It’s a common question, and one that rarely gets a straight answer. You’ve packed up your life in the UK, moved to Spain in June or July, and suddenly realise that the tax year doesn’t match. You’re halfway between two systems, both wanting to know where you belong.
The short version is this: your UK pension doesn’t change, but the way it’s taxed might. What matters is when you become tax resident in Spain, not the exact date you arrive.
The residency rule
Spain uses the calendar year for taxes. If you spend more than 183 days in Spain between 1 January and 31 December, you’re automatically considered resident for that whole year. That means Spain can tax your worldwide income, including your UK pension, from the start of the calendar year.
If you arrive mid-year and don’t cross that 183-day mark, you’re treated as a non-resident for that tax year. In that case, the UK remains your primary tax base, and your pension stays under UK rules.
The double taxation treaty
The UK-Spain Double Taxation Agreement is designed to stop you paying twice. For most private and workplace pensions, Spain has the right to tax once you become resident there. The UK then stops, or deducts less, to reflect that.
You’ll need to fill in a form called “Spain Individual” (available on the HMRC site) to request exemption from UK tax. Once approved, your UK pension is paid gross, and you declare it on your Spanish return the following June.
State pensions
The UK State Pension is slightly different. It’s taxable only in the UK under the treaty, even if you live in Spain. However, once you’re tax resident in Spain, you must still declare it there for information purposes. Spain won’t tax it again, but it’s counted to calculate your total income and rate band.
Practical steps
- Keep proof of when you moved. Your empadronamiento certificate, rental contract or home purchase date all help.
- Inform HMRC and your pension provider as soon as you settle in Spain. This avoids being taxed in both countries while your paperwork catches up.
- Use the Modelo 720 declaration if your pension account or savings exceed €50,000 abroad. It’s a disclosure form, not a tax in itself, but skipping it can lead to fines.
- Get a Spanish tax adviser for your first year. The first declaration is always the hardest, and small mistakes can linger.
A note on timing
If you moved in summer, spent fewer than 183 days in Spain, and only plan to stay permanently from next January, you’ll remain UK-taxed for that year. From 1 January next year, Spain takes over. That’s the cleanest way to transition.
Field Note
UK–Spain Double Taxation Agreement (Article 17):
Private pensions are taxable only in the country of residence. State pensions remain taxable in the UK.
Spanish Tax Year: 1 January to 31 December.
Residency test: 183 days or more in Spain during the calendar year, or if your main economic interests are located there.
Useful forms: HMRC “Spain Individual” for UK tax exemption, Modelo 720 for Spanish overseas asset disclosure.
