Spain is one of the European Union countries with the highest pension replacement rate. Let us recall that the pension replacement rate is the percentage of a person’s average salary that he receives in the form of a pension benefit upon reaching retirement age. In Spain, the replacement rate ranges from 50 to 100%. On average it is 80%.
Example: the average salary of a Spanish resident before retirement was 3,000 euros. This means that a person on pension will receive 2,400 euros, provided that a replacement rate of 80% is applied to him.
Types of pensions
In Spain, pensioners receive the following types of pension payments:
- Regular pension. It is calculated based on length of service and age. Paid from the state social insurance fund. The fund's budget is formed on the basis of contributions from the working population of the Kingdom of Spain. Every month, workers contribute 6.35% of their wages to social security tax.
- Disability pension. Children born with disabilities and people who received some type of disability in the process of being injured are entitled to receive these payments.
- Survivor's pension. This type of pension benefit is paid to the children or spouses of deceased men.
In addition, there is also a social and private pension. A private pension involves a Spanish resident making a monthly contribution to a fund of a certain amount.
Upon reaching retirement age, the money is returned to the person in the form of an increase to the basic pension.
Personal pension savings
The Spanish pension system also provides for the possibility of accumulating a fairly large additional pension. To do this, individuals participating in such programs deduct fifty to one hundred euros from their salaries monthly to special funds managed by banks. The fund invests the funds received in investments from income, from which an additional pension is then paid. In the second option, pension income is not fixed, but variable, but the pension amount here is much higher.
Such programs are co-financed by the state; in addition, tax breaks and preferences are provided for such funds. Pensioners themselves are provided with a tax deduction if they participate in such programs in the amount of up to 50% of the tax base. Unfortunately, so far the percentage of people participating in the accumulation of additional pensions in the country does not exceed twenty percent.
Conditions of retirement
The payment of pensions in Spain is regulated by the legislation “On Social Security”. According to this law, residents over 67 years of age and with at least 15 years of work experience in Spain are entitled to receive an old-age pension.
Early exit
Early retirement is possible only if a person has at least 30 years of work experience in this kingdom. But if during this period a resident of Spain quit of his own free will or was on the labor exchange for more than 6 months in a row, then his pension is reduced by 7%.
Due to the large number of pensioners in relation to the working population, the Spanish government decided to raise the retirement age to 67 years
Citizens of this state who worked before January 1, 1967 have the right to retire early (at age 60) . You can retire before the age of 65 only if the person’s working experience is more than 38 years and 6 months, and he has been making contributions to the social insurance fund all this time.
Where you can find work in Spain, see here.
We have an informative video about the types of pensions in Spain
Who can retire early?
Other categories of people eligible for early retirement:
- People whose work involved hazardous substances and hazardous working conditions.
- Marine workers.
- Mining industry employees.
- Miners.
- Railway workers.
- Agricultural workers.
- Toreadors.
- Workers on gas and oil platforms.
Retirement age limits
The retirement age in Spain is the same number of years for women and men – 67. In this case, you will need to work for at least 15 years. In addition, a minimum period of continuous work has been established at two years. If you want to receive the maximum possible pension, you need to work for 37 years.
In some cases, the retirement age may be reduced by three years. In this case, the pension amount will be reduced. To do this, you need to pay contributions to the social insurance fund for a long time and meet some special conditions.
There are also possible jobs for retirees, but it should be noted that life expectancy in Spain is on average 83 years. This way, working pensioners have the opportunity to partially retire. In this case, they have the opportunity to work part-time, while receiving only part of the pension. Benefits for medical care and fifty percent discounts on medicines remain.
The government of the country has developed special conditions for the pension provision of certain categories of workers. This:
- workers in the mining industry.
- railway workers and employees.
- artists, painters and bullfighters.
- maintenance personnel of oil and gas platforms.
- sailors and fishermen.
Pension amount
The minimum pension in the Kingdom of Spain is 636 euros, and the maximum is 2567 euros. The average pension in Spain in 2021 is 987 euros.
Pension rates in Spain
The size of the pension in Spain depends on the length of service, the salary received and working conditions. The more work experience a person has, the larger his pension will be. If a person has officially worked for more than 25 years, then his pension is automatically increased by 2% of the established amount. With a working experience of 25 to 37 years, a resident of the Kingdom of Spain can expect an increase of 2.75%. If the work experience is more than 37 years, the pension increases by 4%.
Pension supplements
In addition to the old age pension, a person can receive the following types of pension benefits:
- Due to disability. Disabled people and people who have received any disability group are given a pension of 948 euros. Disabled pensioners receive a supplement to their old-age pension of 316 euros per month.
- For the loss of a breadwinner. The pension in Spain is 648 euros.
