Moving to Spain from the UK means living between two tax systems that don't line up. The UK tax year starts on 6 April, Spain's starts on 1 January, and each country tests residence in its own way. For part of the year you move, both can claim you.
Leaving also doesn't end your UK tax. HMRC keeps the right to tax UK rental income, UK workdays and gains on UK property. Your UK pensions only move to Spanish tax once you've done the paperwork.
This guide covers when Spain treats you as resident, how to break UK residence, what HMRC still taxes, how UK pensions are taxed in Spain, Modelo 720, the Beckham Law, and the UK filings for the year you move.
When do you become tax resident in Spain?
What makes you Spanish tax resident? You're resident for a calendar year if any one of these applies:
More than 183 days: you spend more than 183 days in Spain in the calendar year. Short trips away still count as Spanish days unless you can prove you're tax resident somewhere else.
Economic interests: the main base of your business or economic interests is in Spain.
Family: your spouse and dependent children under 18 live in Spain. This is a presumption, so you can rebut it with evidence.
The catch is that Spanish residence covers the whole calendar year. Spain has no split year, so if you meet a test you're resident from 1 January, including months when you were still living in the UK.
Image 1 — the UK and Spanish tax years don't line up
Worked example: arriving on 1 July
Sarah leaves London and moves into her flat in Valencia on 1 July 2026. From then to 31 December, she spends 184 days in Spain.
Spain can treat her as resident for all of 2026, including January to June, when she was still working in London.
The UK treats her as resident until 30 June and, if a split-year case applies, non-resident from 1 July.
From January to June, both countries claim her, so the treaty tie-breaker decides. Her UK home in those months usually makes her treaty resident in the UK for that period, but she has to claim it and keep the evidence.
Had Sarah arrived on 2 July, she'd have spent exactly 183 days in Spain in 2026. That isn't more than 183, so the day count alone wouldn't make her resident, unless one of the other tests applied. A day either way can change a whole year.
👉 Agencia Tributaria: when you're tax resident in Spain
How do you stop being UK resident?
Does moving to Spain make you non-resident in the UK? Not on its own. HMRC applies the Statutory Residence Test to each tax year separately, and a Spanish residence card or padrón registration makes no difference to it.
Automatic overseas tests: fewer than 16 UK days if you were UK resident in any of the previous three tax years, fewer than 46 if you weren't, or full-time work abroad with fewer than 91 UK days and fewer than 31 UK workdays.
Sufficient ties test: if no automatic test settles it, HMRC weighs your UK days against your UK ties: family, accommodation, work, the 90-day tie and the country tie.
Split-year treatment: in the year you leave, the tax year can be split into a UK part and an overseas part, but only if one of the statutory cases applies.
Keeping a UK home available, visiting often and working on UK visits are the usual reasons people stay UK resident after moving. See our guides to the Statutory Residence Test and split-year treatment. If both countries end up claiming you for the same period, see dual tax residency and the tie-breaker rules.
👉 HMRC guidance: RDR3 Statutory Residence Test
What does HMRC still tax once you've moved?
Which UK income stays in the UK tax net? As a non-resident, broadly anything with a UK source:
UK workdays: salary for days you physically work in the UK stays UK-taxable, even if your employer pays you in Spain. See working remotely abroad for a UK company.
UK rental income: taxed in the UK first. Register for the Non-Resident Landlord Scheme to receive rent without tax deducted. Spain taxes it too and gives credit for the UK tax. UK property income rates rise by two percentage points from 6 April 2027.
Savings interest and dividends: for most non-residents, the disregarded income rules cap UK tax at whatever was deducted at source, which is often nil. Spain taxes them at its savings rates of 19% to 30%.
Gains on UK property: taxed in the UK whatever your residence (see below).
British nationals keep the £12,570 UK personal allowance wherever they live. You may still need to file a UK return even when no tax is due. See our guide to what the UK taxes after you leave.
UK-Spain double tax treaty: who taxes what
The UK-Spain double tax treaty decides which country taxes each type of income once you live in Spain, and gives credit where both do.
Income | Position once you are Spanish resident |
|---|---|
UK State Pension | Taxable only in Spain |
Workplace and personal pensions | Taxable only in Spain. Your provider deducts UK tax until HMRC issues an NT code |
Government service pensions | Taxable only in the UK, unless you are a Spanish national |
UK rental income | Taxed in the UK first. Spain also taxes it and gives credit for the UK tax |
Gains on UK property | Taxed in the UK. Spain also taxes the gain, with credit for the UK tax |
Salary for days worked in the UK | Stays taxable in the UK |
If both countries treat you as resident in the same year, the treaty tie-breaker decides which one prevails. Relief is not automatic. For pensions you claim it on form DT-Individual, certified by the Agencia Tributaria. A treaty residence claim goes on the SA109 pages of your UK tax return.
