Retiring to Spain from the UK

Collaborative Post | Spain is one of the paradises for retirement. It has everything: beaches, mountains, plans for every month of the year. And the people of the United Kingdom know that. After Brexit, this process requires more planning, especially with regard to visas, tax residency and wealth management. For this reason, having legal services for foreigners in Spain has become a key need to ensure that this new phase of their life gets off to a good start.

Almost 300,000 British citizens have already started a new life in Spain, enjoying its climate, quality of life and the country's healthcare system. Are you thinking of retiring to Spain? We'll tell you everything you need to know in this article.

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Why retire in Spain?

Spain not only offers more than 300 days of sunshine a year in many regions, but also a lower cost of living than the UK, high quality medical care and a rich culture that combines history, gastronomy and an active social life for seniors.

Best locations for British expatsAlthough Spain is a fantastic country to retire in, regardless of the area, there are 3 areas of Spain where there are more retired British nationals:
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• Costa Blanca, in and around Alicante
• Costa del Sol, in Marbella and Málaga
• Canary Islands and Balearic Islands

Do you need a visa to retire in Spain after Brexit?

Yes, from 1 January 2021, British citizens no longer have freedom of movement within the EU. To retire in Spain, a non-gainful residence visa is usually required. Some of the requirements for approval are as follows:
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• Proof of income of more than €2,400 per month, plus an extra for each additional family member.
• Take out private health insurance with no co-payments.
• No criminal record and pass a basic medical check-up.

Healthcare for UK pensioners in Spain

One of the concerns of British citizens when it comes to retiring to Spain is related to the country's healthcare system. Here's what you need to know.

Access to the Spanish public healthcare systemOnce registered as residents, UK retirees can access the National Health System using the S1 form, issued by the NHS.

Private health insuranceFor those who cannot yet access the public system, private insurance is compulsory. Prices vary, but can range from €50 to €200 per month, depending on age and coverage.

Healthcare costs and coverage comparison with the UK:
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• A private consultation in Spain costs around €60, compared to over £100 in the UK.
• Waiting lists for operations are shorter in Spanish private clinics.

What British retirees should know about taxes and pensions?

When starting a new life in Spain, taxes and pensions must also be taken into account. For this reason, many people apply for international tax planning with Pellicer & Heredia, a leading international law firm in the country.Are UK pensions taxed in Spain?Yes, if you reside in Spain for more than 183 days a year, you are considered a tax resident. In that case, your UK pension is taxed in Spain, not in the UK, although there are nuances depending on the type of pension.

Double taxation treaty between Spain and the UKThis agreement prevents you from paying tax twice on the same income. Thanks to it, you can declare your pension in Spain and not in the UK, as long as you have regularised your situation.

Inheritance and wealth tax considerationsSpain applies inheritance tax, although with important exemptions in some regions, such as Andalusia or the Valencian Community. It is essential to plan succession and consider efficient estate structures to avoid high taxation.

Buying or renting a property in Spain as a retireeBoth buying and renting are viable options, and Spain allows foreigners to purchase property freely. Some relevant data:
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• The average purchase price in coastal areas is around €1,800/m², significantly lower than the average price in the UK.
• Renting a flat on the Costa Blanca can cost between €500 and €900 per month.

​Pellicer & Heredia is one of the major references in international legal advice. Thanks to their comprehensive and personalised service for British retirees, many people rely on them for everything from visa applications to tax returns.

In addition, they have a bilingual team with experience in British Spanish law, where a simple misunderstanding can make this new path not come to fruition. Pellicer & Heredia will take care to avoid penalties, duplication or loss of legal benefits.


Disclaimer: this is a collaborative post.