Transfer UK Pension to Spain – Complete 2025 Guide for Expats
Thousands of British expats retire in Spain every year, and one of their top concerns is how to transfer a UK pension to Spain safely and efficiently.
Whether you plan to live permanently in Spain or split your time between the UK and Costa del Sol, understanding pension transfers, tax rules, and the best way to move funds is essential.
👉 Looking for expert help? Contact our legal team for pension transfer advice and support.
Can You Transfer a UK Pension to Spain?
Yes, UK pensions can be transferred abroad, but the process depends on:
The type of pension scheme (private, workplace, state).
Whether the receiving plan is recognised by HMRC.
Your residency and tax status in Spain.
The main solution for expats is the QROPS (Qualifying Recognised Overseas Pension Scheme)
Pension Transfer Options for Expats in Spain
1. Keep Your Pension in the UK
Payments in GBP, converted each month.
Risk: exchange rate fluctuations + bank fees.
2. Transfer to a QROPS in the EU
HMRC-recognised.
Allows funds to be managed in euros.
Potential tax advantages depending on personal situation.
3. Use an International SIPP (Self-Invested Personal Pension)
Flexibility in investments.
Remains under UK regulation.
Can be managed with euro accounts.
Tax Rules for UK Pensions in Spain
UK State Pension: still taxable in Spain if you are a tax resident.
Private/Workplace Pensions: usually taxed in Spain under the UK–Spain Double Taxation Agreement.
Lump sums: may be taxed differently—seek legal and financial advice.
💡 Example: A UK expat receiving £20,000 annually may face 19%–24% Spanish tax depending on residency and income brackets.
👉 For tailored advice, speak with our trusted currency partner
How to Save Money on Pension Transfers
Many expats lose thousands each year simply by relying on banks.
Banks charge transfer fees (£15–£40 per transaction).
Exchange rates can cost 2–4% of your pension income.
✅ Solution: Use FCA-regulated currency specialists. They provide:
Better exchange rates (close to mid-market).
No hidden fees.
Regular payment plans for monthly pensions.
👉 Read more: Best Way to Move Your Pension to Spain
Common Mistakes Expats Make
Not changing tax residency after moving.
Receiving pensions in GBP without a plan.
Ignoring exchange rate volatility.
Not consulting a lawyer before transferring.
Need Help with Your UK Pension Transfer?
At Real Estate Mijas, we work with currency specialists and advisors who can guide you through:
Pension transfers (QROPS, SIPPs).
Tax residency and declarations.
Setting up secure euro accounts.
Avoiding double taxation.
👉 MOVE YOUR PENSION NOW
Transfer UK Pension to Spain the Right Way
Transferring your UK pension to Spain requires careful planning, from choosing the right scheme (QROPS, SIPP, or keeping it in the UK) to understanding Spanish tax rules.
By using currency specialists and getting legal support, you can save thousands and ensure your retirement in Spain is stress-free.
Transfer UK Pension to Spain – Complete 2025 Guide for Expats