Are pensioners taxed in Spain?

In Spain, income tax is charged at the same rate for both general income and pensions. Therefore, pensions in Spain are subject to progressive tax rates ranging from 19% to 47%, as follows: Up to €12,450: 19% €12,451 – €20,200: 24%

What is the tax threshold for pensioners in Spain?

5,550 euros per year, in general. + 1,150 euros per year, if you are over 65 years old. + 1,400 euros per year, if you are over 75 years old.

Do I have to pay tax on my state pension in Spain?

In that sense, pensions are considered an income, and hence are subject to the income tax (in Spain called “IRPF” or “Impuesto Sobre la Renta de las Personas Físicas”). The exact rate depends on how much income you generate, and the different allowances that can be applied.

What is the downside of retiring in Spain?

High taxes.

Tax residents in Spain pay taxes on both global and local income on a progressive scale of 19 to 47%. The maximum rate is higher than in the USA, Canada, or Malta. Residents pay a 19% income tax for the first €6,000 of taxable income. A 47% tax rate applies to income over €300,000.

What tax do I pay if I retire to Spain?

Becoming a tax resident: If you live in Spain for more than 183 days, you'll likely be considered a tax resident and may need to pay tax on your worldwide income. Spanish tax rates and allowances: Spain has a progressive tax system, with income tax rates ranging from 19% to 47%,¹⁰ depending on earnings.

Is Pension Taxable in Spain? (Retire in Spain in 2025)

Can I retire to Spain on State Pension?

Can I still get my state pension? You are still entitled to your UK state pension if you retire in Spain, provided you have made sufficient national insurance contributions and are of retirement age. As the country is in the European Economic Area (EEA), it will increase in line with any rises in the UK.

Will my social security be taxed in Spain?

Yes, if you're a tax resident (183+ days/year), Spain taxes US Social Security as ordinary income, subject to progressive rates of 19%–47%.

Is it cheaper to retire in Spain or the UK?

Housing and living costs are generally far lower in Spain than in Britain, easing the pressure on pension pots that have to last retirees for the rest of their lives. But any would-be expat rushing to make the move without careful planning risks visa headaches, punitive tax rates and pension complications.

How much money do I need in the bank to retire to Spain?

If you are a non-EU or US citizen, you need to have a residence permit, which is a Non-Lucrative retirement visa. Spain's retirement visa requires a minimum of €2,400 monthly income, €28,800 annual income. You can also add your dependents with an additional fee of €600 per person.

What is the best city to live in Spain for retirees?

Marbella is the best place to retire in Spain.

It is found in Malaga Province in Costa del sol and has got beautiful sceneries such as 26 km of Mediterranean coast, top notch golf courses, and it is overlooked by Sierra Mountain. If your choice is a good lifestyle appeal, then move to Spain.

Are UK pensions frozen in Spain?

Why are UK State Pensions not frozen in the EU? The UK government reached an agreement with the EU, EEA countries, and Switzerland to continue annual pension increases for British pensioners living in these regions. This ensures they receive the same uprating as pensioners in the UK.

Which countries don't tax your pension?

Finally, though it is not a European country, an honourable mention can go to the UAE, where there is no income tax on individuals in the UAE, nor is there inheritance tax, pension tax, or tax on investment income, making it a great place for retirees to move.

Is tax higher in Spain or the UK?

Is income tax higher in the UK or Spain, and do UK residents pay taxes in Spain? Income tax rates in Spain range from 19% to 47%, while in the UK, they range from 20% to 45%. Spain offers several tax benefits to foreign residents, potentially reducing the overall tax burden.

Do over 65s pay CGT in Spain?

Capital gains tax in Spain over 65 years

If you are 65 years old or over, it does not matter if the amount of money you get from selling the property will be reinvested into your new home or not. You won't need to pay this tax.

How much can a pensioner earn without being taxed?

The standard tax-free Personal Allowance is £12,570

For the 2025/26 tax year (6 April to 5 April), the standard Personal Allowance is £12,570. But it might be: £13,830 if you claim the Marriage Allowance. £15,700 if you claim the Blind Persons Allowance.

What is the tax-free allowance in Spain 2025?

In 2025, the following allowances apply: A personal allowance, which is generally EUR 5,550. The allowance is EUR 6,700 when the taxpayer is over 65 years of age and EUR 8,100 when the taxpayer is over 75 years of age.

Do retired expats pay taxes in Spain?

Your actual cost of living will depend on where you settle—big cities and coastal areas tend to be pricier. Will I have to pay taxes in Spain as a retiree? If you live in Spain for more than 183 days in a year, you become a tax resident and must pay Spanish taxes on your worldwide income.

How much tax will I pay on my UK state pension in Spain?

In Spain, pension income is treated like any other income and is subject to progressive income tax rates. Your UK state pension, along with any other income you receive, will be taxed based on the following Personal Income Tax (IRPF) rates: 19% for income up to €12,450. 24% for income from €12,451 to €20,200.

How much is health insurance in Spain?

Private health insurance typically costs between €50 and €100 per month. It's an additional expense, especially considering you already have access to a free public healthcare system.

Can British pensioners retire to Spain?

Retiring from the UK to Spain involves several key steps: Obtain a visa: Start by applying for a visa based on your financial situation. Secure accommodation: Research potential areas where you wish to live and the expected costs. Apply for a residency permit or card: You'll need to do this after arriving in Spain.

What is the easiest country for Brits to retire to?

Can you retire to Spain on a UK state pension?

The short answer is yes, UK citizens can still retire to Spain from the UK, however, since Brexit, all British citizens are now treated as non-EU nationals. This means UK retirees now need a visa to stay in Spain long-term.

Are you taxed on your savings in Spain?

Savings taxable income is taxed at the following rates: 19% for the first EUR 6,000 of taxable income. 21% for the following EUR 6,000 to EUR 50,000 of taxable income. 23% for the following EUR 50,000 to EUR 200,000 of taxable income.

Is healthcare free in Spain?

How Healthcare Works in Spain? Apart from some small costs, like a deductible on prescriptions, the public healthcare system in Spain is free for every citizen. This is made possible because it is funded by social security payments from employed and self-employed workers.

What is the 5 year tax exemption in Spain?

Key things you need to know: The rule will apply for a maximum of 6 years, which includes the year you move to Spain and the following 5 tax years after that. Once the rule ends, your income will be taxed according to the usual progressive tax rates that Spanish residents pay.