🇬🇧 COUNTRY A UK VS 🇪🇸 COUNTRY B Spain

Under the UK-Spain Double Taxation Agreement, UK state pension is taxable only in the United Kingdom — Spain does not have the right to tax it. This applies to the UK state pension specifically. However, UK private pension income (occupational pensions, personal pensions, annuities) is generally taxable in Spain if you are a Spanish tax resident (spending more than 183 days/year in Spain). The Spanish tax on private pension income follows IRPF rates: 19% on the first €12,450, 24% up to €20,200, 30% up to €35,200, 37% up to €60,000, 45% up to €300,000, and 47% above €300,000.

Since Brexit (January 2021), UK citizens are treated as third-country nationals and need a long-stay visa to reside in Spain for more than 90 days in any 180-day period. The Non-Lucrative Visa (NLV) allows UK retirees to live in Spain without working. Requirements: minimum income of approximately €2,259/month (adjusted annually) for a single applicant, plus €565/month per additional family member; private health insurance covering Spain (since S1 reciprocal health entitlement is no longer automatic for new arrivals); clean criminal record; proof of accommodation. The NLV is initially granted for 1 year and renewable. After 5 years of legal residence, permanent residency is available. After 10 years, Spanish citizenship is possible.

No. Spain's Beckham Law (Régimen Especial de Impatriados) offers a flat 24% tax rate for qualified new residents — but it applies to employees or executives assigned to Spain by a foreign company, or entrepreneurs starting specific types of businesses. Standard retirees do not qualify. The regime specifically excludes passive income recipients. UK retirees moving to Spain pay standard IRPF rates on their Spanish-taxable income (primarily private pension income).

Before Brexit, UK retirees in Spain who received UK state pension could use an S1 form to access Spanish public healthcare funded by the UK. This right was protected for UK citizens already living in Spain before 31 December 2020 (under the Withdrawal Agreement). New UK arrivals after this date cannot use the S1 route. New British retirees in Spain must: (1) Take out private health insurance (required for NLV application) — quality comprehensive plans from Sanitas, Adeslas, Mapfre run €100–€300/month for retirees under 70; (2) Potentially access Spanish public healthcare (Seguridad Social) by registering as self-employed or through other social security contributions; (3) Use private hospitals (Spain has excellent private hospital chains: HM Hospitales, Quirónsalud). The Costa del Sol and Costa Blanca have extensive English-speaking private healthcare infrastructure.