Real Retirement Budgets for the Costa Blanca

Frugal — €1,750/month for a couple

This is a realistic budget for a retired couple owning their home outright in Torrevieja, Pilar de la Horadada or an inland village. Eating mostly at home, one menú del día lunch per week, public healthcare via S1 or Convenio, one modest car.

Comfortable — €2,650/month for a couple

The middle path: a 2-bed apartment or small villa in Albir, Calpe, Jávea, Dénia or El Campello, eating out 3–4 times a week, mixing public and private healthcare, two trips home a year, one good car.

Premium — €4,200/month for a couple

Villa with pool in Moraira, Altea Hills, Las Colinas or a Jávea sea-view urbanisation. Restaurants several times a week, full private healthcare, household help, golf club membership, two newish cars, regular European travel.

What we deliberately excluded

• ✦Spanish income tax — varies enormously by pension source and structure (see /retire/taxes/pensions)
• ✦Wealth tax — only relevant above ~€700k of net assets in the Valencian Community
• ✦Mortgage payments — assumed home owned outright as is typical for retirees
• ✦One-off purchases (new car, kitchen refit) — budget separately

How retirees underestimate

The three lines retirees most often underestimate: health insurance (premiums rise faster than inflation after 70), summer electricity (air-con can double the bill from June to September), and one-off home maintenance (a Mediterranean villa needs €1,500–€4,000/year of repairs, repainting and pool work that doesn't show up in the monthly view).