How to Claim Your UK State Pension from Spain (2026 Guide)

The UK state pension continues to be paid when you live in Spain, and the process for claiming it from abroad is straightforward once you know the steps. The more important questions for British retirees in Spain are around tax treatment, currency conversion, and the annual uprating rules.

This guide covers the full picture.

Claiming Your UK State Pension from Spain

You claim the state pension through the UK government’s International Pension Centre regardless of where you live. The process is the same whether you claim before leaving the UK or after you have already moved.

How to claim:

1. You will receive a letter from the Department for Work and Pensions (DWP) approximately 4 months before you reach state pension age. This contains instructions and a claim form.
2. If you do not receive a letter, contact the International Pension Centre directly or claim online at gov.uk/new-state-pension.
3. Complete the claim form. For claimants abroad, the form asks for your foreign bank account details if you want the pension paid directly to a Spanish account, or your UK account details if you prefer payment in sterling.
4. Submit the form and allow 5 to 6 weeks for the first payment.

The International Pension Centre handles all state pension claims for people living outside the UK:

• Telephone: +44 191 218 7777 (from Spain)
• Online: gov.uk/contact-pension-service

Where to Have Your State Pension Paid

You have two options:

Direct to a Spanish bank account: The pension is converted from sterling to euros by the payment provider (currently the DWP uses a specific conversion arrangement). The rate used is not always the mid-market rate, which means some value is lost in conversion.

To a UK bank account: You receive the pension in sterling and convert it yourself. This gives you control over when and how you convert, and using a service like Wise for the conversion saves you significantly compared to bank-to-bank international transfers.

For most retirees in Spain, receiving the pension in a UK account and using Wise to transfer monthly is the more cost-effective approach. On a full state pension of approximately £11,500 per year, the difference between a bank transfer and Wise can be £150 to £300 per year in exchange rate costs.

Wise: convert your UK state pension to euros cost-effectively

The Triple Lock: Does It Apply When You Live in Spain?

The Triple Lock guarantees that the UK state pension rises each year by the highest of: inflation (CPI), average earnings growth, or 2.5%.

For British retirees living in Spain, the Triple Lock applies and your pension increases annually, as long as the UK-Spain social security agreement remains in force. This is currently secured under the EU-UK Withdrawal Agreement and subsequent bilateral arrangements, and there is no current indication of change.

This is an important distinction from some other countries. British retirees in countries without a social security agreement with the UK (including Australia and Canada until recently) have historically had their state pension frozen at the level when they left. Spain is not one of those countries — your pension will increase each April in line with the Triple Lock.

Tax on the State Pension in Spain

As a Spanish tax resident, your UK state pension is taxable in Spain, not the UK.

Under the UK-Spain Double Taxation Treaty:

• The UK state pension moves to Spanish taxation once you are a Spanish resident
• You should notify HMRC of your Spanish residency and request that future pension payments are made without UK tax deducted (gross)
• You then declare the pension on your Spanish annual tax return (Modelo 100) and pay Spanish income tax at the applicable rate

How to notify HMRC:
Complete form P85 (available at gov.uk/going-abroad) to inform HMRC you are leaving the UK. This triggers the process of updating your tax code and arranging for the state pension to be paid gross.

Once HMRC processes your notification, they instruct the DWP to pay the pension without PAYE deduction. This can take several weeks. In the interim, any UK tax deducted can be reclaimed.

What you pay in Spain:
The full new state pension of approximately £11,500 per year (around €13,500 at current rates) falls entirely within the lower bands of Spanish income tax. Combined with the over-65 personal allowance of €6,700, only a portion of the pension is subject to tax, and at the 19% starting rate. The effective tax rate on the state pension alone is low.

Where it gets more complex is if you have additional pension income (private pension, occupational pension) that pushes your total above the higher tax bands. See our dedicated guide to UK pension tax in Spain for the full picture.

If You Have Not Yet Reached State Pension Age

If you are under state pension age when you move to Spain, your NI record continues to count towards your entitlement. You can also make voluntary Class 2 or Class 3 NI contributions from Spain to fill gaps in your record and maximise your eventual state pension.

Voluntary NI contributions from Spain are one of the best returns on any financial outlay available to UK expats. Class 2 contributions currently cost approximately £3.45 per week (2026 rate), and filling a missing year can add approximately £300 per year to your state pension for life.

Check your NI record and state pension forecast at gov.uk/check-state-pension. If you have gaps in your record, consider filling them before the deadline for voluntary contributions (currently extended to April 2025 for historical gaps, with further extensions possible — check the current position at gov.uk).

If You Are Already Receiving the State Pension and Moving to Spain

If you are already receiving the state pension when you move to Spain:

1. Notify the DWP of your new Spanish address
2. Notify HMRC via form P85 of your Spanish residency
3. Decide whether to switch payment to a Spanish bank account or keep a UK account and transfer yourself
4. Register as a Spanish tax resident and arrange to file a Spanish tax return for the first full tax year of residence

The transition is administrative rather than complicated. The main risk is delays or errors in communication between DWP and HMRC that result in UK tax continuing to be deducted when it should not be. Follow up in writing and keep copies of all correspondence.

Useful Contacts

• International Pension Centre (DWP): +44 191 218 7777
• HMRC International (for tax residency and P85): gov.uk/tax-uk-income-live-abroad
• Check your NI record: gov.uk/check-national-insurance-record
• State pension forecast: gov.uk/check-state-pension

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Frequently Asked Questions

Does the UK state pension continue if I move to Spain?
Yes. The state pension continues to be paid and is uprated annually under the Triple Lock. There is no requirement to be living in the UK to receive it.

Is UK state pension taxed in Spain?
Yes. As a Spanish tax resident, your state pension is taxable in Spain (not the UK) under the Double Taxation Treaty. You notify HMRC of your Spanish residency and pay tax in Spain instead.

Can I have my UK state pension paid to a Spanish bank account?
Yes. You can choose to have the pension paid directly to a Spanish IBAN. Alternatively, many retirees receive it in a UK account and convert to euros using Wise to get a better exchange rate.

What is the current UK state pension amount?
The full new UK state pension is approximately £11,500 per year for 2026 (subject to the annual Triple Lock increase). Your personal entitlement depends on your NI record; check at gov.uk/check-state-pension.

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*See also: UK Pension Tax in Spain | How to File Spanish Tax Return (Modelo 100) | Retiring to Spain from the UK: Complete Guide*

*Affiliate disclosure: The Wise link in this article is an affiliate link.*