Hey there, everyone! If you're thinking about retiring to Spain, you're not alone—more and more people are choosing our beautiful country as their retirement destination. But before you pack your bags and start dreaming about sunny days on the beach, it’s important to understand how taxes and healthcare work here. So let’s go over the essentials!
Taxes for Retirees in Spain
Tax Residency:
You’ll be considered a tax resident in Spain if you spend more than 183 days per year here. This means you’ll pay taxes on your worldwide income, including pensions. However, Spain has double taxation agreements with many countries, which often prevents you from being taxed twice on the same income.
Pension Income Tax:
Pensions are generally taxable in Spain for tax residents, but it depends on the type:
- Private pensions (from employment or savings): taxed in Spain as earned income.
- Government pensions (e.g., from public service, military, or civil service): usually taxable only in the country of origin if a bilateral treaty so provides.
Spain also offers some tax deductions for pension income, and you may benefit from other treaty protections depending on your home country.
Non-Resident Taxation:
If you don’t spend 183 days or more in Spain and don’t become a tax resident, you generally won’t pay Spanish tax on pensions from abroad. The non-resident income tax of 24% (or 19% for EU/EEA residents) only applies to Spanish-source income, not foreign pensions.
Healthcare Access in Spain
EU/EEA Retirees:
You’re not covered for a full year just with the EHIC (European Health Insurance Card)—that’s only for short-term stays. If you're a pensioner from an EU/EEA country and receive a state pension, you can request the S1 form from your home country's health authority. Registering this in Spain gives you full access to public healthcare, free of charge.
Non-EU Retirees:
You can access public healthcare in Spain by registering and paying into the system through the Convenio Especial (Special Agreement). This allows you to pay a monthly fee (around €60–€157/month depending on age) to get full access to Spain’s high-quality public healthcare.
Bilateral Agreements:
If your home country has a social security agreement with Spain (e.g., Canada, the U.S., Australia), you may be entitled to public healthcare without additional payments, depending on your contribution record and agreement terms.
A Little Personal Note
We totally get it—moving to a new country is a big deal, and figuring out the tax and healthcare systems can feel overwhelming. But don’t worry, you’re not alone! We’ve helped many retirees make the move to Spain and understand all these details. We’re here to guide you every step of the way.
Conclusion
Taxes and healthcare in Spain are different from what you might be used to, but once you understand the basics, it's manageable. Just make sure to check whether your country has a double taxation or social security agreement with Spain to avoid surprises, and don’t forget to get properly registered for healthcare once you settle in.
Retirees are some of our favorite clients—you bring experience, wisdom, and wonderful stories. If you have any questions or need help planning your move, don’t hesitate to reach out. We’d love to help make your retirement in Spain smooth and enjoyable.
Looking forward to hearing from you soon!
