The UK Expat Tax Checklist: Post-Brexit Focus
This checklist focuses on the unique challenges faced by UK citizens who are Spanish tax residents, emphasizing DTA application, pension taxation, and the non-existence of a UK-Spain Inheritance Tax treaty.
🔑 Phase 1: Income Tax (IRPF) & Double Taxation Agreement (DTA)
Your main task is correctly applying the DTA to your UK-sourced income to avoid double taxation.
| Income Source | Spanish Tax Status (for Resident) | Key Action |
| UK State Pension | Taxable ONLY in Spain (as private pension). | Apply to HMRC for an NT (No Tax) code to have the pension paid gross (without UK withholding tax), then declare the full amount in your Spanish IRPF (Modelo 100). |
| UK Private/Occupational Pension | Taxable ONLY in Spain (unless it’s a specific government pension). | As with the State Pension, apply to HMRC for an NT code, and declare the gross amount in your Spanish IRPF. |
| UK Government/Civil Service Pension | Taxable ONLY in the UK. | Exempt from Spanish tax, but you MUST declare the income in your Spanish IRPF for the Progression Clause (it affects the tax rate applied to your other Spanish income). |
| UK Rental Income | Taxable in BOTH the UK and Spain. | Pay tax in the UK first. Declare the income in your Spanish IRPF, and claim a Foreign Tax Credit for the tax paid to HMRC to avoid double taxation. |
| UK Interest & Dividends | Taxable ONLY in Spain (State of Residence). | UK withholding is often low or zero on interest. For dividends, the UK may withhold up to 15%; this is creditable against your Spanish tax liability. |
💰 Phase 2: Wealth & Asset Reporting
| Tax / Declaration | UK Expat Obligation | UK Specific Risk |
| Modelo 720 | Mandatory if your UK assets (bank accounts, shares, property) exceed €50,000. | This includes UK assets that may be non-taxable in Spain (like certain pensions), but they must still be declared for informational purposes. |
| Wealth Tax | Applies to your worldwide net assets (if you’re a Spanish resident). | Your UK assets (excluding certain pension funds) are counted towards the €700,000 threshold (or lower regional thresholds). Plan for the tax on your UK portfolio. |
⚖️ Phase 3: Inheritance Tax (IHT) Planning
| Tax / Declaration | Obligation / Challenge | Key Action |
| IHT Double Taxation | UK and Spain DO NOT have an Inheritance Tax DTA. | Assets located in Spain are subject to Spanish IHT; assets located in the UK (e.g., property) may still be subject to UK IHT (on a non-domiciled basis). Double taxation is relieved via unilateral Spanish tax credit (you get a credit in Spain for IHT paid abroad, up to the Spanish IHT liability). |
| UK Domicile | The UK may still deem you domiciled for IHT purposes. | Review the UK’s 15/20-year domicile rules and the non-dom status implications, as your worldwide estate could potentially be exposed to UK IHT for a long period. |
| Spanish IHT Liability | If you are a Spanish resident, the tax is on the recipient based on your worldwide assets. | Plan for the correct regional law (e.g., Andalusia, Madrid offer $99\%$ reductions) and ensure your Will is updated to reflect Spanish succession law. |
Tax Guide 2026
If you need an overall view of tax obligations, click on Taxes in Spain Guide 2026.
