Spain 2025: record-breaking tourism and the world’s best country to retire

Spain had its best tourism year ever in 2025 and at the same time consolidated its position as the favourite destination for foreign retirees. With 96.77 million international tourists and a record spend of €134.7 billion, the country is closing the gap with France—the historic world leader—and tops several international rankings of the best place to retire.

A historic record: nearly 97 million tourists in 2025

According to provisional data from FRONTUR (INE) released on 3 February 2026, Spain welcomed 96.77 million international tourists in 2025, up 3.2% year-on-year—its third consecutive record.

• United Kingdom was the top source market with 19.06 million travellers (19.6% of the total).
• Weakness from France and Germany was offset by strong growth from the United States and the UK.
• Average spend per traveller in December reached €1,514.

According to Euronews, Spain is now the European leader and third in the world by tourism spending, behind only the US and Thailand.

How close is Spain to overtaking France?

France remains the world’s top destination with around 100 million annual visitors per UN Tourism (UNWTO), but the gap with Spain has narrowed to just a few million. If current trends continue—around 3% annual growth in Spain versus stagnation in France—Spain could top the global ranking within the next few years.

The world’s best country to retire

Alongside the tourism boom, Spain has become the world’s number-one retirement destination. Several international studies confirm it in 2025:

• Global Citizen Solutions ranks Spain #1 worldwide in its 2025 Global Retirement Index, ahead of Portugal and Costa Rica.
• Hoxton Wealth names Spain the best country for international retirement thanks to cost of living, public healthcare and connectivity (10/10).
• International Living includes Spain among the top destinations in its 2025 Annual Global Retirement Index.

Quality-of-life drivers

• Public healthcare ranked among the best in the world by the WHO, complemented by an accessible private system.
• Mediterranean climate: over 300 days of sunshine a year on the Costa Blanca, Costa del Sol and the Canary Islands.
• Cost of living of around €1,800–€2,500/month for a retired couple (Global Citizen Solutions).
• Personal safety: Spain ranks among the 25 safest countries in the world (Global Peace Index).
• Connectivity: AVE high-speed rail, 50 airports and direct flights across Europe and the Americas.
• Culture and gastronomy recognised by UNESCO as World Heritage.

Tax implications for foreign retirees and property owners

Buying a home or retiring in Spain comes with obligations to the Spanish Tax Agency (AEAT). If you are not a Spanish tax resident but own property, you must file the annual Modelo 210 (Non-Resident Income Tax):

• Imputed income (property not rented out): 1.1% or 2% of cadastral value taxed at 19% (EU/EEA) or 24% (rest of the world).
• Rental income (short-term or long-term): quarterly filings at 19% or 24%.
• Property sale: mandatory 3% buyer withholding (Modelo 211) and capital gains tax.

If you become a Spanish tax resident (more than 183 days per year), you’ll be taxed on worldwide income via IRPF, including your foreign pension. Spain has double-taxation treaties with most European countries, the US, Canada and Latin America to prevent paying twice.

Bottom line

Spain is on the verge of becoming the world’s top tourist destination, and it is already the favourite place for foreigners to retire thanks to its climate, healthcare, safety and cost of living. If you own property or plan to relocate, sound tax planning is essential. At SpainTaxForm we handle your Modelo 210 100% online, in your language and at the best price.

Sources

• 1INE — FRONTUR December 2025 and full year 2025 (3 Feb 2026)
• 2Spanish Ministry of Industry & Tourism — 2025 tourism spending
• 3EL PAÍS — Keys to Spain’s 2025 tourism record
• 4RTVE — Spain closes 2025 with record visitors and spending
• 5Euronews — Spain, European leader and 3rd worldwide in tourism spending
• 6Travel + Leisure — Spain Named Best Country to Retire in 2025 (Global Citizen Solutions)
• 7Travel + Leisure — Spain Best Place to Retire (Hoxton Wealth)
• 8The Local ES — Spain crowned best country for Americans to retire to
• 9International Living — Annual Global Retirement Index 2025
• 10UN Tourism (UNWTO) — World Tourism Barometer