It is always sensible to have your finances in good order, and careful financial planning is an important part of buying a property anywhere in the world, but it becomes even more crucial when you are planning to buy property overseas. Any property purchase abroad has an impact on your worldwide estate, so you need to protect your assets in the UK and elsewhere and ensure you are not paying additional taxes unnecessarily, particularly if you are planning to become resident in Spain instead of the UK.


We always recommend speaking with an independent financial advisor (IFA), to ensure that all elements of your finances are covered ready for a move to Spain. Some of the key considerations you will need to take into account before you move are:

Finance - tax before

The best thing that you can do is consult an expert to ensure you are completing tax information that is of the highest quality.

  • How to notify HMRC that you are planning to leave the UK, and ensuring this is done in a timely manner. It is essential that you do this if moving outside the UK, and there could be the added benefit of a tax rebate for doing so.
  • You must assess the various tax implications of your move to Spain carefully, particularly if you are keeping a property in the UK and plan to let this.
  • You will need to look at the benefits of continuing National Insurance Contributions when you move to Spain, and how this affects your state pension from the UK.
  • You should assess your existing life assurance and savings policies in the UK to see if they are still suitable and will cover you in Spain.
  • Bear in mind that it is not usually possible to continue to contribute to ISAs once you have moved to Spain – be sure of what you can and can’t do with any investments you may have in the UK.
  • Your financial advisor can discuss with you if it will be possible to still make payments in to your UK pension and if you will still be eligible for tax relief or accumulated pension rights.
  • Consider how you will manage any large cash balances you hold in the UK – perhaps you would like to transfer these, or move them offshore? Your financial advisor can guide you on what best suits your needs and circumstances.
  • Be clear on your residence status and what is required of you from the Statutory Residence Test in Spain. This is especially important if you are planning to spend an equal amount of time in both the UK and Spain.
  • Know what is required of your tax returns in both Spain and the UK and when you need to submit them – there are now considerable fines levied for late submission.
  • Inheritance issues – Inheritance law differs in the UK from the Spanish system, so find out what this entails to ensure your estate and your will are protected.

We always recommend speaking with an independent financial advisor (IFA), to ensure that all elements of your finances are covered ready for a move to Spain.

We can put you in touch with a professional financial advisor, who can help you with all these important plans before your move to Spain.

The effects of currency exchange rates on your income in Spain

If you are planning to use a pension or any investments from the UK as an income once you move to Spain, the amount you receive for these in euros will vary according to the fluctuating exchange rates. Consulting an experienced currency specialist, such as our recommended partners, Smart Currency Exchange, means you can stay on top of currency market movements and even set the exchange rate for any regular income payments, so you will always know what funds you will receive. To get in touch with their friendly team, request a quote or contact the Spain Property Guide Resource Centre.

Get in touch with an Independent Financial Advisor

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