Some cities captivate with their charm, others with their efficiency. Valencia achieves the rare balance between quality of life, modernity and economic rationality. In 2025, the international portal Live and Invest Overseas named it the best city in the world to retire, ahead of Lisbon and the great Andalusian metropolises.

A distinction that will hardly surprise seasoned observers: the capital of the Valencian Community has succeeded in combining a still-measured property market, a more flexible regional tax regime and a refined Mediterranean art of living, rooted in an elegant urban tradition and oriented towards the sea.

A property market that remains rational

According to the Colegio de Registradores (first quarter of 2025), the average price of housing in the Valencian Community stands at around €1,770 per square metre, compared with nearly €4,000/m² in Madrid and more than €5,000/m² in Barcelona.

These figures are based on notarial deeds and property registry data – that is, prices actually paid, not the advertised values seen on portals such as Idealista, which are often 10–20% higher.

The difference can be explained by negotiation but also, in some cases, by under-declaration practices still occasionally encountered: once tolerated, these are explicitly prohibited and fiscally risky. Prudent buyers avoid them, anticipating the future traceability of their assets, whether upon resale or inheritance, and understanding that a realistic declared price preserves the coherence of future capital gains.

Within the Valencian Community itself, differences remain clear:

  • Valencia city drives prices upwards, fuelled by urban renewal and the international momentum of its cultural scene. In the historic centre (Ciutat Vella), recent listings show prices around €4,600/m², while the citywide average stands near €3,600/m².

  • Alicante, more tourism-driven, remains slightly below this level, with a dynamic rather than speculative market where average asking prices reached €2,509/m² in October 2025.

  • Castellón, meanwhile, remains one of Spain’s most affordable coastal provinces, around €1,480/m², offering privileged access to the Mediterranean at a more contained cost.

For anyone seeking to combine personal enjoyment, long-term asset growth and fiscal flexibility, this internal diversity offers an ideal field for arbitration between the sea, the historic city centre and the inland countryside.

Lifestyle as a safe haven

In Valencia, light and time seem perfectly attuned. An international airport, more than 300 days of sunshine each year, a coastline dotted with Blue Flag beaches, a historic centre with Romanesque, Gothic and Baroque influences, and, above all, an exemplary approach to urban planning: the Turia Gardens, a nine-kilometre green corridor created from the old riverbed, have become the city’s green backbone and culminate in the spectacular City of Arts and Sciences, whose Opera House and Science Museum are now landmarks of the international film and advertising industries.

Yet Valencia’s appeal goes far beyond its postcard image. The city offers a high-quality public and private healthcare system, renowned universities (including the Polytechnic University of Valencia), a rich musical and cultural life, and a human scale that encourages conviviality.

To this are added refined leisure pursuits: yacht clubs on the Marina Real, top-level golf courses (El Bosque, Parador del Saler), tennis and padel courts, and social and music clubs such as the Real Club Náutico de Valencia, heir to a cultivated bourgeois tradition.

This abundance of amenities reflects a sophisticated Mediterranean lifestyle, ideally suited to an active and cultured retirement.

A balanced regional tax environment

Spain is characterised by a multi-tiered tax system, heavily decentralised in favour of its autonomous communities.

In the Valencian Community, the wealth-tax exemption threshold was raised in 2025 to €1 million for residents, in addition to the national €300,000 allowance on the main residence. The temporary solidarity tax on large fortunes continues to apply to net assets exceeding €3 million, uniformly across Spain.

For inheritance and gifts, the region introduced in 2025 a 99% reduction for direct-line transfers (children, spouses, parents), aligning itself with Andalusia, which has long been the most favourable in this area.

Valencia now occupies an intelligent middle ground: more lenient than Catalonia, where tax rates remain high; less aggressively competitive than Madrid, whose generous reliefs are now offset by the new national wealth-solidarity tax.

Andalusia: a radiant rival and natural complement

It is difficult not to compare Valencia with Málaga, the beating heart of the Costa del Sol. The Andalusian city has, over the past decade, established itself as a showcase for high-end residential tourism and international investment. Prices now exceed €3,100/m², according to regional registries, driven by Marbella and Benahavís, where the square metre can cost up to three times as much within gated golf communities. According to the latest data, properties in Marbella now list at around €5,430/m², reaching €6,650/m² in exclusive areas such as Nagüeles or the Golden Mile.

The Andalusian lifestyle remains irresistible: golf, sailing, contemporary art, gastronomy and cultural evenings beneath the palm trees. Andalusia has more than 120 golf courses -the highest concentration in Europe- iconic marinas such as Puerto Banús, and a cosmopolitan sociability that continues to attract Europe’s elite.

However, it is also a more speculative market, with higher maintenance costs and a stronger tourist seasonality than Valencia’s, which is more residential and stable.

Between Valencia and Málaga: the clear line of Mediterranean living

While both enjoy strong international appeal, Valencia embodies moderation and coherence, whereas Málaga represents splendour and renown. The former attracts with its urban harmony and economic balance; the latter with glamour and energy. Each appeals to a distinct lifestyle, yet both contribute to the renaissance of a high-end Mediterranean, where residential investment merges with an art of living: golf in the morning, the sea at midday, music in the evening, all within a stable European legal framework.

In conclusion

Valencia is not merely a matter of the heart; it is also a matter of reason. Its fundamentals -rational property prices, balanced regional taxation and a rich cultural and sporting offer- make it a coherent and stable asset anchor for an active retirement or a Mediterranean second home. It reflects a growing trend: the pursuit of balance between pleasure, security and discreet yield, far from speculative excess and shifting fiscal climates.