Start with the only question that matters: will you count as Spanish tax resident for the calendar year. If yes, Spain wants the whole picture. That includes UK pensions. Then the treaty decides who taxes what. Simple idea, big consequences.
Plain split, no jargon:
- Private/company pensions, SIPPs, UK State Pension end up taxable in Spain once you’re resident there.
- UK government service pensions (paid for past work with the UK Government or a local authority) stay taxable in the UK. Spain still uses the gross for progression when setting your rate on other income. That bit surprises people. Don’t skip it on the Spanish return.
What to do this week if you’re moving or already here:
- Tell HMRC you’re out and send the Spain-Individual double-tax form so UK payers stop deducting PAYE on pensions Spain is meant to tax. Chase the provider. Keep the confirmations.
- Register locally in Spain so you can file the annual Modelo 100. Spain’s year is Jan–Dec. Filing is the following spring.
- Healthcare: if you receive the UK State Pension, ask for an S1 and register it with Spain’s INSS. No S1, no automatic cover. If later you start a Spanish State Pension, Spain takes over the tab.
The April 2024 UK changes in one breath:
- The Lifetime Allowance has gone. In its place: a Lump Sum Allowance and a Lump Sum & Death Benefit Allowance. Those caps still limit tax-free amounts. If you’ve taken cash before April 2024 or have multiple schemes, keep every scrap of evidence, and consider the transitional certificate so no one guesses later.
- Thinking about overseas transfers. Treat them like surgery. There’s an Overseas Transfer Allowance now, and in many cases a 25% charge can still bite. You only do this with regulated advice and a written rationale.
How it looks at tax time in Spain:
- You report the UK State Pension and private/company pensions as ordinary income on Modelo 100. Rates are progressive and vary by region.
- A government service pension remains UK-taxed, but you still report it in Spain for progression. Spain uses the figure to set your rate on the Spanish-taxed stuff, then excludes it from Spanish tax.
- Spain taxes by date received. If a December draw lands on the 29th, it belongs to that year. Plan cashflow accordingly.
Two frictions that ruin Aprils:
- FX evidence. Decide how you convert pounds to euros and stick with it. Keep statements. Spanish returns want euro numbers you can prove, not screenshots.
- UK habits. Spain assesses individuals. Joint vibes from the UK don’t travel well. Let Spain be Spain.
Common traps I see, fixed in one line each:
- UK PAYE still coming off your private pension after you’re resident in Spain. Send the treaty form and push the provider to apply it.
- Assuming S1 appears by magic. It doesn’t. Request it, register it, file the paper.
- Treating a UK-taxed government service pension as “invisible” in Spain. It isn’t. Declare for progression or your Spanish rates will be wrong.
- Improvised withdrawals. Set a rhythm that respects the 2024 UK caps and your Spanish bracket. Write it down. Don’t wander.
Keep a folder. Physical, not just cloud. HMRC letters, Spain-Individual, S1 confirmation, padrón and NIE, pension P60s, payslips, bank and FX records. When someone official asks, you show the copy and go back to your day. That’s the definition of a good expat admin moment.
Bottom line. Get the residency answer clear, stop the wrong country from withholding tax, register healthcare correctly, and plan withdrawals with the post-2024 UK rules in mind. If you want me to sanity-check your mix, tell me which pensions you have (State, government service, personal/SIPP, company DC/DB) and when you’ll become Spanish resident. I’ll map what gets taxed where, which forms switch off the leakage, and how to line up your first Spanish return so it’s a shrug, not a saga.
