BUZZ ACCOUNTINGUK tax help in Spain
Spain taxes worldwide income, wants wealth declared on Modelo 720, and shares data with HMRC automatically. The UK side has to be clean because both sides can see it.
Spain is the most popular retirement and remote-work destination for Brits, and the pair of tax systems is unforgiving of drift: Spanish residence arrives at 183 days (or centre-of-interests), worldwide income becomes Spanish-taxable, foreign assets over €50k go on the Modelo 720 declaration, and the UK and Spain exchange account data automatically.
What we run from the UK side
- UK rental returns — UK first, Spanish return credits it. British nationals keep the UK personal allowance under the treaty position; the computation has to be produced in time for the Spanish deadlines, which don't match the UK's.
- UK pensions — generally taxable in Spain once you're resident (government-service pensions excepted); getting an NT code so UK PAYE stops on your pension is paperwork we do constantly. The 25% UK tax-free lump sum is not tax-free in Spain — timing it before the move is one of the most valuable single decisions a UK-to-Spain retiree makes.
- Selling up — selling your UK home after becoming Spanish-resident can create a Spanish gain even where the UK charge is small; sequencing the sale against the move matters. The UK 60-day return applies regardless.
- The departure year — split-year, P85, and a residence file you can show either tax authority (the review).
Three Spain stories we see every month
Names changed, numbers real. If one of these is you, the fix is usually days of work, not months.
The lump sum, taken in time
Retiring couple, Marbella plan. The 25% UK tax-free lump sum is Spanish-taxable if taken after residence switches — we sequenced it the tax year before the move. Saved roughly €28,000 for one conversation.
Pension PAYE, stopped
Teacher's pension paid with UK tax deducted AND declared in Spain. Treaty says Spain taxes it (non-government portion): NT code obtained, UK PAYE stopped, refunds claimed for two open years.
Modelo 720 panic
New Costa Blanca residents with UK ISAs, premium bonds and a rental — asked us what Spain needs declared. Our half: exact UK valuations and income statements, delivered in Spain's format to their gestor. Nothing missed, no €10k starting fines.
Spain × UK: the quick facts
| Question | Short answer |
|---|---|
| Local tax system | Worldwide from 183 days; Modelo 720 asset declaration |
| UK personal allowance | Kept by British nationals |
| State Pension uprating | Uprated normally in Spain |
| Watch for | The 25% UK lump sum — not tax-free in Spain; take it before you move |
| Pensions | Usually Spanish-taxable; NT code stops UK PAYE |
Tax years: Spain uses the calendar year; the UK 6 April–5 April. The split year you move needs both.
Asked from Spain, constantly
When exactly do I become Spanish-resident?＋
183 days in a calendar year — or Spain being your centre of interests (family, main home). It's a calendar-year test, unlike the UK's April year, and the mismatch year needs care on both sides.
Is my UK State Pension taxed in Spain?＋
Yes, once resident — Spain taxes it, the UK shouldn't (NT code). Government-service pensions are the exception: taxed in the UK only.
What's the Beckham law and does it help me?＋
A special regime taxing certain new arrivers like non-residents (roughly 24% on Spanish employment income, foreign income mostly exempt) for up to six years. Spanish-adviser territory; we make sure the UK side fits it.
What most Spain clients have us do
Read before you pay anyone.
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Your country changes the answer.
The UK side is only half the story — what your new country taxes, credits and freezes decides the rest.