If you receive a pension from the UK, Ireland or Germany and you live in Spain, you are in most cases required to declare it on your Spanish tax return — even if tax was already deducted at source in your home country. Many people do not, and the consequences can be significant.
There is one important exception: government and civil-service pensions (for example UK Crown, NHS, teacher, armed-forces or police pensions) are generally taxed only in your home country, with Spain applying exemption-with-progression. Knowing which rule applies to your pension is the difference between overpaying and under-declaring. Try our UK pension tax calculator.
The mistake that catches out retirees in Spain is assuming a pension already taxed abroad can’t be taxed again — once you’re tax resident, Spain often can, and the treaty detail decides how much.
Foreign Pensions Taxation Spain
If you become tax resident in Spain, foreign pensions are generally reportable and often taxable in Spain. However, the final treatment depends on the applicable double taxation treaty and the type of pension involved.
UK pensions, US Social Security benefits, government pensions, and private retirement schemes are all treated differently under Spanish tax law. One of the most common mistakes among expats is assuming that because tax was already paid abroad, Spain cannot tax the pension again.
In practice, pension taxation in Spain often requires detailed treaty analysis. We regularly see retirees receiving incorrect advice from non-specialist tax preparers regarding Modelo 720, foreign pension reporting, and Spain-US or Spain-UK treaty interpretation.
This is general information, not definitive legal advice — every case requires individual analysis.
Any taxpayer who is resident in Spain and is claiming a pension from abroad must make a number of considerations to avoid any nasty surprises, especially regarding taxation.
Quick Answer: If you are a tax resident in Spain receiving a pension from abroad, you must declare it on your Spanish income tax return (IRPF). The tax-free threshold is 15,000 euros for foreign pensions (or 22,000 euros if it is your sole income source). Tax rates range from 19% to 47% progressively. Double taxation agreements may allow credit for tax already paid in your home country.
When in your home country – that’s to say the country from which the pension is being claimed – income tax is often withheld automatically in advance by the entity disbursing the pension. However, if that entity is not operating within Spain, this entity is not compelled to do so.
Therefore, if you’re required to fulfil personal income tax obligations in Spain, either due to provisions in the Double Taxation Agreement (DTA) with the pension’s country of origin or due to the absence of such an agreement, you need to understand your tax obligations.
What is the tax threshold on foreign pensions in Spain?
Does Spain Tax US Social Security Benefits?
If you are a US citizen tax-resident in Spain, US Social Security usually has to be declared on your Spanish income tax (IRPF) return. The US–Spain treaty was long read as taxing Social Security only in the United States, but the Spanish Tax Authority (AEAT) now treats it as taxable in Spain with a deduction to relieve double taxation. The position is genuinely disputed, so individual advice matters.
Is US Social Security exempt from Spanish tax? Not under the AEAT’s current rulings — Spanish residents generally include it in their IRPF and claim a double-taxation deduction, rather than treating it as exempt.
This is general information, not definitive legal advice — every case requires individual analysis.
How Are Foreign Annuities Taxed in Spain?
Foreign annuities are taxed in Spain as savings income, but favourably: only part of each payment is taxable. For a lifetime annuity the taxable portion depends on your age when payments start — from 40% (under 40) down to 8% (age 70+), with the rest tax-free. The taxable part is then taxed at Spain’s savings rates (19%–30% for 2025/2026 income).
What part of a Spanish annuity is tax-free? For a lifetime annuity it ranges from about 60% tax-free (under 40) to 92% tax-free (age 70+); temporary annuities are taxed on a different fixed percentage by term.
This is general information, not definitive legal advice — every case requires individual analysis.
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Email marialuisa@costaluzlawyers.es with a short description of your situation. We reply with the next step and who in the firm handles it. If your question turns on your own documents or figures, reviewing them is a separate, scoped service that we explain before any work starts.
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The amount of tax you need to pay on a foreign pension depends on a number of factors.
Principally, the threshold changes depending on whether it is the claimant’s sole source of income, or otherwise.
When a foreign taxpayer resident in Spain earns a pension from a foreign source, according to Article 96.3 of the Income Tax Act, the threshold to declare this income is currently set at 15,000 euros.
However, this changes if an individual’s entire earned income comes from a single source. Here, the threshold mandating the duty to declare stands at 22,000 euros per annum (as per Article 96.2.a and 3 of the Personal Income Tax Law).
That said, this threshold is generally not applicable to taxpayers who receive income from multiple payers. This is primarily due to the discrepancy that often arises between the taxes already remitted through periodic payments by the withholder or payer, and the eventual tax liability. However, there are instances where this threshold applies. These include:
- If the combined sum of earnings from the second and remaining payers, in order of amount, does not surpass 1,500 euros annually.
- In situations where employment-based earnings encompass pensions and passive benefits as defined in Article 17.2.a of the Income Tax Act, and the determination of the appropriate withholding rate adheres to the specialised procedure to be established by regulation.
The information is in accordance with the Central Economic Administrative Court ruling dated 28 June 2022.
How much tax do I need to pay on my pension?
In Spain, income tax is charged at the same rate for both general income and pensions.
Therefore, pensions in Spain are subject to progressive tax rates ranging from 19% to 47%, as follows:
- Up to €12,450: 19%
- €12,451 – €20,200: 24%
- €20,201 – €35,200: 30%
- €35,201 – €60,000: 37%
- €60,001 – €300,000: 45%
- Over €300,000: 47%
Moving to Spain on a visa? See the main hub here: Non-Lucrative Visa Spain (2026).
Frequently Asked Questions About Foreign Pensions and Spanish Tax
Do I have to pay tax on my UK pension in Spain?
Yes. Under the UK-Spain Double Taxation Agreement, most UK pensions (including state and private pensions) are taxable only in Spain if you are a Spanish tax resident. Government pensions may be taxed in the UK only.
Is my US Social Security pension taxable in Spain?
Under the US-Spain tax treaty, US Social Security pensions are generally taxable only in Spain for Spanish tax residents. You must declare the full amount on your Spanish IRPF return and can claim a credit for any US tax withheld.
What is the tax-free threshold for foreign pensions in Spain?
If a foreign pension is your only income source, the declaration threshold is 22,000 euros per year. If you have other income sources, the threshold drops to 15,000 euros. Below these amounts, you may not need to file, but deductions and credits may still make filing beneficial.
Can I avoid double taxation on my foreign pension in Spain?
Yes, through Double Taxation Agreements (DTAs). Spain has DTAs with most countries. These agreements determine which country has the right to tax your pension and provide mechanisms (credits or exemptions) to prevent paying tax twice on the same income.
What forms do I need to file for foreign pension income in Spain?
Spanish tax residents file Modelo 100 (annual income tax return). You may also need the Modelo 720 to declare overseas assets above 50,000 euros and the new Modelo 721 for cryptocurrency holdings. Filing deadlines are April-June each year.
Your tax experts in Spain
If this all sounds very confusing to you, don’t worry – we’re here to help! At CostaLuz Lawyers, we make Spanish tax and pensions straightforward for you.
So, if you’re planning on moving to Spain for your twilight years – or you’re already in Spain and are approaching retirement age – don’t hesitate to get in touch for any assistance you need.
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Related Tax Guides for Expats in Spain
Frequently Asked Questions
Q: Are foreign pensions taxed in Spain?
Yes. If you are a Spanish tax resident, your worldwide income — including foreign pensions — is subject to Spanish income tax (IRPF). The pension is added to your general taxable base and taxed at progressive rates from 19% to 47%, depending on your total income.
Q: Can I avoid double taxation on my pension in Spain?
Spain has double taxation agreements (DTAs) with over 90 countries. Most DTAs allocate pension taxation to the country of residence (Spain), but government/civil service pensions are often taxed only in the paying country. Your specific DTA determines which rules apply.
Q: Do I need to declare my UK pension in Spain?
