What happens to my UK pension?

You can keep your UK pensions when you move to Spain. The State Pension still rises each year because Spain is in the EEA, but Spain taxes most pension income, including lump sums that would be tax-free in the UK.

The State Pension in Spain

You can claim your UK State Pension while living in Spain, and because Spain is in the European Economic Area (EEA), it goes up every year just as it would in the UK. Claim it through the International Pension Centre. Non-residents don’t usually pay UK tax on the State Pension; as a Spanish resident you declare it in Spain as part of your general income.

The S1: healthcare paid by the UK

If you live in Spain and get a UK State Pension (or some other exportable UK benefits), you may be entitled to an S1 form. Request it by phone from NHS Overseas Healthcare Services (+44 191 218 1999), then register it with the Spanish social security office (INSS) in person or online. You and your dependants then get Spanish state healthcare on the same basis as a Spanish citizen, plus a UK-issued GHIC or EHIC for travel. If you have an S1 you can’t join the Convenio Especial or register as a permanent resident for healthcare. See Healthcare in Spain.

Voluntary National Insurance after April 2026

Gaps in your National Insurance (NI) record reduce your State Pension. The rules for paying voluntary contributions from abroad changed on 6 April 2026:

• You can no longer pay Class 2 for time abroad
• You can pay Class 3 (£18.40 a week in 2026–27) if you lived in the UK for 10 years in a row, or paid 10 years of qualifying NI in total
• If you applied before 6 April 2026, you may still use the old 3-year rule if you apply for 2026–27 and pay by 5 April 2027
• If you work in Spain, you pay Spanish social security instead, which can count towards a Spanish pension. See Pensions and retirement in Spain

How Spain taxes UK pensions

To stop UK tax being taken from a private pension, send form DT-Individual to the Spanish tax office to certify, and it goes on to HMRC. Until it is processed, you may need to claim back UK tax. The UK pension provider doesn’t take off Spanish tax, so you may have to file a Spanish return even if a pension is your only income.

Lump sums

In the UK you can usually take 25% of a pension tax-free. Spain has no equivalent: a lump sum taken while you are Spanish tax resident is taxable in Spain. That is why many people take any lump sum before they become Spanish resident. The rules depend on the type of scheme and your timing, so get advice from a regulated cross-border adviser first. See Moving money and UK savings.

Leaving UK pensions where they are

• You can leave workplace and personal pensions invested in the UK and draw them from Spain. Tell each provider your new address and check they can pay into a Spanish account
• To move a pension abroad without heavy UK tax, the receiving scheme must be a QROPS (qualifying recognised overseas pension scheme). If it isn’t, you pay at least 40% tax
• A transfer to a QROPS avoids the 25% overseas transfer charge only if you live in the country where the scheme is based and stay within your overseas transfer allowance (usually £1,073,100). If you move country within 5 years, the charge can apply
• Be wary of anyone who contacts you out of the blue about a transfer