Why Spain works
Spain has one of the best healthcare systems in the world. Cost of living is moderate (slightly higher than Portugal, lower than France/Italy). Climate is excellent in Mediterranean coast and Andalusia.
The Non-Lucrative Visa is straightforward but has a strict no-work clause (you can live on passive income but not work for a Spanish employer).
Strong infrastructure, world-class trains, walkable cities.
Where to live
Valencia: Mediterranean coast, large beach, walkable. 30-40% cheaper than Barcelona/Madrid. $2,500-$3,000/month.
Málaga / Costa del Sol: warm winters, large British/Northern European expat community. $2,500-$3,500/month.
Madrid: capital, expensive, world-class. $3,500-$5,000/month.
Barcelona: capital of Catalonia, expensive, beautiful. $3,500-$5,000/month. Catalan language.
Sevilla / Granada / Córdoba: smaller Andalusian cities. Beautiful, affordable. $2,000-$2,800/month.
Visa pathway
Non-Lucrative Visa: prove $2,900/month passive income for 1 person ($3,600 couple). Plus health insurance, FBI background check, criminal background check.
Apply at Spanish consulate in US. Processing time 3-6 months. Initial visa for 1 year, renewable for 2 years, then 2 more years, then permanent residency.
Citizenship: 10 years of legal residency + Spanish language test.
Taxes
Spain taxes worldwide income for residents. Progressive rates 19-47%.
Tax treaty offsets double taxation. US Foreign Tax Credit for Spanish tax paid.
Wealth tax exists at high net worth ($1M+ depending on region). Consult a CPA.
Beckham Law for new high-income earners (irrelevant for retirees).
Healthcare
SNS public system: free for residents (paid via taxes). World-class quality.
Private insurance: $50-150/month adds private hospital access. Most expats use both.