Retiring in Barcelona

Becoming an Expat: What every American needs to know before moving to beautiful Barcelona.

Decided to leave the U.S. behind for a new adventure in Spain? Whether you’re chasing a lower cost of living, new experiences, or change of scenery, becoming a U.S. expat is an exciting—and doable—goal. But it does take planning!
Here’s a practical guide to help you make the move, from the early stages of preparation to retire in Barcelona.

Top 10 Places to Visit in Barcelona

Research and Planning

Language

While many Spanish citizens speak English, brushing up on conversational Spanish terminology will help you out once you arrive in Spain. The more you know the better you will be able to conversate.

Cost of Living

According to World Population Review, the average annual cost of living in America is $61,334.

The average annual cost of living in Barcelona is $9,816, as calculated by Housing Anywhere. This is a rough estimated depending on lifestyle and where you live in Barcelona.

Visa and Residency

To retire in Barcelona you will need to obtain a Non-Lucrative Visa. To be granted this visa you will need:

• Proof of financial means
• A clean criminal record
• Proof of health insurance coverage

Preparing

Mail Forwarding

Set up a US P.O. box with a trusted family member or friend or use a digital mailbox service.

Health Insurance

Obtain a health insurance policy that covers healthcare internationally.

Note: This is often a requirement for a long-term visa

Income Access

Make sure that you maintain your US bank account (preferably one with little-to-no international transaction fees). Be sure to open a Spanish bank account as you will likely need to transfer funds from your US bank to Spanish bank.

Set up your social security or pension payments to be direct deposited into the account.

Long-Term Considerations

US citizens are required to pay income taxes on worldwide income, regardless of where they live – but don’t worry –  Spain has a tax treaty with the US to prevent double taxation of income earned abroad.

Consider the implications of:

• Foreign Tax Credits
• FBAR

If you reside in Spain for 183 days or more per year, you are considered a Spanish tax resident and must pay income taxes on worldwide income. To file and pay taxes in Spain, you will need to obtain an NIE (the non-citizen tax identification number).

Consider hiring an expat tax advisor to help you maintain compliance with the IRS.

Visa renewals

The non-lucrative visa must be used to obtain a Foreigner Identity Card within 30 days of arrival in the country.

Driver’s License

If you plan to stay in Spain for over 90 days, consider getting a Spanish Driver’s license. Your US drivers license will allow you to drive in the country with your ID until the 90 days are over. In addition you will need to acquire an IDP (International Driving Permit) which is a translation of your US ID. This is required in Spain and can be obtained through AAA or various businesses in the US.

Conclusion

Retiring abroad isn’t just possible—it can be an incredibly fulfilling next chapter. With smart planning around visas, finances, healthcare, and legal responsibilities, your dream of retiring in magnificent Spain can become your reality.