If you remain UK resident and spend the winter in the Canary Islands, your UK state and private pensions continue to be paid into your UK account as normal and are taxed in the UK. The practical questions are how to spend that money in euros cheaply and how to keep your UK residency status clear.
Spending your pension in euros
- Use a fee-free debit card for daily spending.
- Transfer larger sums for rent with a specialist service or a multi-currency account.
- Avoid dynamic currency conversion: always pay in euros.
If you become resident in Spain
If you move to Spain and become tax resident, the situation changes. The UK state pension can be paid to a Spanish account and, because Spain is in the EEA, it continues to receive annual increases. Under the UK-Spain double taxation agreement, most UK pensions are then taxed in Spain, while UK government service pensions are normally taxed in the UK. Get professional advice before moving.
Keep your UK status clear
| You are… | Your pension |
|---|---|
| UK resident, wintering under 90/180 | Paid and taxed in the UK as usual |
| Moving to Spain permanently | Tell the Pension Service and HMRC; Spanish tax rules may apply |
Practical tips
- Keep your UK address and bank account active.
- Tell your bank you are travelling to avoid card blocks.
- Track the days you spend in Spain each calendar year.
Our verdict
For a winter stay, nothing changes with your pension except currency. See Tax Residency in Spain.
Disclaimer
General information, not financial or tax advice.
Official sources
Rules change. Before you book or apply, check the current position with the official source: