Every year thousands of Britons wave goodbye to cold winters, traffic jams and NHS queues to retire abroad. Most people will be entitled to some form of UK state pension. Around one million people currently claim the state pension abroad. Your pension or widow's benefits, can be paid directly to you in Spain. Or, if you wish, you can choose to have payment by payable orders sent straight to you by post Whichever you choose, payment is made every four or 13 weeks in arrears.

If you worked for a Government agency, Police or armed forces, etc., you will not be liable for tax on that pension by the Spanish tax Authorities. All other pensions from whatever source are liable for inclusion in your Tax declaration to the Spanish Tax Authorities. If you take a lump sum from your pension while you are living in Spain, only 40% is subject to tax.

You are regarded as resident for tax purposes if you spend more than 183 days in Spain, or your permanent home is in Spain. If you are resident in Spain for Tax purposes, you are legally bound to submit a Tax declaration and must declare all pensions.

If you have lived and worked in Spain for a minimum of 15 years and paid your national Insurance contributions and Income tax you are eligible to receive the Spanish State pension.

If you have worked throughout Europe and made the applicable contributions there is provision within the law that entitles you to a pension in proportion to the time you have lived and worked here.