+34 951 127 210 Monday – Friday 9 AM – 5 PM CET

Home » Country Specific Guides » Living in Spain » UK Pensions in Spain

Taxation on UK Pensions in Spain
What You Need to Know Spain Flag

If no action is taken, your UK pension provider will normally deduct tax at source under PAYE. This can result in double taxation unless corrected.

Using the NT (No Tax) Code

To ensure your pension is paid gross in the UK:

  • Apply to HMRC for an NT code once you have taken your first income withdrawal.
  • Your pension provider then pays you without UK tax deduction.
  • You are responsible for declaring and paying tax in Spain.

Practical Tips:

  • The process can take several months—plan ahead before drawing larger sums.
  • If UK tax is deducted before your NT code is active, you can reclaim it using HMRC’s DT-
    Individual form.
Traditional French house with lavender in the foreground and rolling hills in the background

Taxation in Spain

As a Spanish tax resident, your worldwide income, including UK pensions, is taxable in Spain.

Tax treatment

Pension income is treated as general earned income and taxed at progressive rates (which vary by region).

Marginal rates

National income tax ranges up to ~47%, though thresholds differ between
autonomous regions (e.g., Madrid vs Catalonia).

Social charges

There are generally no standard healthcare/social charges on foreign pensions if you are already covered under the Spanish healthcare system

Important: You must file an annual Spanish tax return (Declaración de la Renta). Non-disclosure can result in fines and penalties.

Taxation of UK Pensions in Spain

Understanding how your UK pension is taxed in Spain is essential for effective financial planning. Spanish residents are generally taxed on worldwide income, including private and occupational pensions, while UK government pensions may remain taxable in the UK.

For the latest information on Spanish income tax rates, wealth tax, and double-taxation rules, explore our full guide below.

Traditional French house with lavender in the foreground and rolling hills in the background

See What Our Clients Say

  • Outstanding customer service - really happy.

    Olaf Ulrich Avatar Olaf Ulrich

    It’s been a breath of fresh air dealing with Jake from SJB Global. My previous advisor had set up my portfolio badly with annual costs eating heavily into my profits.... read more

    Darren Nash Avatar Darren Nash

    I am hard to catch hold of , a skeptic and slow to make moves. The SJB Global team proved patient, thorough, pressure free and factual and friendly the whole... read more

    James Doyle Avatar James Doyle
  • I have been with them now for about 6 months and to date am very happy with both service and results. The approach is much more open and proactive than... read more

    Graham Clark Avatar Graham Clark

    Worked with Robert Hoey who arranged my Pensions and Investments details in a patient professional manner. Robert has impressed me with his knowledge and understanding of my situation and my... read more

    Geoffrey Rea Avatar Geoffrey Rea

    I've just completed the transfer of my UK pension to an international setup with SJB Global and Alex Gover as my Advisor. The process was made very clear by Alex... read more

    Andrew Taylor Avatar Andrew Taylor
  • Alex Gover is the best !!! His approach is very professional, helpful and always available. His explanations are very clear and he makes it easier to understand the portfolio. I... read more

    Farida SAFSAF Avatar Farida SAFSAF

    Down to earth financial advice, and fees that don't cost the earth.

    Peter Nutt Avatar Peter Nutt

    Piers made my portfolio grow ad cut those toxic investments that otherwise would have gotten me into financial trouble. I'm very lucky to be a customer.

    Tatyana van 't Hof-Minayeva Avatar Tatyana van 't Hof-Minayeva
  • I have been dealing with SJB since i retired 4 years ago and have had no issues with the service. The team are extremely helpful and have always looked... read more

    Andrew Thompson Avatar Andrew Thompson

    great service

    John Kay Avatar John Kay

    After having a bad experience worrying about an underperforming portfolio after moving my pension out of the UK (a QUROPS) I decided to make the changeover to it being... read more

    Mike Hatrick Avatar Mike Hatrick
  • I have found the support and advise offered by Daniel Lattimer to be very clear, concise and accurate. I can highly recommend him.

    Bogdan Bienkowski Avatar Bogdan Bienkowski

    Following the decision to switch to SJB Global in 2020 Matthew Quinn has been there with professional advice, information and support every step of the way since. I would certainly... read more

    ian killoh Avatar ian killoh

    I have to say that working with Randal Stephens has been a sincere pleasure and in the large majority of cases a blessing. His competence, his attitude to help a... read more

    Alfonso Gentile Avatar Alfonso Gentile
  • A great caring team, nothing is ever too difficult for them to help you work through a problem.

