Retiring abroad from the UK: pensions, tax and healthcare

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, so the housing decision and the money decision cannot be separated.

Two common routes exist for those wanting 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.

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 way, they remain UK tax resident and continue paying tax in the UK 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 for those 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, travel insurance is still recommended alongside the GHIC, since it covers costs such as repatriation to the UK if needed, which the GHIC does not include.

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.

Golden visa note

The Spanish golden visa was scrapped in April 2025 and no longer grants residency for property purchases, so it does not apply to any of the scenarios here. 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 for those 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.

Renewal risk

The Non Lucrative Visa is not granted permanently 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 is to combine this with case study two: keep a foothold in the UK rather than selling completely, buy in Spain, and rent the Spanish property out until permanent residency is secured. This avoids the exposure of relying on renewal while still moving toward a full-time move.