Yes. UK state pensions and private pensions must be declared in your Spanish IRPF tax return if you are a Spanish tax resident. Under the Spain-UK DTA, private pensions are taxed in Spain, while UK government pensions may be taxed only in the UK.
Q: What is the Beckham Law and can it help with pension tax?
The Beckham Law (Special Tax Regime for Inbound Workers) allows qualifying new residents to pay a flat 24% tax on Spanish-source income for up to 6 years. However, foreign pensions are generally not covered under this regime, as it primarily benefits employment and director income.
How Different Foreign Pensions Are Taxed in Spain
| Pension Type | Taxed Where? | Treaty Article | Rate in Spain |
|---|---|---|---|
| UK State Pension | Spain only | Art. 17 UK-Spain Treaty | 19–47% IRPF progressive |
| UK Private Pension | Spain only | Art. 17 UK-Spain Treaty | 19–47% IRPF progressive |
| US Social Security | US only | Art. 20 US-Spain Treaty | Exempt in Spain |
| US Private Pension (401k/IRA) | Spain only | Art. 17 US-Spain Treaty | 19–47% IRPF progressive |
| French State Pension | France only | Art. 18 France-Spain Treaty | Exempt in Spain |
| German Rente (state) | Split taxation | Art. 18 Germany-Spain Treaty | Varies — partial exemption |
| Irish State Pension | Spain only | Art. 18 Ireland-Spain Treaty | 19–47% IRPF progressive |
Related Legal Guides
For a complete overview of taxation in Spain, see our Spanish tax guide for pension income.
Aviso legal: Esta informacion se proporciona unicamente a titulo orientativo y no constituye asesoramiento fiscal o legal personalizado. Cada caso debe evaluarse de forma individual segun las circunstancias especificas del cliente. Es imprescindible consultar a un especialista cualificado antes de tomar cualquier decision.
Legal Notice: The content on this page is provided for general informational and educational purposes only. It does not constitute legal advice and should not be relied upon as such. No action should be taken based solely on this content without first seeking independent professional legal counsel. Each case requires individual assessment based on its specific circumstances. CostaLuz Lawyers accepts no liability for actions taken or not taken based on this content.
Related guide: our Spanish tax lawyer service for expats.
This is general information, not definitive legal advice — every case requires individual analysis.
Book a call about your foreign pension. We will confirm exactly what you must declare in Spain, what is taxed only at home, and what to do if you are behind. No obligation, no vague answers.
Prefer to write first? Send a message → — María replies within one business day.
Need to speak now? +34 919 499 342 (EN/ES, 24h). Office: +34 956 092 687. Costaluz Lawyers — Maria de Castro, ICA Cádiz nº 2745.
Related Spanish tax guides
- Many retirees also let out property — here’s how rental income is taxed in Spain: Your guide to taxes on rental properties in Spain.
- Wondering when you become a Spanish tax resident? See the 183-day rule explained: NLV Tax Residency (2026) — 183-Day Rule, Obligations & Checklist.
Frequently asked questions
Does Spain tax UK pensions?
Does Spain tax US Social Security?
Are government pensions treated differently?
Can I be taxed twice?
Do I need to declare foreign pensions in Spain?
I will be moving to Spain, my UK pension is from one source and less than Euro22,000 per year. From the information above does that mean I will not have to pay any Spanish tax on my income? Many thanks
Dear Karen:
Based on your situation—moving to Spain with a UK pension as your sole income source, totaling less than €22,000 per year—you might not be required to pay Spanish income tax on this income. Spain’s tax system includes thresholds for income taxation, and incomes below a certain level may not be taxable. However, tax residency status and international agreements, such as the double taxation treaty between the UK and Spain, can influence your tax obligations.
It’s crucial to note that tax regulations can change, and individual circumstances can significantly impact tax liabilities. Therefore, while you might fall below the threshold for income tax based on the information provided, it’s highly recommended to seek advice from a tax professional familiar with both Spanish and UK tax laws for accurate and personalized guidance. We can offer personalised advice if you need it and help you to submit taxation every year.
Best regards,
Maria
I pay tax on my Teachers Pension in the UK but when my old age pension is due later this year will I pay income tax on it in Spain? My State Pension falls below the 15000 euro threshold.
Dear Caron:
If you’re a tax resident in Spain, you must declare worldwide income, including UK pensions, subject to Spain’s tax rules due to the Spain-UK DTA ( Double Taxation Agreement).
The need to file a tax return depends on your pension income: €22,000 annually from a single payer, or €14,000 if from multiple payers with additional income over €1,500. We can assist you if you need assistance for filing your tax returns
Best,
Maria
My spouse and I are considering retiring early to Spain. We expect to withdraw $80,000 USD dollars from both our employment-related pensions, and eventually including our government pension, when that begins when we reach our government’s retirement age. Does that mean we would owe $36,000 USD (converted to equivalent Euros) for the rest of our lives if we become Spanish tax residents? If for example, we owed $8000 USD on those same funds on our U.S. tax filing, would that be deducted from our Spanish tax debt in the equivalent Euros? Thanks in advance. We are also looking finding a good tax attorney should we decide to make this life change, so I am glad we found your site.
Dear Steve:
Retiring to Spain and understanding the tax implications, especially for U.S. citizens, requires careful planning. Spain and the U.S. have a Double Taxation Agreement (DTA), which is designed to prevent the same income from being taxed by both countries. Here’s a brief overview based on your situation:
Taxation of Pension Income:
As Spanish tax residents, you would be taxed on your worldwide income, including your employment-related and government pensions. The tax rate in Spain varies depending on the amount of income and the region where you reside, as each autonomous community in Spain sets its own tax rates within the framework of the national tax system.
Double Taxation Relief:
Under the Spain-U.S. DTA, tax paid in one country can often be offset against tax due in the other, to prevent double taxation. This means if you pay tax on your pension income in the U.S., you can typically claim a credit for this tax against your Spanish tax liability on the same income.
Example Calculation:
If you owe $8,000 USD in U.S. taxes for your pension income, and your Spanish tax bill on that same income is $36,000 USD (converted to Euros), you should be able to deduct the $8,000 USD you paid in the U.S. from your Spanish tax bill, reducing your tax liability in Spain accordingly. However, the exact amount of relief you get will depend on the specific details of your income and the tax rates that apply in the Spanish region where you reside.
We will be pleased to assist you further on this if needed
Best regards,
Maria
My only income is my U.K. private pension which is £24,000, would I deduct my tax allowance here in Spain of €5,500 + €2,000 before seeing if my total income is below €22,000 and therefore not liable for income tax?
If you are resident for tax purposes in Spain, you will be subject to Spanish Personal Income Tax on all your worldwide income including your UK pension. If your only income is this pension the limit for being liable to declare in Spain is 15,000 euros, so in general terms you would be obliged to declare.
Yes but we need to know if we deduct the allowance first and declare the remaining balance? That was not answered
Hi Dee,
Thank you for your follow-up question. To answer clearly: No, you should never deduct the allowance yourself and declare only the remaining balance. You must always declare the total gross income.
When you file your Spanish tax return (Modelo 100), you are required to report the total gross pension amount received before any deductions or taxes. The tax system itself then automatically applies your personal minimum allowance (mínimo personal), age-related allowances (such as those for being over 65 or 75), and standard pension reductions to calculate your final tax bill.
If you deduct the allowance beforehand and only report the net balance, the Spanish Tax Agency (Hacienda) will flag it as an under-declaration. Because Spain automatically exchanges tax data with the UK (HMRC), their system will see a mismatch between the gross figures reported by the UK and the lower amount you declared, which can immediately trigger an automated tax audit and penalties.
Always declare the gross amount and let the system calculate the deductions for you!
