Living in Spain
Your Complete Financial Guide
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.
Understanding Residency & Reporting Obligations
Defining a Resident in Spain
If you have been living in Spain for more than 183 days in a calendar year, you are deemed a resident of Spain for tax purposes. This is also the case if your spouse is a tax resident in Spain, your economic interest is in Spain, or your main interest is in Spain, which could include family, for example. This means if one of the spouses is working in a country with no taxes, Spain could still tax them if their family and ties are in Spain.
Reporting on Foreign Assets
Since 2013, anyone living in Spain must declare certain assets held abroad. Failure to do so can result in serious penalties. Assets include property, shares, life insurance policies, bank accounts, and cryptocurrencies held on centralised exchanges. The law was introduced to improve tax compliance, and many offshore assets may no longer be tax-efficient.
Spanish Taxes & Financial Planning
Whether you’re relocating, retiring, or already settled in Spain, understanding how taxes and financial planning work here is essential.
Income Tax in Spain
Residents pay tax on worldwide income; non-residents only on Spanish-sourced income. Special regimes like the Beckham Law may allow certain expatriates to pay tax only on Spanish 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. Planning ahead can reduce liabilities.
Wealth & Solidarity Tax
Residents pay wealth tax on worldwide assets; non-residents on Spanish assets only. Exemptions apply for main residences, pensions, and family businesses. Solidarity tax may apply in regions without wealth tax.
VAT, Corporation & Social Security
VAT (IVA) applies to most goods and services. Corporation tax applies to company profits, with potential reductions for new businesses. Self-employed individuals contribute to social security, which provides healthcare and pensions.
Exit Tax
Applies to residents leaving Spain who hold certain shares or investments. Planning can mitigate tax liability when moving abroad.
Have questions about Spanish taxes or your financial situation? Our team can guide you through your options and help you stay compliant.
UK Pension Planning
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 secure 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. SIPP or QROPS transfers can allow early access, investment flexibility, lump sums, and enhanced death benefits.
UK Pension Options in Spain
Options include:
- Retaining existing benefits (may be limited post-Brexit)
- Transferring to QROPS (subject to overseas transfer rules)
- Transferring to a UK SIPP (flexible and internationally managed)
Taxation of UK Pensions in Spain
Income from UK pensions is taxed as earned income in Spain. Spanish DTA rules allow NT tax codes to prevent UK withholding. Social charges may apply depending on circumstances.
Taxation of QROPS & Lump Sums
QROPS may be treated as investment income under Spanish law. Lump sums are taxed in various ways depending on planning choices. Professional guidance is recommended.
Death Tax & UK State Pensions
Death tax may apply depending on beneficiary residency. QROPS can provide a way to pass funds to beneficiaries tax-efficiently. UK state pensions remain taxable in the UK but are typically exempt from Spanish social charges.
Need help deciding what to do with your UK pensions while living in Spain? We can help you explore the right options for your situation.
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.
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. Explore these opportunities to make your finances work harder for you while staying fully compliant.
Spanish-Compliant Bonds
Specially designed investments for expats that reduce income and inheritance tax exposure while remaining compliant.
Tax Efficiency Advantages
Using Spanish-compliant investments avoids foreign asset declarations and may simplify tax reporting.
Investment Flexibility & Estate Planning
Compliant investments allow multi-currency options, probate-free inheritance, 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 to ensure compliance and make the most of available planning opportunities. 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 pension options (UK and local)
- Check double tax treaty implications
- Consider inheritance and estate planning
- Stay compliant with social security contributions
Resources:
- Spanish Tax Authority – Agencia Tributaria – official guidance on income, wealth, and VAT obligations.
- UK Government – Guidance on Living in Spain – practical guidance for UK nationals on taxes, pensions, and residency.
See What Our Clients Say
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
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
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Great experience using Ben at SJB global. Made it so easy to draw down funds, great timely communication with the added complexity of a 11 hour time difference. More importantly... read more
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A great caring team, nothing is ever too difficult for them to help you work through a problem.
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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
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I have corresponded and spoken on the phone with Piers Kemp. His client service skills hit the top marks. He is professional, helpful, kind, polite, and knows what he is... read more
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Since start of using SJB Global in 2018, I've restructured my pension and savings plans. Professional knowledge, experience and understanding of different available products has enabled me to make... read more
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SJB Global have been my pension provider for a few years now. From switching over which was effortless to the array of products that they have access to is impressive.... read more
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Whilst early in my journey with SJB I have been very impressed by the knoweldge, perseverance and professionalism I have benefited from as a client of Ben Eccles. Whilst there... read more
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Thoroughly satisfied in the service, no hesitation in recommending Lewis and the team.
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I moved my investment portfolio to SJB Global earlier this year as I was not seeing any growth with my previous investment company. I have to say that from the... read more
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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
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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
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We moved our financial advisor from UK to Ben Eccles at SJB Global and have been very impressed with the care and attention to detail that he provides. He... read more
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Very professional and trustworthy financial consultants. I have had many discussions and dealings with Alex Gover and have found him to be extremely helpful, honest and insightful.
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very professional, friendly. good expertise. able to answer any and all relevant questions. proactive and trustworthy
jeremy hotchkiss
Down to earth financial advice, and fees that don't cost the earth.
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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
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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
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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
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We have been extremely impressed with the professionalism and quality of SJB Global. Randal has been our contact throughout the process of setting up our arrangements and he has shown... read more
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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
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
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Excellent service Lewis was fantastic to deal with on all matters
Steve Weston
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
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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!
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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
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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
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
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
I moved my investment portfolio to SJB Global earlier this year as I was not seeing any growth with my previous investment company. I have to say that from the... read more
Paul Simms
Since start of using SJB Global in 2018, I've restructured my pension and savings plans. Professional knowledge, experience and understanding of different available products has enabled me to make... read more
Paul Austin
We have been extremely impressed with the professionalism and quality of SJB Global. Randal has been our contact throughout the process of setting up our arrangements and he has shown... read more
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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
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I have found the support and advise offered by Daniel Lattimer to be very clear, concise and accurate. I can highly recommend him.
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Ready to Get Started?
Managing finances across Spain and the UK doesn’t have to be complicated. With expert advice, you can stay compliant, tax-efficient, and confident about your financial future.
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.