easy to make friends, while still enjoying the Spanish way of life.

Close to home

Málaga airport, about 30 to 45 minutes from Marbella, is one of the busiest in Spain, with direct flights to most European capitals and major cities, from London, Dublin, Paris, Brussels and Amsterdam to Copenhagen, Stockholm, Oslo, Helsinki, Geneva, Zurich and Frankfurt, and connections to the rest of the world through the big European hubs. Gibraltar airport is also less than an hour away. Family and friends can visit easily.

Excellent healthcare

The area has a modern public hospital, the Hospital Universitario Costa del Sol, recently expanded, and several international private hospitals, including Quirónsalud Marbella, HC Marbella, Hospiten Estepona and Vithas Xanit in Benalmádena. Our healthcare guide covers the options in detail.

Citizens of the EU, EEA and Switzerland

If you are a citizen of the EU, the EEA or Switzerland, you are free to live in Spain. If you stay more than three months, you register as a resident at the foreigners' office or the police station and receive the Certificado de Registro de Ciudadano de la UE, with your NIE, the foreigner identity number you need for most formalities. As a retiree, you will need to show that you have sufficient means and health cover; for most pensioners, the S1 form provides that cover.

You should also register with your town hall, the padrón, which you need for healthcare, schools and many local services.

Retirees from outside the EU

Retirees from outside the EU, the EEA and Switzerland, including British, American, Canadian and Australian citizens, usually apply for the non-lucrative residence visa. It requires a regular income of at least 400% of the Spanish IPREM index, currently about €2,400 a month for the main applicant plus about €600 a month for each dependant, and full private health insurance with an insurer authorised in Spain. You cannot work, even remotely, on this visa. The first permit lasts one year and is then renewed for two years at a time, as long as you spend more than half of each year in Spain.

The golden visa, which gave residence to buyers of property worth €500,000 or more, was abolished in April 2025.

The S1 form

If you receive a state pension from an EU or EEA country, Switzerland or the UK, you can usually register in the Spanish public health system with the S1 form. It gives you the same public healthcare as a Spanish resident, paid for by the country that pays your pension. You request it from your own health or pension authority before you move, for example the CPAM in France, the Krankenkasse in Germany or the NHS in the UK, and then register it in Spain to receive your health card from your local health centre.

Retirees from countries outside this system, such as the United States, Canada or Australia, normally need private health insurance.

The European Health Insurance Card only covers temporary stays, so it is not enough once you live here.

Private health insurance

Many retirees combine public healthcare with private health insurance, for faster access to specialists and treatment in the private hospitals, often in their own language. Private insurance is required for the non-lucrative visa.

The Convenio Especial

If you have no right to public healthcare, you can join the public system through the Convenio Especial after a year of residence, for a monthly fee that is higher from the age of 65.

Taxation is where good advice matters most, and the rules depend on your nationality, the type of pension and your other income. This is an overview only, and we always recommend speaking to a tax adviser before you move.

Tax residence

You are tax resident in Spain if you spend more than 183 days a year here, or if your main economic interests are here. As a tax resident, you pay Spanish income tax on your worldwide income.

How pensions are taxed

Spain has tax treaties with more than 90 countries, including all of Europe, the United States and Canada, which decide where each pension is taxed. In general:

• Private pensions and social security pensions are usually taxed in Spain.
• Public-sector pensions, for former civil servants, are usually taxed in the country that pays them, unless you are a Spanish national.

Each treaty has its own details. For example, French public-sector pensions remain taxable in France, Germany may also tax a small part of its state pension, and some countries have special rules for lump sums or occupational pensions. Where a pension is taxed in both countries, the treaty avoids double taxation through a credit. This is why personal advice before you move is so important.

Wealth tax

Andalucía applies a 100% relief on the regional wealth tax. The national solidarity tax on large fortunes still applies, but only to very large fortunes, with a taxable base above €3 million, so anyone close to that level should take advice.

