Retirement and Savings for UK Citizens in Spain

Spain has long been an aspirational destination for expats due to its affordability, lifestyle and the great climate it offers. For decades, Brits have flocked to cities and coastal resorts alike, with over 310,000 people currently residing across the country.

When to make the move

Although visa requirements have now changed with the UK no longer belonging to the EU, the process of relocation is still reasonably simple and hassle-free.

For stays of longer than 90 days, you will need to get a visa, which for those looking to retire to Spain,  would be either a Golden Visa or Non-Lucrative Visa. The Golden Visa is suitable for those wishing to significantly invest in the country, for example, buy property over €500,000.

Otherwise, the Non-Lucrative Visa is perfect for those looking to either retire in Spain. Both visas require you to have health insurance, and also that you can demonstrate sufficient funds to support yourself and your family.

Making the most of your money

Retirees living in Spain can opt to have their UK State Pension paid into either their bank or building society account in the UK or to a Spanish bank account. If the latter, you will have no control over the exchange rate used.

A large proportion of expats prefer to have their pension paid into a UK bank account, and use a currency specialist to convert and send Euro to a bank account in Spain, offering a better exchange rate as well as expert advice. It’s important to plan out your financials before the move, thinking through procedures for money exchange. It’s often a good idea to find out how to diversify your savings by foreign exchange, to be clued up on all your options once you’re settled in Spain.

If you are looking to make the most of a workplace pension or personal pension alongside your state pension, it’s worth discussing your options with a financial advisor before making the move. It’s worth noting that the Non-Lucrative Visa requires residents to pay taxes on income earned worldwide, including state or workplace pensions.

Living well in Spain

Making the most of life in the sunshine involves planning to ensure you’ve made the right decisions about when to relocate, which region would suit you best, and what your life will look like once you’re settled in. Luckily, this has been a dream-made-reality for thousands, so there are lots of brilliant resources to help with planning the move.

Expats in Spain are entitled to state healthcare under the national insurance scheme, this is due to the UK and Spain being members of the European Economic Area (EEA). You can also make use of citizen outreach meetings hosted by the British Embassy and Consulates, which offer advice on changes to retiring in Spain post-Brexit.

With retirement abroad becoming ever more popular, and over one million Brits having their pension paid overseas, the popularity of Spain is set on an upwards trajectory. If it’s on your mind as an option, it’s worth starting the research as early as possible to set yourself up with the right advice to set yourself up financially, making sure that when you’re settled, you’re ready to relax and enjoy your new life.