Watch the video about pensions in Spain
Autonomy pension
It is known that the size of the pension directly depends on the pensioner’s salary, which he received before retirement. And wages, in turn, depend not only on the specialty, but also on the region in which a person lives and works. Therefore, we can conclude that the size of pension payments is also influenced by the region .
Table: pension amounts for different autonomies of the Kingdom.
| Autonomy | Pension amount per month (expressed in euros) |
| Navarre | 1047.91 |
| Asturias | 1077.69 |
| Madrid | 1080.00 |
| Basque Country | 1133.00 |
| Extremadura | 761.00 |
| Galicia | 771.34 |
| Murcia | 803.52 |
| Andalusia | 821.40 |
| Valencia | 841.70 |
| Canary Islands | 842.71 |
| Castile-La Mancha | 843.43 |
| Balearic Islands | 844.04 |
| Rioja | 887.31 |
| Castile and Leon | 897.96 |
| Catalonia | 948.15 |
| Cantabria | 958.53 |
| Aragon | 958.92 |
Job offers in some cities in Spain:
- Madrid;
- Barcelona;
- Valencia.
Pension for the unemployed
Citizens of Spain who live in this country, but do not have work experience, also have the right to apply for a pension benefit. A social pension is provided for this category of the population in Spain.
The size of the social pension ranges from 458 to 1375 euros per month.
People who have lived in the Kingdom of Spain from 16 to 67 years of age for at least 10 years are eligible to receive it. Such people must have an income below the subsistence level (645 euros).
Pension for Russians
Since 1996, all immigrants from the Russian Federation who officially work in the territory of the Spanish Kingdom have the right to apply for a Spanish pension.
Requirements for Russians wishing to receive a pension in Spain:
- Total work experience of at least 15 years.
- Working experience in Spain for at least 1 year. Sometimes one year of work may not be enough to receive a pension, so you should find out this information from the pension fund.
Subject to these conditions, a resident of Spain has the right to claim a Spanish pension in the amount of 650 euros monthly. If the length of work directly in Spain is longer, the person will receive higher pension payments.
How to receive a pension in Spain as a citizen of the Russian Federation
Russian citizens can apply for a pension 2 times. The first time the pension is issued directly in the Russian Federation, and the second time in Spain when the person reaches 67 years of age.
Example: A Russian worked in Russia for 12 years and 4 years in Spain. He has the right to first apply for a pension in Russia at the age of 60 (for women at 55) and after 7 years a pension in Spain. When applying for a pension in the Kingdom of Spain, the Russian pension will no longer be paid to him. But there is one important nuance here. When a person begins to apply for a pension in Spain, the entire amount paid to him in Russia will be withheld.
To apply for pension payments in the Kingdom of Spain, a person will need to submit documents such as:
- Application in the prescribed form.
- Extract from the Pension Fund of the Russian Federation. The document must indicate the total length of service and the amount of pension.
- Employment history.
- Residence permit in Spain. Let us remind you that you cannot officially find employment for a long time in Spain without a residence permit.
Residence permit in Spain
All documents are translated into Spanish and certified by a notary. The registration process lasts up to 6 months.
Let's summarize
Pensioners in Spain are not required to contribute additional savings to non-state funds for a dignified old age. They can live on government subsidies and benefits provided (free healthcare, medicines, travel). The Spanish government pays a lot of attention to leisure and resort treatment for older people, paying for their trips and accommodation. A person can work and receive a pension at the same time; this is not prohibited by law. Non-state savings in pension funds can be inherited. It is easy to receive payments for citizens of the country and foreigners who have worked for at least 15 years in Spain.
Problems in the country and reforms
Today, Spain is experiencing a demographic crisis, that is, the birth rate has sharply decreased, and the number of elderly people is only increasing. This situation indicates that in 15–25 years the working-age population will not be able to provide the required amount of cash flow to pay pensions to the elderly. This means that the country will experience a government budget deficit.
Today, the Kingdom of Spain is home to 7.8 million people over the age of 65 and only 7 million children under the age of 14. Therefore, the state government decided to increase the retirement age from 65 years to 67 years.
Characteristics of the Spanish population in terms of pension opportunities
The population of Spain, recorded as of 06/04/2016 , is:
- total 46,054,297, including:
- men 22,749,590, or 49.4%;
- women 23,304,708, or 50.6%.
However, the population is decreasing by about 261 people per day, mainly due to the migration of working-age citizens from the country. This is an alarming symptom, because the pension fund in Spain is replenished by contributions from the working population.
The distribution of the population of Spain by age and gender for 2021 looks like this if it is depicted as an age-sex pyramid, consisting of only 3 population groups - from 0 to 14 years , from 15 to 64 and from 65 years:
| 3.3 million | 65+ | 4.5 million |
| 15.8 million | 15-64 | 15.4 million |
| 3.6 million | 0-14 | 3.4 million | |||
| men | years | women | |||
The resulting pyramid is a decreasing or regressive type. In countries with this type of pyramid, the level of health care is quite high, mortality and birth rates are low, and life expectancy is high.