Kind regards,
The CostaLuz Lawyers Team
Thanks for all your great answers to the questions above. We’re American citizens who emigrated and became Canadian citizens. Each year, we filed our Canadian taxes and then our US taxes. We benefited from the treaties that you described. So unless we earned US income, we generally had to pay no US taxes. Now we have immigrated to Spain. We did not understand the tax implications of the 183+ days (and as of Dec 31, we were here 185 days). We have been assuming that we should file Spanish first, and then Canadian and then US. Both Canadian and US incomes are all pensions now. We no longer earn other income. and we’re in Spain on the NLV so we can’t work here even if we wanted to. Some pension sources deduct taxes in advance and some do not–so it seems as if the benefit of taxes already paid internationally won’t be available to us if we file in Spain first. Never mind that no one seems to know when the filing date is in Spain . . . but that’s another issue. Would you recommend that we file in North America first and then in Spain? Thanks so much! All my best, Linda
Dear Linda,
Thank you for your detailed message. International taxation can indeed be complex, especially with multiple citizenships and residency involved. Given the specifics of your situation, it’s crucial to approach this with careful consideration of the tax treaties and regulations in place between Spain, Canada, and the U.S., we cannot give to you any answer without previous analysis of your specifics , they need to be reviewed in detail and you need to obtain personalized advice. You can contact is for further personalised advise on this if needed.
Best regards,
Maria L. de Castro
Hello again, I´m terribly sorry. The tax bracket is 30% which changes the figures quoted above. 32300.00 x 30% = 9690.00 annually however should the tax relief be applicable it is
32300.00 minus 14000.00 = 18300 x 30% = 5490.00 annually. Hopefully this is more or less correct now.
Dear Angela:
In your case, as a tax resident in Spain with a total pension income of €32,300, you must apply Spain’s progressive tax rates after considering personal allowances. The calculation isn’t as straightforward as applying a single percentage to the entire amount. Instead, different portions of your income are taxed at varying rates, starting from 19%. The allowance for individuals under 65 is €5,550, reducing your taxable base, not a tax-free allowance of €14,000. Your actual tax liability will likely be lower than simply applying 24% to the total income.
Can you clarify what happens in the following circumstances. I am a UK citizen
I am a tax resident in Spain and paid Spanish tax etc as Autonomos for many years.
Now aged 69 and retired, My sole income is from State Pensions (UK and Spanish)
For 2023 I received €4414 from INSS Spanish Pension plus €6792 (equivalent) from UK State Pension Plus €223 bank savings interest Total €11429. This is below both the €22000 and €15000 thresholds, where no Spanish tax RETURN is required. However my current tax free allowance is €6700, So technically this leaves €4729 to pay tax on at 19%, So If I do not submit a tax return (as per threshold rules) am I going to get into trouble, I find the rules around this very confusing
Dear Veronica,
Thank you for contacting us.
Please be informed that if you are a tax resident in Spain, you will be subject to Spanish Personal Income Tax on all your worldwide income, including your UK/Spanish pensions and interest.
Given that Spanish taxes depend very much on each situation, on each specific case and there are many rules, reductions and exceptions, we can offer to study your case with your real situation, checking thoroughly the Spanish tax legislation, the Double taxation agreement signed by Spain and UK and give you a proper answer and to determine whether you are obliged to file a tax return and in this case what will be the amount of income tax to be paid. We will be pleased to offer you our tailored consultancy, which is a written reply or a tax legal report.
We will contact you by email to give you more details.
At your disposal for any further clarification.
Kind regards,
Good afternoon,
I wonder if you could advise please.
We will be moving from our house in Valencia to a new house in Monachil, Granada in a couple of weeks.
I have been autonomo for 3 years and before COVID had a part time contract working for a language school as an ESL teacher for several years. I have permanent and fiscal residency here in Spain.
I will qualify for my UK state pension in 2 years time but also have approx £165.000 in a a Scottish Widows UK Drawdown PP and £275.000 in an International SIPP. I am considering starting to taking an income from them within the next 12 – 18 months as I don’t want to continue paying to be autonomo as it is so expensive also with the Asesoria fees held on retention and I don’t think I will qualify for any Spanish State pension as I wouldn’ t have sufficient years.
Can I have my drawdown pension paid to a uk bank account but then declare it as income in Spain ?
I am looking at a figure of £3000 pm until my State pension is available then reducing to £2000 pm. I want to make sure I comply with the tax requirements. I wasn’t sure if it has to be paid directly to a Spanish bank account. The same for my UK state pension in 2 years time.
Would you be able to assist in tax returns when I live in Granada.
Many thanks
Antony
Dear Antony:
Thank you for reaching out. Moving to Granada sounds like an exciting adventure! When it comes to managing your pension income, it’s essential to navigate the tax implications correctly, especially across borders.
Generally, income received from UK pensions can be declared in Spain, even if paid to a UK bank account. However, various factors, such as residency status, tax treaties, and the specific nature of your pensions, can influence the tax treatment.
Given your circumstances, it’s crucial to ensure compliance with Spanish tax requirements and optimize your tax situation. We specialize in tax advisory services and have experience assisting expats with their tax obligations in Spain.
Our Tax specialist, Ana Landa, will reach out to your email shortly to provide further information and discuss how we can assist you in managing your tax affairs effectively in Granada.
Best regards,
Maria L. de Castro
Hello,
I have a question or two I am hoping you can help me with regarding my U.S.-based/taxed public service pension and taxation in Spain.
Article 21 regarding Government Service, paragraph 2 of the Tax Treaty between Spain and the U.S. states:
(a) Any pension paid by, or out of funds created by, a Contracting State or a political
subdivision or a local authority thereof to an individual in respect of services rendered to that
State or subdivision or authority shall be taxable only in that State.
(b) However, such pension shall be taxable only in the other Contracting State if the
individual is a resident of, and a national of, that State.
If I read this correctly, As a tax resident of Spain, I would not be taxed on my public service pension (though it would be considered income when calculating my tax bracket for other income), but if I became a Citizen it would then be taxed, or am I just not understanding section (b)?
I thank you for your time,
Douglas
Hello Douglas,
Thank you for your inquiry regarding taxation of your U.S.-based public service pension in Spain. The provision you referenced, Article 21 of the Tax Treaty between Spain and the U.S., indeed addresses the taxation of government service pensions.
As you correctly pointed out, paragraph 2 of Article 21 stipulates that pensions paid by a contracting state (in this case, the U.S.) to an individual for services rendered to that state are taxable only in that state. However, there is an exception outlined in subparagraph (b), which states that the pension would be taxable in the other contracting state (Spain) if the individual is both a resident of and a national (citizen) of that state.
So, if you are a tax resident of Spain but not a citizen, your U.S.-based public service pension would generally be taxable only in the United States, as per the treaty. However, it’s important to note that tax treaties can be complex, and their application may vary depending on individual circumstances.
For a definitive analysis of your situation and how the tax treaty applies to you, it would be advisable to conduct a detailed review with a tax advisor or legal expert familiar with international taxation and the specific provisions of the U.S.-Spain tax treaty. They can provide personalized guidance based on your residency status, citizenship, and other relevant factors.
If you’d like further assistance or a more detailed analysis of your case, please feel free to reach out, and we can discuss your situation in more depth.
Best regards,
If my only income is from my UK private pension, and it is below €22,000 per year, then am I exempt from Spanish taxation as a Spanish (expat) resident?
Dear Mark:
As a Spanish resident, if your only income is from a UK private pension and it is below €22,000 per year, you are generally exempt from filing a Spanish tax return. However, it’s advisable to confirm this with a tax advisor to ensure compliance with all applicable regulations.
Best regards,
If you’re only income doesn’t meet the threshold of what you have to prove as the minimum passive income, how are you able to move to Spain? I ask because I’m in a similar situation.
If your passive income doesn’t reach the Non-Lucrative Visa minimum (about €28,800/year in 2025), you can sometimes make up the difference with savings, or consider alternative routes such as the Digital Nomad Visa (for remote workers) or the EU family member regime if you have qualifying relatives.
