Two main reasons for emigrating to Spain:
1) To retire
2) To work.
I will take the second one first..DON´T. It can work well for you, but even before the recession, it was difficult, but now even more so.
Now is the time to retire to Spain. The Spanish economy is in bad shape and as mentioned in a previous post above, house prices have been halved.
The € is standing up at the moment but in all likelihood it will drop through the bottom, which is good news for expats, whose pensions are paid in pounds. So with the €on the floor and house prices slashed, the person who is looking for retirement in Spain is sitting pretty.
The Health Service is excellent.