Guide For Living Abroad In Spain

Become familiar with the big picture ideas of moving to Spain from the United States. Spain is a great place for expats and retirees because it has a lower cost of living than the United States. Once expats secure the right visa and move abroad, they’ll also need to adjust to cultural differences.

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Are you considering a move to Spain? Whether you’re an expat looking for work, a retiree, or a digital nomad, this guide will help you begin planning for your move to Spain from the USA!

In this guide, we’ll provide important information about living in Spain. This includes comparing the cost of living in Spain to the United States, some cultural differences to be aware of, and an overview of visa requirements.

Plus, we’ve included a section with special considerations for people planning to retire in Spain!

Most Important Information For Living In Spain

Madrid's Cibeles Fountain And Palacio De Comunicaciones - Living In Spain Guide

The most important things to plan for before moving abroad include knowing your projected expenses, where you’re going to move, how the culture compares to your own, and how to reside within Spain legally.

Don’t miss Living Abroad: A Guide for What You Need to Know.

Here are the important topics you’ll want to know about before living abroad in Spain:

Knowing your expenses. This also includes knowing how you’ll pay for these expenses, but we’re going to focus on comparing the cost of living in Spain to the United States so you get a feel for how much it will cost.

From there, you can decide if you can afford to live in Spain with your resources. You may also consider comparing the costs of living in Portugal or Greece.

Where you’re going to live. There are a lot of great places for expats to live in Spain. You can read this article if you would like suggestions to consider.

For other suggestions for expats in Europe, read this article.

We’ll talk about special considerations for Americans moving to Spain, including cultural differences you should be aware of.
We’ll tack on a bonus section for people who want to retire in Spain.
We’ll cover a few miscellaneous items for moving to Spain and an overview of visa requirements.

Cost Of Living In Spain Vs. USA

Information from self-reported data in the United States and Spain estimates that the cost of living is 38.4% lower in Spain than in the United States. This is an average of prices reported across both countries.

We’ll look into these specific categories:

Housing Costs
Food Costs
Transportation Costs
Salary Comparisons

Housing Cost Comparison Spain Vs. USA

The average cost for a one-bedroom apartment is 52% cheaper in Spain than in the United States. Rent for a three-bedroom apartment in Spain is 52-55% cheaper than in the United States, depending on whether you live in the city center or not.

While the price of homes will vary by whether or not the property has land and other features, we can compare interest rates on mortgages. In the United States, the interest rate in April 2023 was 4.75-5.00%, and in Spain, the interest rate was below 3%.

Food Cost Comparison Spain Vs. USA

Across the board, groceries are significantly cheaper in Spain than in the United States. We used averages from self-reported information on Numbeo for averages across the country in both Spain and the United States to compare common grocery staples.

Milk is 3.7% cheaper in Spain than the USA.
Lettuce is about 49% cheaper in Spain than in the USA.
Potatoes are 49% cheaper in Spain than the USA.
A pound of beef is 18% cheaper in Spain than in the USA.
A loaf of white bread is 63.5% cheaper in Spain than the USA.
A dozen eggs is 46.6% cheaper in Spain than in the USA.

Transportation Cost Comparison Spain Vs. USA

Public transportation in Spain tends to be more practical and affordable than using public transportation in the United States. Be aware that Spain has relatively high gas prices, and parking is difficult to find in most places.

Many expats find the public transportation system superior and rarely, if ever, do they need a vehicle. Spain has affordable high-speed trains that connect you within the country and across Europe.

Salaries In Spain Vs. USA

The average salary in Spain, after tax, is 55.1% lower than in the United States. A piece of this difference is because taxes in Spain subsidize more infrastructure like healthcare than taxes in the United States do.

Is Spain Expensive To Live In?

Spain has a lower cost of living than the United States. Even though taxes are higher in Spain, those taxes help subsidize more infrastructure. If you’re a big-city dweller, you’ll find that city-living in Spain is more affordable than in the USA.

For expats who want to live in Spain and save money, living in a suburb or small town is less expensive than living in downtown big-cities like Madrid or Barcelona.

Expats who obtain a permanent resident card in Spain will have access to public healthcare. Healthcare in Spain is considered a high-quality healthcare system.

Other countries in Europe, mostly in Eastern Europe, have an even lower cost of living, but their infrastructure is less robust. They may have doctor shortages or less reliable public transportation than Spain.

