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UK State Pension

What UK expats in Spain need to know

Your State Pension is one of your most valuable UK assets, but claiming it from Spain, understanding how it's taxed, and maximising your entitlement takes careful planning.

What is the UK State Pension?

The UK State Pension is a regular payment from the UK government, paid to you once you reach State Pension age (currently 66, rising to 67 between 2026 and 2028). It is funded through your National Insurance (NI) contributions made during your working life in the UK.

Unlike a workplace or private pension, the State Pension is not means-tested and is not affected by other income you receive. As a British expat living in Spain, you remain fully entitled to claim it. It will be paid directly into your bank account, in pounds sterling, wherever you live.

The full New State Pension (introduced in April 2016 for those reaching State Pension age on or after that date) is currently £241.30 per week (2026/27 tax year), equivalent to just over £12,500 per year. Whether you receive the full amount depends on your NI record.

Qualifying years & NI contributions

To receive any State Pension you need a minimum of 10 qualifying years of NI contributions. To receive the full State Pension, you need 35 qualifying years. Each year between 10 and 35 earns you a proportional amount.

10 years

Minimum qualifying years

Below this you receive nothing

35 years

Full State Pension at

Maximum entitlement reached

£241.30

Full weekly amount

2026/27 tax year

Qualifying years don't have to be consecutive. NI contributions from any point in your working life count, including years when you were employed, self-employed, or received NI credits (e.g. for childcare or unemployment).

Gaps can be filled voluntarily. If you have gaps in your NI record (common for expats who left the UK mid-career) you can make voluntary Class 3 NI contributions to fill them. This is often excellent value and can significantly increase your eventual pension.

Check your record now. You can view your NI record and get a State Pension forecast via the UK Government Gateway at gov.uk/check-state-pension. I can help you interpret the results and identify whether topping up makes financial sense.

How is the State Pension taxed in Spain?

This is one of the most misunderstood areas for UK expats. The UK-Spain Double Taxation Treaty determines which country has the right to tax your State Pension income, and the answer matters significantly for your tax bill.

Spain taxes your State Pension

Unlike some government pensions (such as civil service pensions), the UK State Pension is taxable only in Spain, your country of residence. It is not subject to UK income tax once you are a Spanish tax resident.

It counts as general income (Base General)

In Spain, State Pension income is declared as general income on your annual IRPF return. It is added to other general income sources and taxed at Spain's progressive rates, which start at 19% and rise to 47%.

The personal allowance still applies

Spanish residents benefit from a personal allowance (mínimo personal) of €5,550 per year, plus additional allowances for age (over 65: €6,700; over 75: €8,100). For many retirees, the State Pension alone stays within a low tax band.

Currency risk is real

Your State Pension is paid in sterling but you live in euros. GBP/EUR fluctuations directly affect your real income. Structuring your overall finances to manage this currency exposure is part of good cross-border planning.

State Pension calculator

Enter your number of full qualifying NI years to estimate your State Pension entitlement at current 2025/26 rates.

years of NI contributions

Based on the full New State Pension rate of £241.30/week (2026/27). This is an estimate only. Your actual entitlement depends on your full NI record. Monthly figure calculated as weekly × 52 ÷ 12.

Latest news

April 2026

Major change for expats: cost of buying State Pension years rises sharply

Class 2 voluntary NI contributions have been abolished for expats from 6 April 2026. If you have gaps in your NI record, acting now is more urgent than ever.

  • Cost of filling gaps rises from ~£182/year (Class 2) to ~£923/year (Class 3)
  • HMRC will write to affected payers in July 2026
  • New applicants must now meet a 10-year UK residency requirement

April 2026

State Pension rises to £241.30 per week from April 2026

The full new State Pension increased from April 2026 under the triple lock guarantee.

  • New weekly rate: £241.30 (up from £230.25 in 2025/26)
  • Increase of 4.8%, driven by average earnings growth recorded over May to July 2025
  • The triple lock uprates the pension by whichever is highest: earnings growth, inflation, or 2.5%

Not sure where you stand?

I can review your NI record, assess whether topping up is worth it, and show you how your State Pension fits into your wider income and tax picture in Spain.

Book a free consultation

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