Have you ever thought about retiring to a place where the sun shines almost every day? The cost of living is half of the cost of Florida, and 60% cheaper than London, England. And this place is safer than ANY state in the US (it is even safer than Maine).
After taking the opinions of numerous locals and other residents, I discovered why Malaga, and the region of Costa del Sol in Spain, became such an attractive destination for expat retirees. And today you will discover all these reasons – some of them never crossed my mind.
BUT… At the end of this article, I will also tell you an essential aspect to consider if you ever thought about retirement in Spain.
Tax Benefits and Economic Incentives
So with no further ado, let’s jump into the reasons that make Malaga an insanely good cost-benefit for retirement abroad. And here is a tip: It is not only about the sun, or only about the cost of living.
It goes way beyond that, and the first positive aspect we will talk about is proof of that. It is that in 2022, the autonomous community of Andalusia, where Malaga is located, introduced several tax benefits for foreigners and residents.
They implemented a 100% rebate on the wealth tax, effectively eliminating this tax for residents and non-residents who have assets in the region. Their idea is to attract more high-net-worth individuals to establish their residence in Andalusia.
Andalusia also reduced other taxes, like inheritance tax and property transfer tax. For example, imagine that you buy a house in Andalusia, and then your children inherit it later. If the house costs less than 1 million euros, they will not pay ANY inheritance tax.
Remember that these incentives are valid only for Andalusia. In other parts of Spain like Madrid or Barcelona, the tax code is different.
Private Healthcare
The second positive thing about this region is the private healthcare. In the region of Malaga, you will find high-quality hospitals like the Xanit Hospital, the Orthopedic Clinic Sandalf in Benalmádena, and the Vithas Málaga Hospital close to Playa La Caleta.
In all these very decent private hospitals, the medical procedures will cost way less than what you would pay in the US. For example, a Glaucoma surgery in Malaga will cost only 1000 euros. That is less than 1100 US dollars.
In the US, the same surgery will cost you between $2450 to $4260! That partially explains why Spaniards spend only around ONE-THIRD of the value that Americans spend per year on healthcare.
Connectivity and Transportation
The third aspect is also unusual but often ignored. And as an expatriate myself, I tell you: this is very important, and if you don’t have this thing, at some point you miss it. I am talking about connectivity, and Malaga is very well connected, both by air and rail.
Malaga’s transportation infrastructure is highly developed, giving you easy access to the rest of Spain and Europe. The Malaga-Costa del Sol Airport is one of the largest in Spain and offers flights to major cities across Europe and even to the US and Canada.
Additionally, the high-speed AVE train connects Malaga to Madrid in just 2.5 hours. This makes it very convenient for you to visit your family and friends back home, or for them to visit you.
Friendliness of the Local People
The third point I want to tell you, is one that expats love most about living in Malaga. It is the friendliness of the local people. This is what a German resident of Malaga told us:
“Currently, my wife and I live in a small mountain village near Malaga, and it feels like the whole community has welcomed us as family. People smile and laugh, and there’s a great atmosphere. It feels like a totally different world to me, and I really appreciate it..”
But be aware that some Spaniards, especially in this part of the country, have the habit of staring, especially people or things they find different or unusual. Don’t take that as an offense. This is what another local told us:
“Anything that’s a bit unusual in Spain attracts attention. However, it’s not about racism or rudeness, it’s simple curiosity.” That is interesting, right?
The Mediterranean Climate
The next Pro of Malaga is one that you probably expect, the Mediterranean Climate. The Mediterranean weather you will find in Malaga is known for its mild, wet winters and hot, dry summers. In this climate, winter temperatures usually range from 10 to 15°C (50 to 59°F), making it quite pleasant compared to other colder regions.
Summers are typically hot, with temperatures often reaching above 35°C (95°F), but during the night it is not that hot. In such climate, Spring is a delightful season. It is one of the regions in Europe with the highest amount of sunshine per year!
Researchers claim that the Mediterranean climate is the best for human life. If you have health issues like asthma, arthritis, or SAD, this weather will greatly help you.
Exceptional Food Quality
It is also excellent weather for agriculture, which brings us to our next pro. This part of Europe offers exceptional food quality, especially in fresh fruits, milk, and vegetables. Have you ever asked yourself how is it possible that Spaniards live 83 years on average, while Americans live only 76?
