Yes, you can collect your pension in another country. This is a question that many expats in Barcelona ask us once they have decided to stay and live in Spain. It is also a relevant issue for many people who decide to move abroad. We at Taxmind will explain everything in detail.
As we said, you can receive your pension in another country. Spanish regulations allow Spanish pensioners to receive their contributory pensions outside Spain, while non-contributory pensions have restrictions. Let’s see what we mean.
Requirements and procedures for continuing to receive your pension outside Spain
In order to continue receiving your pension from abroad, you must follow a series of requirements and procedures that will guarantee the continuity of your pension payments and comply with the obligations stipulated by the Spanish authorities.
Let’s go through them one by one.
☑️ Notification of change of residence to the National Social Security Institute (INSS)
It is essential to notify the INSS of any change of residence. This will enable the authorities to update the beneficiary’s status and make the necessary adjustments to their information.
We can carry out this notification through the official channels of the INSS, either digitally or by submitting physical documentation to the relevant office.
☑️ Submission of the certificate of life and tax residence
The pension can be collected in a country other than Spain if the interested party submits a life certificate. This is simply a document required to prove that the pensioner is still alive. The certificate is processed through a Spanish consulate or embassy.
In addition, the presentation of a tax residence certificate may be required, especially in countries that have a double taxation agreement with Spain, which influences the tax treatment of the pension.
☑️ Documentation required to maintain the benefit active abroad
To ensure that the pension remains active, the following documentation must be submitted:
- Application for change of residence to the INSS.
- Certificate of life, with the corresponding signature of the consul or ambassador.
- Certificate of tax residence.
- Any other document that the INSS may require depending on the specific case of the pensioner.
It is advisable to complete these procedures in advance and follow up to ensure that all documentation is received and correct.
Procedure to avoid suspension or cancellation of the pension
To avoid suspension or cancellation of the pension, we must comply with all the aforementioned procedures in a timely manner. Failure to submit the life certificate within the established deadlines may result in the suspension of payments.
Likewise, any change in the beneficiary’s situation, such as a change of address or changes in legal status, must be reported to the INSS immediately.
Spanish regulations on receiving pensions outside Spain
We refer to Spanish regulations to find out whether it is possible to collect a pension in another country, which, as we have already mentioned, is the case. Through our legal framework, we regulate the possibility for foreign pensioners to collect their pensions in Spain and how Spanish citizens can receive their benefits from abroad.
The Spanish pension system allows beneficiaries of contributory pensions, such as retirement, permanent disability, widowhood and orphanhood pensions, to receive their benefits abroad. This applies only to those who have made contributions to the Social Security system.
In order to continue receiving these payments, prior notification of the change of residence must be given to the National Social Security Institute (INSS). At Taxmind, in addition to being specialists in income tax returns for foreign residents, we are partners of the Tax Agency and are experts in all procedures related to receiving pensions in Spain and other countries.
Restrictions on non-contributory pensions for residents outside Spain
Non-contributory pensions are subject to stricter conditions. These types of benefits, which are granted without the need to have made contributions to the system, such as social assistance for people in vulnerable situations, cannot be collected if the beneficiary resides outside Spain.
Habitual residence is considered an essential requirement for maintaining this type of pension, which means that any move to another country will result in the suspension of these payments.
Regulations for foreigners who wish to receive pensions in Spain
Foreigners who have worked in their country of origin and wish to collect their pension in another country, such as Spain, must meet certain requirements, provided that a bilateral agreement has been established between Spain and the country from which they wish to collect their pension.
The process for applying to receive a pension in Spain includes submitting the necessary documentation, which may vary depending on the agreement. Generally, proof of the periods of insurance completed and an application to the Ministry of Inclusion, Social Security and Migration for recognition are required.
Types of pensions and their impact on international collection
To find out if you can collect your pension in another country, you need to look at the pension classification to understand what types of pensions exist, how they can be collected abroad, and the implications of doing so.
Contributory pensions: Retirement, permanent disability, widowhood and orphanhood
This type of pension is based on contributions made to the Social Security system. Contributory pensions include retirement, permanent disability, widowhood and orphanhood pensions. Each of these pensions has its own specific conditions for international collection.
☑️ Receiving a retirement pension outside Spain
People who have reached retirement age can receive their contributory pension in any country. There are no restrictions on this collection, provided that the obligations to notify and update data with the Social Security are met.
