Spain and Portugal Retirement: Paradors, Posadas, and Alcazars

October 30, 2023 —   Spain and or Portugal retirement is very popular, as these Iberian countries are for tourism as well. Americans and Europeans are checking out these two countries, not only as great places for a retirement trip, but for where to retire too. Your editor recently spent 2 happy weeks touring some of the best tourist spots on the Iberian Peninsula, the home of Spain and Portugal. Our hope is that this experience might help you plan a potential trip to the region. And, it might help you learn what it might be like to retire in one of these amazing countries.

Portugal Retirement Trip

This beautiful, dry country has a long western coastline on the Atlantic Ocean that in the south curves eastward past Gibraltar to the Mediterranean.  Lisbon, on the coast, is the capital and largest city.  Portugal’s cost of living is one of the lowest in Europe (65th highest in the world – the U.S. is 12th), the country is safe, and the food and wine are excellent.  The country has a complicated history – Celts, Phoenicians, Roman, Visigoths, and the Moors (Arabs) all had their day, and then its eventual retaking by the Crusaders.  Towns and buildings reflect that heritage within their walled cities, Roman ruins, and Christian cathedrals, that were often Muslim mosques for a time.

The cities and towns we visited here in Portugal and Spain are some that are especially popular with tourists, although there are dozens more worth checking out. While there we stayed or visited many posadas (inns), paradores (a network of 97 state-run hotels in restored Castles, Monasteries, Convents, Fortresses, Palaces), and alcazars (Moorish castles). 

Lisbon. This city of hills is a mix of old and (relatively) new, thanks to a massive earthquake that occurred in 1755. Many of the great buildings and parks in the city were built after that event. One of its top attractions is the Monastery of Jeronimos, a huge and grand former convent located near the port where Columbus left Portugal to discover America.

Evora, a university town with thousands of students, is possibly the prettiest city in this beautiful country. Most of its original walls still exist. A preserved Roman temple is a highlight, along with the enormous Cathedral of St. Francis and its amazing chapel built entirely of human bones. It would make a great place to retire.

What some other best places to retire in Portugal?

North of Lisbon along the coast towns like Cascais  are  popular with retirees from Europe and America. They offer old charm as well as access to great beaches.  The Algarve, which is located in the south coast near Gibraltar, has a collection of villages and is one of the first places that most people think of when they consider a Portuguese retirement.

A Spain Retirement: Another great trip

This country has a small strip of Atlantic Coast above Portugal, and a much longer coastline running southward from France along the Mediterranean.  It also has plenty of mountains and towns that provide an enormous choice of great places to retire or visit. Spain has become a very prosperous county with a modern infrastructure that makes America look like a second world country. Bullet trains and modern highways crisscross the nation, and healthcare is free to everyone. Most cities restrict private cars, so traffic moves and pedestrians can safely navigate city streets. Cost of living in lower than in the U.S. (57th in the world).

Merida. Another town with some of the most extensive Roman ruins in the country. The coliseum and theatre were discovered in recent times and provide great insight into Roman times. Note: Gladiator battles weren’t quite like in the movies. The owners of the fighters didn’t want them getting killed in their first fight after investing in their training, so in many cases it was like TV wrestling.

Carmona. Like most others in this southern part of the country, it has Roman and Moorish origins.  Perched on a commanding hill high above the surrounding plains, the stones in its towering walls and main gates reflect centuries of conquests and reconquests. The site of its old coliseum in the center of town is a busy town square (actually a circle). There is a also a newer town outside of the old walls, which would be a quiet inland place to retire.

Seville. No visitor to Spain should miss this livable city. Along its main avenue amazing buildings built for the Ibero-American Exposition of 1929 dazzle the eye. The huge Place de Spana was built to highlight the wonders of the host country for that exposition.  Most of these buildings have been repurposed as government or cultural buildings, while others still serve as embassies. The highlight of the city is the gigantic cathedral, the 3rd largest in the world, along with the Real Alcazar, a gigantic Moorish castle.  The winding streets and big plazas of the old city make this a great place to visit.

