The full guide
You probably don’t need to move it
“Moving your pension” usually just means getting it paid to you in Spain. State pensions from the UK, US and EU countries can be paid into a Spanish bank account. Most workplace and private pensions can too. Transferring the pension fund itself abroad is rarely necessary and can be expensive.
Who taxes your pension?
Once you’re tax resident in Spain, Spain generally taxes your worldwide income, including pensions. Double tax treaties set the exceptions.
| Type of pension (UK example) | Usually taxed in |
|---|---|
| UK State Pension | Spain |
| Private and workplace pensions | Spain |
| Government service pensions (civil service, armed forces, many public sector schemes) | UK only |
Other countries’ treaties differ. Read the treaty between Spain and the country paying you, or ask a tax adviser.
Avoid being taxed twice
If Spain taxes a pension, ask the paying country to stop deducting tax. For UK pensions, use HMRC’s Spain double taxation form, certified by the Spanish Tax Agency. Until it’s processed, you may need to claim back UK tax deducted.
Lump sums and withdrawals
A lump sum that’s tax-free in your home country can be taxable in Spain once you’re resident. If you plan to take one, get advice before you move: the timing can make a big difference.
Transfers abroad
Be wary of anyone encouraging you to transfer a UK pension to an overseas scheme. Since 30 October 2024, transfers to schemes in the EEA can face the UK’s 25% overseas transfer charge, and pension transfer scams target expats. Only use regulated advisers, and check them on the regulator’s register.
Practical points
Currency. Ask for payment in euros if your provider offers it, or use a specialist service; see sending money to and from Spain.
Proof of life. Some providers ask for a life certificate each year, which you can get signed in Spain.
Spanish returns. Declare your pensions in your Renta.
Frequently asked questions
Will my UK State Pension go up each year?
Yes. People living in Spain and the rest of the EU get the annual increase.
Can I keep a UK bank account for my pension?
Often yes, but some UK banks close accounts for people living abroad. A Spanish account is simpler for bills.
