How to Transfer Your UK Pension to Spain Safely
Retiring in Spain is a dream for thousands of UK citizens every year. The warm weather, the relaxed lifestyle, and affordable cost of living make it one of Europe’s top retirement destinations. But before you pack your bags, there’s one crucial step: how to transfer your UK pension to Spain safely.
Without the right advice, you could lose thousands in unnecessary fees, poor exchange rates, and tax mistakes. Here’s how to do it right.
👉 Looking for expert help? Contact our legal team for pension transfer advice and support.
Why Transferring Your UK Pension to Spain Matters
Banks often charge hidden fees on international transfers.
Exchange rates can dramatically affect your pension income.
With the right provider, you can save thousands over your retirement.
The Safe Way to Transfer Your UK Pension to Spain
Work with a Currency Specialist
Using a service like Lumon ensures you get better rates than banks and no hidden costs.Understand Tax Implications
Make sure you know how your pension will be taxed in Spain and avoid double taxation. Consulting a lawyer or tax advisor is key.Plan the Timing
Exchange rates fluctuate daily. Currency experts can help you lock in rates and plan transfers when it’s most favourable.
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
Common Mistakes to Avoid
Relying only on banks → higher costs.
Not checking the Double Taxation Treaty between the UK and Spain.
Waiting until the last minute to arrange the transfer.
👉 Read more: Best Way to Move Your Pension to Spain
Why Expats in Costa del Sol Choose Specialists
Many expats in Mijas, Marbella, and Fuengirola rely on currency transfer partners instead of banks because they:
Offer transparent fees.
Provide personalised support in English.
Save significant amounts on large transfers, such as pensions or property purchases.
If you’re planning to retire in Spain, don’t risk losing your hard-earned money. At Real Estate Mijas, we guide you step by step—not only with your new home, but also with the financial and legal aspects of moving abroad.
👉 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