You must report any change of residence and submit a life certificate annually to ensure continuity of payments.
☑️ Permanent disability pension
Permanent disability pensions may also be collected abroad, although there are exceptions. If the disability is classified as total qualified and the beneficiary is 55 years of age or older, the amount may be reduced if they reside outside Spain. This aspect requires prior review with an advisor to understand any limitations or consequences arising from this change of residence.
☑️ Widow’s and orphan’s pensions abroad
Widow’s and orphan’s pensions can also be collected abroad under criteria similar to those for retirement pensions. Beneficiaries must ensure that they comply with the notification requirements of the Spanish authorities in order to maintain their rights abroad.
Needless to say that these pensions are vital for families who depend on these benefits after the loss of a family member.
Non-contributory pensions and their conditions for living outside Spain
Non-contributory pensions present a more restrictive picture.
This is because these subsidies are granted to people who have not made the required contributions and are linked to residence in Spain. When moving abroad, the right to receive these pensions is generally suspended.
Therefore, it is crucial to bear in mind that any attempt to collect a non-contributory pension from abroad will lead to its cancellation.
Can you receive your pension in another country: Taxation and international agreements
The taxation of pensions received from abroad is subject to the tax regulations of each country and any international agreements that may exist between them and Spain.
Numerous countries have established agreements with Spain to prevent double taxation. These agreements enable pensioners to avoid paying tax in both countries on the same income.
Generally, it is determined which of the two countries has the right to tax the pension, which may result in a lower tax burden. As pensioners, it is up to us to find out the specific content of these agreements, as they may vary depending on the country of residence. Some relevant aspects include:
Tax situation in countries without an agreement with Spain
The circumstances for pensioners residing in countries that do not have a bilateral agreement with Spain are more complex. In these cases, they are likely to face double taxation, as they may be subject to tax in both the country of origin of the pension and the country of residence. The specific consequences depend on the tax legislation of both countries. Some considerations include:
- Possible tax withholdings in Spain on the amount of the pension.
- The tax regulations of the country of residence and how they affect foreign pensions.
- The implications of the absence of an agreement to clarify tax obligations.
Certificate of tax residence and tax obligations of the pensioner
The tax residence certificate is an essential document that certifies a pensioner’s residence in a given country. This certificate is used to justify taxation in the country of residence and can be decisive in accessing tax benefits that avoid double taxation.
We must apply for the tax residence certificate in the country where we reside and provide this certificate to the Spanish tax authorities if necessary. If there is any change in residence or family situation, do not forget to update this information.
Special cases and considerations for pensioners abroad
The situation of pensioners residing outside Spain presents several particularities that are important to consider. These include work compatibility, pension reviews and the effects of a change of residence on beneficiaries’ rights.
☑️ Compatibility of pension payments with employment abroad
Pensioners who decide to work abroad must be aware of the rules governing this situation. In the case of retirement pensions, it is essential not to be in active retirement if you wish to continue receiving the corresponding pension.
For those receiving a permanent disability pension, the possibility of working will depend on the degree of disability and the type of work activity carried out. In these cases, a social security expert will provide us with informed advice to avoid any possible penalties or suspension of the pension.
☑️ Review of permanent disability for residents outside Spain
Pensioners receiving a permanent disability pension may be called for review, regardless of whether they reside abroad. This review may require the pensioner to return to Spain for assessment.
It is therefore important to pay close attention to notifications issued by the Social Security and to follow the instructions to ensure the continuity of the pension.
☑️ Effects of a change of address on entitlement to minimum supplements
A change of residence may affect access to certain supplements, such as minimum supplements. Pensioners who move outside Spain must bear in mind that, in order to retain these rights, they must notify the change of address and comply with the requirements established by current regulations.
☑️ Impact on the qualified total disability pension for residing outside Spanish territory
For beneficiaries of a qualified total disability pension, the impact of residing outside Spain can be significant. This group may lose the additional percentage granted for residing in Spanish territory, which could mean a reduction in the amount of the pension.
That said, it is essential to review this situation in advance of any move and seek specialist advice to fully understand the conditions that apply in the new country of residence.
Can you collect your pension in another country: Rights and obligations of foreign pensioners in Spain
In order for a foreigner to collect their pension in Spain, certain conditions must be met, which may vary depending on the pensioner’s country of origin and the bilateral agreements that exist with Spain.