Even rich European countries with good healthcare like Germany have a shorter life expectancy than Spain! Part of the reason is that their food is good and healthy! The local markets are filled with vibrant, fresh vegetables such as tomatoes, peppers, and zucchini.
These are often grown in nearby farms, ensuring freshness and flavor. Malaga’s dairy products, especially milk, are known for their superior taste and quality. Local farms follow strict regulations regarding quality and chemicals used.
Organic produce is often more affordable than in other countries, and it is growing considerably in Spain. All that together ensures that Malaga has some of the best food quality in Europe. For GOOD prices.
This brings us to our next positive aspect, and this is the one that you have been waiting for this entire article.
The LOW COST OF LIVING
…which is a result of many circumstances. One of them is the excellent public transport.
If you live in the city of Malaga, likely you will not need to bear the expenses and costs of having a car. Public transport is good and inexpensive. A Monthly bus ticket costs only 19,95 €, or less than 22 dollars. For ILLIMITED trips per month.
In the US, this is what you would pay to park your car for a SINGLE DAY in Chicago. The public transport reaches every part of the city. If you really need a car for some special occasion, to rent one is quite cheap.
Dining Out in Malaga
This is what one person very familiar with Malaga told us: “Public transport is really good, even if you want to commute to the smaller cities in Costa del Sol. Also, I don’t have to worry about where to park, especially now that’s summer and everyone is heading to the beach.”
Another thing that is VERY inexpensive in Malaga is to dine out. And I am not talking about those restaurants in front of the beach. Those are more expensive because they are for tourists.
Let’s take a local restaurant that is famous among locals because of its good food. El Rincon de Lola, for example.
In this place, you can eat a delicious place of Cod with Aioli (just a digression: Cod is my favorite fish and it fits perfectly with aioli) for only…. 13.95 euros!
This is less than what you would pay for a Bacon Cheeseburger from Five Guys in New York.
Let’s be honest: There is no WAY we can compare a plate of cod with aioli versus a bacon cheeseburger. And I will not even talk about the quality and good prices of Spanish wine.
That is already commonplace.
Comparing Costs with Other Spanish Cities
But let’s stop comparing Malaga with the US for a moment. By comparing the cost of living in various Spanish cities, I uncovered why Malaga stands out for expats.
It is cheaper than Barcelona.
Cheaper than Madrid.
Cheaper than Bilbao.
Even Pamplona is more expensive than Malaga.
Still, if all these things didn’t impress you about HOW INEXPENSIVE Malaga is for the high quality of life it offers, ONE THING will definitely convince you: The low price of housing! When I first heard about the real estate prices in Malaga, I couldn’t believe how affordable it was.
So I looked for the answer to such a question. What makes the cost of living in Malaga so low compared even to other Spanish cities?
Low Wages and High Unemployment
The explanation is that the economic conditions in Malaga are less dynamic compared to other major Spanish cities like Bilbao, Madrid, and Barcelona.
The autonomous community of Andalusia has an average salary that is around 25% smaller than in places like Madrid or the Basque Country. Unemployment is also notably high. The unemployment rate in the province of Malaga is around 19.1%, compared to the national average of 14% (which is already an elevated number).
High unemployment means less economic activity and competition for jobs, which keeps wages low and reduces the cost of services. So if you are planning to move to Málaga to make money, that is not a good idea.
But if your idea is to go to Málaga to SPEND money, then things are much better, because you will get the best benefit for every euro you spend there. In Malaga, you can find beautiful homes for a fraction of the cost compared to other European cities.
Housing Prices
Let’s say that you want to rent a place, and your budget is 800 euros per month. For that price, you can rent a 75-square meter (800 square feet) 3-bedroom apartment located only 10 minutes from the city center and very close to a train station.
Now, if your budget is similar to what you spend to rent an average 2-bedroom apartment in Pittsburgh, Pennsylvania, which nowadays is 1567 dollars, meaning 1450 euros.
What could you rent in Malaga with such a budget?
You can rent this place here, with this view, and that close to the beach. Only 50 meters. And if you are not in the mood to to go that beach, you have access to a pleasant swimming pool!
All this with a public transport station just a few meters away. Now compare this to Pittsburgh, and tell me: which choice makes more sense? And remember: while Pittsburgh has a homicide rate of 18 murders per 100.000 residents per year, Spain has a homicide rate of 0.6!
