Retiring in Spain: Pensions and Healthcare for Expats
Retiring to the Costa del Sol as a non-EU citizen usually means a Non-Lucrative Visa, which for 2026 requires around 2,400 euros a month of passive income. Once you are a Spanish tax resident your pensions are generally taxed in Spain under the double taxation treaty, though government-service pensions stay taxable at home. Healthcare comes via the UK-funded S1 form for state pensioners, the paid convenio especial, or private cover.
Retiring in Spain is one of the most popular reasons foreign buyers choose the Costa del Sol, and the practical questions almost always come down to two things: how your pension will be taxed once you live here, and how you will access healthcare as an expat. This guide sets out the residency routes, the tax treatment of pension income, and the three main ways retirees get medical cover across Malaga province, from Marbella and Estepona to Fuengirola and Nerja. Figures are for 2026 and every number is sourced below.
Residency: the route that lets you retire in Spain
Since Brexit, British and other non-EU nationals can no longer simply move to Spain. The standard retirement route is the Non-Lucrative Visa (NLV), a residence permit for people who can support themselves from passive income (pensions, rent, dividends, savings) without working in Spain.
For 2026 the financial threshold is tied to the IPREM (Indicador Publico de Renta de Efectos Multiples), which remains at 600 euros a month. The main applicant must show income or funds equal to 400% of the IPREM, that is 2,400 euros a month, roughly 28,800 euros a year, plus 100% of the IPREM (600 euros a month, about 7,200 euros a year) for each dependant.1 The visa is granted for one year and then renewed in two-year blocks. EU/EEA and Swiss citizens do not need a visa; they simply register as EU residents.
You will also need a NIE (Numero de Identidad de Extranjero) to buy property, open utilities and pay tax. See our related guide on the NIE and the Spanish residency application for the step-by-step process.
How your pension is taxed once you retire in Spain
The pivotal concept is tax residency. If you spend more than 183 days in a calendar year in Spain, or your main centre of economic interests is here, you are a Spanish tax resident and are taxed on your worldwide income, pensions included.5
How each pension is treated depends on the double taxation treaty between Spain and your home country. Under the UK-Spain Double Taxation Convention (in force since 2014), the split works like this:2
- Government-service (Crown) pensions: civil service, NHS, armed forces, police, most local-authority and teachers’ pensions stay taxable only in the paying country (the UK). They are still declared in Spain but relieved under the treaty.
- State pension and private/occupational pensions: the UK State Pension and private or company pensions are taxable in Spain once you are a Spanish tax resident.
In Spain, pension income is treated as general income (not savings income) and taxed through IRPF at progressive rates. These combine a state scale and the Andalucia regional scale and run from about 19% to 47% overall in 2026, depending on total income.3 Because Andalucia sets its own regional band, the effective rate on the Costa del Sol is competitive compared with several other regions.
Age-related personal allowances soften the bill. The basic minimo personal for 2026 is 5,550 euros, rising to 6,700 euros from age 65 and 8,100 euros from age 75.4 A pensioner with modest income can therefore pay little or no IRPF, while higher pensions move up the scale.
| Pension type (UK example) | Where taxed |
|---|---|
| Government / Crown service pension | UK only (declared in Spain, treaty relief) |
| UK State Pension | Spain (if Spanish tax resident) |
| Private / occupational pension | Spain (if Spanish tax resident) |
| UK rental income | UK first, also declared in Spain with relief |
Because the rules interact, most retirees file a UK Double Taxation: Spain Individual form so HMRC pays qualifying pensions gross and Spain then taxes them. Get advice before your first Spanish tax year: the timing of your move can change which country taxes a lump sum.
Healthcare for retired expats on the Costa del Sol
Spain runs a high-quality public health service (Sistema Nacional de Salud), and Malaga province has large public hospitals in Malaga city, Marbella and elsewhere, alongside an extensive private sector popular with international residents. Retirees typically access care through one of three routes.
1. The S1 form (UK state pensioners)
If you receive a UK State Pension and live in Spain, the UK can fund your Spanish state healthcare through an S1 form (formerly E121/E106). You apply through the DWP International Pension Centre once you are actually drawing your pension, then register the S1 with the Spanish social security office (INSS) and your local health centre.6 The S1 covers you and dependants for the same treatment as a Spanish contributor, and it satisfies the healthcare requirement for a Non-Lucrative Visa, removing the need to buy private cover.