All these factors together lead to an aging population, and the problem of maintaining an incapacitated part of it is gradually coming to the fore. Spain, like other European countries, sees this prospect and is trying to fight it.
Benefits in retirement
Pensioners in Spain rarely experience financial difficulties. Firstly, they have quite large pension benefits, which allow them not only to provide for themselves, but also to visit other countries. Secondly, a lot of benefits are provided for older people, such as:
- Free medical care. This applies not only to going to the doctor and getting tested. Many beneficiaries receive the medications they need at a 90% discount.
- Free or discounted travel on public transport. On many types of transport, pensioners have discounts from 50 to 90% of the total cost of a travel ticket.
- Discounts ranging from 10 to 50% on cinema visits.
- Free or reduced admission to museums. Often you can only visit public museums for free, such as the Reina Sofía in Madrid or the Museo Nacional de Arte de Cataluña.
How is the pension calculated in Spain?
- Reduced cost of education. Surprisingly, Spanish pensioners show great interest in self-education even in old age. The most popular areas among retirees are foreign languages, art, philosophy and economics. Receiving additional education for retired people costs only 300 euros for the entire course of study.
- Discounts ranging from 25 to 75% on visiting sports sections.
- Discounts on purchases. Trading companies offer pensioners special cards that allow them to buy food and other goods without value added tax.
There are three options for obtaining a residence permit in Spain for retirees:
- Purchase of real estate with further registration of a residence permit
- Purchasing luxury expensive real estate and obtaining a residence permit under an Investor Visa
- Family reunion
If you are going to move to Spain by purchasing a home, then it is enough to have your own home in Spain, have a permanent source of income, as well as medical insurance. There is also the option of obtaining a Spanish residence permit, subject to a long-term rental agreement. But remember, this housing must comply with all living standards in Spain. That is, a family consisting of several people cannot live in one apartment.
An important issue is obtaining health insurance in Spain. People who have reached the age of 70 are reluctant to take out insurance here. And if you are 75 or older, be prepared to be denied health insurance. But there are always options, don’t despair. Contact several institutions, somewhere they will definitely make concessions for you.
The second option for obtaining a residence permit for retirees in Spain is the purchase of expensive real estate. If you have the funds, then it will not be difficult for you to make a purchase of 500,000 euros or more. Either put money on deposit (from 1 million or more), or purchase securities in one of the companies in Spain in the amount of 1 million euros. Thus, you become the owner of the so-called Golden Investor Visa and can apply for a residence permit.
And another option is a residence permit for pensioners through family reunification. If your children already have a residence permit, then you as parents have the right to also apply for a residence permit in Spain. To do this, you must also provide a certificate of income. But your children should already take care of this. It is important to prove that the parents have been supporting the children for a year or more, and you must also fully justify the need for the parents to live in Spain.
Residence permit in Spain for retirees - Cost of living
According to International Living Magazine, retirees in Spain can enjoy an excellent standard of living by spending around US$2,100 per month per person. This is due, among other things, to the absence of certain cost items.
For example, Spain has a reduced heating requirement relative to more northern countries and regions, so utility costs in winter are lower, for example, than in the UK or Scandinavia. If your goal is a residence permit in Spain for retired travelers, remember that traveling within the country is much cheaper compared to other EU countries, including the cost of train and bus tickets, as well as gasoline costs.
Food and drinks are inexpensive in the country. There are many places in Spain where a glass of wine or a small glass of beer costs just one euro, and restaurant menus throughout Spain include hearty and inexpensive dishes. The cost of a lunch, including two or even three courses, is on average only 10 euros.
Residence permit in Spain for retirees - Taxation
Although Spain has a reputation for being tax-heavy, there are ways to get around high taxes with the advice of a good lawyer or tax professional.
All Russians, Ukrainians and Belarusians wishing to obtain a residence permit in Spain for pensioners should be considered to be tax residents of Spain if they fulfill the following conditions: if they spend more than 183 days in the country during a calendar year or if their families, main professional activities or the majority of assets are located in Spain.
As tax residents of Spain, each is responsible for paying tax on personal income from worldwide sources. At the same time, Spanish tax non-residents are responsible for paying income tax on income derived from Spanish sources.
Residence permit in Spain for retirees - Healthcare
Every person, whether an EU citizen or a non-EU citizen, has the right to emergency medical care in Spain.
For those wishing to apply for a residence permit in Spain for pensioners: in order to enjoy all the benefits of the Spanish healthcare system legally, foreign pensioners need to register at their city hall (padrón) at their place of residence.
This will bring many additional valuable benefits, including tax breaks and deductions, preferential use of utilities and even free access to social and recreational infrastructure such as sports centers and libraries.
