Spain boasts some of the most fabled cities of history: Madrid, Barcelona, Seville, Toledo, Valencia, Bilbao. It also offers a mix of attractions that’s hard to match, even in Europe, with snowy mountains, a beautiful Mediterranean coastline, ancient hilltop towns, fantastic cuisine, and near-perfect weather. But here’s another reason to seriously consider retirement in Spain: The economic slump has slashed housing prices in many areas, sometimes by as much as 40 percent. Spain is awash in irresistible deals.
The Costa del Sol—150 miles of Andalucian coastline that starts near Gibraltar and stretches eastward along the southernmost edge of Spain—is a major vacation destination with its share of crowded resort towns and tourist traps (think Malaga and Marbella). Yet it is also home to quaint villages and quiet, undeveloped beaches that the map-wielding masses have yet to find. Best of all, expats report that they can live in Spain more affordably than in the United States.
"There’s no sales tax, and our property tax is very low compared with the States," says June Whitton, 76, who lives with her husband, Phillip, 74, in a three-bedroom condo in the town of Fuengirola. "Phillip is paying only $230 a month for the best medical insurance, and prescription drugs are one-third the price back home." The couple moved here from San Francisco 17 years ago after falling in love with the Costa del Sol on holiday. "There are social clubs, golf courses, hiking clubs, just about anything you could desire," she says. "The expats are very friendly and helpful. We make it one big happy family." As for the real estate scene, "it’s a buyer’s market right now." Of course it's not all about the money. There’s the "Sol" that comes with Costa del Sol. The skies are almost always bright and blue, making umbrellas almost as superfluous as winter coats. June Whitton calls it "heaven."