Cordoba.  The color cordovan gets its name from the building stones used in this ancient city. The mosque/cathedral of Cordoba is a stunning example of the country’s complicated history. Originally built as a vast mosque, after the Christian conquest it was repurposed into a gigantic cathedral. Moorish and Christian building details merge in various parts, and there is actually a church within a church in one section. 

Ronda is many people’s favorite town in all of Spain. Part of the attraction is that it was a built atop a huge gorge on a high hill. The two oldest sections of the town are spanned by the “New Bridge” (1793).  Winding streets give way to stunning views of the countryside and the chasm below. St. Mary’s is a fabulous old cathedral, and there is an equally interesting alcazar as well as the preserved ruins of Arab baths. Families, many of them nobility or very wealthy, have huge compounds hidden by old facades.

Ubeda.  Another walled small town on a hill, Ubeda is a bit off the beaten path and less visited than some other places. Its parador sits on a large square near one of several impressive churches. On the main square children play soccer and old people gossip and sip coffee or wine. Private mansions line the streets hidden behind gigantic old wooden doors.

Toledo. The view of Toledo on a hill from the opposite side of the River is all you need to see to believe this a beautiful city. Its main attraction is St. Mary’s Cathedral, one of the largest and flamboyant in the world.

Granada. Alhambra, a colossal castle build by the Moors and later added on by Spanish royalty with a huge castle of their own (and never lived in), is a high point of a Granada visit.  The mosaics, tile work, intricate wooden ceilings in this World Heritage site make it one of the top tourist sites in the world (tickets to see it are limited and many visitors are disappointed).

Madrid. We were blown away with what a beautiful, safe, and livable city this is. It certainly rivals Paris in that regard. It has many areas, old and new. The older parts have narrow streets lined with old shops and restaurants offering local specialties like fried calamari or hot chocolate and churros.  There are castles, cathedrals, and some of the world’s top museums to visit (the Prado and the Queen Sofia are just two). The streets are pedestrian friendly as only local residents can drive in certain parts of the city. 

What are some other best places to retire in Spain?

The Costa del Sol on the Mediterranean has been home to countless retirees for a long time. People come for the warm winters, good food and wine, beautiful beaches, and low cost of living. Other parts of the country attract retirees as well, and those include Sebastian and big cities like Barcelona, Seville, Toledo, and Madrid. Almeria is an old Moorish town in the Southeast near the coast. Ronda is especially beautiful. Whether you choose a place on the coast, a city, or a town in the hills or mountains, there is a huge range of affordable places to live with a relaxed, healthy lifestyle. The country is safe and available healthcare is excellent.

Can an American retire to Spain or Portugal?
The short answer is yes, but unless you are a resident of the European Union, it might be possible for only 3 months at a time without an additional visa. You can own property in these countries as a foreigner.  Portugal’s popular Golden Passport program, which allow investors and purchasers of real estate a way into residency, was modified this year. Apparently so many foreigners were buying real estate it disrupted the market.

USA citizens can reside in Spain longer than 90 days (out of every 180), by applying for a “Non-working residence visa”, provided they can justify they have the financial means to do so.  However, if they live in Spain more than 180 days a year, they become fiscal residents there. As many other countries, Spain has a tax treaty with the USA, so that one does not have to pay taxes in both countries. However,  one still has to file a tax report every year in each country. Uncle Sam is, together with Eritrea (!), the only country whose citizens have to declare taxes every year, no matter where they live. 

For more information on each country see our Mini-Retirement Guides: Portugal and Spain.

Spain and Portugal Retirement

Finally

Both Spain and Portugal can be ideal countries to retire in. They offer a great, relaxing lifestyle and a lower cost of living. 

For further reading

Elizabeth Loves Her Retirement in Portugal

Note: Our excellent trip was made through Princeton Alumni tours capably led by Joy Allen. (alumni tours like these are great because the groups are congenial and there are usually interesting lectures on the area by one of the professors). Odyssey Adventures handled the trip details.