Why More Canadians Are Moving to Spain
Canada consistently ranks as one of the world’s best countries to live in — so why are so many Canadians choosing to relocate to Spain? The answer comes down to a combination of factors that resonate particularly strongly with Canadians: soaring housing costs in cities like Toronto and Vancouver, long and harsh winters across much of the country, a desire to stretch retirement savings further, and an appetite for a richer cultural experience in a warmer climate.
Spain offers Canadians a genuinely different quality of life. The Mediterranean climate, the emphasis on community and outdoor living, the world-class food at modest prices, and the relative affordability of both housing and everyday life make it an exceptionally attractive destination. A retired Canadian couple who might struggle to maintain a comfortable lifestyle on CPP, OAS, and modest savings in Toronto can live very well in Valencia or Málaga on the same income.
According to Spain’s National Statistics Institute, the number of Canadian residents in Spain has grown steadily over the past decade, with significant acceleration since 2020. This guide covers everything you need to know to make your own move a success.
The Non-Lucrative Visa: The Right Route for Most Canadians
Canadian citizens can enter Spain visa-free for up to 90 days in any 180-day period under the Schengen Agreement. To stay longer — that is, to actually live in Spain — you need a long-stay visa obtained before leaving Canada.
For Canadians who want to live in Spain without working for a Spanish employer, the Non-Lucrative Visa (NLV) is the appropriate choice. This visa is designed for people who can demonstrate sufficient passive income to support themselves without working in Spain. It is sometimes called the “passive income visa” or informally the “retirement visa,” though it is not exclusively for retirees — anyone with investment income, rental income, pensions, or savings can qualify.
Note that the NLV prohibits working for Spanish employers or Spanish clients. Canadians who work remotely for Canadian companies should investigate the Digital Nomad Visa, which Spain introduced in 2023 specifically to accommodate remote workers.
NLV income requirements for Canadians in 2026
The minimum income thresholds in 2026 are approximately:
- Primary applicant: €2,400 per month (approximately CAD $3,600 at current exchange rates), or €28,800 per year
- Each dependent: €600 per month
Exchange rate fluctuations between the Canadian dollar and the euro can affect how easy it is to meet this threshold, so always calculate in euros and factor in currency movement when assessing your eligibility.
Using CPP, OAS and Canadian Income Sources for the NLV
Canadian government pensions are accepted income sources for the NLV application. Here is how each works:
Canada Pension Plan (CPP)
CPP retirement benefits can be paid abroad to Spanish bank accounts, though many Canadians prefer to receive them in Canada and transfer to Spain as needed. A CPP statement of entitlement or recent payment confirmation serves as proof of income for the NLV. Note that CPP payments continue regardless of where you live in the world — moving to Spain does not affect your entitlement.
Old Age Security (OAS) and Guaranteed Income Supplement (GIS)
OAS is payable outside Canada, but with conditions. If you have lived in Canada for at least 20 years after age 18, OAS is paid indefinitely regardless of where you live. If you have fewer than 20 years of Canadian residence after 18, your OAS payments may stop after six months abroad (unless there is a Social Security Agreement with your country of residence). Canada and Spain do have a Social Security Agreement, which allows periods of contribution in both countries to count toward benefit entitlement. The Guaranteed Income Supplement (GIS) is means-tested and typically not payable to non-residents.
Private and workplace pensions
Defined benefit pensions from former Canadian employers, RRSP/RRIF income, and other private pension income are all accepted as NLV income documentation. You will need statements or payment letters from the pension administrator.
Investment income
TFSA withdrawals, non-registered investment portfolio income (dividends, interest, capital gains), and rental income from Canadian property are all acceptable. Bank statements showing consistent deposits or investment portfolio statements demonstrating sufficient holdings are the standard documentation.
Canada-Spain Double Taxation Treaty
Canada and Spain have a Double Taxation Convention (DTC) in force (Convention for the Avoidance of Double Taxation, signed 1976, updated via protocols). This treaty allocates taxing rights between the two countries and prevents most cases of double taxation.
Key provisions for Canadian expats
- OAS and CPP: Under the treaty, Canadian government pensions (CPP, OAS) are generally taxable only in Canada, not in Spain — though Spain may count them toward calculating your Spanish tax rate on other income.
- Private pensions and RRIF: Typically taxable in Spain as your country of residence; Canada applies withholding tax at a reduced treaty rate (usually 15-25%) on the source, which you can then credit against Spanish tax.
- Canadian rental income: Taxable in Canada (as the source country); Spain then credits the Canadian tax paid against any Spanish tax on that income.
- TFSA: Canada does not recognise the TFSA’s tax-free status for treaty purposes in the same way — Spanish tax authorities may treat TFSA income as taxable Spanish-source income. Specialist advice is essential.
The practical implication for most Canadian retirees: you will continue to file a Canadian tax return as a non-resident (simpler than a full resident return) and a Spanish IRPF return as a Spanish resident, with credits applied to avoid double taxation. A tax advisor experienced in both Canadian and Spanish taxation is strongly recommended.
Quebec vs other provinces: what changes?
For most Canadian expats, provincial taxes cease when you become a non-resident of Canada. Quebec is the main exception: Quebec has its own tax administration (Revenu Québec) and its own definition of non-residence. Quebecers should confirm their non-resident status with Revenu Québec separately from CRA when they move to Spain.