Good afternoon, I have Spanish residency and have two British pensions, one is local government so must remain taxed in UK, the other is the British state pension.The local government pension has just risen above the threshold (£12570.00)That doesn’t concern me, what I would like to know is will I pay tax on my British state pension? From April this year it is £221.59 per week,(£11522.00?) I am 80 years old.Regards Norman.
Good afternoon,
If you have Spanish residency and receive a British state pension, it’s important to understand how it will be taxed. Under the Spain-UK double taxation agreement, your British state pension will be taxable in Spain.
Key points:
Local Government Pension: This remains taxed in the UK.
British State Pension: Taxed in Spain as regular income.
Given the progressive tax rates in Spain, your total income will determine the exact tax rate. It’s advisable to consult a tax advisor for personalized guidance.
For more information or assistance, feel free to reach out.
Regards,
Norman
Please tell me exactly where on the US Tax form 1040 I would report income taxes paid to Spain from retirement accounts, social security, and pensions? It is easy to find where taxes paid to Spain as a result of income earned there are reported on schedule 3 and form 1116, but I am referring to passive retirement income from the US that results in income tax being paid to Spain. If you have no familiarity with US tax forms I understand. Thanks, Fred
To report taxes paid to Spain on U.S. retirement income, such as pensions and Social Security, you would use Form 1116 to calculate the foreign tax credit. The resulting credit is then transferred to Schedule 3, Line 1, and reported on Form 1040, Line 20. This process helps reduce your U.S. tax liability by the amount of taxes already paid to Spain. However, due to the complexity of international tax matters, it’s always advisable to consult with a tax professional to ensure accurate reporting.
If a pension is 15,100/year does that mean that one is taxed on the entire amount or only the 100 (amount over 15,000)?
In Spain, if your pension is your only source of income and comes from a single payer, the first €22,000 per year is tax-exempt. If you have multiple sources of income, the threshold lowers to €14,000. Only the amount exceeding this threshold would be taxed.
How can someone retire to Spain if they only have one source of income that is €22,000? Isn’t the minimum passive income threshold more than that?
With only €22,000 a year you don’t meet the Non-Lucrative Visa minimum (about €28,800 in 2025). To retire in Spain with less income you’d need to top it up with savings, qualify under the EU family route (if you have an EU spouse/partner), or choose another visa/investment option that doesn’t require that income level.
With €22,000 a year you would not meet the current Non-Lucrative Visa (NLV) threshold. In 2025, Spain requires about €28,800/year for the main applicant. The shortfall can sometimes be covered with savings or another visa route such as the Digital Nomad Visa.
We lived in Fuerteventura for 7 years as tax residents then moved to the main land March 2023. Due to illness we have our home here for sale as we need to be within walking distance of amenities.
More than one question please, firstly will we have to pay tax when we sell (we are staying in Spain) not sure where we will move to still in Andalucia hopefully.
The other question, I am 75 my Husband 79. Both later this year.
£15,442.96 52 weeks total My total income
£22,565.96. 52 weeks total Husbands total income.
We are both paying tax on this (note it’s £ Stirling )
It’s state pensions and works pensions.
Tax to pay
David 3.516,68 €
Lynn 988,01 €
For 2023
Is this correct please?
Kind regards
Lynn
Hello Lynn,
Thank you for your message. I understand your situation and will do my best to provide some clarity.
Capital Gains Tax on Property Sale
Since you are planning to stay in Spain after selling your home, you may be liable to pay capital gains tax (CGT) on the sale of your property. However, there are exemptions and reductions available, especially for residents over 65 years of age who have lived in the property for at least three years. Given your ages and the length of time you’ve owned your home, you might be eligible for some of these benefits. It’s essential to have a professional review your specific situation to confirm.
Income and Taxation
Regarding your income and tax:
David’s Income: £22,565.96 annually
Lynn’s Income: £15,442.96 annually
Both incomes are subject to Spanish taxation as you are tax residents in Spain. The tax you mentioned for 2023 is:
David: 3,516.68 €
Lynn: 988.01 €
These amounts seem to reflect tax on your total incomes, but it is crucial to verify whether these taxes have been calculated correctly, also know that Spain taxes worldwide income for its residents, and your UK pensions would be included in this calculation. The tax rates can vary depending on your total income and applicable deductions or allowances.
Action Steps
Review Capital Gains Tax: Ensure you qualify for any exemptions or reductions on the capital gains tax when you sell your property. This could significantly reduce your tax liability.
Please let me know if you would like us to assist further with these matters. We can offer you a detailed service and provide a quotation for our fees.
Best regards,
Good Morning,
I am looking to retire to Spain within the next two years. At that point my private pension drawdown would be around 12500 euros. I would also drawdown a sum only from interest earned on my savings, of roughly 8000 euros per annum. Making a total of €20500 per annum. Would I be right in thinking these sums would be subject to income tax, or would they be tax free? Both sums are from expected interest earned without touching the capital.
Thank you for any help you can give.
Taxation of Pension Income and Interest in Spain
When retiring to Spain, your private pension drawdown and interest earned on savings will generally be subject to Spanish income tax. Here’s a brief overview:
Pension and Interest Tax Rates (2023):
1. Private Pension Drawdown:
Amount: 12,500 euros per year
Tax: Treated as regular income and taxed according to these rates:
Up to 12,450 euros: 19%
From 12,450 to 20,200 euros: 24%
From 20,200 to 35,200 euros: 30%
From 35,200 to 60,000 euros: 37%
Over 60,000 euros: 45%
2. Interest Earned on Savings:
Amount: 8,000 euros per year
Tax: Categorized as investment income and taxed as follows:
Up to 6,000 euros: 19%
From 6,000 to 50,000 euros: 21%
Over 50,000 euros: 23%
Additional Considerations:
Double Taxation Agreements: Spain has agreements with many countries, including the UK, to avoid being taxed twice on the same income. Consulting a tax professional is advisable to understand your specific situation.
Our Services:
We offer tax planning and support to help you understand your obligations and minimize tax liability.
1. Initial Tax Consultation:
Includes: Review of your financial situation and tax-efficient retirement planning.
Cost: 200€ + VAT.
2. Ongoing Tax Support:
Includes: Tax planning, preparation, and filing of tax returns.
Cost: Based on the complexity of services required.
Contact Us:
Let us know if you need further information or wish to proceed with our services. We are here to help ensure your retirement to Spain is smooth and tax-efficient.
Best regards,
Maria
Hi Maria
I am intending to retire to Spain (Valencia) early next year.
Government Pension: When I do so I will receive £19000 per year from a UK Govt Pension., which I understand wont be taxed in Spain through the double tax ruling. After taking my personal allowance (£12750) this leaves me to pay 20% tax on the remaining £6250 = £1250 Leaving me £17750 .
When I do move to Valencia, I will also be drawing down £20000 per year from a private pension. If I stay in UK having already used my personal allowance this £20000 will be taxed at 20% so I pay £4000 pounds per year on the private pension.
My question is, will I pay less tax in Spain.
Thanks for any advice
Dear Graham:
When you retire to Spain and become a tax resident, your UK Government Pension will continue to be taxed in the UK under the Double Taxation Treaty between the UK and Spain, so it won’t be taxed again in Spain. However, your private pension will be taxed in Spain as part of your worldwide income as the Double Taxation Treaty ensures that it is only taxed in the country of residence. However, you should notify HMRC of your residency change to stop UK taxation on your private pension.
In Spain, tax rates are progressive, starting at 19% and increasing up to 47%, depending on your total income. This might result in a lower tax rate on your private pension compared to the 20% you would pay in the UK, but this depends on your overall income.
Consulting a tax advisor familiar with both UK and Spanish tax laws is advisable to ensure the best approach for your situation. We have an International Tax advisor among members of our team: we will be very pleased to offer his services to you.
