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I live in Valencia, and have done so for the past 3 years. Many moons ago I lived in BCN for over 7 years. If your spoken Spanish is good, well you can live anywhere. But if not, then it's BCN for you. It is very touristy....but there is a big difference between tourists, and all those retired European peeps, who tend to congregate further south and make their little national gettos ie Brits in Benidorm. Another point is that BCN has all those cheap airlines flying to it, whereas VLC is a bit off the beaten track.
Look carefully into the legal side of things. You'll need an official NIE number for EVERYTHING (phone, flat, etc). After 183 days you have to declare yourself resident and start paying taxes on your WORLDWIDE income (Spain is a Socialist country!). Also be aware that Spain is not the cheap country it once was when it has the peseta. Prices (particularly in a big city like BCN) are pretty much on par with any big European city.
If you need any help...drop me a line.
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