Retirement experts suggest that the bare minimum a retired couple needs to have in savings and investments to retire comfortably in the U.S. is around $1 million. Though that sounds like a lot of money, at a 4% withdrawal rate, that’s only about $40,000 per year.
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Now let’s say a retired couple wants to look abroad instead — where oftentimes costs of living are cheaper –in a country like Spain but doesn’t have a full million saved by retirement age? Can it be done?
I marshaled the power of ChatGPT to help determine how one could retire on a half-million dollars in Spain. Here’s what it said.
Choose Your Region Wisely
ChatGPT was positive that such a retirement is possible, though it warned that it requires careful planning around location, income streams, visa requirements and withdrawals.
The first step is picking which part of Spain you can afford, as Spain’s cost of living varies dramatically. For example, the Andalusia region (Granada, Almería, Jaén) is known for low rent, good healthcare and warm weather, and a monthly estimate is around $1,800 to $2,200 per month. In contrast, more popular touristy parts of Spain like Madrid and Barcelona are going to cost more.
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Use a Sustainable Withdrawal Strategy
With $500,000 and a conservative 4% annual withdrawal rate, you’re looking at being able to spend about $20,000 per year, or about $1,667 per month. That’s tight but doable in smaller towns if supplemented by:
- Social Security (if one or both partners qualify)
- Part-time or remote work (teaching English online, editing, writing, tourism work, etc.)
- Rental income (if you own property elsewhere)
If Social Security and other withdrawals total $3,000 to $4,000 per month, you can live quite comfortably in mid-range Spanish towns.
Reduce or Eliminate Rent
Housing is a retired couple’s biggest cost variable, particularly if you’re renting, so some considerations include:
- Buying a modest flat or village home ($150,000 to $200,000 in many areas): This only works if you already have a home to sell, otherwise, you’d be dipping into your $500,000 to buy this home.
- Long-term rental in a smaller city: Affordable rent is possible in the $770 to $990 per month range.
- Housesitting or home-exchange programs: This could be a way to offset costs, though it may not be sustainable long term.
Handle Healthcare Wisely
Spain’s healthcare is considered both excellent and affordable, ChatGPT reported, drawing on sources like International Citizens Insurance and Allianz.
If you get residency via the non-lucrative visa (NLV), meaning you don’t intend to work and earn an income in Spain, you are required to buy private insurance (no copay, no deductible) until eligible for public healthcare. That cost is around $200 to $350 per month per couple, depending on age and provider.
Once you become a legal resident (and pay into the system), you can access public healthcare for a small monthly contribution.
Meet Visa Requirements
As mentioned above, the best visa for retirees to apply for is the NLV, though you do need to prove that you have passive income, such as retirement accounts, real estate that earns an income or savings.
As of 2025, here’s the minimum income requirement: You have to show you earn around $2,600 per month in passive income for a couple or savings equivalent to one year’s income, around $31,000. With $500,000 in savings, you easily meet this requirement. After five years, you can apply for permanent residency.
Build a Practical Budget
ChatGPT suggested you should then build a realistic and practical budget, and it offered the following for someone living in Granada:
- Rent (or HOA + utilities if you own): $900
- Groceries & dining: $500
- Healthcare insurance: $250
- Transportation: $150
- Miscellaneous/entertainment: $300
- Travel buffer: $150
Total monthly cost: $2,250
Total annual cost: $27,000
Your $500,000 could easily last 20 or more years even before factoring in Social Security.
Be Tax- and Currency-Savvy
It’s not a good idea to try and figure all of this stuff out on your own, however, the AI warned. It recommended a few important things you should do if you intend to make a move like this in retirement:
- Use a U.S. expat tax advisor familiar with Spain’s treaties. (Spain taxes worldwide income, but the U.S.-Spain tax treaty prevents double taxation).
- Keep assets in U.S. dollars but move withdrawals gradually to minimize transfer fees.
Realistic Outcome
A couple with $500,000 in retirement savings can retire in Spain if they:
- Choose an affordable region.
- Keep annual spending under $30,000 per year.
- Combine Social Security or other passive income.
- Own or minimize housing costs.
- Use smart healthcare and visa planning.
If you live modestly, avoid the pricier cities and plan carefully, $500,000 can absolutely fund a fulfilling, 20-year retirement in Spain — especially once Social Security starts kicking in.
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This article originally appeared on GOBankingRates.com: I Asked ChatGPT How To Retire in Spain on $500K: Here’s What It Said
