Transport Costs for Retirees on the Costa Blanca
Whether to keep a car, use the TRAM and bus network, or rely on taxis — with real numbers for each option in 2026.
Whether to keep a car, use the TRAM and bus network, or rely on taxis — with real numbers for each option in 2026.
The three realistic options
- ✦Own a car — essential for villas and inland towns; convenient elsewhere.
- ✦TRAM + bus + occasional taxi — works brilliantly along the Alicante–Dénia coastal corridor.
- ✦No car, walk + occasional rental — viable in dense town centres (Alicante, Benidorm, Calpe, Dénia, Torrevieja).
Cost of running a car — small petrol hatchback (e.g. Seat Ibiza)
| Cost | Annual | Monthly |
|---|---|---|
| Insurance (full cover, retiree) | €380 – €550 | €32 – €46 |
| Road tax (IVTM) | €60 – €130 | €5 – €11 |
| ITV (MOT, every 2 yrs) | €45 / 2 yrs | €2 |
| Fuel (10,000 km @ €1.50/L) | €900 – €1,100 | €75 – €92 |
| Service & wear | €300 – €500 | €25 – €42 |
| Parking (if no garage) | €0 – €960 | €0 – €80 |
| Depreciation (used 5-yr-old car) | €700 – €1,000 | €58 – €83 |
| Total | €2,400 – €4,300 | €200 – €358 |
Public transport — TRAM, ALSA bus & Renfe
The TRAM (lines L1, L3, L4, L9) runs the entire coast from Alicante to Dénia via Benidorm, Albir, Altea, Calpe — a slow but very pleasant ~2h end-to-end ride along the sea. Retirees over 65 with Tarjeta Dorada or municipal discount cards travel at 50–70% off.
| Ticket | Price (2026) | Notes |
|---|---|---|
| Single TRAM zone A | €1.50 | Inside Alicante city |
| Alicante → Benidorm one-way | €4.05 | L1, ~1h |
| Alicante → Dénia full line | €8.40 | L9, ~2h scenic |
| Bono monthly TRAM (all zones) | ~€45 | Unlimited |
| ALSA bus Alicante → Madrid | €32 – €42 | ~5h |
| Renfe Alicante → Madrid AVE | €35 – €70 | 2h20 |
| Local taxi 5 km | €8 – €11 | Tip not expected |
| Uber / Cabify (in Alicante) | Similar to taxi | App-based |
Decision framework
- ✦Villa or town with no TRAM stop within 1.5 km? Keep a car.
- ✦Coastal flat in Albir/Altea/Calpe/Dénia/Benidorm with TRAM walking distance? Try 6 months car-free; rent for trips.
- ✦Two cars in retirement? Almost never necessary on the Costa Blanca; downsize to one.
- ✦EV in Spain? Public chargers patchy outside cities; home wallbox needed for villa life. Lower running cost (~€0.04/km) but high upfront price.
TRAM monthly + occasional taxi + 6 long-distance trips/year ≈ €90/month. That's €2,500–€3,000/year less than running a car.
Driving licences and import
- ✦UK licences: must be exchanged for a Spanish licence within 6 months of becoming resident (treaty in force since 2023).
- ✦EU/EEA licences: valid indefinitely; just register at the DGT after 2 years.
- ✦Non-EU non-UK (US, Canada, Australia): requires passing the Spanish theory + practical test in Spanish (English available in some regions).
- ✦Importing your own car (matriculación) costs €1,500–€3,500 in taxes + fees; usually cheaper to sell at home and buy locally.
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Recommended retirement neighbourhoods
- Retire in AlteaWhitewashed old town, art galleries and Mediterranean charm.
- Retire in BenidormYear-round amenities and the best healthcare on the coast.
- Retire in Alfaz del PiQuiet residential town with strong international community.
- Retire in DéniaUNESCO Gastronomic City and lively Marina Alta capital.
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