If you are moving to Spain at retirement age, you may benefit from moving your UK pensions into another scheme, such as a self-invested personal pension (SIPP) or a Qualifying Recognised Overseas Pension Scheme (QROPS). Conditions do apply, but typically you could gain greater control over your pension and reduce your tax bill.
You would need to remember that the UK authorities will only allow you to transfer a pension abroad if the scheme meets certain criteria: you need to be living, or going to live, abroad, and you must remain living abroad. Don’t forget though, it takes ten years of being a non-resident and moving the pension for a QROPS to show real benefits, making it really important to consider your options now rather than later. If you would like to be put in touch with an authorised tax and financial advisory firm, who can advise you on financial planning and taxation when you move to Spain or own property there, call our Resource Centre on 0207 898 0549.