Tax implications of moving to Alicante from the UK
Spanish tax residency, the UK double-tax treaty, Modelo 720, wealth tax and pensions — the tax map every British mover to Alicante needs before arrival.
Tax is the single area where British movers to Alicante most often act on rumours. The reality is more workable than the forums suggest, but it does need a clean plan before you arrive — not after.
You become Spanish tax-resident if you spend more than 183 days in Spain in a calendar year, or if your main economic interests are in Spain. Once resident, you declare worldwide income to the Spanish tax authority (Agencia Tributaria).
The UK and Spain have a comprehensive double-taxation treaty, so most British income — UK pensions, UK rental income, UK dividends — is not taxed twice. But the rules differ by income type. UK government pensions, for example, remain taxable in the UK; private pensions are taxable in Spain.
Modelo 720 is the informational declaration of overseas assets above €50,000 in three categories (bank accounts, investments, property). Failure to file used to carry brutal fines; the European Court ruling has softened this, but the obligation remains and the form is still complex.
Wealth tax (Impuesto sobre el Patrimonio) and the temporary solidarity tax apply to large worldwide net worth. The Valencian Community has its own thresholds and reliefs.
The clean playbook for British movers is: model the year of arrival carefully (timing matters), restructure UK assets before becoming Spanish resident, and book a dedicated Spanish tax adviser within the first 60 days.
We coordinate that introduction as part of Settle in Alicante and Compliance Upgrade Bundle.
Frequently asked questions
When do I become tax-resident in Spain?
Once you spend more than 183 days in Spain in a calendar year, or your main economic activity is based in Spain. Both rules can apply independently.
Are UK pensions taxed in Spain?
Private and occupational UK pensions are generally taxable in Spain under the double-tax treaty. UK government and civil-service pensions remain taxable in the UK.
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