Residence: no visa, but registration
As an EU citizen you can move freely to Spain. If you stay more than three months you must register and obtain the green residence certificate, proving sufficient means (pension statements, bank statements) and health insurance with full cover in Spain. First register at the town hall; see empadronamiento.
Healthcare
Retirees covered by a public scheme: if you receive a state pension and are covered by your country's public health insurance, you can usually transfer to the Spanish public system with the S1 form, at the cost of your home insurer. The S1 is registered with the Spanish social security (INSS), and you then receive a Spanish health card. Privately insured retirees need private insurance with full cover in Spain.
How your pension is taxed
This is the most important and complex point. If you become Spanish tax resident (usually more than 183 days or your centre of life in Spain), you pay Spanish tax on your worldwide income. The double tax treaty decides which country taxes which pension: under the 2011 Spain–Germany treaty, for example, German state pensions may still be taxed in Germany too, with a credit in Spain, and civil service pensions are usually taxed in Germany. Plan this with an adviser in both countries; see the 183-day rule and our tax lawyers.
Assets and property
As a Spanish resident, your worldwide assets count for wealth tax, with allowances. Buy or rent? Many retirees rent for a year to find the right area: Palma offers culture and doctors, the southwest a large international community, the north and east more tranquillity. See buying property in Mallorca.
Will and lasting powers of attorney
Moving to Mallorca usually changes your habitual residence. Under the EU Succession Regulation, Spanish inheritance law then applies to your whole estate unless you choose the law of your nationality in a will. Lasting powers of attorney and living wills should also be adapted; a Spanish document is more easily accepted by hospitals and authorities. See inheritance lawyer.
Practical points
- Driving licence: an EU licence stays valid and is renewed in Spain when it expires.
- Car: re-register on Spanish plates within a set period after taking up residence.
- Bank: a Spanish account for direct debits.
- Long-term care: check local services and what your home care insurance pays abroad.
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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Questions about retiring to Mallorca as an EU citizen
Will I lose my pension if I move to Spain?
No, state pensions continue to be paid within the EU.
Do I have to deregister in my home country?
Usually yes, if you give up your home there, with tax consequences.
Can I live in both countries?
Yes, but your tax residence must be clearly established.