How are UK pensions taxed in Spain?
For most people retiring to Spain, this is the part that matters. The UK-Spain treaty splits UK pensions three ways:
UK State Pension: taxable only in Spain. It's paid without UK tax deducted, so there's nothing to reclaim.
Workplace and personal pensions: taxable only in Spain. Your provider keeps deducting UK tax until HMRC issues an NT (no tax) code, so apply on form DT-Individual, certified by the Agencia Tributaria, before the payments start.
Government service pensions: civil service, armed forces, police and similar pensions stay taxable only in the UK, unless you're a Spanish national. NHS, teachers' and local government schemes depend on the scheme and the treaty wording, so check each one.
Two things catch people out. Spain doesn't recognise the UK's 25% tax-free lump sum, so if you take it while Spanish resident, Spain can tax it as income. Where the timing is in your control, it's often better taken before you become Spanish resident. And Spain ignores the ISA wrapper, so interest, dividends and gains inside your ISA become taxable there. See UK tax-efficient investing for what the wrappers do in the UK.
Image 2 — who taxes each type of UK income
UK income or gain | UK | Spain | How it works |
|---|---|---|---|
UK State Pension | Not taxed | Taxed | Taxable only in Spain under the treaty |
Workplace and personal pensions | Not taxed | Taxed | NT code via DT-Individual, certified in Spain |
Government service pensions | Taxed | Not taxed | UK only, unless you're a Spanish national |
25% pension lump sum | Tax-free | Taxed | Spain doesn't follow the UK tax-free rule |
ISA interest and gains | Tax-free | Taxed | The wrapper isn't recognised in Spain |
UK rental income | Taxed first | Credit | Spain gives credit for the UK tax |
UK interest and dividends | Usually nil | Taxed | UK tax capped by the disregarded income rules |
UK property gains | 18% / 24% | Credit | Report to HMRC within 60 days of completion |
The table assumes you are Spanish tax resident and not under the Beckham regime.
For how the different pension types are treated across all treaties, see UK pension tax when living abroad.
👉 HMRC form: DT-Individual, treaty relief on UK pensions and other income
Selling your UK home after moving to Spain
Planning to sell your former home once you've gone? Non-residents pay UK capital gains tax on UK property. For 2026/27, the annual exempt amount is £3,000, and residential gains are taxed at 18% within your remaining basic rate band and 24% above it.
Private residence relief: covers the years the property was your main home, plus the final nine months of ownership.
April 2015 rebasing: if you owned the property on 5 April 2015, you can usually use its value at that date, so only later growth is taxed.
60-day deadline: you must report the sale and pay any tax within 60 days of completion, even if there's nothing to pay. The clock runs from completion, not exchange.
If you're Spanish resident when you sell, Spain taxes the gain as well, at its savings rates, with credit for the UK tax. Spain's relief rules differ from the UK's, so model both sides before you exchange. Our non-resident capital gains tax guide covers the UK calculation in detail.
👉 HMRC: report and pay capital gains tax on UK property
What Spain expects from you
What do Spanish residents have to file? Alongside the annual income tax return, the Renta, filed between April and June for the previous calendar year, watch for these:
Modelo 720: an information return for residents with assets abroad worth more than €50,000 in any of three groups: accounts, securities and insurance, or property. It's due between 1 January and 31 March, and you file again if a group rises by more than €20,000. UK bank accounts, investment platforms and your former home often count.
Modelo 721: the equivalent return for crypto held with providers outside Spain.
Wealth tax: Spanish residents can be taxed on worldwide net wealth, with allowances and reliefs set by each region. A separate solidarity tax applies to net wealth above €3 million.
This guide covers the UK side. For Spanish returns and regional rules, take advice from a Spain-qualified adviser.
👉 Agencia Tributaria: Modelo 720, assets held abroad
Does the Beckham Law help?
Spain's special regime for inbound workers, known as the Beckham Law, lets qualifying arrivals be taxed broadly as non-residents for the year they arrive and the next five. Spanish employment income is taxed at 24% up to €600,000, and most foreign investment income falls outside Spanish tax.
Who qualifies: employees moving for a job, company directors with less than 25% of the company, remote workers on the digital nomad visa, and some entrepreneurs.
