What you need to know to live in Spain

Spain is still a popular destination for British expats to retire to as they can claim their basic state pension from the UK and enjoy a different pace of life with better weather.

This guide will help anyone looking to move to Spain, either to retire or to live there, by helping them negotiate what can be tricky processes.

Expats should be aware that Spanish national and regional governments do little translation of documents and websites into English, and this can cause problems for non-Spanish speakers.

Do I need a visa to live in Spain?

A visa is not required to live in Spain for British citizens or subjects, but you must hold a British passport to enter and exit Spain.  That passport should be valid for your entire stay in the country

Essentially, if you have the right to live in the UK then you can move to Spain but some British nationals will need check whether they have the correct requirements for entry with a Spanish embassy.

Can I claim my UK state pension in Spain?

Yes, you can claim the basic UK state pension while resident in Spain but only if you have never worked in the country.

To make a claim for the UK basic state pension, call the International Pension Centre (IPC) on +44 (0)191 218 7777.

For claimants who have lived and worked in Spain, they must make a claim with the Instituto Nacional de la Seguridad Social (INSS) though the claim will be passed to the IPC.

Claimants should note that this form is in Spanish with no English alternative.

I’m already claiming my pension – can I move to Spain?

If you already receive the UK pension and want to move to Spain, you should tell the IPC as soon as possible to prevent any pension payment problems.

Telling the IPC will also ensure you have access to Spanish healthcare.

Can I claim the Spanish state pension as well?

Contact the local office of the Instituto Nacional de Seguridad Social (INSS) to find out.

If someone has worked and made social security contributions in Spain, then it is feasible that a Spanish pension could be claimed, but you’ll have to give information about your work history when applying.

The situation can appear to be complex since UK contributions can count towards a Spanish basic state pension.

Can I make voluntary contributions?

Voluntary contributions can be made in either Spain or the UK for topping up a pension entitlement.  For information on this, contact HM Revenue and Customs, while in Spain you’ll need to get in touch with the Tesorería General de Seguridad Nacional (TGSS).

What is a life certificate?

Should you receive the life certificate, it is vital that you do not ignore it since it has come from the UK’s pension service and by not replying you will see your benefits stopped.

For those living in Spain, there is a version in Spanish.

Contact IPC on +44 191 218 7777 for more details.

The situation is slightly different for a Spaniard receiving a life certificate from the UK pension service. They need a ‘Fe de Vida’ form from a civil registry. This form must be submitted rather than the pension service form from the UK.

The signature on the form must be witnessed and there are four acceptable options for doing this, including asking a police officer.  Other witnesses may charge for the same service, including a solicitor or a notary.

Should you struggle to find someone to witness your signature, then you could try the British consulate to see if they can provide the service by telephoning 902 109 356 or 913 342 194 to find the nearest office.

I have worked in Spain, do I get a Spanish benefits?

Anyone who has worked in the country and paid social security contributions will be entitled to some, if not all, of their benefit entitlements.

Those benefits include incapacity benefit and unemployment benefit.

However, self-employed people, or autónomo as they’re known, are unlikely to have made contributions and will not be entitled to claim unemployment benefit while in Spain.

Some people will be told they are not entitled to claim benefits despite having worked in the country and this may be because they haven’t paid enough national insurance.

In this situation, declare your UK contributions as these could be added to the Spanish contributions.

It is important to note that in Spain all applications for any type of benefit or pension claim should be made in writing.

How do I claim Spain’s unemployment benefit?

People can apply at an employment office for Spanish unemployment benefit if they have worked and paid national insurance contributions.

If you are told that you haven’t made enough in contributions to qualify for Spanish unemployment benefit, then you should declare all of your UK national insurance contributions since these will top up your claim.

To do this you’ll need a statement from HMRC of your contributions and you need to complete the form called CA3916.

Can I claim Spain’s disability benefit?

The situation is similar to claiming Spanish unemployment benefit. Anyone wanting to claim incapacity benefit will have to make a claim at the INSS office.

Again, you will have to have paid enough national insurance contributions while working in Spain or the UK to make a disability claim.

You will need form CA3916 from HMRC for claiming sickness benefit in Spain.

Are there any benefits which are means-tested in Spain?

Yes, they are called the ‘Pensión de invalidez no contributiva’, or what people in the UK would know as non-contributory invalidity pension.

There are strict criteria to determine eligibility for claiming the Spanish benefit. Claimants must be aged between 18 and 65 and have lived in the country for more than five years – two of those years must be prior to the claim being made.

Claimants must also have a low income and be affected by either illness or a disability.

Can I claim a Spanish pension without any making any contributions?

This is a benefit to help people on a low income and aged at least 65 wanting to claim a non-contributory pension, or a Pensión de jubilación no contributiva.

However, claimants must have been living in the country for more than 10 years, aged between 16 and their retirement; with two of those years immediately prior to the claim.

There is more information available about benefits, though it’s only in Spanish, from town halls and local social services offices.

Will I have to pay tax in Spain?

Yes, you will have to pay tax while living and/or working in Spain but you won’t have to pay UK tax if you do. This is because Spain and the UK have an agreement to prevent the same income from being taxed twice.

There is more information about double taxation on HMRC’s website.

However, the tax situation in Spain can be complex for foreigners and professional advice should be sought to avoid any potential future problems.

Do I have to declare my assets to Spanish authorities?

A new law has just come into force which compels everyone living in Spain – whether they are nationals or foreigners – to declare all of their assets being held outside of the country.

These assets include your bank accounts, annuities, property and securities.

It should be noted that this declaration is completely separate to the Spanish tax return and failure to make a full declaration could lead to fines.

The authorities will also impose a penalty for late or incomplete reporting as this will be viewed as non-compliance.

Spain’s tax authority acknowledges that this is a difficult area and they have an information page in English on their website.

Can I drive my car in Spain?

Yes, you can take your car to Spain, and many expats do so, but you can only drive it for six months in any year without having to register it with Spanish authorities.

Your car must observe UK laws such as having a valid MoT, road tax and at least third party insurance which is valid while in Spain.

After six months and you will have to contact the Dirección General de Trafico to register your car – though it is doubtful they will accept UK-registered commercial vehicles and vans.

Do I have to pay vehicle import tax in Spain?

You can import your vehicle to Spain but will have to pay the relevant taxes for doing so, though in some cases you may be not liable from some of them.

Among the taxes are a registration charge, road tax and VAT.

The Agencia Tributaria website has more details.

Is my driving licence valid in Spain?

Yes, though the legal age for driving in Spain is 18 and you may have to register your licence with the relevant authorities. Some people can also convert their British licence for a Spanish version.

Can I renew my driving licence in Spain?

This can be a tricky area for British expats living in Spain.

Should your driving licence expire, you cannot renew through the DVLA as a resident in Spain. This also applies should you lose your licence or have it stolen.

It is probably easier to switch your UK licence into a Spanish driving licence before the expiry date.

What ID do I need to drive a car in Spain?

The Spanish driving regulations require drivers to carry their driving licence as well as an ID document, such as a passport, and the green resident’s certificate if they have one.  If someone is stopped these are the documents they will demand to see and so should be carried at all times.

I’ve been given a driving fine in Spain

All traffic fines, including speeding and parking tickets, can be paid online at the Direccion General de Tráfico website.

Should you need to dispute or appeal a fine, then you need to contact the Provincial Traffic Office, or Jefatura Provincial de Trafico, and take the matter up with them.