Spain is a perennial favourite among Britons looking to retire abroad, thanks to its sandy beaches, year-round sunshine and relaxed way of life.

But for those hoping to escape the crowds of the Costa del Sol or the high costs of Spain’s bigger cities, the country’s smaller towns could offer the perfect alternative.

A new list from World Atlas has revealed some of Spain’s best retirement destinations, highlighting lesser-known gems that combine traditional charm with a more laid-back lifestyle.

With populations of fewer than 50,000, these towns offer a quieter alternative to bustling cities such as Alicante and Malaga, with beautiful scenery, walking trails, authentic local culture and excellent food all on the doorstep.

From picturesque whitewashed villages to charming coastal hideaways, here are the Spanish towns worth considering for a more relaxed retirement in the sun…

Towns such as Trujillo are emerging as preferred destinations for expats looking to balance affordability with access to essential services. 

The average home price here is just €717 (£606) per square metre, according to Spanish property site Idealista - making it the cheapest on the list.

Not only does Trujillo offer lower rents, it also provides a quieter environment, more space, lush surrounding landscapes, a sunny climate throughout the year, and a traditional Mediterranean lifestyle. 

Built along a sandstone ridge and overlooking the Guadalete River, Arcos de la Frontera has whitewashed houses piled high, one of the prettiest retirement destinations you'll find.

The average cost of living in Arcos de la Frontera is $1,287 (£972), according to LivingCost.org, with rent and utilities coming in at an average of $699 (£528) a month.

If you have a bigger budget – or are just seeking some Spanish housing inspo – the Castle of Arcos de la Frontera actually went on sale this summer, to the tune of €7.9million (£6.76million). It was first built as a fortress and then turned into a residential palace for the Dukes of Arcos during the 14th century.

Grazalema, a high valley over 800m in Sierra del Endrinal, is perfect for those seeking greenery, as it is surrounded by natural parkland.

Whitewashed houses make it stand out against the backdrop, and home prices are among the lowest on this list at €1,293 per square metre, a fraction of the national average. 

The town is famous for its handcrafted wool blankets, ponchos and scarves (ideal to purchase as souvenirs for those back home), with the Artesanía-Textil de Grazalema offering a workshop to visit the looms. 

The coastal village of Cambados has a population of around 14,000 and is located in the Rías Baixas wine region.

Each August, expect the Festa do Albariño wine festival, making it the perfect region for wine-lovers. 

Home prices are at €1,432 per square metre, below the national average, World Atlas reveals.

The small, colourful port of Baiona was the first place in Europe to hear of the discovery of the New World, when Columbus’s Pinta returned to Spain. 

Popular attractions here include the town's medieval castle, as well as excellent seafood restaurants and great beaches. 

Located on Galicia's Ría de Vigo, it has house prices below the national average, and a popular sailing regatta each summer. 

Hondarribia in Basque Country boasts a stunning historic centre, pretty old fishing quarter and painted houses – it's just across the water from the equally picturesque French town of Hendaye.

Expect pintxo bars serving fresh fish and local wine, while the calm Txingudi Bay beach is highly appealing for soaking up some rays.

Prices can be high here, though, but the food and scenery lure in retirees. 

The gateway to the Picos de Europa National Park is Cangas de Onís in Asturias, and the town is also known for its beautiful bridges and impressive Basílica Covadonga.

Switch beaches for lakes, hiking and mountain scenery, with kayaking available and other water sports. 

With home prices at €1,623 (£1,371) per square metre, it's affordable too.

Comillas has just over 2,100 residents, making it one of the smallest towns on the list, but its beauty is its greatest appeal.

Attractions include the Palacio de Sobrellano, the former Universidad Pontificia Comillas, now a University of Cantabria campus, and the golden beach below the Cabrero cliffs.

Home prices averaged €3,722 (£3,145) per square metre, according to house price site Idealista – low in comparison to the Costa del Sol, even if it is on the higher end of this list.

Sitges is a stunning resort with a picturesque old town, brimming with restaurants along the seafront and a pretty promenade.

Located only a half-hour train ride from Barcelona, it has 17 beaches to visit, as well as many art galleries to explore.

It's one of the pricier spots on the list, but the monthly average living cost is still just £1,432, according to Wise.  

Snorkel or kayak the clear water by day and party into the night at a rooftop bar.