Best wishes
Maria
Graham:
When you retire to Spain and become a tax resident, your UK Government Pension will continue to be taxed in the UK under the Double Taxation Treaty between the UK and Spain, so it won’t be taxed again in Spain. However, your private pension will be taxed in Spain as part of your worldwide income as the Double Taxation Treaty ensures that it is only taxed in the country of residence. However, you should notify HMRC of your residency change to stop UK taxation on your private pension.
In Spain, tax rates are progressive, starting at 19% and increasing up to 47%, depending on your total income. This might result in a lower tax rate on your private pension compared to the 20% you would pay in the UK, but this depends on your overall income.
Consulting a tax advisor familiar with both UK and Spanish tax laws is advisable to ensure the best approach for your situation. We have an International Tax advisor among members of our team: we will be very pleased to offer his services to you.
Best wishes
Maria
Good morning,
On the subject of pensions from outside of Spain. Reading the website of “Agencia Tributaria” , On the Folletos de residentes con rentas extranjeras, specifically Estados Unidos. The portion that refers to pension received from work performed for the State. That pension is exempt, but it will be applied progressively.
What is that mean? is it exempt but it has to be filed just because? So a teacher working for the state, or a soldier, or an employee from the department of agriculture in the US that has a government pension doesn’t have to pay taxes on that money if they are full time in Spain?
It says they do have to pay if they are Spanish citizens, so what if the person, let’s say an american cop got his pension but is married to a spaniard and retires in Spain, their only income is that pension and maybe 60K in a bank account for emergencies. Do they pay taxes on that pension at the 19% to whatever rate?
Thanks
In Spain, U.S. government pensions for non-Spanish citizens are generally exempt from taxation but must still be reported. However, the exemption is applied progressively, meaning it can affect the tax rate on other income. If married to a Spaniard, the specifics may vary, so professional tax advice is recommended.We will be very pleased to assist you with this.
Maria,
How would Spain tax a 457(b) plan established by a local government in the U.S.? Does Spain consider this a type of government pension and thus exempts the income distribution from taxation?
Thanks
If you are a tax resident in Spain and receive income from a 457(b) deferred compensation plan sponsored by a U.S. state or local government, you may benefit from a tax exemption under the Spain–U.S. tax treaty.
According to the treaty, pensions paid by a public authority of one country for public service are taxable only in that country. This means that if your 457(b) plan comes from employment with a U.S. public entity and the funds were earned through government service, Spain may not tax those distributions.
However, the tax treatment can vary depending on the specific details of the plan: whether the contributions came from public or private sources, the nature of your employment, and the form in which the funds are distributed.
We recommend consulting with a qualified international tax advisor to evaluate your particular case and ensure proper documentation is available, should the Spanish tax authorities request it.
Our firm works with a specialist in international taxation who can help clarify your situation and assist with any necessary steps.
Feel free to contact us if you would like to schedule a consultation.
Good Day
We would like to get an idea of the amount of income tax we would be paying in Spain with the following
We receive a pension in Belgium
We have the option to take a joined pension ( husband and wife as dependent) totaling € 28500 per year
Or
We can each take an individual pension of ( husband ) €22500 and (wife) € 10500 per year or a total of € 33000
Which of the two options would be the best for us
Greetings
Eddy & Maria
In Spain, income tax is progressive, meaning that the more you earn, the higher the tax rate on your income. The decision between taking a joint pension or individual pensions will affect your overall tax burden.
Option 1: Joint Pension (€28,500)
This amount would be taxed as a single income, potentially pushing you into a higher tax bracket. The tax rate could start at around 19% and increase depending on the total income, leading to a higher effective tax rate.
Option 2: Individual Pensions (€22,500 for the husband and €10,500 for the wife, totaling €33,000)
Splitting the income between two individuals might help keep each of you in lower tax brackets. The first €6,000 of income is taxed at 19%, and the next €44,000 at 30%. By spreading the income, you may benefit from lower rates on the initial portions of each income.
General Consideration
Individual Pension Option: Generally, splitting the pension income between two people might result in a lower overall tax burden. Each person could benefit from lower rates on the initial portions of their income.
Joint Pension Option: This might result in a higher tax rate on the combined income, especially if it pushes you into a higher tax bracket.
It’s important to calculate your exact tax obligations under both scenarios. Consulting a tax advisor familiar with Spanish tax law would be the best way to determine the most tax-efficient option for your specific situation.
Hi, I receive approximately 750 euros monthly from the UK government pension. I am 68 years old and have lived in Spain for 13 years, but have never worked or claimed any benefits in that time. I am a Spanish resident and all my paperwork is in order, my wife has worked here with a contract and is a tax payer from day one.
Should I require to notify the authorities about my status?
Hi! As a Spanish resident, you’re generally required to declare your worldwide income, even if your UK government pension is only taxable in the UK under the tax treaty.
Even though no tax may be due in Spain, it’s advisable to include it in your annual tax return for transparency and to stay compliant. Since your wife is a taxpayer and you’ve been living in Spain for 13 years, a simple review could help avoid any issues.
Let us know if you’d like help with this — we can connect you with our tax specialist for a quick consultation.
Hi I am confused
If I move to Spain, I’ll have a work pension income of around €14000 which I will top up from savings. I won’t be eligible for the state pension until 11 years after I move. Will I pay any tax?
Likewise my husband will have two small pensions totalling €8000 per year.
By reading this it looks like we won’t have to pay tax until we get the state pension?
If you move to Spain and have pension income (like your €14,000), you will be taxed on that income, as Spain taxes worldwide income for tax residents. Even if you’re not eligible for the state pension yet, your private pension will still be subject to tax. The tax rate is progressive, so it will depend on the total amount of your income. There is also a personal allowance that can reduce part of your income from being taxed. It’s advisable to check if there is a double taxation treaty between your home country and Spain to avoid being taxed twice.
I’m a U.S. citizen and have been a tax resident of Spain for over 40 years. I have consistently filed in both countries, regularly using forms 2555 and 1116 for the U.S.
I retired here in April of 2023 and started receiving Social Security retirement pensions from both Spain and the U.S. The U.S. pension is less than $2000 a year. (In/from Spain I also receive a widow’s pension and a small pension from my Spanish bank.)
For the 2023 tax year, during an in-person consultation with the Agencia Tributaria, I was told that I must modify my “borrador” of Modelo 100 and add the entire gross amount of my U.S. pension to line/casilla 0003 Rendimientos de Trabajo. I was also told that I may NOT include any of that income or any U.S. tax witholdings on line/casilla 0588 Deducciones Generales – Por doble imposición internacional…gravadas en el extranjero.
For 2023, Spanish taxes owed increased from 39€ to 394€ and I owed $75 to the U.S. for my SSA Benefits.
For 2024, they will increase from 285€ to 909€ and I will also owe $125 to the U.S.
Can you explain why I can’t use that section of Modelo 100? If it doesn’t apply to my situation, to whom does it apply?
Thank you
No. Under the U.S.–Spain Tax Treaty, U.S. Social Security pensions are only taxable in the U.S. and should be excluded from your Spanish tax return.
However, the Spanish Tax Agency doesn’t always apply this rule automatically. You may need to file your return manually and provide proof of the pension’s origin.
Unsure if your return was done correctly? We can help review your filing and ensure the treaty exemption is properly applied for 2024.
Hello,
I am 61 and have dual citizenship with Canada and the Netherlands with plans to move to Spain within the year.
I currently receive a full disability pension plan from Canada of €6500 per year. Dividend and interest income from my investments are about €1500 per year and realized capital gains from my stock investments can range from €5000-€20,000 in any given year. Normally I apply capital losses from former years to my Canadian tax return to cancel out any capital gains here in Canada, of which only 50% of gains are taxed, so my taxes in Canada amount to $300 or so.
If in a year my realized capital gains were €17,000 in addition to the disability, pension income and interest income how much tax would I end up paying as a resident in Spain? I’m not sure but I presume my Dutch citizenship would make me an EU resident of Spain, would it?
Thanks for any advice you can offer.