Leaving Your Provincial Healthcare Plan
Provincial health insurance is among the most important practical matters to plan for when leaving Canada. Each province has its own rules:
- Ontario (OHIP): Coverage ends the month after you leave the province permanently
- British Columbia (MSP/BC Services Card): Coverage ends when you cease to be a BC resident
- Alberta: Coverage ends when you leave the province
- Quebec (RAMQ): Coverage ends after an absence of more than 183 days per year
Before you move to Spain, ensure you have your NLV-compliant private Spanish health insurance in place. The insurance must cover you from day one in Spain — there must be no gap between losing provincial coverage and gaining Spanish coverage.
The Application Process: Step by Step
NLV applications for Canadians are made at the Spanish consulate with jurisdiction over your province of residence. The main consulates for Canadians are in Ottawa and Toronto, with Vancouver handling BC and western provinces.
Document checklist
- Valid Canadian passport (minimum 12 months validity beyond your stay)
- NLV application form (EX–01 or consulate-specific form)
- RCMP criminal record certificate (apostilled — contact the Consular Affairs Bureau for apostille)
- Medical certificate confirming no contagious diseases (apostilled)
- Proof of income (CPP/OAS letters, bank statements, pension statements, investment portfolios)
- Private health insurance certificate (valid in Spain, no copayments, minimum coverage as specified)
- Proof of accommodation in Spain (signed lease or property deed)
- Two recent passport-sized photographs
- Spanish consulate fee (paid via Modelo 790 or consulate-specific payment method)
All documents must be apostilled where required and accompanied by sworn Spanish translations.
Timeline
Allow 4–6 months for the complete process:
- Months 1–2: Gather documents, apostille criminal record certificate and medical certificate, commission sworn translations
- Months 2–3: Purchase health insurance, secure Spanish accommodation
- Month 3: Book and attend consulate appointment
- Months 4–5: Wait for visa decision (typically 4–8 weeks after submission)
- After visa: Move to Spain; register at town hall and apply for TIE within 30 days
Arriving in Spain: Your First Month
Empadronamiento
Register your Spanish address at the local ayuntamiento (town hall). You need your passport, visa, and lease or property deed. The padrón certificate is used for the TIE application, healthcare registration, and many other official purposes.
TIE card
Within 30 days of arrival, apply for your Tarjeta de Identidad de Extranjero (TIE) at the local Oficina de Extranjeros or designated police station. Your TIE is your legal proof of Spanish residency and is necessary for opening a bank account, signing contracts, and most official transactions.
Opening a Spanish bank account
Spanish banks require your passport, NIE/TIE, padrón certificate, and proof of income. Santander, BBVA, and CaixaBank all serve expat clients and have English-speaking staff at branches in major cities and expat areas. For ongoing transfers from Canada, Wise (formerly TransferWise) offers highly competitive CAD-to-EUR conversion with much lower fees than bank-to-bank international wire transfers.
Cost of Living: Spain vs Canada
Canada has some of the highest housing costs in the world, particularly in Toronto and Vancouver. Spain offers a dramatic improvement in affordability across almost every category:
- Housing: A modern two-bedroom apartment in Valencia or Málaga rents for €900–€1,400/month — compare to $2,500–$4,000+ for comparable Toronto or Vancouver properties
- Groceries: Spain’s fresh produce, seafood, and staple groceries cost roughly 40–50% less than Canada
- Dining out: A three-course menu del día at a neighbourhood restaurant costs €10–€15; coffee costs €1.20–€2.00
- Healthcare: Private health insurance for the NLV typically costs €80–€200/month — a fraction of comparable private coverage in Canada
- Transport: Monthly public transport passes in major Spanish cities cost €20–€55; petrol is cheaper than Canada
Most Canadian expats report being able to live very comfortably in Spain on €2,500–€3,500 per month for a couple — a lifestyle standard that would cost CAD $7,000–$10,000 in major Canadian cities.
Driving Licences, Shipping and Practical Matters
Driving licence exchange
Canada and Spain have bilateral driving licence exchange agreements for several provinces, including Ontario, British Columbia, Alberta, and Quebec. Canadian residents from these provinces can exchange their provincial driving licence for a Spanish licence without sitting a new test. Contact your local Jefatura de Tráfico within six months of becoming a Spanish resident to complete the exchange. Residents from provinces not covered by the agreement will need to take a Spanish driving test.
Shipping from Canada
Sea freight from Canada to Spain is the most practical option for large volumes of belongings. Shipping from Vancouver takes approximately 4–6 weeks; from Toronto or Montreal, 4–5 weeks. Less-than-container loads (LCL) for a typical apartment’s worth of belongings cost approximately CAD $3,000–$6,000. Full container loads (FCL) for larger households cost CAD $6,000–$12,000. You will need to declare your goods at Spanish customs and demonstrate Spanish residency to import household goods duty-free.
Popular destinations for Canadians in Spain
Canadians tend to favour a mix of authentic Spanish cities and coastal areas:
- Valencia: Consistently voted one of the best cities in Europe for quality of life — beaches, food, affordable housing, and a growing international community
- Barcelona: Cosmopolitan, with a large anglophone expat community; higher costs but unmatched urban energy
- Málaga and the Costa del Sol: Outstanding climate, established English-speaking community, good value outside the major resort towns
- Alicante and the Costa Blanca: Lower costs than the Costa del Sol, beautiful beaches, and a significant Canadian expat presence
- Madrid: Cultural richness, excellent transport links, and a large international professional community