Pensions & retirement
Retiring abroad from the UK: pensions, tax and healthcare
5 mins read
by
Regulated Advice Team
Last updated 28 September, 2026
Retiring abroad from the UK is a growing option for pensioners, but it raises questions about pensions, tax and healthcare. Where you live decides which country taxes your pension income and how you get medical treatment. Your housing and financial decisions therefore need to work together.
Two common routes exist for those retiring abroad from the UK who want time in the EU without giving up their UK ties. This guide compares keeping or selling the UK home, how healthcare cover works once you are outside the NHS, and how the tax bill on the same pension income changes depending on where you are resident.
Table of contents
Summary: Retiring abroad from the UK: pensions, tax and healthcare
- Retiring abroad from the UK means weighing up housing, tax and healthcare together. This article compares keeping or selling a UK home, healthcare cover options, and how pension tax differs across Spain, France and the UK.
Keeping the UK property and renting when retiring abroad from the UK
Many retirees choose to keep their main home in the UK and rent a property in Spain or France for up to three months at a time. This approach lets them remain UK tax resident and continue paying UK tax as normal.
This route suits those who are not ready to commit to a permanent move overseas. It also avoids the cost and complexity of buying abroad.
Selling up and buying overseas when retiring abroad from the UK
A second option is to sell the UK property and buy in Spain or France instead. Some retirees prefer to sell their principal UK home, rent for part of the year, and keep everything else, including their tax position, based in the UK.
Others go the other way, selling the UK home and buying a property abroad outright. The right choice depends on residency plans, tax exposure and how much time is spent in each country.
Healthcare when retiring abroad from the UK: GHIC
The UK Global Health Insurance Card (GHIC) lets you get necessary state healthcare in the European Economic Area (EEA) and some other countries. This does not cover repatriation.
For that reason, travellers should also take out travel insurance. It can cover costs such as repatriation to the UK, which the GHIC does not cover.
Retirees splitting time between the UK and abroad often rely on the GHIC plus travel insurance for shorter stays. Annual private health insurance is another option, and standards in Spain’s hospitals are excellent, with private cover generally reasonable compared with UK prices.
Case study 1
David and Susan own a four-bedroom house in Bedford worth around £650,000. Rather than selling, they keep the property as their permanent UK base and rent an apartment in Spain for three months at a time, twice a year.
At around €1,000 a month, this adds roughly €6,000 a year in rent, on top of maintaining the UK property and paying council tax year-round. Eating and drinking out in Spain tends to be cheaper, and the savings there offset some of the €6,000 a year they pay out in rent and flights.
They do not need anyone to house sit while they are away. This is a standalone arrangement, and it is one many expats use successfully.
They remain UK tax residents throughout, so their pension income and any rental income continue to be taxed under UK rules. They use their GHIC plus travel insurance for each trip.
Case study 2
David and Susan own the same four-bedroom house in Bedford worth around £650,000. This time, instead of keeping it, they downsize and sell up in Bedford, then buy a property in Spain or France with the proceeds.
England remains their principal place of residence in the same way as case study one. This is the second least complicated route and probably the most cost-effective, since there is no rent to pay on top of a property sitting empty for six months, and no council tax on a UK home they are barely using.
Case study 3
For retirees who want to live in Spain full time rather than split their year, the Non Lucrative Visa is the route in. It does not require an investment, but does require proof of around €28,800 a year in income or savings to qualify. The initial residency granted is for one year, after which it can be renewed for two years, then for a further two years. Many specialist legal firms offer paid assistance with the application process.
David and Susan could use this route if they decided to relocate permanently rather than split their time, selling the Bedford house and becoming Spanish tax residents instead of UK ones. This changes their position significantly, since it shifts where their pension and any other income is taxed.
Golden visa note
Spain scrapped its golden visa in April 2025. The scheme no longer grants residency through property purchases, so it does not apply to these scenarios. British nationals do not need a visa to buy property in Spain, or to spend under 90 days in any 180 day period, which is why case studies one and two work without one.
Tax comparison when retiring abroad from the UK: Spain, France and the UK
On the same €28,800 pension income, France comes out lowest at around 5.5% tax, the UK sits in the middle at around 10%, and Spain is the highest at around 17%. The difference comes down to allowances, since France’s pension deduction and generous zero rate band shelter more income, while Spain’s personal allowance for pensioners is comparatively small.
| Country of tax residence | Approximate effective tax rate | Approximate tax on €28,800 |
| France | around 5.5% | about €1,580 |
| UK | around 10% | about €2,880 |
| Spain | around 17% | about €4,900 |
This is a rough guide only. Actual liability depends on age, regional rules in Spain, and how income is structured, so professional advice is essential before making a move.
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When retiring abroad from the UK, remember that the Non Lucrative Visa does not provide permanent residency upfront. The initial residency is for one year, then renewed for two years, then a further two years, before permanent residency can be applied for.
Policy can change in that time, and there is no guarantee permanent residency is granted at the end of it. That is a real risk for anyone who sells the UK home outright and buys in Spain on the strength of the visa alone.
A middle option combines this approach with case study two. Keep a foothold in the UK rather than selling completely. Buy in Spain and rent out the Spanish property until you secure permanent residency. This avoids the exposure of relying on renewal while still moving toward a full-time move.
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