Kind regards, Irene
Hi Irene, as a Dutch citizen, you can move to Spain freely and register as an EU resident. If you become tax resident in Spain, your worldwide income—disability pension, dividends, interest, and capital gains—would be taxed. Based on €17,000 in gains plus €8,000 in other income, you’d likely pay around €2,000–€3,000 in Spanish tax, depending on deductions and regional rates.
We are currently living in Portugal as temporary residents and considering a move to Spain. Our concern is regarding taxes. Our sole income is from Social Security. We have very little interest/dividends each year.
Currently our SS income is about $68k per year. Can you enlighten me in how and what would be taxed?
Thank you.
If you become a tax resident in Spain, you will be taxed on your worldwide income, including Social Security and small interest or dividends. Spain has treaties to avoid double taxation, but it’s best to consult an international tax specialist to optimize your situation.
Hi, myself and husband are both resident husband is 69 his income is
13,991.03 State pension
6,297.66 Personal Pension
Total 20,288.69
How much would he expect to pay per year please
If you’re tax-resident in Spain, both public and private pensions are taxed under IRPF. On roughly €20 000 of pension income, your personal plus age allowance (€6 700 at age 71) leaves about €13 300 taxable. Applying the state’s progressive rates plus a typical 10 % regional surcharge gives an annual tax bill of around €2 500–3 000.
I am a resident in Spain.I pay tax on my State Pension and Teachers Pension to the UK.
I pay tax in Spain on my State Pension, teachers pension and Spanish pension . Should the gross amount of my Teachers Pension (the money I did not receive) or the nett amount be taken into consideration when calculating my tax in Spain? Would sending a Tax Residency Certificate to H.M.R. enable me to pay tax only to Spain.
You should declare the gross amount of each UK pension on your IRPF return and then claim a credit for the UK tax you’ve already paid, so you’re not double-taxed. Under the Spain–UK Double-Tax Treaty, Spain gets primary taxing rights on pensions for Spanish residents, but you include the full gross pension as income and offset any UK tax paid against your Spanish liability.
If you send HMRC a Certificate of Tax Residence from the Agencia Tributaria, they’ll recognize you as non-UK-resident for tax purposes and (depending on the pension type) should stop any UK withholding. You’ll then pay all tax in Spain, with the UK tax credit simply removing double burdens.
Good afternoon Maria,
Can you please answer this question. We are considering moving to Spain. We are not yet at retirement age, we are 55 and 58. If we move to Spain and live off savings before retirement age on a none lucrative visa will we be taxed on money moving from our savings to Spain so we can live off our savings till pensions kick in.
Thanks,
Jason
After 183 days in Spain you become a tax resident and must file an IRPF return on worldwide income.
Drawing down your own savings principal isn’t taxed, but any interest, dividends or investment gains before your pensions kick in are.
Transferring funds into Spain carries no tax, though you should check Spain’s wealth-tax thresholds and reporting requirements.
Good morning Maria,
We are wanting to retire early in Spain. We are 55 and 58 and looking at a none lucrative visa. If we retire early and live off our savings before our pensions start, what tax do we pay? Or do we not pay tax?
Thanks,
Jason.
You’ll become a Spanish tax resident after 183 days and must file an IRPF return on your worldwide income, but not on drawing down your own savings principal. Any interest, dividends or other investment returns before your pensions kick in are taxable. If you really have no income until pensions start, you’d owe no income tax—though do check Spain’s wealth-tax thresholds.
Good morning Maria,
I live in Spain but do not earn any money or draw a pension, but live of the government pension that my husband receives, which he does his annual tax returns for, am I right in thinking that as I don’t earn any income from any source I am not required to file a tax return, until I receive my UK state pension.
Regards Sara
If you have no income of your own and live solely from your husband’s pension, you are not required to file a tax return in Spain.
You will need to file once you begin receiving your UK state pension.
Hi Maria. I’m confused by some of your answers above. When responding to Judith Deshotels, you wrote: “Under the U.S.–Spain Tax Treaty, U.S. Social Security pensions are only taxable in the U.S. and should be excluded from your Spanish tax return.
But when responding to Debra, you wrote: “If you become a tax resident in Spain, you will be taxed on your worldwide income, including Social Security and small interest or dividends.”
So are U.S. Social Security retirement payments taxed in Spain or not?
Thank you for your question — it’s an important clarification.
U.S. Social Security retirement benefits are not taxable in Spain under the U.S.–Spain tax treaty. They are only taxable in the U.S., even if you’re a Spanish tax resident.
If they’ve been included in your Spanish tax draft (borrador), they should be manually removed. Other types of U.S. pensions (like private or company pensions) are taxed in Spain, so it’s important to distinguish them.
We’re happy to help if you need assistance reviewing your return.
Best regards,
Maria
Hello Maria,
My husband and I have been residents in the province of Malaga since last year and this will be our first Spanish tax year. I write since I have been very confused as well about how US social security is taxed in Spain. As far as I understand the agencia’s rules, US Social Security will be taxed in Spain as a resident if the employment that contributed to the social security was not a state or government entity (public school, federal government office, etc.). I do wonder how that is even enforced though since US social security is issued by the government regardless of what your jobs were over the years. So could you please confirm and maybe provide article/paragraphs of the tax code that clearly state that US retirement income in the form of government issued social security payments is exempt in Spain – regardless of whether you were a government employee or not – from being added to taxable income?
This has been a source of great confusion in the agencia’s site itself and many other sources.
To follow that, if I have “additional” income such as withdrawals from an IRA or rental income in Spain, would the tax brackets in Spain be affected by the overall income, but the actual income calculated only include that in excess of the social security income?
One last question regarding the IRA/401k withdrawals: I read they are treated in general as ordinary income, whereby one would end up paying the higher tax in Spain instead of the one in the USA, without any option to claim a credit in Spain for what tax would be owed in the US for that distribution from retirement plans?
I realize it is a lot to ask and I truly appreciate you kindness in answering my question and that of all here on this very helpful site.
If you could also point me towards your feedback schedule – I understand it varies upon complexity – but having a sliding scale of schedule will help.
I appreciate all you do!
Theoretically, if you are a Spanish tax resident, Spain taxes your worldwide income, and the treatment of U.S. Social Security and IRA/401(k) withdrawals is determined mainly by the Spain–U.S. Double Tax Treaty and Spanish domestic tax rules.
U.S. Social Security benefits may be taxable in the United States under the treaty, and Spain may also take them into account depending on the specific interpretation and whether double taxation relief applies.
Pensions derived from prior employment (including many IRA/401(k) withdrawals) are generally treated as retirement income and are often taxable in the country of residence (Spain), unless they qualify as government service pensions.
Government/public service pensions may follow different rules under the treaty.
Spain applies a progressive income tax system, so the overall tax rate depends on your total taxable base.
Other income (such as Spanish rental income) may affect your marginal rate.
Whether U.S. tax paid can be credited in Spain depends on the specific category of income and treaty interaction.
The practical application can vary depending on documentation, the type of plan (traditional vs. Roth), and how distributions are structured.
For that reason, each case should be reviewed in full by a tax specialist before confirming the final position.
Evening! From Belgium : i want to retire next year to spain on a permanent residence.
I will recieve around 28.000 Euro from only! 1 source(pension)income. So! if i read correctly i will have to pay 19% tax on 28000-22000= 6000×19%= 1140Euro taxes
Am i correct? )))) Thank you 🙂
Hi! Spain applies a progressive tax system, meaning your pension is taxed in bands:
19% on the first ~€12,450
24% on the next ~€7,750
30% from ~€20,200 to €35,200, etc.
So on €28,000, your actual tax would be more than €1,140. We’d be happy to do a personalised tax estimate based on your situation — just reach out!
Hi Maria,
Husband (Toni 68 y old) planning to retire in Spain (Andalusia) in 2026. I have dual citizenship, United States of America and Croatian. My wife (Billy 63 y old) has only USA citizenship. Our income will be US Social security (€28,500- and €16,000-euros net). Spanish Taxes on our social security. Can we qualify for benefits from your post from 08/03/2024?