Inheritance and gift tax

This is one of the great advantages of Andalucía. Spouses, children, grandchildren and parents enjoy a 99% reduction on inheritance and gift tax, which makes passing on your home to your family very simple. Gifts must be made before a notary to qualify.

Assets abroad

Spanish tax residents with more than €50,000 in bank accounts, investments or property abroad, in any one category, must declare them each year on the Modelo 720. It is only a declaration, not a tax, and the old heavy penalties were abolished in 2022, but it must be filed.

If you keep your tax residence at home

If you spend less than half the year in Spain and keep your tax residence in your home country, you pay non-resident income tax on your Spanish home, usually a small annual amount. See our guide to non-resident taxes in Spain.

Day-to-day life on the Costa del Sol is generally cheaper than in Paris, Brussels, Geneva or Munich, especially restaurants, coffee, fresh produce and services. Housing is the exception: Marbella is one of the most expensive property markets in Spain, and prices vary greatly between areas.

When you own a home, budget for the IBI, the municipal property tax, community fees in an apartment complex or gated community, utilities and insurance. In a villa, add the garden and the pool.

The best area depends on how you want to live. Here are some of the areas our retired clients choose most often.

Walk to everything

Marbella centre, San Pedro de Alcántara and Estepona let you live without a car, with shops, restaurants, health centres and the seafront promenade within walking distance. The Golden Mile combines that convenience with some of the most prestigious addresses on the coast.

Green and quiet

Nueva Andalucía, Elviria and La Quinta offer golf, gardens and calm, a short drive from the beach and the services. Most homes here are in gated communities with security.

Easy access. A lift, a ground-floor apartment or a home on one level makes life easier in the years ahead.

Security. A gated community with 24-hour security gives peace of mind, especially if you travel.

Close to services. Check the distance to the supermarket, the pharmacy, the health centre and the hospital.

Low maintenance. An apartment or townhouse in a well-run community is easier to look after than a large villa with a garden and pool.

Room for visitors. A spare bedroom for children and grandchildren is often the most used room in the house.

Many retirees rent for a season, often the winter, before they buy, to test an area and the way of life. Others know the coast well from years of holidays and buy straight away. Either way, it is worth seeing a home in winter as well as summer, and in the evening as well as during the day.

When you buy, budget for the purchase costs on top of the price: on a resale, the transfer tax in Andalucía is 7%, plus notary, land registry and legal fees. See our guide to property purchase tax in Andalucía.

Can I retire in Spain as a European citizen?

Yes. Citizens of the EU, the EEA and Switzerland can live in Spain freely. If you stay more than three months, you register as a resident and show that you have sufficient means and health cover.

Will I keep my healthcare?

If you receive a state pension from an EU or EEA country, Switzerland or the UK, the S1 form usually gives you access to the Spanish public health system, paid for by your pension country. Retirees from other countries usually take out private health insurance.

Where will my pension be taxed?

It depends on the type of pension and the tax treaty between Spain and your country. Private and social security pensions are usually taxed in Spain, and public-sector pensions in the country that pays them, but each treaty has its own rules. Always take advice before you move.

Is there inheritance tax in Andalucía?

Spouses, children, grandchildren and parents benefit from a 99% reduction on inheritance and gift tax in Andalucía.

Which areas are best for retirees?

Marbella centre, San Pedro de Alcántara, Estepona and the Golden Mile for walking to everything; Nueva Andalucía, Elviria and La Quinta for greener, quieter living.

In our view, the Costa del Sol is one of the best places in Europe to retire. The climate, the healthcare, the international community and the quality of life are hard to match, and Andalucía's tax rules on inheritance make it easy to plan for the next generation.

The keys to a successful move are good tax advice, choosing the right area for the way you want to live, and a home that will still suit you in ten or twenty years.

We help many retirees find their home on the coast, from a seafront apartment in Marbella to a villa in a quiet gated community, and we can introduce you to trusted lawyers and tax advisers.

You can browse our properties for sale in Marbella, or contact us to arrange a viewing.