    Sue Barley Avatar Sue Barley

    My adviser was comprehensive and thorough in ensuring they fully understood my situation and my objectives. The solution provided gives a good return but also reduces the management costs notably... read more

    Glenn Vaughan Avatar Glenn Vaughan

    Having spent over 24 years of my working life in the UK, I decided to retire back in my home country. But with the issue of having to transfer my... read more

    Didier Fernandez Avatar Didier Fernandez
  • I received excellent personalised service & advice from Alex. He went above and beyond to listen to my needs and propose a custom investment plans suited to my needs, earning... read more

    Karine Pierre-Louis Avatar Karine Pierre-Louis

    Hi,I would just like to say,SJB Global are a life saver and the person who helped me with my pension needs was Daniel Latimer..At first I was was a little... read more

    Adrian Churchill Avatar Adrian Churchill

    Alex Gover at SJB Global is a pleasure to work with. He is very professional, knowledgeable, and personable. I have no hesitation in recommending him and SJB Global. Alex advised... read more

    Dan Avatar Dan
  • I’ve dealt with Lewis over the past few months and he has been great help in transferring my pension across. He was always very professional and patient, ensuring I fully... read more

    tanya spelkova Avatar tanya spelkova

    2021 / 2022 have been turbulent years and I went in to the assessment expecting a very painful feedback on my portfolio. I am happy to say Ben Eccles managed... read more

    Adam Smith Avatar Adam Smith

    I feel secure with SJB Global. Daniel treats us like family members in the way he deals with us and looks after our savings. He explains things very clearly and... read more

    Sharon Tett Avatar Sharon Tett
  • I have been a client of SJB Global for over 4 years. Jake Barber and the team have provided excellent guidance and support during this time. As a result, I'm... read more

    Steve Matthews Avatar Steve Matthews

    As first time clients of SJB global who have dealt solely with Mr Alex Gover from the moment of our initial approach to SJB and our subsequent investment. The... read more

    Roslyn Kelly Avatar Roslyn Kelly

    Friendly and efficient. Sam was incredibly patient with me and spent a lot of time discussing my savings and pension objectives before making his recommendations.

    Sue Kaye Avatar Sue Kaye
  • Sound advice and guidance always from SJB Global. This professional outfit have a great perspective of the markets and I feel secure my investments are managed by these guys.

    Peter Lacken Avatar Peter Lacken

    Thoroughly satisfied in the service, no hesitation in recommending Lewis and the team.

    Iain Powell Avatar Iain Powell

    very knowledgeable, transparent and always clear communication

    Stephen Daly Avatar Stephen Daly
  • It is now been almost 18 months that I have been working with Matthew from SJB monitoring and advising on my pension policy. The support I am getting from Matthew... read more

    Iyad Hindawi Avatar Iyad Hindawi
  • As first time clients of SJB global who have dealt solely with Mr Alex Gover from the moment of our initial approach to SJB and our subsequent investment. The... read more

    Roslyn Kelly Avatar Roslyn Kelly
  • great service

    John Kay Avatar John Kay
  • A great caring team, nothing is ever too difficult for them to help you work through a problem.

    Sue Barley Avatar Sue Barley
  • I have been dealing with SJB since i retired 4 years ago and have had no issues with the service. The team are extremely helpful and have always looked... read more

    Andrew Thompson Avatar Andrew Thompson
  • Great experience so far with Ben, always keeps me up to date and informed and also great at explaining things clearly when the information gets a bit technical!

    kirk siddall Avatar kirk siddall
  • Outstanding customer service - really happy.

    Olaf Ulrich Avatar Olaf Ulrich
  • Following the decision to switch to SJB Global in 2020 Matthew Quinn has been there with professional advice, information and support every step of the way since. I would certainly recommend... read more

    ian killoh Avatar ian killoh
  • Following the decision to switch to SJB Global in 2020 Matthew Quinn has been there with professional advice, information and support every step of the way since. I would certainly... read more

    ian killoh Avatar ian killoh
  • Worked with Robert Hoey who arranged my Pensions and Investments details in a patient professional manner. Robert has impressed me with his knowledge and understanding of my situation and my... read more

    Geoffrey Rea Avatar Geoffrey Rea

Why Expert Guidance Matters for Pension Transfers

Managing pension taxation in Spain can be complex and often requires specialist advice to ensure you comply with local rules while optimising your income. Transferring your UK pension is a big decision with lasting consequences. Whether you’re thinking about a SIPP, a QROPS, or leaving it where it is, make sure you understand the pros, cons, costs, and tax implications. Professional, independent advice is essential to ensure your retirement savings work best for you, wherever you choose to live.

What does the obligation free call include?

An initial 15-minute introduction call explaining our services and how we can help.

We go through a fact-finding exercise so we can then provide a full financial planning report including a personalised retirement forecast with future projections and work out how on track you are.

Lastly, we will provide a recommendation on any areas where we feel you could improve.

Who is SJB Global and meet your adviser

Our regulations, Independence and Fees

Our process from start to finish

Area we help with including:

UK Pension Advice

Retirement Planning

Investment Planning

Tax Planning

US Expat Services

International Estate Planning

Note: Minimum managed assets for SJB Global is £100,000 or currency equivalent.

Licensing & Regulations

Nexus Global specialises in providing a regulatory platform and compliance support to international financial advisers and intermediaries to enable them to meet regulatory requirements to provide their clients with a professional service. The financial advisers trading under SJB Global are members of Nexus Global. Nexus Global is a division of Blacktower Financial Management (International) Limited (BFMI). All approved members of Nexus Global are appointed representatives of BFMI. BFMI is licensed and regulated by the Gibraltar Financial Services Commission (FSC) and bound by the rules under licence number 3647: http://www.fsc.gi/regulated-entity/blacktower-financial-management-international-limited-3647.

Get Your Free Spain Guides

Fill in the form once to unlock our full guide on UK pensions, taxation, and financial planning in Spain. You’ll be redirected to our downloads page, where you can save this guide and explore other resources to assist with your financial planning.

Access Guides
Contact Us