“Maria Luisa Castro says: August 3, 2024 at 3:46 pm
In Spain, if your pension is your only source of income and comes from a single payer, the first €22,000 per year is tax-exempt. If you have multiple sources of income, the threshold lowers to €14,000. Only the amount exceeding this threshold would be taxed.”
Thank you,
Toni
Thank you, Toni. If both your and your wife’s only income in Spain will be U.S. Social Security, then under current Spanish rules, the first €22,000 per person may be exempt from taxation. In your case, your wife’s income would likely be fully exempt, and only the amount above €22,000 from your pension would be taxed. For a full review based on your situation, feel free to contact us directly.
Hi,
I am a Swiss Citizen and considering to move to Andalusia and take residency end of this year. I decided to get my Pension already with 62 instead of 65 and my reduced income from the Pension would be around CHF 22’700 =
~EUR 24’100.
This Pension would be my sole income.
-Would I be eligible for the deduction of as i remember EUR 5500?
-If yes, would this then result in a taxable income of EUR 18’600 and would this be in the tax free threshold of EUR 22’000?
-Or would I have to pay still progressive taxes on the reduced amount of 18’600 or even on the total amount over 24’100?
In Spain, the €5,550 personal allowance can apply if you are a tax resident and your pension is treated as earned income.
Even after applying it, the remaining amount is still subject to progressive tax rates — there is no flat €22,000 “tax-free” threshold for foreign pensions.
US citizen here, thinking of moving to Spain upon retirement. Income will be from a California pension. I understand the tax treaty rules on double taxation. But my question is on WITHHOLDING prior to filing. Is there a way to avoid double withholding as a US citizen living abroad in Spain? Otherwise we would get very little every month in income from all the withholding until we file and get a massive refund from the treaty.
As a U.S. citizen, you’ll still face U.S. withholding on your California pension even if you live in Spain, since state pension payers usually won’t apply the treaty upfront. The double taxation treaty means you won’t pay tax twice in the end, but in practice you may be over-withheld and then reclaim it when you file. Some people manage this by adjusting estimated payments or keeping a cash buffer until refunds arrive.
Bonjour
J’habite en Suisse , marié, j’ ai la double nationalité suisse et italien. Mon âge est de 67 ans et mon épouse 63 an. Notre AVS et notre 2 pilier correspond à environ 6500.- par mois et une fortune de 3000000.-
Je possède aussi 3 sociétés immobilières Sàrl qui ne sont pas bénéficiaire actuellement et deux maisons.
Je souhaite m’installer définitivement en Andalousie.
Pouvez vous me dire combien d’impôt environ je vais payer en Espagne en fonction des informations que je vous ai donné ? Et si des impôts seront aussi à payer en Suisse.
Merci pour vos réponses.
En vous installant en Espagne, vos pensions seraient imposées en Espagne (environ 16–19 k€ par an sur 78 kCHF de revenus en Andalousie). Pas d’impôt sur la fortune en Andalousie, et l’impôt de solidarité de l’État ne s’applique généralement qu’au-delà de 3,7 M€ par personne, donc avec 3 MCHF vous n’y seriez sans doute pas soumis. En Suisse, vous resteriez imposé uniquement sur vos biens immobiliers qui y sont situés.
Si vous devenez résident fiscal en Espagne (plus de 183 jours par an), vos revenus et votre patrimoine mondiaux seront imposés en Espagne. Cela inclut vos pensions suisses (AVS + 2ᵉ pilier, env. 6’500 CHF/mois) ainsi que vos biens (≈ 3 millions CHF, sociétés immobilières, maisons, etc.).
Impôt sur le revenu (IRPF) : en Andalousie, les taux progressifs peuvent atteindre environ 45 % au maximum. Les pensions suisses sont en principe imposées en Espagne (convention fiscale Suisse–Espagne).
Impôt sur la fortune (Impuesto sobre el Patrimonio) : des réductions existent en Andalousie, mais avec un patrimoine de 3 millions CHF, une imposition reste possible selon la structuration des actifs.
Fiscalité en Suisse : une fois résident espagnol, la Suisse ne taxe plus vos pensions, mais vos sociétés et vos biens immobiliers en Suisse peuvent continuer à générer une imposition à la source.
En résumé : l’essentiel de votre fiscalité personnelle se déplacera en Espagne, mais une planification fiscale transfrontalière est fortement conseillée avant votre installation.
Hi! I am British and my husband French.
Both 73 and both get our UK state pension.
I get approximately 980 euros per 28 days and my husband approximately 1,200 per 28 days.
Are we exempt as we each have a sole income from one source please?
In Spain, residents with income from a single payer don’t usually have to file if they earn ≤ €22,000/year. Your amounts (~€12,740 and ~€15,600) are below that.
But UK state pensions are foreign-source and typically no Spanish withholding is made—this often triggers the filing obligation despite being one payer. Safest: file an annual Spanish return (you may still owe little or nothing) and get peace of mind.
Hello,
I will be retiring soon and wish to reside in Spain. We will be receiving approximately a pension of 65000 Canadian / year and my wife will have 52000$ per year pension. Both of our pensions are from Federaal Public Service (mine is military), I would like to know how much approximately we would be paying tax in Spainn since Canada has a tax treaty with Spain.
Canada pension → living in Spain (short version):
There’s a Canada–Spain tax treaty.
Federal/public-service pensions (incl. military): generally taxed in Canada; in Spain they’re exempt with progression (raise your rate for other Spanish-taxable income).
Other pensions (company plans, RRIFs, etc.): taxed in Spain as a resident, with a credit for Canadian withholding.
CPP/OAS: treatment varies—needs coordination to avoid double tax.
This is orientative. The key is confirming the type of each pension and how it’s paid. For exact numbers, please check with our international tax specialist.
Irish income
My wife has an Irish invalidity pension of €249 per week with an extra payment of €179 per week for me as a qualified adult. This makes €428 per week she receives from a single source. We will be renting our house in Ireland at €1500 per month and long term renting in Spain.
Total income per year of €40256
I have been told that an invalidity pension won’t be taxed but our rental income would, Is the how it is or would we pay tax on everything? We are both late 50’s
Irish income in Spain: will we pay tax on everything? (very brief)
First step — residency: If you become Spanish tax residents (e.g., >183 days/year or main ties in Spain), Spain taxes worldwide income with treaty relief.
Invalidity pension (€428/week):
Under the Ireland–Spain tax treaty, most non-government pensions are taxed only in the country of residence. In Spain, disability/invalidity pensions are usually taxable unless they’re equivalent to Spain’s “gran invalidez/absoluta” (those specific cases are exempt). So: likely taxable in Spain, not in Ireland, with Spanish rules and allowances.
Irish rental (€1,500/month):
Taxed in Ireland (source) and in Spain if you’re residents. Spain gives a foreign tax credit for the Irish tax. Spanish rules allow expense deductions to compute net rental income.
If not Spanish residents:
You’ll remain taxed in Ireland on both items; Spanish tax only on Spanish-source income.
Recommendation: confirm residency status, whether the pension is “government service,” and if it could qualify for Spain’s disability exemption. A 30-minute treaty check prevents double taxation.
Short answer (for a blog comment):
If you become Spanish tax residents (>183 days), you’re taxed in Spain on worldwide income.
Irish rental (€1,500/month): Taxed in Ireland (property there) and must be reported in Spain. Spain gives a foreign tax credit for Irish tax paid (to avoid double tax).
Irish invalidity pension (€428/week total): Generally taxable in Spain, not Ireland, under the treaty—unless it meets Spain’s strict disability-pension exemption (equivalent to “incapacidad permanente absoluta / gran invalidez”), which needs specific proof.
Bottom line: rental—declare in both (credit in Spain); pension—usually taxed in Spain unless it qualifies for the Spanish disability exemption.