Five years away: you mustn't have been Spanish resident in the previous five years.
A tight deadline: you apply on Modelo 149, generally within six months of starting work in Spain.
It isn't a retirement regime. If you're moving to Spain to retire, you won't qualify, so plan your pension drawdown on normal Spanish rates.
What else changes: State Pension, National Insurance and inheritance tax
What happens to the rest of your UK position?
State Pension: keeps rising each April while you live in Spain, because Spain is in the EEA. With an S1 form, the UK also covers your Spanish state healthcare.
Working for a UK employer: you may be able to stay in UK National Insurance for up to 24 months under the UK-EU social security rules.
Voluntary National Insurance: since 6 April 2026, you can't pay voluntary Class 2 contributions from abroad. Class 3 is the only option, and new applicants need 10 years of UK residence or contributions.
Inheritance tax: if you've been UK resident for at least 10 of the last 20 tax years, your worldwide estate stays within UK inheritance tax for 3 to 10 years after you leave. From 6 April 2027, most unused pension funds come into the calculation too. Spain has its own inheritance and gift tax, largely set by region.
👉 HMRC guidance: inheritance tax if you're a long-term UK resident
👉 HMRC: apply to pay voluntary National Insurance when abroad (CF83)
What if you come back within five years?
Is the move permanent? If you were UK resident in at least four of the seven tax years before you left, and you return within five years, the temporary non-residence rules can bring some income and gains back into UK tax in the year you return:
Pension withdrawals: flexible drawdown and lump sums the treaty kept out of UK tax.
Close company dividends: from 6 April 2026, this includes dividends paid from profits earned after you left.
Gains on assets owned before you left: such as shares, taxed as if made in the year you return.
Your UK checklist for the year you move
Keep a day log. Record UK days, UK workdays and Spanish days from the moment you decide to move.
Tell HMRC you've left. Use form P85 if you won't be filing a return, or the SA109 residence pages if you will.
Claim split-year treatment on your 2026/27 return if one of the cases applies.
Apply for NT codes on DT-Individual for each UK pension once you're Spanish resident.
Register as a non-resident landlord if you're letting your UK home.
File by 31 January 2028 for 2026/27. HMRC's free online service can't file the SA109, so you'll need commercial software or an adviser.
Still planning the move itself? See how we help people leaving the UK, or start with our leaving the UK tax calculator.
Our guides to HMRC forms for expats and whether you need to file a UK tax return walk through each step.
👉 HMRC: check if you need to send a Self Assessment return
How we help people moving to Spain
Global Tax Consulting advises people moving from the UK to Spain on the UK side of the move. Before you leave, we confirm when your UK residence ends under the Statutory Residence Test and whether split year treatment applies. Once you have arrived, we deal with what the UK still taxes, apply for the NT code that stops UK tax being deducted from your pension, and prepare your UK tax return with the residence pages. For Spanish returns and regional rules you will also need a Spain-qualified adviser, and we are happy to work alongside them. Every engagement is a fixed fee agreed before we start. See our pricing or request a quote.
Frequently asked questions
What UK tax should I think about when moving to Spain?
Moving to Spain does not end your UK tax obligations by itself. The UK and Spanish tax years do not match, and Spain has no split-year treatment, so timing matters. You need to confirm when your UK tax residence ends under the Statutory Residence Test, tell HMRC you have left, keep reporting UK rental income, check how your UK pensions are taxed under the UK–Spain treaty, report any UK property sale within 60 days, and plan for the temporary non-residence rule if you return within about five years.
When do I become tax resident in Spain?
When you spend more than 183 days in Spain in a calendar year, when your main economic interests are in Spain, or when your spouse and dependent children live there. Spanish residence applies to the whole calendar year, so you can be resident in both countries for the months before you move.
Is my UK State Pension taxed in Spain?
Yes. Under the UK-Spain treaty, the UK State Pension is taxable only in Spain once you're Spanish resident. It also keeps rising each April, because Spain is in the EEA.
How do I stop UK tax being deducted from my private pension?
Apply for an NT code on HMRC form DT-Individual, certified by the Spanish tax authority. Until the code is in place, your provider keeps deducting UK tax and you have to reclaim it.
Can I keep my ISA if I move to Spain?
Yes, but you can't pay into it once you're non-resident, and Spain doesn't recognise the wrapper. Interest, dividends and gains inside the ISA are taxable in Spain.
Do I need to tell HMRC I've moved to Spain?
Yes. Use form P85 if you won't be filing a tax return, or the SA109 residence pages of your Self Assessment return if you will, including any split-year claim.
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