Where clients get caught out
Many retirees plan to spend the summer at home and the winter in Mallorca, without counting the days. If they do not reach 183 days in Spain, the renewal is at risk. And those who do reach them become tax residents, which affects the taxation of their pension.
The pension as financial means
A state or private pension is the clearest proof of regular income. If it does not reach 400% of IPREM alone, savings can make up the difference. See income requirements.
Health insurance and healthcare
Retirees need private insurance with full cover and no co-payments. Some insurers limit new policies by age or exclude pre-existing conditions: compare before signing. Check whether your country's pension gives you any right to Spanish public healthcare. See health insurance.
British retirees in Mallorca
British citizens who were not resident in Spain before 1 January 2021 are not covered by the Withdrawal Agreement and need a residence permit. The non-lucrative residence is the most common route; days in the Schengen area outside the permit are limited.
Taxes
Living in Mallorca more than 183 days makes you tax resident, with Spanish tax on your worldwide income subject to the double tax treaty. Some UK government pensions remain taxable in the UK. See non-lucrative and tax.
A home in Mallorca
Buying or renting a home also helps to prove accommodation. See buying property in Mallorca and our non-lucrative service.
Castell.law is the English and German-speaking practice of Castell Abogados, a law firm in Palma de Mallorca. This page is general information, not advice on a specific case: laws and procedures change, so check your situation with us before acting.
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Tell us about your matter or send us the documents you have. A lawyer will explain the risks, the options and the cost before you commit to anything.
Questions about retiring in Mallorca
Can I retire in Mallorca with a UK pension?
Yes, with non-lucrative residence, if the pension and savings reach 400% of IPREM and you have full health insurance.
Do I have to live in Mallorca all year?
More than 183 days a year, which is required to renew the permit.
Will my pension be taxed in Spain?
If you become tax resident, usually yes, subject to the double tax treaty; some government pensions stay taxable in the UK.