Moving to Spain does not simplify your financial life. If anything, it adds a layer of complexity that most UK-based advisors are not equipped to handle. You now exist in two financial systems at once: a UK one that still holds your pensions, ISAs, and property, and a Spanish one that governs how your income is taxed, what assets must be declared, and what penalties apply if you get it wrong.
Finding an advisor who understands both sides is not straightforward. This article sets out what to look for, the questions worth asking before you commit, and the warning signs that suggest an advisor is out of their depth.
Why standard UK financial advice is not enough
A UK-based advisor works within a single regulatory and tax framework. They know the rules for pension drawdown, ISA allowances, and inheritance tax planning in a UK context. What they typically do not know is how those structures interact with Spanish tax law.
Take something as common as a UK workplace pension. In the UK, pension income is taxed at source under PAYE. In Spain, it is taxed as general income under your annual IRPF return and subject to progressive rates that can reach 47 percent. A good cross-border advisor will model both scenarios and show you the actual impact on your net income. An advisor who only knows the UK side cannot do this.
The same applies to investment accounts, property rental income, and even the State Pension. Spain and the UK have a Double Taxation Treaty, but applying it correctly requires understanding how each country classifies different income types. Getting this wrong means either overpaying tax or, more dangerously, underpaying and facing penalties from the Agencia Tributaria.
What to look for
Experience with UK and Spanish tax rules. Ask directly whether the advisor has worked with UK expats in Spain before and can explain, in plain terms, how the Double Taxation Treaty applies to your main income sources. If the answer is vague, that tells you something.
Familiarity with your specific assets. UK pensions, particularly defined benefit schemes and older personal pension arrangements, have their own rules around transfers, drawdown, and international treatment. An advisor who has dealt with these structures before will ask different, more precise questions than one who has not.
A clear regulatory framework. Regulation of financial advisors operating across EU countries is a patchwork. Ask who regulates the firm, what that means in practice, and what recourse you have if something goes wrong. A reputable firm will be able to answer this clearly.
Continuity. Your financial situation changes over time: pension age, residency status, property, inheritance. An advisor who works with you long term, and keeps up with changes to both UK and Spanish rules, is worth significantly more than one who provides a one-off plan and moves on.
Questions worth asking before you commit
- How many UK expat clients in Spain do you currently advise?
- Can you explain how the UK-Spain Double Taxation Treaty applies to pension income?
- Are you familiar with voluntary National Insurance contributions and when they make sense for clients?
- How do you handle Modelo 720 (the Spanish declaration of overseas assets) in your advice process?
- What happens to my case if you leave the firm?
These are not trick questions. A competent advisor will answer them without hesitation. Evasive or generic answers are a red flag.
Red flags
Be cautious of advisors who recommend moving all your pension assets offshore before you have a clear picture of the tax consequences. QROPS transfers, for example, can make sense in certain situations but carry significant risks if done for the wrong reasons or at the wrong time.
Be equally cautious of advisors who focus exclusively on one area. Someone who only knows pensions cannot give you a complete picture. Someone who only understands Spanish tax cannot tell you what to do with your UK assets. Cross-border advice, done properly, requires both.
Finally, treat any advisor who dismisses the complexity of your situation with scepticism. The phrase “it’s straightforward, we do this all the time” is not reassuring when your pension, your Spanish tax return, and your UK property are all connected.
A starting point
If you have UK pensions, savings, or investments and you live in Spain or elsewhere in Europe, the starting point is a clear picture of what you have, what it is worth, and how it is currently being taxed. From there, it becomes possible to identify what is working, what is not, and what genuinely needs attention.
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