From Chicago to Madrid: Redefining Retirement

Why Madrid?

“We always wanted to retire to Europe and started visiting cities there about 20 years ago. Our favorite wound up being Spain and in particular, Madrid. We visited Madrid multiple times including one 2 week long trip and one 3 week visit. We took time to wander around outside of the tourist districts and took a hard look at the neighborhoods we could consider moving to. After weeks of visiting and research, we felt confident that Madrid was a place we could settle down in. Now that we’ve been here for almost a year full time, we are really glad we took that time to research the city. We feel right at home and have no doubts about our decision.”

Should I Hire An Immigration Attorney?

“On one of our visits to Madrid we took time to research local immigration professionals. After looking at referrals we settled on a well known immigration firm that offered a packaged service charge to facilitate the property purchase and residency applications. The service was well worth it as they personally attended all of our residency meetings to ensure that everything was completed correctly. I speak some Spanish but having a local attorney fluent in Spanish and English who knows the system was a life saver. They also helped us evaluate the properties we decided to bid on and managed the entire property closing process. The package even included setting up the phone, internet, gas and electricity. These things seem simple until you’re on the phone trying to remember the word for cable! :-)”

What About Taxes?

“I had considered retiring in May and moving permanently to Spain. I realized that I hadn’t thought about the Spanish tax liabilities, and I reached out to a local Madrid expat tax adviser. They advised me that my tax liability for Spain would start as soon as I hit day 181 of residency in Spain. I already had about 50 days in Spain due to traveling and the tax adviser explained to me that I would be liable for Spanish taxes for the current year if I moved permanently in May. While I had always planned on the higher Spanish taxes, I had thought it wouldn’t start until the year after I moved. This changed my plans and I decided to wait on retirement until December of that year and then move to Spain to start the next year fresh. it saved a good chunk of change and stress!”

Do I Need an Apostille?

“Learn what apostille means! We found out at the last minute that we needed our marriage license apostilled in order to complete the residency application. It was an easy 2 day process for us in Chicago but if you don’t live in a major city you may have to wait a few weeks for that apostille to be finalized. During the process do not be afraid to call/email your representative if things are taking too much time in the federal apostille office or you need help expediting. Our senator had a direct form for just this on their website.”

💡 Remember - retirement is an opportunity to intentionally design the rest of your life!!