A comfortable retirement works out cheaper in Ecuador — around £1,600/month for a couple, versus £2,500 in Spain (about 36% more).
Cost of living, side by side
| Ecuador | Spain | |
|---|---|---|
| Modest (couple/mo) | £1,050 | £1,800 |
| Comfortable (couple/mo) | £1,600 | £2,500 |
| Premium (couple/mo) | £2,400 | £4,000 |
Indicative monthly estimates for a couple — real costs vary by location, lifestyle and exchange rates.
Ecuador: Foreigners enjoy the same property rights as Ecuadorians and can buy freehold with just a passport, with no limit on the number of properties. The main restriction is a national-security zone within 50km of the Colombian and Peruvian borders; popular expat areas such as Cuenca, Quito and Salinas are unrestricted.
Spain: Foreigners can buy property freely in Spain, with full ownership.
Ecuador: The Pensioner (retirement) visa broadly requires around US$1,400 a month of pension or lifetime income; it begins as a two-year temporary residence and can convert to permanent residency.
Spain: The non-lucrative visa is the usual route for retirees with sufficient income and health cover.
Ecuador: Ecuador is very affordable: residents can join the public IESS social-security health scheme for a low monthly contribution, and private hospitals in Quito, Guayaquil and Cuenca are good and inexpensive. Private cover costs a fraction of Western prices.
Spain: Spain has excellent healthcare; legal residents can access the public system (retirees often via a UK S1 form or a paid convenio especial after a year), while the Non-Lucrative Visa requires private cover in the meantime, typically £100-150 a month at older ages.
Ecuador: Ecuador is widely treated as taxing residents mainly on Ecuador-source income, so many retirees' foreign pensions are effectively untaxed, and over-65s also receive a large personal allowance. The letter of the law is debated and enforcement is tightening, so declare correctly and take local advice.
Spain: Spanish tax residents (183+ days) pay progressive income tax on worldwide income, combining state and regional bands from about 19% up to roughly 47%, so a UK private pension is taxable in Spain under the treaty (UK government and Crown pensions stay taxed in the UK); rates vary by region, so take advice.
Ecuador: Climate follows altitude rather than season: the Andes and Cuenca stay spring-like near 20C by day all year, while the coast is hot and humid. Highland weather splits into drier and wetter spells rather than hot and cold. Ecuadorians are warm and the cost of living is low, but security has worsened in some coastal cities, so many expats prefer calmer highland towns like Cuenca; Spanish is essential, English limited, and they drive on the right.
Spain: Warm Mediterranean climate on the coasts with hot summers and mild winters, and the Canaries mild year-round; spring and autumn are ideal. Very safe and well set up for retirees; English is widely spoken along the costas, driving is on the right, and daily life is straightforward.
Ecuador: Buying is inexpensive and straightforward: a transfer tax (alcabala) of roughly 1% plus municipal registration and legal fees of around 1%, so total costs are low. Completion is usually quick.
Spain: Budget around 10-14% in one-off costs, resale transfer tax (ITP) of roughly 6-10% depending on region, or 10% VAT plus 1.5% stamp duty on new builds, plus notary, registry and legal fees; note the Golden Visa closed in April 2025.
Ecuador: Cuenca is the standout expat hub, colonial and spring-like; Quito for city life; Vilcabamba and Cotacachi for valleys and villages; and Salinas, Manta or Olon on the coast.
Spain: The Costa Blanca (Alicante, Torrevieja, Jávea) and Costa del Sol (Fuengirola, Estepona, Nerja) for sun and big British communities, the Balearic and Canary Islands for scenery, and cities like Valencia for culture at lower cost.
Thinking seriously about Ecuador or Spain?
Two honest Brits, a private call, and straight answers — see if a freehold home abroad is a fit for you.
See if you qualify →