Living in Spain
Your complete financial guide to Spanish residency, tax, pensions, investments and cross-border planning as a UK national living in Spain.
Talk to an AdviserYour Complete Financial Guide to Spain
Moving to or living in Spain as a UK national brings unique opportunities — and responsibilities.
From understanding residency rules to optimising tax, pensions and investments, getting the right advice early can save you time, money and stress.
At SJB Global, we specialise in helping expats organise their financial lives and navigate the complexities of Spanish and UK cross-border rules.
Key areas covered
- Spanish tax residency
- Foreign asset reporting
- UK pension planning
- Spanish-compliant investments
- Double tax treaties
- Inheritance and estate planning
Understanding Residency & Reporting Obligations
Understanding whether you are tax resident in Spain is one of the first steps in planning properly.
If you have been living in Spain for more than 183 days in a calendar year, you are generally deemed resident in Spain for tax purposes.
This may also apply if your spouse is tax resident in Spain, your economic interests are in Spain, or your main personal interests are in Spain, including family ties.
Reporting on Foreign Assets
Since 2013, anyone living in Spain may need to declare certain assets held abroad. Failure to do so can result in serious penalties.
- Property
- Shares and investments
- Life insurance policies
- Bank accounts
- Cryptocurrencies held on centralised exchanges
Spanish Taxes & Financial Planning
Whether you are relocating, retiring, or already settled in Spain, understanding how taxes and financial planning work is essential.
Income Tax in Spain
Residents pay tax on worldwide income, while non-residents are generally taxed only on Spanish-sourced income.
Capital Gains & Savings Tax
Capital gains tax covers income from savings, investments and asset disposals. Taxation depends on personal circumstances and income type.
Inheritance & Gift Tax
Inheritance tax applies to Spanish assets regardless of residency. Allowances and rates vary by region and relationship to the deceased.
Wealth & Solidarity Tax
Residents may be taxed on worldwide assets, while non-residents are generally taxed on Spanish assets only. Exemptions may apply.
VAT, Corporation & Social Security
VAT applies to most goods and services. Corporation tax applies to company profits, while self-employed individuals contribute to social security.
Exit Tax
Exit tax may apply to residents leaving Spain who hold certain shares or investments. Planning can help mitigate potential liabilities.
UK Pension Planning in Spain
If you have a UK pension and now live in Spain, you have important decisions to make about how and where to access your retirement savings.
The right approach can help reduce tax, avoid unnecessary charges and support a stable income for the future.
Defined Contribution Pensions
Transferring DC pensions to a SIPP or QROPS can offer greater flexibility, currency options and simplified management.
Defined Benefit Pensions
DB pensions provide a guaranteed income but are rigid. Transfers require careful analysis before any decision is made.
UK Pension Options in Spain
Options may include retaining existing benefits, transferring to a QROPS, or transferring to a UK SIPP.
Taxation of UK Pensions
Income from UK pensions is generally taxed as earned income in Spain. Double tax treaty rules may help prevent UK withholding.
QROPS & Lump Sums
QROPS and lump sums may be taxed in different ways depending on planning choices and individual circumstances.
Death Tax & State Pensions
Death tax may apply depending on beneficiary residency. UK State Pension treatment should also be reviewed carefully.
Double Tax Treaties
Spain has tax treaties with many countries, including the UK, designed to prevent double taxation.
These agreements can affect income tax on employment, self-employment and pensions, as well as capital gains tax and inheritance or gift tax.
Understanding which treaties apply to your personal situation can help you optimise your tax position and ensure compliance in both countries.
Why it matters
- Helps identify where income should be taxed
- May prevent unnecessary withholding tax
- Can affect pension and investment income
- Supports compliant cross-border planning
Tax Planning Opportunities in Spain
Spain offers several ways to optimise how you hold and draw your income, reduce certain taxes and plan ahead for the future.
Spanish-Compliant Bonds
Specially designed investments for expats that may reduce income and inheritance tax exposure while remaining compliant.
Tax Efficiency Advantages
Using Spanish-compliant investments may simplify tax reporting and improve the structure of your savings and investments.
Investment Flexibility & Estate Planning
Compliant investments may allow multi-currency options, estate planning flexibility and low- or high-risk strategies.
Practical Checklist & Resources
Navigating Spain’s tax rules can be complex, and legislation changes regularly. Staying informed about residency requirements, reporting obligations and tax rates is essential.
Regularly reviewing your financial position with a professional adviser can prevent surprises and help you make timely, informed decisions.
Key Steps for Expats
- Confirm Spanish tax residency status
- Declare foreign assets, including crypto
- Review income, capital gains and wealth taxes
- Evaluate UK pension options
- Check double tax treaty implications
- Consider inheritance and estate planning
- Stay compliant with social security contributions
Useful Resources
Spanish Tax Authority
Official guidance from Agencia Tributaria on income, wealth and VAT obligations.
Visit Agencia TributariaUK Government
Practical guidance for UK nationals living in Spain, including residency, tax and pensions.
View UK Government GuidanceSpanish Tax Rates
View SJB Global’s Spanish tax rates page for a clearer overview of key tax considerations.
View Spanish Tax Rates PageNeed Help Planning Your Financial Life in Spain?
Whether you are moving to Spain, recently arrived, or already settled, SJB Global can help you understand your tax, pension and investment options with greater clarity.
Talk to an Adviser