Costs are broadly similar — roughly £2,500/month for a couple in Japan and £2,500 in Spain.
Cost of living, side by side
| Japan | Spain | |
|---|---|---|
| Modest (couple/mo) | £1,650 | £1,800 |
| Comfortable (couple/mo) | £2,500 | £2,500 |
| Premium (couple/mo) | £3,900 | £4,000 |
Indicative monthly estimates for a couple — real costs vary by location, lifestyle and exchange rates.
Japan: Foreigners have the same rights as Japanese nationals and can buy land, houses and apartments freehold, with no residency or visa requirement. From April 2026 buyers must disclose nationality at registration (a record-keeping step, not a restriction), and a small number of plots near defence sites can be reviewed.
Spain: Foreigners can buy property freely in Spain, with full ownership.
Japan: Japan has no dedicated retirement visa. Self-funded retirees typically use a long-term 'Designated Activities' stay, broadly needing substantial savings (around ¥30 million) or steady pension income of roughly ¥250,000 a month; spouse and family routes are also common.
Spain: The non-lucrative visa is the usual route for retirees with sufficient income and health cover.
Japan: Healthcare is excellent and universal — residents on a long-stay visa enrol in National Health Insurance, paying income-based premiums and then about 30% of costs (less for the elderly), with high-quality hospitals nationwide. Care is affordable by Western standards, though English can be limited outside the major cities.
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.
Japan: For your first five years as a Japanese tax resident you count as a 'non-permanent resident', so foreign income such as a UK pension is taxed only to the extent you remit it into Japan; after five years Japan taxes your worldwide income. Rates are progressive (national 5-45%, plus a flat ~10% local inhabitant tax), and the UK-Japan treaty helps avoid double taxation.
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.
Japan: Four distinct seasons: hot, humid summers with a June-July rainy spell and late-summer typhoons, and cold, often snowy winters on the north and Japan Sea side. Spring cherry blossom (late March-April) and crisp autumn colour (October-November) are the best months. Extremely safe with very low crime; English is limited outside big cities and tourist areas, but they drive on the left, which is familiar for Brits, and daily life runs smoothly once you settle in.
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.
Japan: Budget roughly 6-10% in one-off costs whether you're foreign or not — Japan adds no buyer surcharge for foreigners — covering agent commission (about 3% plus a fixed fee), a real-estate acquisition tax of around 3% of assessed value, registration and licence tax, stamp duty and a judicial scrivener's fee. A purchase typically completes within one to two months.
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.
Japan: Tokyo for energy, amenities and top hospitals; Fukuoka for a mild, affordable, walkable base popular with newcomers; Kyoto for culture and history; and subtropical, laid-back Okinawa — with cheap rural 'akiya' houses dotted across the countryside.
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.
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