Along Spain’s southwestern coast lies the Costa de la Luz, or the Coast of Light.
From northwest to southeast, it stretches from Spain’s border with Portugal down to Tarifa, the southernmost point in Europe, almost touching Morocco across the Strait of Gibraltar, along the Atlantic Coast.
This region is famous for the very thing it’s named for: dazzling sunshine—some 3,000 hours per year.
The Costa de la Luz’s centerpiece is Cádiz. It’s often called “Little Havana” or compared to Old San Juan, Puerto Rico, because of its long board-walked beachfront backed by colorful ancient buildings…
In fact, Cádiz is the prototype that those New World cities were based on. It’s touted as the oldest city in Western Europe, dating to 1104 BC.
Walking its streets, you can feel the history and see the cultural influence of the many civilizations—from Phoenicians to the Romans to the Moors—that impacted it over time.
Its Old Town is densely populated, with one of Europe’s oldest neighborhoods and ruins hemmed in by old city walls. Individual landmarks syncretize various architectural styles.
Narrow streets spill out into lively plazas where you can sit in the shade of a towering cathedral and watch the world go by…
But there’s more to the Costa de la Luz than just Cádiz…
Cádiz Province (one of the two provinces that the Costa de la Luz covers; the other is Huelva) offers everything from well-appointed beachfront towns to ancient hilltop villages that can be seen for miles because of their brilliant white-washed buildings.
Across these towns, you find pockets of expats that love the region for its low cost of living, beautiful beaches and pristine nature, and authentic culture.
I rented a car for my scouting trip of this coast and was pleasantly surprised by how well-connected it is. The roads are in excellent condition: smooth paving, clear lines, well-lit, and well-signposted. I’m not a confident driver, but I feel comfortable driving around here.
That said, you might not need a car. Town centers, especially Cádiz, are compact. Keep in mind that many of the towns in the region are ancient, developed centuries before the concept of a car came to be. They were intended to be navigated on foot and that continues to be the best way to get around them.
There are major upsides to walking everywhere: it’s good for your health, it’s the best way to discover, it’s easy on your bank account, it’s positive for
the environment…
A downside is that walkways can be slippery and perhaps impossible to navigate if you are mobility-impaired. This is true across the Old World and especially in town centers where the pavement has been trodden on for hundreds of years.
It’s also hot! Walking just a few feet during the peak of summer can be exhausting— temperatures range from a daily mean of 76°F in summer, dropping to a mean of 56°F in winter.
A train system connects the region’s towns and villages, and it’s affordable, comfortable, and efficient.
Just outside Cádiz Old Town is the railway station. From there, you can connect as far as Santander and Gijón, in the extreme north of Spain, or Madrid. A one-way ticket from Cádiz to Madrid (Puerta de Atocha Station) will run you about 47 euros. From Cádiz to Sevilla (Santa Justa Station) is about 13 euros.
Spain as a whole is home to huge expat numbers. As many as 6 million foreigners call the country come, which amounts to about 13% of the population.
The Costa de la Luz is not the most popular destination in Spain for expats… but its authenticity and low-key local vibe is part of its appeal.
That said, in certain towns around the region, you’ll find some decent-sized expat communities that you can join, if you want to… Rota, with its naval station that employees U.S. Navy and Marine Corps personnel, stands out for its American expat numbers.
You’ll also find small expat communities in the river town of El Puerto de Santa Maria, the charming, tiny town of Vejer, and the beach towns of Conil and Chipiona.
One of the biggest reasons to choose Spain as your overseas retirement destination is that it’s fantastically affordable.
Many Americans and Canadians have this perception of Western Europe as being financially out of reach, a destination only accessible in daydreams…
The truth is that many Western European countries—especially Spain and especially the Costa de la Luz—are more affordable than the States or Canada. That’s a lower cost of living for a higher quality of life, too.
Living in the Costa de la Luz, your big-ticket expenses are likely to be rent, health care, and taxes.
For rent, expect to pay about 600 euros a month at the higher-end of the spectrum, for a well-appointed two-bedroom apartment by the beach. Compare
that to US$2,159—the average rent for an apartment in Sarasota, Florida, and you’ll see where the savings come in.
To qualify for most types of Spanish residency as a foreigner, you’ll need to provide proof of health insurance, and for older folks, this can be pricey.
Exact amounts depend on the provider, your health, and what the policy covers, but it can be anywhere from US$1,500 to US$5,000 per person per year.
Once you become resident in Spain, your health care costs will go down when you join the national health care system. One expat I spoke to, Rachel, quoted paying about 60 euros per month for excellent Spanish health care.
Spain is not exactly a tax-friendly country… It’s more of a lifestyle play than an investment one. Personal income tax rates range from 19% (for income over
12,450 euros) to 47% (for income over 300,000 euros).
Spain doesn’t have a tax abatement program for pension income like Portugal, Southern Italy, and Greece do. That said, you can arrange things so that your tax situation is manageable.
For other day-to-day costs in Spain, you’ll be surprised at how affordable things are… You’ll often hear that “wine is cheaper than water” in southern Spain, and it’s completely true. You can get a decent bottle of wine for about a euro.
A dinner for two, including drinks, appetizers, mains, and dessert, could come to about 30 euros. A fancy coffee will be less than 3 euros; a beer (served in small glasses called cañas in Spain, will be about 1.20 euros.
Transportation costs will depend on whether you have a car. It’s possible to get by without one thanks to the train, for which the basic fare is negligible.
Sincerely,
Sophia Titley
Editor, Overseas Property Alert
