28 May 2025
An increasing number of Pakistanis are choosing Spain as their retirement destination, drawn by its charming lifestyle, pleasant climate, and strong healthcare system. Whether you’re an expat nearing retirement or someone planning for the future, it’s essential to begin financial planning early for a smooth transition. Spain offers an ideal balance of affordability and quality of life, but managing your finances smartly, especially with international factors like pensions and remittances, is key. Services like ACE Money Transfer make it easy to send money to Pakistan from Spain, giving you more control over your financial planning and family support back home.
As a growing number of Pakistanis explore retirement options abroad, Spain stands out for its lifestyle benefits and cost-effectiveness.
Spain’s cost of living is generally lower than many other European nations. Cities like Valencia, Malaga, and Alicante offer affordable housing, groceries, and healthcare. For retirees, especially those from Pakistan, this makes Spain an appealing option.
Popular coastal regions like Costa Brava, Costa del Sol, and the Canary Islands not only provide scenic beauty but also a slower, more relaxed pace of life, perfect for a peaceful retirement.
Spain boasts a high-quality public healthcare system, alongside numerous private options. Pakistani retirees can access public healthcare after registering with Seguridad Social—Spain’s Social Security system. However, many opt for private insurance for broader coverage and shorter wait times. Ensuring proper healthcare coverage is vital when settling abroad, and planning helps avoid unexpected expenses.
Spain’s Mediterranean climate, with mild winters and sunny summers, enhances well-being, especially for older adults. The weather supports an active lifestyle year-round, with opportunities for golf, hiking, beach walks, and exploring historical sites and cultural festivals. These leisure activities add immense value to your retirement experience.
Understanding how pensions work in Spain and planning your savings accordingly is crucial for Pakistanis considering retirement in the country.
Spain’s public pension system is supported by contributions to Seguridad Social. Pakistanis who have legally worked and paid into the system for at least 15 years, including two within the last 15 before retirement, may qualify for a state pension.
It's important to stay updated on eligibility and ensure your contributions are properly recorded. The system provides a stable income for retirees, supplementing private savings.
Since public pensions may not fully cover living costs, private pensions play a critical role. Spain offers various private pension schemes, including employer-sponsored plans and individual pension products. Pakistanis can also explore international options like Self-Invested Personal Pensions (SIPPS), especially if they have earnings or assets abroad. Partnering with Spanish banks or financial planners ensures your pension plan fits your needs.
Living in Spain as a retiree typically includes expenses like rent or mortgage, utilities, groceries, healthcare, and entertainment. On average, monthly costs can range between €1,500 to €2,500 depending on the location and lifestyle.
Creating a realistic budget based on your goals will help you manage your savings better. Online financial tools can assist in forecasting expenses and planning accordingly.
Strategic financial planning can ensure a stress-free retirement. Here’s how Pakistanis can get started.
The earlier you start saving, the better your chances of retiring comfortably. Define your retirement goals, estimate your future costs, and identify income sources, including pensions, investments, or property. Online calculators can help determine how much you need to save monthly. Keeping your long-term goals in focus will secure your future in Spain.
Apart from pensions, investing wisely can significantly boost your retirement funds. Consider low-risk investments like government bonds or diversified mutual funds, or explore real estate opportunities in Spain. Diversification reduces risks and improves financial stability. If you're moving funds internationally for investment purposes, ACE Money Transfer offers fast and affordable options to send money online to Pakistan from Spain.
Currency fluctuations can affect the value of your savings. Using reliable money transfer services like ACE Money Transfer helps you manage exchange rates and reduce fees. Whether you’re sending money for investments or supporting family, efficient online money transfer from Spain to Pakistan ensures financial security across borders.
Understanding taxes and residency laws is crucial for avoiding legal hassles and optimising your retirement finances.
Expats living in Spain for over 183 days per year are considered tax residents. This means your global income, including pensions from Pakistan, may be subject to Spanish taxes. However, Spain and Pakistan have a double taxation agreement to avoid being taxed twice. Always consult a tax advisor to understand how this affects your specific situation and make sure you comply with local laws.
Spain offers a Non-Lucrative Visa (NLV) for retirees, which allows non-EU nationals, including Pakistanis, to live in Spain without working. Applicants must show proof of sufficient income, health insurance, and clean criminal records.
Once granted, this visa can lead to long-term residency. It’s essential to gather all required documents well in advance and follow the application steps diligently.
A well-thought-out healthcare plan ensures peace of mind throughout retirement.
Once you’re a legal resident, you can apply for Spain’s public healthcare system by registering with Seguridad Social. This process involves getting a Social Security number, enrolling at a local health centre, and receiving a health card.
While many services are free or low-cost, some co-payments apply depending on income and treatment type.
Private health insurance is ideal for those who prefer English-speaking doctors or want faster access to specialists. Plans vary in coverage and cost, so it's best to compare options from top providers. Factors to consider include age, medical history, and existing conditions. Having private insurance alongside public care ensures comprehensive protection.
Thoughtful budgeting and planning can help you make the most of your retirement years.
Create a budget that includes all monthly and annual expenses such as rent, groceries, transport, and leisure. Don’t forget to include costs for insurance, travel back to Pakistan, and unforeseen health needs. Small changes like choosing affordable housing or using public transport can lead to big savings without compromising comfort.
An emergency fund is a financial safety net for unexpected medical bills, travel needs, or home repairs. Aim to save at least 6–12 months’ worth of living expenses. Keep this fund easily accessible and separate from your regular retirement savings to ensure quick availability when needed.
Having an estate plan helps in a smooth asset transition between countries. Draft a legally recognised will in Spain to manage your Spanish assets and consult a lawyer for guidance on international estate planning. Consider legal assistance in both Spain and Pakistan to avoid legal complications for your heirs.
Retiring in Spain as a Pakistani offers many advantages—from affordable living to excellent healthcare and a vibrant lifestyle. But these benefits come with the need for early and thorough financial planning. Whether it's understanding pensions, managing taxes, or choosing the right healthcare, preparation is key. Work with professional advisors and use secure platforms like ACE Money Transfer for your financial needs. With their help, making a money transfer from Spain to Pakistan becomes fast, secure, and cost-effective, giving you peace of mind and the financial flexibility to enjoy your golden years in Spain. ACE Money Transfer is rated 4.7 out of 5 on Trustpilot with over 129,000 reviews — a testament to their commitment to excellent service.
Yes. If they’ve made contributions to Spain’s Social Security for the required period, they can receive a pension upon retirement.
It depends on your lifestyle, but generally €250,000–€300,000 is a safe target, including an emergency buffer and medical costs.
Spanish residents may pay tax on foreign pensions, but the Spain-Pakistan double taxation treaty prevents dual taxation.
Yes, ACE Money Transfer makes it seamless to send money online to Pakistan from Spain or vice versa, with competitive rates and low fees.
Not necessarily, but it’s highly recommended for faster service and broader coverage alongside the public system.
