@jimoro
You're a lucky man, your wife's passport makes everything easier! :-) That's because an EU passport holder enjoys "Freedom of Movement" and can relocate to any EU country, for any reason, and live there indefinitely.
They only ask that she does a simple administrative step of "EU Citizen Registration". This requires proof of address, proof of health insurance, and proof of funds/means.
https://www.inclusion.gob.es/en/web/mig … ea-hi-101-
Once she has done that, she can then do the next step of "Family Reunification" which will make you also a legal resident of Spain. And you'll be able to get a TIE, your biometric residence permit.
https://www.inclusion.gob.es/en/web/mig … pe-hi-102-
Both of these steps are done IN Spain, rather than at your local Spanish consulate before coming to Spain. You simply apply for a Cita Previa online, then take all the required documentation to the appointment. You don't even need a special visa to enter Spain, you can both enter visa-free. Your wife with no limit (if she enters using her EU passport) and you will have 90 days (entering with your US passport). I'd say that 3 months was plenty to find a rental and do both of these steps (if you're organized, there's no reason you can't do it in a week or two).
I loved California, but it's one of the most expensive places in the world! Spain's a great place to live, and I heartily recommend it. Tax-wise, I think many Americans get far too hung up about the tax situation. American expats, by virtue of their citizenship, typically end up as tax residents in two countries, and that's a bit of an administrative hassle (2 tax returns). But there's always a DTA (so you don't pay the same tax twice), and I don't think there are massive differences between the two tax codes, especially for retirees. You will also save money on fabulous European public healthcare (instead of expensive private insurance with big deductibles and sneaky exclusions). Keeping a home in California and flying every year will be VERY expensive. But if you're young and love long-haul flights, you can keep doing this for years (and just keep your stays in Spain below 183 days per year).
We're in the Alicante area and the Costa Blanca is tip-top. Alicante/Valencia and surrounds are well worth checking out. Also Tarragona/Barcelona and many smaller towns on the Costa Dorada/Costa Brava is a wonderful area. But some of these places (e.g. downtown Barcelona, Playa San Juan in Alicante) can be massively expensive, so it depends on your budget/tastes. We are in Elche (a good-sized city next to Alicante with very nice beaches nearby, and serviced by Alicante-Elche Airport) and it has been a delightful (surprisingly so) choice. Our apartment cost perhaps 10%-20% of something similar in a ritzier spot. I suggest you take a look at Idealista (dot com) which has lots of listings all over Spain, and is a great way to see what's available for your budget... before you try to visit everywhere nice in Spain. :-)