Living In Spain As An American

Spain Square In Seville - Living In Spain Guide

There a few things that Americans will need to get used to about Spain. Some adjustments will be related to finances or navigating new geography. Others will be about navigating the social and cultural differences between Spain and the United States.

Here are some tangible and cultural things Americans will need to learn about living in Spain:

The Euro

Getting used to the Euro and knowing the value of the Euro when you go shopping. This is especially true if you’re working remotely or getting retirement funds in US dollars. You’ll have to make conversions in order to budget.

Siesta

Most shops, cafes, and businesses close for a couple of hours. Online, the hours for Siesta may not be listed as closed because it’s expected that everyone knows about the tradition.

Language Barriers

There are many English speakers in Spain, but you’ll frequently run into people who have limited proficiency in English. You’ll want to learn Spanish to live and communicate comfortably in Spain.

Also, the most commonly spoken Spanish in the United States are different dialects from the Spanish spoken in Spain. Each region of Spain will have its own accent and slang.

Documentation

As an expat in Spain, you will need documentation to sign contracts and demonstrate that you are in Spain legally. Everything from a cable TV contract to banking will require some type of documentation.

In Spain, they have a DNI number that is similar in function to the Social Security Number in the United States. As an expat, you may not be eligible for a DNI, so you will have to find a work around.

Summer Vacations

Businesses like cafes and shops may close for a couple weeks at a time during the summer so the shop owners can take a vacation. This is normal and an accepted part of the culture in Spain.

Retiring In Spain From The USA

Retiring in Spain from the USA is a popular choice. The lower cost of living draws many aging Americans to Spain every year. It has a much more agreeable climate than many parts of the United States and a more relaxed culture that includes Siesta.

You can live comfortably in retirement in Spain on as low an income as $20,000 a year in rural areas or up to $27,000 a year in the big cities.

Note that any income from Social Security, Pensions, or retirement accounts is subject to taxes in Spain. Also communicate your relocation plans with your pension provider.

Qualifying For Retirement Benefits In Spain

American citizens do not automatically qualify for benefits in Spain because they are over the age of retirement. To qualify for retirement benefits in Spain as a US citizen, you must have paid into Spain’s Social Security for at least 15 years.

For individuals who have some credits toward Social Security in the USA and in Spain, but not enough for either, there’s an agreement between both countries to help provide benefits.

Moving To Spain From The USA

Seville's Spain Square - Living In Spain Guide

You’ll need more than your passport to move to Spain from the United States. You’ll need a long-term residency card, and you must apply for that before you head off to Spain. When you live in Spain for longer than 183 days in the year, you’ll also need to pay taxes in Spain.

Visa Requirements For US Citizens In Spain

To obtain a long-stay visa for Spain, you’ll need to apply from within the United States. You’ll also need to get a stamp in your passport from the Spanish Consulate and prove that you have at least 25,000 Euros in a bank account before you head off.

Here’s a few more things you will need to qualify for a long-stay visa:

A medical exam and certificate that states you don’t have contagious illnesses.
Demonstrate a clean record with no criminal charges from every country you’ve lived in for more than six months of the last five years.
Provide proof of international health insurance for your entire stay.
You may be asked to attend an interview at the Spanish Consulate in the United States.

There’s a number of ways to get involved in the Golden Visa Program in Spain, which helps you get permanent resident status in Spain. If you buy a property worth more than 500,000 Euros, you’ll have Golden Visa status.

Spain also offers a digital nomad visa for interested expats who qualify.

Conclusion

There’s so much to do and see in the beautiful country of Spain. Many expats have loved their decision to move to Spain. They love the lower cost of living, reliable public transportation, and culture. Now that you know more about what to expect, don’t hesitate to consider Spain as your new home.

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Serena Fung

Head of Content at Pacific Prime

Serena Fung is the Head of Content at Pacific Prime, a global insurance brokerage and employee specialist serving over 1.5 million clients in 15 offices across the world. With 6+ years of experience writing about the subject, she aims to demystify the world of insurance for readers with the latest updates, guides and articles on the blog.

Serena earned her Bachelor’s Degree in Psychology from the University of British Columbia, Canada. As such, she is an avid advocate of mental health and is fascinated by all things psychology (especially if it’s cognitive psychology!).

Her previous work experience includes teaching toddlers to read, writing for a travel/wellness online magazine, and then a business news blog. These combined experiences give her the skills and insights she needs to explain complex ideas in a succinct way. Being the daughter of an immigrant and a traveler herself, she is passionate about educating expats and digital nomads on travel and international health insurance.