A 2021 ruling determines that unless a pension is a Spanish or EU contract, transfers from ‘third country’ pension schemes to EEA pension schemes are subject to personal income tax on the whole fund value, up to 49.5% in the Balearics.
Plan your retirement with the help of an advisor.
Expatriates who have UK pension funds above £1 million (or likely to swiftly exceed this level) may have options to transfer to a suitable alternative pension scheme, depending on your personal situation.
Your lifetime allowance is the amount you can hold in combined UK pension benefits (excluding the state pension) before incurring additional tax charges.
Once you are resident in Spain, most UK pension income is only taxed here.