Retirement in Spain for a French person: advantages and taxation

Spain has everything to appeal to French retirees: an efficient healthcare system, a relatively low cost of living, a welcoming population, sunny landscapes for most of the year, etc. If you retire and move to Spain, you won't be far from your French relatives, as the two countries border on each other. What is the tax situation if you want to retire in Spain? Where is the best place to live in Spain as a French retiree? Immo365 Costa Brava answers all your questions.

Why retire in Spain for a French person?

More and more French workers are considering making a permanent move to a Hispanic city or having a holiday home in Spain when they retire. Here are some of the reasons why.

An attractive cost of living

On average, compared to France, living is 15% to 25% cheaper in Spain. In gross terms, the Spanish minimum wage in 2023 is €1,260/month, whereas the SMIC in France is €1,747.20 gross/month. Retirement pensions in Spain average between €743 and €936 per month. In France, the average monthly pension is €1,509. We can see that earnings for workers and retirees are lower in Spain. The level of these incomes is positively correlated with inflation in the economy.

With an income of between 22,000 and 27,000 euros net per year, you can live comfortably in most Spanish municipalities. To take advantage of an affordable cost of living, a good idea is to retire to Empuriabrava which is a beautiful very dynamic and friendly seaside resort on the Costa Brava.

A good quality of life

International Living's Global Retirement Index 2023 ranks Spain 6th on the list of best countries to spend your retirement. Spain's health system and Social Security are very well organised. When you retire in Spain, you will enjoy exemplary quality of medical care and modern health infrastructures.

Pharmacies, shops, supermarkets, banks, restaurants, leisure centres... You'll easily find everything nearby. On the other side of the Pyrenees, the weather is generally mild, with plenty of sunshine for over 80% of the year. Winters are rarely harsh. With so much sunshine, there's plenty of opportunity to fill up on vitamin D tostrengthen your immune system, which is often fragile in older people.

A very beautiful and rich local culture

As a French retiree in Spain, you can discover the rich cultural, historical and gastronomic heritage of this very hospitable country. Gazpacho, paella, tortilla or cocido madrileño are just some of the flagship convivial dishes you absolutely must try. You can also take part in many of the popular festivals and celebrations listed by UNESCO as part of humanity's intangible cultural heritage (the Fallas or Holy Week, for example).

Spain's cultural riches are many. From the Camino de Compostela to the Route de l'Argent and the Salvador Dali museum in Cadaquès, there's plenty to do if you retire to Spain as a French person.

What is the tax situation for French retirees in Spain?

The type and amount of tax for a French retiree depends on their tax residence. If you receive aFrench pension in Spain, your pension is exempt from social charges (CSG-CRDS).

A French pensioner resident for tax purposes in Spain

If you have economic or family interests in Spain or if you spend more than 183 cumulative (non-consecutive) days per year on Iberian soil, you are considered a tax resident. This status avoids double taxation. Private pensions must be declared to the Spanish tax authorities. Your pension will be subject to the progressive scale of income tax (Impuesto sobre la Renta de Persona Física). You are exempt from this tax if your income is less than €22,000 gross/year.

If you receive a private pension from France, the limit for exemption rises to €14,000 of income per year (the retirement allowance must not be taxed in the country of origin). If you receive a state pension, it will be taxed in France. Using tax advice in the country is the best way to reduce taxes in Spain for a French retiree.

A French retiree who is not a tax resident in Spain

If you have a second home in Spain, you are subject to certain taxes in relation to your property. The most important of these are:

• heritage transfer tax: tax at a rate of between 4% and 11% of the investment to be paid in one lump sum,
• la ganancia patrimonial: capital gains tax if you sell your house or flat,
• la renta imputada: tax at a rate of 2% of the investment linked to the ownership of a property on Spanish soil,
• the non-resident income tax: set at 19% if you rent the residence when you are not in Spain.

Among the taxes in Spain for a French pensioner who is not a tax resident, there is also the real estate taxs. Its rate is less than 1.3% of the cadastral value of your property.

How to collect your French pension while living in Spain

If you have only worked in France, contact the Caisse Nationale d'Assurance Vieillesse for payment of your retirement benefits. Before retiring to Spain, you must change your address and bank details with the relevant French authorities. You will regularly need to provide a "life certificate" to maintain payment. If you have a mixed pension, the National Fund of your basic scheme will pay you the part of your pension corresponding to the length of time you worked on French territory.

Where to live for retirement in Spain?

A house, villa or apartment on the Costa Brava for your retirement in Spain is a good property investment choice at the moment. To get the best deal, let competent, reliable and serious professionals guide you through your project. Immo365 Costa Brava hand-picks all the offers in this Catalan coastal region on the Mediterranean Sea. We'll help you quickly find the property with all the necessary amenities/features and the ideal surface area at an excellent price.

Moving to Spain to retire in Empuriabrava, Cadaquès, Calonge, Roses or Palamós on the Costa Brava is a great idea. This region borders France, so you'll be able to visit loved ones back home more quickly. The price per m² for property investment on the Costa Brava is very attractive. It varies on average between €2,200 and €3,100, depending on the type of property you choose. Trust our team to manage your Costa Brava property project efficiently from A to Z.