Can I use my Canadian driving licence?

For 6 months from residency. After that you must exchange it for a Spanish licence — Canada now has a bilateral exchange agreement for most provinces, so no Spanish test is needed if your province qualifies. Check the latest DGT list before applying.

Will I still get OAS in Spain?

Yes — OAS is paid worldwide if you have 20+ years of Canadian residency after age 18. Direct deposit to a Spanish bank works fine.

How does the treaty handle US-source income if I'm a dual filer?

It doesn't — Spain–Canada and Spain–US treaties are separate. Dual US/Canadian citizens still file US returns and need specialist cross-border advice.

Is healthcare really good?

Spain's public system ranks ahead of Canada's on most measures (wait times, specialist access, life expectancy). Private cover gives you English-speaking doctors and same-week specialist appointments.

What about inheritance tax?

Spanish inheritance tax (ISD) applies to assets in Spain and to Spanish-resident heirs on worldwide inheritances. The Valencian Community currently exempts ~99% of inheritances between spouses, parents and children. Plan with a Spanish lawyer before buying property in joint names.

By nationality

Retiring from Canada to the Costa Blanca

Canadian retirees enjoy one of the friendliest tax treaties Spain has signed — and the Non-Lucrative Visa is straightforward if you can show CAD-equivalent passive income. Here is exactly how OAS, CPP, RRSPs and provincial health coverage work after you move.

Last updated 15 June 2026

Visa: Non-Lucrative is the standard route

Canada is a non-EU country, so you need a visa to live in Spain long-term. The Non-Lucrative Visa (NLV) is the default for retirees: it requires proof of passive income (pension, RRIF, dividends, rental) at roughly €28,800/year for the main applicant plus €7,200 per dependent, full private health insurance with no co-payments, a clean criminal record certificate (RCMP) apostilled, and a medical certificate.

Apply at the Spanish Consulate covering your province (Toronto, Montreal or Vancouver). Allow 8–12 weeks. The first card lasts 1 year, then renewals of 2 years, then 2 years — after 5 years you can apply for permanent residency.

183 days = Spanish tax residency

The NLV requires you to spend more than 183 days per year in Spain. That automatically makes you a Spanish tax resident on worldwide income — plan accordingly before you arrive.

Pensions and the Canada–Spain tax treaty

The treaty is generally favourable. Canadian state benefits (OAS, CPP/QPP) remain taxable primarily in Canada with a non-resident withholding tax (typically 15% or 25% depending on form NR5 status), and Spain gives you credit for tax paid in Canada under treaty rules. Private pensions and RRIF withdrawals are normally taxable in Spain once you're tax resident, with credit for Canadian tax withheld.

Source	Taxed in	Notes
OAS (Old Age Security)	Canada (withholding)	Spain credits CA tax under treaty; clawback still applies
CPP / QPP	Canada (withholding)	File NR5 to reduce withholding; declare in Spain
RRIF / RRSP withdrawals	Spain	25% CA withholding recoverable via treaty
TFSA	Spain (NOT tax-free here)	Income and gains taxable annually in Spain
Employer pension (private)	Spain	Treaty credit for CA tax
Government / federal civil service pension	Canada	Stays Canadian under treaty article

TFSA: the unpleasant surprise

Spain does not recognise the TFSA wrapper. Once you're Spanish tax resident, every cent of interest, dividends and capital gains inside the TFSA is taxable in Spain at savings rates (19–28% in 2026). Many Canadians collapse the TFSA before moving — take individual advice, since timing affects both Canadian and Spanish tax bills.

Healthcare

There is no equivalent of the EU S1 form for Canadians, so you'll use private insurance for the NLV and ongoing. Provincial health coverage (OHIP, RAMQ, MSP) lapses once you're out of the province for the residency threshold (3–6 months depending on province) — file the right forms before leaving.

Costa Blanca private cover for healthy 65-year-olds is roughly €110–€180/month each (Sanitas, DKV, Adeslas). After age 70 some providers add medical questionnaires or refuse new applications, so apply before you're 70 if you can. Convenio Especial (joining the Spanish public system as a paying member) costs €157/month per person aged 65+ and is available after 1 year of legal residency.

Where Canadians cluster on the Costa Blanca

✦Jávea & Moraira — long-standing Anglo-Canadian community, beautiful coastline
✦Altea, Albir & Alfaz del Pi — international mix with English-speaking GPs
✦Orihuela Costa & Cabo Roig — golf, big international scene, lower prices
✦Calpe & Benissa Coast — sea views and good value

Practical first-year checklist

✦Apostille RCMP background check, marriage and birth certificates before leaving
✦Apply for NIE at the Spanish consulate alongside the NLV
✦File NR5 with CRA to reduce CPP/OAS withholding
✦Notify CRA of departure date; file final part-year Canadian return
✦Open a Spanish bank account (Sabadell, BBVA, Santander) on arrival
✦Register at the town hall (empadronamiento), then collect the TIE card
✦File Modelo 720 (foreign assets declaration) by 31 March of your second year