Buenos
I am eligable to take a UK private pension this Month on my 65th Birthday..I am considering taking it as a lump sum and keeping it in my UK bank…I am a Spanish resident here in Spain (20 years) and I pay tax in this Country…I have the details of the Tax that will be taken in the UK but I need to know if I will also be taxed here in Spain? Can you help me please?
As a Spanish tax resident, your UK private pension lump sum is taxed in Spain (as employment income).
Under the UK–Spain treaty, private pensions are taxable only in the country of residence (Spain). Public-service pensions are the exception.
The UK’s “25% tax-free” isn’t tax-free in Spain—it’s taxed here.
If UK tax is withheld, ask HMRC for an NT tax code or use the Spain-Individual form to reclaim.
Bottom line: declare it in your Spanish IRPF and sort any UK withholding back.
Good morning
UK passport holder living in Valencia region
I am aged 45 and recieving income from rental income in the UK,
Am I correct in thinking I will only pay tax for 40% of net income ?
my tax free allowance is 5500€ ?
Also do I still pay tax on any interest from UK savings in the UK and declare tax paid in the UK on my Spanish renta ?
Can you confirm at what rates I would pay tax If I earn around 10k of savings interest?
If I only pay tax on rental income of 40% if net profit that would give me an income of around 7000€ along with 10k from savings interest, so how would this income of around 17000€ be taxed ?
My husband age 56 government pension I believe this remains taxed in UK ? What about interest from his savings ?
Sure—short and clear:
UK rental (you): As a Spanish tax resident, you’re taxed in Spain on 100% of your net profit (income − expenses). There is no “40% rule.” You can credit any UK tax paid.
Personal allowance: Spain uses a personal minimum (around €5,550 baseline), which reduces your general base (where rent sits). Valencia adds its regional piece.
UK savings interest (you): Taxed in Spain as savings income. If the UK withholds, you generally credit it in Spain.
Rates on €10,000 interest (2025): €6,000 at 19%, €4,000 at 21%.
Your example (€7k net rent + €10k interest = €17k):
Rent: in general base, first reduced by your personal minimum; leftover taxed at Spain’s general rates (state + Valencia).
Interest: taxed separately at 19/21% as above.
Husband (UK government-service pension, age 56): Pension is taxed in the UK and exempt in Spain (with progression). His interest is taxed in Spain under the savings scale.
Hi I’m 66 receive State pension £12500and nhs pension £22500 before tax – already have a property in Spain .Pay non resident tax Looking to move on NLV visa Just wanted to know tax implications . Husband 58 his income will be passive from rental of approx £500 a month Concerned tax will be a lot higher in Spain
If you move to Spain on a Non-Lucrative Visa and live there more than 183 days a year, you will normally become a Spanish tax resident. That means Spain will tax your worldwide income (UK State pension, NHS pension and your husband’s rental income), with the UK–Spain tax treaty avoiding double taxation.
In many cases, the overall tax can be higher than in the UK, but with good planning (choosing the right region, understanding allowances, timing the move, reviewing how pensions and rentals are structured) the impact can often be reduced. This is something that should always be reviewed case by case before applying for the NLV.
Hi Maria, I’m confused regarding the €22000 pension income figure for not needing to pay tax, to the €15000 figure also stated on some replies. I will receive my UK state pension from April 2026 of £12.014 per annum, I also have a private pension that I can drawdown as required ( not an annuity) how much per year can I drawdown on top of my state pension without incurring taxes as a resident of Valencia please ?
Hi Margaret — quick clarification: €22,000/€15,000 are filing thresholds, not “tax-free limits.” If you’re tax-resident in Valencia, both your UK State Pension and any private pension drawdown are taxable in Spain (progressive rates, after personal allowances). So there isn’t a fixed “safe” drawdown amount that’s automatically tax-free.
Thank you for an interesting article.
However are all UK based private pensions really taxed as general income? I understood since Brexit that Spain does not recognise all UK private pensions as a pension but treat some as an retirement investment scheme so drawdown (not annuity) is taxed as capital gains. E.g. SIPP or a self funded private pension (e.g. from self employment or unemployed home maker)
Thank you for your comment — you raise a very good point.
As a general rule, UK private pensions received by Spanish tax residents are taxed in Spain as general income. This will usually include standard private pensions and many SIPPs.
However, the exact treatment can depend on the legal nature and structure of the specific pension product. Spain will not simply rely on the UK label; it will look at whether the scheme is genuinely a pension or whether it has features closer to an investment product.
Brexit has not, in itself, changed the basic tax treaty position, but each case should be reviewed individually, especially where drawdown, SIPPs or non-standard pension structures are involved.
So the safest answer is: generally yes, but not automatically in every case.
Hi! i just retired in spain,so i will only need to pay taxes in 2027 for the first time:
now! )))) i looked it up and even used multiple spanish tax calculators with different outcomes ,and there is still something very confusing ))))
Pensioner income! single source,nothing! else 🙂 :
Example1 : It is stated that if you have an income LESS than 22.000Euro/year from a single! source ,you not need to pay taxes( but you still have to file it)
Example 2: It is stated if that you get a deductible(depending on age) of 5550 Euro.
So! if my pension is 25000 Euro(gross), it would be 25000-5550= 19450Euro(taxeble)
Now: Since i have only 19450 left,do i still need to pay taxes on those 19450Euro(meaning 19% on the first 12450=2365.5Eu and 24% on the other 7000(left) = 1680Eu = 4045.5 Euro total taxes
OR! do i pay nothing because i have less than 22000 Euro? )))
And the reason i ask this,is because,and this is the confusing part )))) :
1: A person(1) earning 21500(gross) Euro pays nothing in taxes(less than 22000 a year.
2 : A person(2) earning 23000(gross)-5550 needs to pay taxes then. 19% on 12450= 2365.5 24% on 5000(left)=1200= 3565Eu
3: So the person(2) who makes 23000(gross) minus his taxes(3565)= 19435Eu(left)
To conclude: So the person(2) who makes (gross) 1500Eu more! a year ,has 2065Eu less! a year than the person(1) who pays nothing. )))))
Am i missing something? ))))
Thank you 🙂
OOPS! i forgot 1 thing ))))
OR! do i only need to pay taxes on the SURPLUS above the 22000 Euro 🙂 thank you 🙂
Hi, and congratulations on your retirement!
The confusion comes from mixing up two completely different concepts: the obligation to file a tax return and the calculation of the tax itself.
The €22,000 figure is not a tax-free allowance. It is generally a filing threshold for employment or pension income received from one payer. A person receiving €21,500 does not automatically pay no tax: Spanish tax may already have been withheld from the pension, although that person might not be required to file a return.
Similarly, the personal allowance of €5,550 —which may be higher depending on age and region— is not deducted from the gross pension to determine whether the €22,000 filing threshold has been exceeded. That threshold is tested against gross income. The personal allowance forms part of the subsequent tax calculation.
Therefore:
A gross pension of €25,000 is above the €22,000 threshold.
You do not pay tax only on the amount exceeding €22,000.
Crossing the threshold does not create a sudden tax “cliff” under which someone earning slightly more ends up several thousand euros worse off.
Your calculation cannot simply apply 19% and 24% to the amounts shown, because the final calculation also considers deductible employment-income expenses, the personal and age-related allowance, regional tax scales, deductions and any tax already withheld.
There is one particularly important point if this is a foreign pension: where the foreign payer is not required to withhold Spanish income tax, the filing threshold may be considerably lower than €22,000 —currently €15,876 under the published rules.
Finally, the pension’s country of origin and its precise nature must be checked. Private pensions, State or Social Security pensions and government or civil-service pensions can receive different treatment under the applicable double taxation treaty.
If you are Spanish tax resident for 2026, the return filed in 2027 would normally cover your 2026 income. However, the exact calculation cannot be confirmed without knowing the country paying the pension, the type of pension, your age, your Spanish region of residence and whether any foreign tax has been withheld.