Last updated: 14 October 2026
Can UK pensions stay untaxed in Spain under the Beckham Law?
Under Spain’s special expatriate regime, often called the Beckham Law, new Spanish residents pay tax mainly on Spanish-source income and on employment income, at a flat rate, for the year of arrival and the next 5 years. Foreign income, such as a UK private pension, is generally not taxed in Spain under the regime. But the regime is mainly for people moving to Spain to work, so retirees usually can’t use it. UK government service pensions remain taxable in the UK in most cases under the UK–Spain double tax treaty. Get advice in both countries before you move.
Who can use the regime
The regime is generally available to people who:
- haven’t been Spanish tax resident in the previous 5 years
- move to Spain for an employment contract, a company directorship (with limits), or certain entrepreneurial or highly skilled activities
- apply to the Spanish tax authority within 6 months of starting work or registering with Spanish social security
Spain changed the rules in 2023. Check the current conditions with a Spanish tax adviser, because we advise on the UK side only.
How UK pensions are taxed if you live in Spain
| Pension | Usual treatment under the UK–Spain treaty |
| UK State Pension | Taxable in Spain if you are Spanish resident (not taxed in the UK) |
| Private and workplace pensions | Taxable in Spain if you are Spanish resident |
| Government service pensions (for example civil service, NHS, teachers, armed forces) | Usually taxable only in the UK, unless you are a Spanish national and resident |
If you are under the Beckham regime, foreign private pension income is usually not taxed in Spain. That can mean no tax in either country on some pensions, but conditions apply.
Stopping UK tax on your pension
To have a UK private pension paid without UK tax, you apply to HMRC for relief under the treaty using form DT-Individual, with certification from the Spanish tax authority that you are resident there. Until HMRC issues an NT tax code, your pension provider will deduct UK tax.
UK residence still matters
You must also stop being UK resident under the statutory residence test. Spending too many days in the UK, or keeping strong ties such as a home and family here, can keep you UK resident, and then UK tax applies to your worldwide income.
Example
Claire, 52, moves to Madrid for a senior role and qualifies for the regime. She also draws a small UK personal pension. Under the regime, the pension is not taxed in Spain. She applies to HMRC with form DT-Individual and Spanish residence certification, so it’s paid gross in the UK. Her UK NHS pension, if she had one, would still be taxed in the UK.
Other things to plan for
- Inheritance tax: long-term UK residents stay in scope for up to 10 years after leaving
- Pension lump sums: tax treatment in Spain can differ from the UK’s 25% tax-free amount
- Currency: pensions paid in sterling expose you to exchange rate changes
- Wealth tax and reporting of foreign assets in Spain (the Modelo 720 rules)
Frequently asked questions
Can a retiree use the Beckham Law?
Generally no, because it’s linked to moving for work.
Is my State Pension taxed in the UK if I live in Spain?
No, it’s usually taxed in Spain.
Do I need to tell HMRC I’ve moved?
Yes, using form P85 or your final Self Assessment return.
Will my State Pension still increase?
Yes, it is uprated in Spain under current arrangements.
Related: overseas assets and inheritance tax and tax refunds on pension income.
Talk to Accotax
Want this handled for you? Our team at Accotax can help with UK pensions when you move abroad. See our personal tax accountants service, or contact us for a free, no-obligation quote.
This page is general guidance based on HMRC rules for the 2026/27 tax year, checked against gov.uk on 14 October 2026. It is not personal advice, so speak to an accountant about your own situation.