Generally, the following must be taken into account:
- The country of origin must have an international agreement with Spain that allows for the recognition of pension rights.
- The applicant must prove that they have contributed to their country’s social security system for the required period of time.
- It is essential that the applicant has not ceased to be habitually resident in their country of origin if there is no specific agreement.
Step-by-step procedure for Spanish citizens who want to receive their pension abroad
Once the change of residence abroad has been made, the corresponding procedures must be initiated so that the payment of the pension is not interrupted.
The National Social Security Institute (INSS) must be notified of the new address. This notification must be made as soon as possible to avoid complications in the process. Information about the change of address can be communicated via a form or by contacting the relevant authorities directly.
Communication and coordination with authorities in the destination country
The next step involves establishing fluid communication with the local authorities in the country where the pensioner has moved. Depending on the legislation in force in that country, it may be necessary to submit certain documents to corroborate residence and tax status.
In addition, it is advisable to find out if there is a double taxation agreement, as this may affect the taxation of the pension received.
Obtaining and sending the life certificate to the Spanish consulate or embassy
One of the most important requirements for ensuring the payment of the pension is obtaining the life certificate. This document certifies that the pensioner is still alive and is required by the INSS in order to continue paying the pension.
The certificate must be requested from the Spanish consulate or embassy in the country of residence and, once obtained, it must be sent immediately to the INSS to avoid any interruption in payment (it must be duly signed and stamped).
Management of tax documentation and monitoring of payments
Finally, it is essential to manage the corresponding tax documentation in the country of residence, which means ensuring that all tax obligations are being met (this may include obtaining a tax residence certificate if the country has an agreement with Spain).
We recommend regularly monitoring your pension payments and keeping an eye out for any notifications from the INSS that may require additional information or the submission of new documents.
Step-by-step procedure for foreigners who wish to receive their pension in Spain
We also review the process for foreigners who wish to collect their pension in Spain, which has several phases that we will now explain.
Registration and recognition of insurance periods in Spain
The first step is to register with the Spanish Social Security system, where you must submit documentation proving your contribution period in your country of origin. Without this step, you are not entitled to a pension. The usual documents include:
- Certificates of social security contribution periods in the country of origin.
- Personal identification, such as a passport or residence card.
- Application form for registration in the Spanish system.
Once submitted, the Spanish Social Security will evaluate the documentation and notify you of the recognition of the years contributed. This is essential in order to access the corresponding pension.
Submission of application and requirements for receiving the pension
Once the insurance periods have been recognised, the next step is to formalise the pension application. To do this, you will need to gather several documents, such as the standard pension application form, identification documents or certificates proving the duration and type of pension you wish to apply for.
The application must be submitted to the relevant Social Security office or, in some cases, online via the official website. It is essential to comply with all the requirements in order to avoid delays in the processing of the pension.
Coordination with social security and immigration authorities to validate rights
It is advisable for applicants to maintain fluid communication with the Social Security and immigration authorities. This is mainly done to validate pension entitlement rights.
Requirements may vary depending on the applicant’s personal situation, so it is advisable to be aware of any notifications that may require additional documentation, to check the status of the application periodically and to request clarification on the process if necessary.
Processing of registration and control of monthly payments
Once the pension has been approved, the next step is to process the registration. This involves formalising the pension contract and assigning the start date for payments. It is essential to closely follow the payment schedule and:
- Check the payment date assigned by the Social Security.
- Ensure that the bank details correctly reflect the account where you wish to receive the pension.
If problems arise or the payment is not received as expected, we will need to contact the Social Security authorities to ensure the correct flow of income. This procedure ensures that applicants can enjoy their pension properly in Spain.
Conclusions
We already know that it is possible to receive your pension in another country, but depending on the type of pension, there are certain peculiarities and restrictions. Our regulations in Spain allow pensioners to receive their contributory pensions outside Spain, and if they are non-contributory, the aforementioned restrictions come into play.
It is mandatory that any change of residence or contact details be reported immediately to the Social Security. This includes changes of address, telephone number or email address. Failure to update this information could lead to the suspension of pension payments, as the authorities will not be able to locate the beneficiary.
If, as a Spanish citizen, you are going to apply to receive your pension in another country, we recommend that you seek legal advice before moving abroad. Taxmind is the best international consultancy in Barcelona for this type of matter. We are at your disposal.
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