Expat Financial Planning · Spain
Financial Planning for British Expats in Spain — Post-Brexit
Spain remains the most popular destination for British expats in Europe — but the financial landscape has changed significantly since Brexit. UK nationals now require a visa or permit, must file Modelo 720, navigate Spanish IRPF, and manage UK tax obligations that do not simply disappear on crossing the Pyrenees. We provide specialist advice that covers both sides.
The changed landscape
Spain since Brexit — what British expats need to know
Residency routes for UK nationals
- Withdrawal Agreement residents: those who registered before 31 December 2020 retain prior rights
- Non-Lucrative Visa (NLV): for those with sufficient passive income (approx. €2,400/month minimum)
- Ley de Startups / digital nomad visa: for remote workers and new arrivals qualifying for the 24% flat rate regime
- Standard work and business visas: for employment or entrepreneurship
- Golden Visa: Spain's residency-by-investment route was closed on 3 April 2025 and is no longer available to new applicants
Key tax obligations
- IRPF: progressive income tax from 19% to 47% on worldwide income for standard residents
- Modelo 720: mandatory annual declaration of foreign assets above €50,000 per category
- Wealth tax (Patrimonio): Spanish wealth tax on net assets above €700,000 (rates and allowances vary by region; a separate national Solidarity Wealth Tax applies above €3m)
- ISD: Spanish succession and gift tax — varies significantly by Autonomous Community
- UK obligations: UK rental income, some pensions, and IHT remain UK-taxable
The preferential tax regime
The Ley de Startups tax regime — the new 'Beckham Law'
The original Beckham Law (LIRNR) was restricted to high-earning employees. The updated Ley de Startups (2022) broadened eligibility to include remote workers, digital nomads, and entrepreneurs. Under this regime, qualifying new arrivals pay a flat 24% on Spanish-sourced income up to €600,000 per year, rather than progressive IRPF rates that reach 47%.
Qualification conditions
- Not tax resident in Spain in the 5 prior years
- Moving to Spain to take up employment, run a qualifying business, or work remotely for a foreign employer
- Application must be made within 6 months of registration
Key benefits
- 24% flat rate on Spanish income up to €600,000
- Duration: year of arrival plus 5 years (up to 6 years total)
- Foreign-sourced income largely excluded from Spanish taxation
- Simplified foreign asset obligations
Considerations
- Income above €600,000 is taxed at 47%
- Regime ends after 6 years — plan the exit in advance
- Interaction with UK domicile rules requires careful structuring
- Pensions, dividends, and investment income may be treated differently
Our services
Financial planning services for Spain-based clients
UK Pension Advice
NT coding, QROPS options, and pension drawdown from Spain.
Learn more →Tax Planning
Modelo 720 strategy, IRPF planning, and Ley de Startups structuring.
Learn more →Protection Insurance
IPMI, Spanish property insurance, life assurance.
Learn more →Estate Planning
Spanish succession, ISD planning, cross-border wills.
Learn more →Offshore Banking
Multi-currency accounts for UK nationals in Spain.
Learn more →Property Investment
Spanish and international investment property advisory.
Learn more →Pensions
UK pension income in Spain
The UK-Spain double tax treaty allocates taxing rights on most pension income to Spain for Spanish tax residents — but the practical steps to ensure you are taxed correctly require action on both sides of the border.
Step 1: UK NT coding notice
Apply to HMRC for a No Tax (NT) coding notice, which instructs your UK pension provider to pay your pension gross — without deducting UK tax. This requires evidence of Spanish tax residency (a Spanish tax certificate). Without this, UK tax will be deducted at source and you may need to reclaim it.
Step 2: Declare in Spain
Declare your UK pension income in your annual Spanish IRPF return (Declaración de la Renta). Under standard IRPF, rates are progressive from 19% to 47%. Under the Ley de Startups regime, foreign pensions may be outside the Spanish tax base entirely — depending on the pension type and how income is characterised.
Note: UK government service pensions (civil servants, armed forces, police, teachers, NHS) are generally taxable only in the UK under the treaty — and cannot benefit from NT coding. UK state pension is treated as Spanish-source and declared in Spain under the treaty.
Free tools
Tools for Spain-based clients
Common questions
Spain expat financial planning — FAQs
Do I pay tax on my UK pension in Spain?
Under the UK-Spain double tax treaty, most UK pension income paid to a Spain tax resident is taxable only in Spain under Spanish IRPF progressive rates — not in the UK. You can apply to HMRC for an NT (nil tax) code to stop UK withholding tax, then declare the income in your annual Spanish tax return. UK government service pensions (civil service, armed forces, police, teachers) are typically taxable in the UK only. The UK state pension is generally taxable in Spain as foreign income. Always verify your specific pension type with an adviser.
What is Modelo 720?
Modelo 720 is Spain's overseas assets declaration form. Spanish tax residents are required to declare foreign assets (bank accounts, investments, and real estate) held abroad if the aggregate value exceeds €50,000 per category. The declaration is made once, with subsequent filings only required if values increase by more than €20,000. Penalties for non-declaration were significantly reduced following a European Court of Justice ruling in 2022, but the obligation to file remains. Non-compliance is still a serious risk.
Can I use the Beckham Law (Ley de Startups)?
The Ley de Startups (formerly 'Beckham Law') allows qualifying new arrivals in Spain to pay a flat 24% rate on Spanish-sourced employment and business income (up to €600,000 per year), rather than the standard progressive IRPF rates which reach 47%. To qualify, you must not have been a Spanish tax resident in the 5 years prior to arriving, and you must be arriving to take up employment or run a qualifying business. The regime lasts for up to 6 years (the year of arrival plus 5). Foreign income and assets are largely excluded from Spanish taxation under this regime.
What happened to British expat rights after Brexit?
UK nationals who were resident in Spain before 31 December 2020 and applied for residence under the Withdrawal Agreement retain their rights under that agreement, including the right to continue living and working in Spain. UK nationals arriving after 31 December 2020 must obtain a visa or permit under Spanish immigration law. The most common routes are the Non-Lucrative Visa (NLV) for those with sufficient passive income, the Ley de Startups (digital nomad/remote worker) visa, and the standard work and investment visas.
Is there inheritance tax in Spain?
Yes — Spain has Impuesto sobre Sucesiones y Donaciones (ISD), the Spanish succession and gift tax. Rates and allowances vary significantly by Autonomous Community (region): some regions such as Madrid and Andalusia offer near-total exemptions for direct heirs, while others apply much less generous allowances. Forced heirship rules also apply under Spanish law, reserving a fixed portion of the estate for children. From 6 April 2025, UK Inheritance Tax on worldwide assets is determined by long-term UK residence (broadly, UK resident for 10 of the previous 20 tax years) and can continue for up to 10 years after you leave the UK. Cross-border succession requires careful planning.
Get specialist Spain expat financial advice
The UK-Spain financial picture is one of the most complex for any British expat — two tax systems, an asset declaration obligation, succession rules that differ from the UK, and post-Brexit visa requirements. Our advisers can help you navigate all of it in a single coordinated review.
Speak to a Spain specialistThe information on this page is for general guidance only and does not constitute personal financial or tax advice. Spanish and UK tax rules change — information may become out of date. Always verify current rules and seek advice from a qualified professional before making any financial decisions. Investments can fall as well as rise.
Get specialist Spain expat financial advice
The UK-Spain financial picture is one of the most complex for British expats — IRPF, Modelo 720, UK pension structuring, Beckham Law eligibility, and post-Brexit visa requirements. Our advisers can navigate all of it.