Correct. The Spanish economy benefits hugely from the British Ex Pats. I'm not certain but I don't think they get any or many state handouts from the Spanish Government.Absolutely nothing. The Spanish aren't going to boot them all out when the vast majority are bringing money into the country and spending it there. The property market is already oversupplied and would collapse completely if nearly a million people upped sticks.
Spain would be heartbroken if the EU decreed all British nationals must return home!