2. Convenio especial (pay-in scheme)
If you are not yet of state-pension age or have no S1, the convenio especial lets you buy into public healthcare. It is a fixed monthly subscription, not income-based: roughly 60 euros a month if you are under 65 and about 157 euros a month from 65.7 You must have been registered on the local padron for at least 12 months to apply. It covers GP, specialist and hospital care, but prescriptions are not subsidised at the same rate as for pensioners, so medication is largely paid out of pocket.
3. Private health insurance
Private cover is the fastest route and is what most Non-Lucrative Visa applicants use at first: the visa requires full private health insurance with no co-payments and no exclusions from a Spanish-authorised insurer. Premiums rise with age and pre-existing conditions, which is why S1-eligible pensioners usually switch once they can. Many residents keep a private policy alongside public cover for faster specialist access.
Property taxes retirees should budget for
Retiring here usually means buying a home, so factor in the ongoing taxes. Every owner pays IBI (Impuesto sobre Bienes Inmuebles), the annual council property tax based on the valor catastral, plus community and rubbish charges.
If you keep a home but are not yet tax resident (for example while your visa is processing or you split the year), you owe non-resident tax via Modelo 210 under IRNR. On a property you do not rent out, Spain charges tax on a deemed (imputed) income of 1.1% of the cadastral value where that value was revised within the last ten years, or 2% otherwise. That base is then taxed at 19% for EU/EEA residents or 24% for non-EU residents, and since 2023 it is filed annually.8 Our separate Modelo 210 and buying-costs guides (covering IVA, AJD and ITP) explain the purchase and holding taxes in full.
On wealth tax, Andalucia applies a 100% regional relief, so residents and property-owning non-residents pay no regional Impuesto sobre el Patrimonio. However, the national Solidarity Tax on Large Fortunes still bites on net assets above 3,000,000 euros, so only higher-net-worth retirees are affected.9
Putting it together before you move
A realistic Costa del Sol retirement plan lines up four things: a residency route (Non-Lucrative Visa for non-EU citizens), proof of income at the 400% IPREM level, a healthcare solution (S1, convenio especial or private cover), and a clear picture of how the treaty taxes each of your pensions. Because IRPF, treaty relief and the timing of your first Spanish tax year interact, and because the wrong sequence can cost thousands, retirees should take personalised cross-border tax advice before completing a purchase. See also our guides on the Non-Lucrative Visa, buying costs and taxes, and inheritance and succession tax in Andalucia.
Frequently asked questions
Will my UK State Pension be taxed in Spain if I retire on the Costa del Sol?
Yes, once you are a Spanish tax resident (generally over 183 days a year in Spain), the UK State Pension and private or company pensions are taxable in Spain as general income under IRPF. Government-service pensions such as civil service, NHS, armed forces and police remain taxable only in the UK, although you still declare them in Spain and claim treaty relief.
How much income do I need for a Non-Lucrative Visa in 2026?
The main applicant must show passive income or funds of 400% of the IPREM, which for 2026 is about 2,400 euros a month, roughly 28,800 euros a year. Add 100% of the IPREM (about 600 euros a month or 7,200 euros a year) for each dependant. Acceptable sources include pensions, rental income, dividends and savings.
Can I use the Spanish public health system as a retired expat?
Yes, through one of three routes: the UK-funded S1 form if you draw a UK State Pension, the paid convenio especial (around 60 euros a month under 65 and about 157 euros from 65 after 12 months on the padron), or private health insurance. Non-Lucrative Visa applicants who do not yet qualify for the S1 usually start with full private cover.
Do I still pay tax on my Spanish home if I am not a resident yet?
Yes. Non-residents who own a Spanish property pay annual IBI to the town hall and file Modelo 210 for non-resident income tax. On a property you do not rent, tax is charged on an imputed income of 1.1% or 2% of the cadastral value, taxed at 19% for EU/EEA residents or 24% for non-EU residents.
Is there a wealth tax for retirees in Andalucia?
Andalucia applies a 100% relief on regional wealth tax, so most residents and non-resident owners pay nothing regionally. The national Solidarity Tax on Large Fortunes still applies to net assets above 3,000,000 euros, so only higher-net-worth individuals pay it.
How do I avoid being taxed twice on my pension?
Spain and many countries have a double taxation treaty (the UK-Spain convention has been in force since 2014). It allocates taxing rights so the same pension is not taxed twice: government pensions stay in the paying country, other pensions are taxed in your country of residence, and relief mechanisms prevent double taxation. Most UK retirees file the HMRC Double Taxation: Spain Individual form so HMRC pays qualifying pensions gross.
