UK Pension Advice for Expats in Spain
Independent advice on UK pensions, investments and retirement income for expats living in Spain.
Spain has one of the largest British expat populations in Europe, and one of the more demanding reporting regimes for people holding assets abroad. A UK pension is perfectly workable from Spain — but the tax and reporting side needs to be handled properly.
We advise on the pension, the income plan and the reporting obligations together, so nothing is left to chance.
Keep, consolidate or transfer
Transfers to overseas schemes can now attract a 25% Overseas Transfer Charge following the 2024 rule change, so the realistic decision for most people is between leaving a pension where it is and consolidating it inside the UK system.
- Old workplace pensions often carry higher charges and dated fund ranges than a modern arrangement.
- An international SIPP accepts a Spanish address, a non-UK adviser and payments to a Spanish account.
- Defined benefit pensions carry valuable guarantees — the default position should be to keep them unless there is a clear, evidenced reason not to.
Spanish tax and reporting
As a Spanish tax resident you are taxed on worldwide income, with the UK–Spain double taxation agreement deciding which country taxes what. Pension income, investment income and gains are each treated differently.
There are also reporting obligations for assets held outside Spain that catch a lot of new arrivals by surprise. Knowing what has to be declared, and when, avoids penalties that have nothing to do with how well your money is invested.
Planning income in euros
Sterling pensions funding euro spending creates a currency risk that runs for the whole of retirement. We plan how much of your income should be hedged or held in euros rather than converting whatever arrives, whenever it arrives.
How we work
Start with a free 30-minute meeting. You will get a written summary of what you hold and what your realistic options are, with the costs of each stated plainly.
Common questions
Is my UK pension taxed in the UK or Spain?
For most private and workplace pensions, Spanish residents are taxed in Spain under the double taxation agreement, with government service pensions treated differently. The treaty paperwork needs to be completed so UK tax is not deducted as well.
Can I keep my UK SIPP while living in Spain?
Usually yes, though not every provider will service a Spanish address. Where yours will not, moving to an international SIPP keeps you inside the UK system without triggering an overseas transfer charge.
Do I need to declare my UK pension in Spain?
Spanish residents report worldwide income, and there are separate reporting requirements for assets held abroad. We will tell you what applies to your situation so it can be handled correctly with your tax adviser.
Start with the free guide
Our UK Pension Transfer Guide covers the options, the charges and the traps — written by a CISI Chartered adviser, in plain English.
Get the Free Pension GuideRelated reading
Retirement Planning for Expats: How to Avoid Double Taxation Across Borders
How double-taxation treaties protect your retirement income — and the order you need to use them in to keep more of what you've earned.
QROPS vs SIPP: Which Is Right for British Expats in Europe?
An honest comparison of QROPS and SIPP for British expats in Europe — after the 2024 rule change that reshaped the choice.
Should You Transfer a Defined Benefit Pension Abroad? A Chartered Adviser's Guide
A Chartered adviser's honest view on transferring a defined benefit (final salary) pension as an expat — when it can make sense, and when it shouldn't.