Spanish State Pensions for Foreigners

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Spanish State Pensions for Foreigners

Below is an introduction to pensions entitlement for foreigners living in Spain. It looks at who has the right to claim a Spanish pension, how the rules differ for foreigners from various EU and compliant countries, how to claim a Spanish pension and how the pension amounts are calculated.

A Spanish State pension may be payable to those foreigners who have made at least the minimum social security payments necessary to qualify. In most cases this is 15 years.

Each EU country adds together the insurance contributions from all EU countries. Then each country sees how much state pension (if any) a person would get if the insurance contributions had all been paid into that country's own social security scheme. Each country pays part of a person's pension; how much depends on how much has been paid into its scheme.

The Spanish State Pension System

The Spanish pension system is based upon earnings-related schemes which cover both employees and self-employed persons.

Pensions are calculated on the individual's earnings in the 15 years previous to retirement. A full pension is reached after 35 years of contributing and at the age of 65. However, this may be topped-up for low-earners after means-testing.

Claiming a Spanish State Pension

Each EU country where a person has paid into social security towards a pension, including Spain, will look at the contributions under its own scheme. It will then work out how much pension is available, also under its own rules.

Any social security contributions made in another country or EU-reciprocal agreement country may be taken into account if it will help to get a State pension, or a higher State pension.

Spanish Social Security Seguridad Social can supply further details or forms.

• Tel: 900 16 65 65

Calculation of Amounts 

Each country sends details of a person's social security record to the other countries. In brief, each country adds together a persons contributions made in all countries. Then each one sees how much State pension would be allowed if all contributions had been paid into its own social security scheme, for example Spain. But each country only has to pay a part of this depending on how much was paid in to it.

Claiming Pension from a Home Country 

Each country decides how it will pay a State pension; further information is available from and the authorities who run the country's State pension scheme.

• A foreigner from the UK should ask the International Pensions Centre and complete the claim form IPCBR1
• A person who is some time away from retirement age can complete the form BR19 which gives a State pension forecast of the benefits available from the UK
  • Both forms are available from the Department for Work and Pensions

Apart from identifying pension benefits it is imperative that a claimant remembers to contact all previous employers. An enormous amount of money is lost in unclaimed, forgotten pensions.

Further Information

• See AngloINFO INFOrmation Page on Supplementary Private Pensions in Spain

Disclaimer

Every effort has been made to offer information that is current, correct and clearly expressed. The information in this summary is intended to be no more than a general overview of the position and certain details may have been omitted. The contents of this page should not be taken as an authoritative statement of Spanish pensions. Neither the author nor the publisher are responsible for the results of actions taken on the basis of information contained in this summary, nor for any errors or omissions. This text is not intended to render legal, accounting or tax advice. Readers are encouraged to seek professional advice concerning specific matters before making any decision.

Prepared by Robin Beven CertPFS,
The Spectrum IFA Group™ - Independent Financial Advisers.
Avda. del Pla 126, Centro Comercial Arenal 2.08, 03730 Javea, Alicante, Espana.
Tel: (+34) 96 687 4183 www.spectrum-ifa.com
Copyright © The Spectrum IFA Group 2007 All Rights Reserved