Retiring To The Costa Del Sol

Every year, thousands of Britons make the decision to swap grey skies for blue horizons and build a new life on Spain’s Costa del Sol, and it is for much more than just the sunshine.

It’s also about the quality of life, financial freedom, family life, health, and making retirement the best chapter of life rather than simply the last. Recent research continues to show Spain is comfortably the number one destination for British retirees, attracting more than twice the interest of Portugal, and significantly more than France or Italy.

When I am dealing with clients and their plans to move here, I have noticed something interesting, in that people rarely move because of one particular reason, but often when asked, the overriding reason tends to be because everything simply ‘feels much better’.

Better weather tends to equal a better lifestyle, and with that fact in mind the Costa del Sol enjoys over 320 days of sunshine every year, meaning more mornings on the golf course, walks along the beach, outdoor cafés throughout winter, and a lifestyle that naturally encourages people to simply spend more time outside.

As a result of this it is easy to see why people say they feel their heath has improved since they moved here. People tend to walk more, socialise more, relax more, all of which tend to lead to feeling generally less stressed. All of this combined typically means people finally slow down enough to fully enjoy the wealth they’ve spent decades creating.

For many British retirees, the financial benefits are just as attractive as the climate, with recent comparisons showing that overall living costs in Spain are around 32% lower than the UK, equating to almost £400 per month less spent. Groceries, household costs, restaurants and leisure activities are all significantly cheaper.

This doesn’t simply mean spending less, it often means living better, eating out more frequently, a healthier diet, swimming in the pool you didn’t have before, all of which define quality of life.

It’s not all plain sailing though, as moving countries also creates one of the biggest financial transitions many people will ever make, with a different tax system to adjust to, pension rules changing, Investment tax changing, as well as inheritance planning being different. Therefore the strategies that worked perfectly in Britain, can often become inefficient, or even expensive, once you’re a Spanish tax resident.

I get asked all sorts of questions, is my UK pension in the right place? am I paying unnecessary tax on my investments? do I need a Spanish will? how should I pass wealth to my children? should I keep my UK bank accounts? These are all very typical.

With none of these decisions being sensibly made in isolation, I have experienced all of these questions. With many client scenarios being very similar, explaining real life examples can go a long way to helping clients understand and become comfortable with what they need to do.

The whole point of a move to Spain is achieve a better quality life, with less stress, so if I can help you achieve some of that, then you know where I am.