Pensions & Wills
If you are planning on spending your retirement in Spain then it is vital that you make arrangements with regards to your pension. If you prepare yourself before you leave the UK, it will make your life a whole lot easier and less stressful so here’s a few things that you should really add to the “to do” list before you pack your bags:
Make your arrangements!
1. You can work out your retirement income by obtaining and completing form BR19 from the Retirement Pension Forecasting and Advice Unit (RPFA). Contact them on 0191 218 7585 and ask for a state pension forecast. This is available up to four months before you reach the UK pension age. The forecast you receive will tell you what your pension is at the date received and whether or not you will get more by the time you reach UK pension age.

2. You should write to The UK Pensions Service informing them that you are moving to Spain and give them your new address. Their address is International Pension Centre, Tyne View Park, Newcastle-upon-Tyne NE98 1BA or telephone: 0191 218 7777.

3. Be aware that the state pension age and entitlements may vary between Spain and the UK. To check on your rights as a pensioner in Spain have a look at www.ukinspain.com/english/. This is the website for the British Embassy in Spain and is full of useful information aimed at those re-locating to Spain.

4. To obtain your UK State pension in Spain you will need to complete a claim form from the Pensions Service. Again, this is also available four months before you reach the UK pensionable age. Full information and claim forms are available off the internet from the Pension Services Website on http://www.thepensionservice.gov.uk/ipc/countries/spain.asp. Your UK state pension can be paid directly in to your Spanish account, in euros, and no charges are made for this service. Alternatively, you can of course receive your pension in your UK account if you prefer.
If you have been living and working in Spain already for a number of years, you can claim a Spanish pension only if you have been contributing to the Spanish Social Security system for at least 15 years.
Tax And Your Pension
If you worked for any UK or Irish Government agency, civil service department, the Police, armed forces, etc., where your pension is paid by the Government, then you will not be liable for tax on that pension by the Spanish tax Authorities.

However, depending on your financial circumstances, your pension may be taxed by the Inland Revenue in your home country.

All other pensions from whatever source are liable for inclusion in your Tax declaration to the Spanish Tax Authorities. If you take a lump sum from your pension while you are living in Spain, only 40% is subject to tax.

If you are resident in Spain, you are legally bound to submit a Tax declaration. Remember, you are regarded as a resident if you spend more than 183 days in Spain, or if you have your primary interests or your permanent home in Spain.

Remember, don’t leave this until the last minute. If you have already reached the UK pension age, or will be in the next four months, start making arrangements now to receive your pension in Spain. It will be one less thing to worry about when you arrive.
Spanish Will
If you own any asset in Spain, we would recommend that you obtain a Spanish will. It is a quick and fairly inexpensive process and it will save you a lot of bother and stress should anything happen to you or a loved one.

Your solicitor will be able to help you with this, they will have the forms that you will need to complete confirming your inheritor(s) and then they will arrange an appointment at the notary so that the will can be signed and made official. You will of course see a draft of the will which will be made available to you in both English and Spanish. This is usually arranged for you automatically by your solicitor, but check with them when you first discuss making a will with them to ensure that this is the case. If your will is only in Spanish and is contested in court, the court could order a translation from a designated translator - good or bad - so it is much better to avoid that possible scenario altogether.

Remember, read your will carefully to ensure that your intentions have been translated as you intended, a wrong interpretation could have huge consequences.