So you pay less, to live in a better climate, with better food, and 26 times safer! The choice between Malaga and Pittsburgh looks obvious now, right? However, there is ONE point that anyone should pay attention to when thinking about moving to Spain, and I will make an alert about that in a few minutes.
But now, let’s go back to the unbelievably attractive housing prices in this part of Spain. Let’s say that, instead of renting, you want to buy an apartment. Let’s imagine that your budget is 200 000 dollars or 185 thousand euros.
In the US, this is the average price of a home in Montgomery, Alabama, which is one of the cheapest cities in America. In Malaga, this would buy a quite decent place, with 91 square meters (almost 1000 thousand square feet), 3-bedrooms, and a good view from the mountains nearby!
Small Cities with Great Value
That all sounds impressive to me. BUT… What If I told you that smaller cities close to Málaga might offer even more for even less?
So I asked locals which are those small cities with exceptionally good cost-benefit. And they gave me 2 names.
The first town locals recommended to me is Rincón de la Victoria, a coastal city that is only 37 minutes from Central Malaga by public transport. 37 minutes is less than the average commute in New York or some cities in California.
Rincón de la Victoria
And what do you have as a reward for living in Rincón de la Victoria, a city with 46 thousand residents? Splendid beaches a few meters away. More splendid beaches.
And calmness for a sunset walk without the rush of a large city. And all that paying considerably less! Remember our previous budget of 1450 euros per month, the one enough to rent a normal apartment in Pittsburgh?
Well, in Rincón de la Victoria, for much less than that. Only 1100 euros, less than 1200 dollars. You can rent a 3-bedroom apartment in front of the beach, fully furnished and with a lovely balcony.
Despite the small distance to a large city like Malaga, this place kept the atmosphere of a Spanish small city. This is what a dutch-spanish couple told us about Rincon de la Victoria:
“We recently bought a house in Rincón because we plan to spend more time in Spain. I see it’s a livable Spanish town, great for families, with good restaurants at fair prices and a long promenade for running and cycling that connects to other towns. It’s quieter in winter, which I prefer over towns crowded with tourists.”
The biggest downside, according to locals, is that the water supply is getting disrupted quite frequently lately.
Torremolinos: Another Great Option
The next city residents of the region recommended to us is Torremolinos, which is even closer to Malaga, only 24 minutes distant by train. It has less than 70 thousand people and it is the most popular tourist town in the region called Costa del Sol.
So yes, Torremolinos receives a considerable amount of tourists during summer. This has its cons, like the crowdness during high season, BUT… It also has some positive things. Since during the low season the city has a huge empty infrastructure, prices go down drastically.
So you can rent an apartment to live there 9 months per year for very discounted prices! For 1250 euros (1350 dollars), you can rent a large chalet with 180 square meters (almost 2000 square feet) and 3 bedrooms, with a spectacular view, and very close to the seaside.
The thing, however, is that they rent for this incredible price 11 months per year. In the one month of the very high season, probably the price is higher.
Integrating into the Local Community
Now, remember that at the beginning of the article when I said I wanted to make an alert? This alert started with a question I made for locals during the research for this article. Is it easy to integrate into the local community in Malaga?
That led to another kind of discussion… Nearly all of them said that yes, BUT… There was one thing most of them disliked about expat retirees moving there. It is when they form their small ghettos, where all restaurants serve Full English breakfast and they even don’t try to learn the local language.
One town that some mentioned that it became somehow of a “British ghetto” is Benalmádena. And for me, this is just sad. I don’t expect tourists to learn Spanish, but if you plan to move ANYWHERE in Andalusia, but especially to small towns that managed to conserve their local lifestyle, culture, and traditions, I BEG YOU to learn the local language.
It’s really not that hard, and once you begin speaking it, your life and daily interactions with locals will improve so much. The method I use to learn new languages which I recommend is this one (by using this link we both get a Bonus!): https://www.lingq.com/?referral=LevideSouza
Now that you know the pros and cons before planning to retire in Malaga, remember that Andalusia is not the only good region in Spain for retirement.
We also ranked cities for retirement in other parts of Spain.
One of the cities we mentioned is 22% cheaper than Barcelona!
Levi Borba is the founder of expatriateconsultancy.com, creator of the channel The Expat, and best-selling author.. You can find him on X here.
