For pensioners living alone (those who are not considered to have a dependent spouse) the 2022 pension rate is €10,103.80, which gives a payment of €721.70 per month. This figure will increase to €10,962 per annum or €783.04 per month.
Pre-tax pension rates for a full pension in Spain are over 81% of gross annual salary. This is the highest among EU countries. Spanish pensions are funded by contributions from employees at around 4.7% of their salary. Employers contribute 23.6% of an employee's salary.
The average retirement pension is now 1,370 euros a month in Spain.
Minimum pensions
The minimum contributory pension in Spain will increase by 22 percent, from €966.20 to €1,178.50 per month for those with a dependent spouse.
As long as you've paid enough National Insurance, you can claim your State Pension while living abroad. The main difference is that if the State Pension increases, you may not benefit from the extra amount if you're living in certain countries.
Following Finland, the best countries for pensions are Poland and Sweden. Both boast an average retirement age of 65, below the average of 66, and Sweden has an impressive 100% rate of participation in funded pensions.
Australian pensioners can stay up to 6 weeks overseas and receive their Australian pension normally before their return to Australia.
From the beginning of 2022, if you want to retire in Spain and claim a state pension, you need to be a little bit older than 65, that is, 66 years and 2 months to be exact! However, there are some situations when it may be possible to retire earlier, for example, if you are 65 and have paid 37.
Your passport will be stamped on entry and exit from the Schengen zone and they will use this to monitor compliance with the 90 in 180 days rule. If you wish to stay longer than 90 days you will need to get a visa appropriate for the purposes of your stay in Spain.
If you spend more than 183 days per year in Spain (that is, 6 months), you will be regarded as a tax resident. That is the typical case of non-lucrative visa holders who receive a pension. Being a tax resident means you will pay income tax in Spain (“IRPF”) for all incomes you generate all around the world.
The long-stay visa grants you temporary residence in the country. It also allows expats to work, study, retire or live in Spain. The long-stay visa is indefinite and renewable annually. In order to renew this visa, you'll need to spend at least six months per year in Spain.
Taxes on retirement in Spain
Pension income in Spain is taxed in line with employment income if you're considered a resident for tax purposes. For non-residents, the tax payable on pension income will vary depending on the type of pension and whether your home country has an agreement in place with Spain.
In this case, the 8.5% increase also reaches the maximum retirement pension, the amount of which grows from 2,819 euros per month (39,469 euros per year) in 2022 to 3,059 euros per month (42,829 euros per year) in 2023.
If you are a permanent resident in Spain
From 01 January 2021, British citizens who are pensioners and are entitled to healthcare from the UK's NHS may transfer their right to free healthcare to Spain using the S1.
Anyone moving there must have enough resources in their savings accounts, private pensions, the state pension or to be able to prove they will receive the money in dividends or rental income. Applicants only need to have enough money to satisfy however many years they plan on living in Spain.
What is Imserso? Imserso is the holiday scheme for pensioners sponsored by the Spanish Government. During the off-peak season, from October to June, cheaper holidays are made available to resident pensioners in Spain, whatever their nationality.
The good news is you should be able to access your Age Pension while living overseas. This will be paid at the Outside Australia rate which means some entitlements may be impacted. For a couple this payment may be up to $34,767 per annum and is subject to the usual rules around income, assets and eligibility.
In calculating the proof of income for non-lucrative residency, you must have an annual income of 400% of IPREM in your bank account. The IPREM for 2023 is €600 per month. Therefore, as an individual, you will need to have €2,400 as a regular guaranteed monthly income or a yearly income of €28,800.
Can you get Spanish residency by buying a property? Yes, if you are a non-EU citizen, you can obtain a residence permit in Spain valid for 3 years as long as the property you purchase is valued at over €500,000.
Current early retirement ages (2020*)
For men, it ranges from 52 years in Turkey to 67 years in Norway and Iceland. For women, it is 49 years in Turkey, whereas Norway and Iceland have the highest retirement ages of 67 years.
If you're an Australian permanent resident or citizen heading overseas, your super remains subject to the same rules, even if you are leaving Australia permanently. This means your super must remain in your super fund/s until you reach preservation age and are eligible to access it.
If your payments can continue while you're outside Australia and you intend to be away for: less than 12 months, we'll continue to pay you every 2 weeks into your Australian bank account. more than 12 months, we'll pay you every 4 weeks into your Australian or overseas bank account.
You may get Age Pension for the whole time you're outside Australia. Even if you're leaving to live in another country. Your payment may stop if all of the following apply.