Russian, Ukrainian, Belarusian and Kazakh pensioners who are not eligible for free public health care can obtain private health insurance or pay full price for any medical services and treatment they receive.
If your goal is a residence permit in Spain for retirees, remember that there is one very simple way to gain access to all the resources of the Spanish public health care system. This scheme is called "specialio especial".
Participation requires that a resident of the country register with their local town hall (padrón) for a year, after which such resident will be able to participate in the government's health insurance scheme. To do this, you need to be prepared to make a monthly payment of at least 60 euros.
Medical tourism is actively developing in Spain, which is also popular among retirees. For example, Marbella is quickly becoming famous in Europe and around the world for its quality medical care in private medical centers. The region's health tourism industry is expected to grow by at least 40% next year.
Residence permit in Spain for retirees - Buying and owning real estate in Spain
As mentioned above, to use the health care system and other resources of the socio-economic infrastructure of the host country, as well as to stay on Spanish territory legally all year round, resident status is required. That is, you need a residence permit in Spain for pensioners.
A residence permit in Spain can be obtained not just by purchasing real estate, but by investing in an asset that is growing in value - comfortable housing on the sea coast to enjoy a well-deserved vacation.
Over the past few years, getting a mortgage to buy Spanish property has become easier. The intensity of construction is increasing, as is the market turnover. This means that if you buy Spanish real estate in order to obtain a residence permit in Spain for retirees right now, you can count on its price to rise at least in the short and medium term.
Retirement housing prices on the Costa del Sol and Costa Blanca have still not fully recovered from the steep fall (over 50% in many areas) during the 2008 economic crisis. So now you can buy a high-quality cottage or villa at a decent discount. This is also true for Valencia, among other things.
Across the country, home prices are on the rise. However, when purchasing property in Spain, retirees should pay attention to some local markets, such as the Balearic Islands, Mallorca, Marbella and the Costa del Sol. There is already a shortage of luxury apartments and villas there due to high demand - even despite rising prices.
All Russians, Ukrainians and Belarusians wishing to obtain a residence permit in Spain for retirees, as well as other foreign buyers of real estate on Spanish territory, are recommended to use the services of local specialists: realtors and lawyers. They will check the asset for possible problems and speed up the implementation of the transaction. By trusting a good law firm or real estate agency, foreign buyers can avoid any mistakes along the way.
Residence permit in Spain for pensioners - Transfer of pensions to Spain
Russian and Ukrainian pensioners who decide to live in Spain and receive a state pension in their home countries can choose to receive their pension from their bank branch in Spain (if there is one) or transfer it to their bank account in Spain.
However, those wishing to apply for a residence permit in Spain for pensioners should exercise caution, since their pension will be paid in rubles / hryvnias, and not euros, so you should be aware of fluctuations in exchange rates.
Before leaving your home country, be sure to contact your state pension fund to clarify all the procedures and formalities for transferring your pension to Spain. For non-EU countries, everything will depend on whether there is an appropriate agreement between your country of origin and Spain. Fortunately, Spanish officials have already concluded such agreements with their Russian and Ukrainian colleagues. Details in the table below.
| Jurisdiction | Date of conclusion of the agreement with Spain | Notes |
| Russia | April 11, 1994 | The distribution of expenses for the payment of pensions is provided depending on the amount of pension rights acquired by citizens in the countries. In this case, Russia is responsible only for the experience acquired on its territory. |
| Ukraine | March 27, 1998 | The calculation of pensions is regulated by the agreement between Spain and Ukraine “On Social Security of Citizens” |
Residence permit in Spain for retirees – Moving and immigration to Spain
There are many options and schemes for moving to this country that allow you to minimize the amount of time spent and expenses.
For the information of all those wishing to apply for a residence permit in Spain for pensioners: many town halls have their own Department of Foreigners, where immigrant pensioners can receive information about local social groups that meet regularly. For example, you can sign up for Spanish language classes there. Learning at least the basics of Spanish is important for the integration process and beyond.
Taking other classes, such as ballroom dancing, or salsa dancing classes, or cooking classes, or learning to play golf or tennis, or sailing, can open up a whole new world.
All Russians, Ukrainians and Belarusians who want to obtain a residence permit in Spain for pensioners should suffer the fate that in many Spanish cities, cycling clubs and walking groups, theater groups and book clubs have been created for people of retirement age. You can join them to make new friends and enjoy retirement life in Spain.
It is not surprising that more and more foreigners are finding happiness in Spain after retiring. They can buy inexpensive houses by the sea, taste a variety of foods and dishes, and enjoy the mild weather.
Plus, you're guaranteed to find other friendly retirees to befriend in any part of the country. The Spanish government and local residents are making it easier for immigrants to move and live in Spain.
