Publication date: 11/17/2021

UK citizens can still claim their government pension in Spain and the EU

Information on pensions in Spain can sometimes be confusing for expats. This is why it is useful to have an explainer. Here’s how pensions work for British expats receiving a UK pension while living in Spain.

Even after Brexit, UK citizens can continue to claim their UK state pension if they live anywhere in the EU, EEA or Switzerland.

This UK state pension will continue to increase each year based on the rate paid in Britain, even if the recipient lives in Spain or elsewhere in the EU.

It is also possible that social security contributions made in EU countries contribute to the eligibility requirements for a UK state pension.

This applies to both those who lived in Spain before the Withdrawal Agreement deadline of December 31, 2020 and those who arrived in Spain after January 1, 2021. Anyone eligible for a British state pension, regardless of nationality, can claim that pension while living in Spain.

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Financial advice issues for expats in Spain

BLACKTOWER Financial ManagementI have been a Qualified Financial Advisor for almost 30 years now. 25 years in the UK for major institutions such as Natwest, RBS and Royal London. I have been giving financial advice to expats in Spain for 5 years now and the different approaches as well as the advice required for an expat living in Spain are quite remarkable. Blacktower has also been dedicated for 30 years in providing the best solutions to its customers living outside the UK.

The issue of currency is always on the agenda and a discussion of the long-term future must be taken into account. Questions such as What will happen if one of the partners dies? Will the other stay in Spain? What about other family members? What inheritance tax provisions do you have in place? The list is lengthened increasingly.

BLACKTOWER Financial ManagementExisting portfolios and investments that were the backbone of UK portfolios may now be obsolete. An example of this is quite often tax-advantaged products in the UK like those from ISA and previously owned TESSA PEPs actually have low growth rates and offer no tax benefit to a Spanish tax resident.

Existing pensions paid by the State or private pensions accrued throughout working life are subjects that must be covered. Many expats have many small pensions from many former employers and can be confused by the communications and administration that deals with them. At Blacktower we specialize in advising on how to consolidate and consolidate all of these pensions in one place.

BLACKTOWER Financial ManagementBank accounts and investments in Spain still raise a lot of questions. Quite often the fine print associated with financial products in Spain is in Spanish which can make it very difficult even if you have a good command of the language. Understanding the jargon in English is sometimes quite difficult. I provide clear and easy to understand letters and documents in English so that you fully understand all the terms and conditions before making a decision.

Equally important is tax efficiency advice and offers good returns. There are products available exclusively for Spanish expats that can provide invaluable benefits. Having a good basic understanding of the current and future tax implications is an essential ingredient in making a good decision.

BLACKTOWER Financial ManagementI will carry out a thorough fact-finding, ask you the right questions, establish your individual needs, your attitude to risk and your ability to lose and the desired returns before providing you with a written report full of advice and my recommendations in plain English. . You will then have time to read and consider all the information before contacting me to tell me how you want to proceed.

Click for more information on Keith Littlewood.

The above information was correct at the time of preparation and does not constitute investment advice and you should seek professional advice before embarking on any financial planning activity.

Blacktower Financial Management (Int) Ltd is licensed in Gibraltar by the Financial Services Commission (FSC) and is registered with both DGS and CNMV in Spain