A European Country With A Low Cost Of Living Is Considered One Of The Best For English Speakers
Europe now draws millions of people from abroad. According to Eurostat, 44.7 million persons born outside the European Union (EU) were living in an EU country in 2024, accounting for 9.9% of the EU population. That's 2.3 million more than in 2023. Americans are still a major part of that migration wave. The Association of Americans Resident Overseas (AARO) reported that over 1.16 million U.S. citizens lived in Europe in 2022. So Europe ranks second among global destinations for American expatriates. Spain really stands out as one of the best countries for Americans to retire in Europe.
English speakers settle in easily in Spain. The EF English Proficiency Index ranks Spain 36th worldwide and 26th in Europe. The country spreads across the Iberian Peninsula, south of the continent. France and Portugal border it on land; the Mediterranean lines much of its coast. It's the largest country in Southern Europe. Its size and geography bring a mix of climates. You get over 3,000 hours of sunshine each year. Perfect for outdoor living and an active retirement.
How far your money goes in Spain
Spain's low prices change things for Americans worried about running out of retirement funds. According to Global Citizen Solutions Spain's 2025 cost of living report, a single adult spends €900 ($1,054) to €1,500 ($1,756) a month — rent not included. In big cities like Barcelona, a one-bedroom city-center flat costs €2,340 ($2,740). In New York, you'd pay $4,040 (€3,450) for the same. But smaller Spanish cities, like Alicante or inland towns, list similar apartments at €600 to €900 monthly ($702 to $1,054).
Food costs add more savings. According to Expatica, the typical monthly grocery bill for one person was €210 ($246) in 2025. Yet utilities show the biggest gap. According to Numbeo's 2025 data, the average utilities bill — electricity, heating, cooling, water, garbage — totaled €132 ($154) a month for a standard apartment. UK residents paid around €279 ($326). Daily expenses get noticeably cheaper.
Rising medical bills are one retirement expense that catches many Americans off guard. The Centers for Medicare & Medicaid Services (CMS) shows the average annual healthcare cost for Americans was $14,570 per person in 2023. According to the Ministerio de Sanidad, non-EU residents who've lived in Spain for at least one year and have no other public healthcare can enroll in the 'convenio especial' (special agreement). You pay €60 ($70) a month if you're under 65. Or €157 ($183) if you're older. That gets you full public coverage without co-payments or waiting periods.
Living in Spain as an English speaker
Spain backs up its expat-friendly reputation with policies just for Americans. The Spain-U.S. Social Security Totalization Agreement lets Americans in Spain combine their U.S. and Spanish work credits. They use them to meet eligibility rules and to calculate retirement or disability payments, so the financial side feels less scary. Tax worries shape international retirement plans, with many seeking strategies to legally avoid paying retirement income taxes. Yet the Internal Revenue Service (IRS) notes that the Double Taxation Treaty between Spain and the U.S. protects retirees from being taxed twice on Social Security, pensions, and investment income.
Cultural access in Spain stays easy on the wallet. Spain's Ministerio de Cultura charges €36.60 ($43) for an annual membership card for national museums. It grants a full year of unlimited entry to state museums like the Museo Nacional del Prado and the Museo Nacional Centro de Arte Reina Sofía. Beyond museums, expats can enjoy La Tomatina, the world's biggest tomato fight, each August in Buñol (Valencia) for about €15 ($17), or enjoy Seville's Feria de Abril — with free entry featuring flamenco, horse parades, and traditional casetas.
Travel perks cut costs further. According to the Red Nacional de los Ferrocarriles Españoles (RENFE), Spain's state-owned railway company, the Tarjeta Dorada rail discount card is for anyone aged 60 or older. It cuts up to 40% off AVE (Alta Velocidad Española/high-speed) and long-distance train — and costs just €6 ($7). Frequent travel gets a lot cheaper for retirees.