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Carefree LIfestyle will help you identify the important information you need to look at when retiring to Spain | France | Portugal. Information regarding the legal side of your pension, including who to speak to, where to go and how to make sure that once you move to Spain | France | Portugal nothing will go wrong.
Read through the following information to help you identify how the process works.
State Pensions
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Spain Pension Information | France Pension Information | Portugal Pension Information
Mobile Home Retirement - Spain Pension Information
When you have made the decision to move to Spain to live in a mobile home on a residential park you inform the international Pension Centre (IPC) of the changes that will occur in your circumstances.
Doing this will make sure that no problems interrupt your pension claim or the payments being made to you. It also helps you when getting access to the healthcare service in Spain.
The UK Government information on State Pensions in Spain is as follows:
Claiming your State Pension when you live abroad
You can claim your State Pension if you live outside the UK. However, you’ll only receive the yearly index-linked increases if you live in the European Economic Area (EEA) or Switzerland or in a country with which the UK has a social security agreement that includes state pensions.
If you live outside those areas, you won’t be entitled to the yearly index-linked increases. However, if you return to live in the UK, your State Pension will be increased to current levels.
How the State Pension is paid if you live abroad
If you live abroad then your State Pension can be paid directly into one of the following:
• a bank in the country in which you live• a bank or building society in the UK
Payment to a bank in the country where you live
From October 2009 additional countries will be: Bangladesh, Bulgaria, Colombia, Egypt, Greece, India, Indonesia, Mexico, Morocco, Nigeria, Pakistan, Peru, Poland, Thailand, Tunisia, Turkey and Yemen.
Payment will be made in the local currency of the country in which the bank account is held. No charges are made for this service.
Payment to a UK bank or building society
If you reside in any country that is not listed above then we can pay your State Pension using one of the following: • directly into any UK bank account• with a sterling cheque to your home address
Cheques can be sent every four or 13 weeks either directly to the bank or to your home address. For small amounts of pension, under £5 per week, annual payments may be made, usually at Christmas.
If you only spend part of the year abroad
If you divide your time between the UK and abroad you'll have to choose which country you want your State Pension paid into. You can't choose to have it paid in one country for part of the year, and a different country for the rest of the year.
If you decide to come back to live in the UK
In this situation, you can ask for your State Pension to be paid into a UK bank account.
Paying tax on your State Pension
Your tax position will depend on:
• whether you're classed as 'non-UK resident' for tax purposes• the country in which you're living
If you spend part of your time in the UK and part abroad you're likely to be classed as a UK resident. If you move abroad permanently, you're likely to be classed as a non-UK resident.
If you are a non-resident your tax position depends on whether you live in a country with a 'double taxation agreement' with the UK. This means you won't have to pay UK tax on your State Pension, but it will be taxable in the country where you live.
If you live in a country without a 'double taxation agreement', you'll have to pay UK tax and may be taxed again abroad.
It's a good idea to get advice about paying tax on your State Pension if you live abroad. You can contact HMRC Residency.
Making State Pension contributions if you work abroad
If you're working abroad, you may be able to pay into the State Pension scheme of the country where you're working. You can do this in EEA countries and some others, such as Canada and New Zealand, where there are special arrangements.
Depending on how long you work abroad, you can have your contributions credited to your UK State Pension or you could receive two pensions - one from the UK and one from the country where you lived and worked. This will be decided when you reach State Pension age, taking into account where you live.
Who to contact before you move abroad
If you're moving abroad to live, you'll need to tell:
• The Pension Service• HM Revenue & Customs' National Insurance Contributions Office
• your Tax Office
You'll also need to give them your change of address.
The Pension Service will usually send you a form about four months before you reach State Pension age. This form asks about any insurance and residence you may have in other countries. If you're less than three months away from State Pension age and you've not received this form, it's advisable to get in touch with the International Pensions Centre (IPC).
If you are living in any EEA country you should claim as follows:
• if you have worked in the country you are now living in, your claim for your UK State Pension should be made through the pension institution in that country• if you have not worked in the country you are now living in, you should claim your UK State Pension direct from the IPC, unless you have worked in another EEA country since leaving the UK, in which case you should make your claim through the last institution you were insured with.
Mobile Home Retirement - France Pension Information
People residing in Great Britain and wishing to retire permanently in France should first inform their D.S.S. office a few weeks before the intended date of departure. The D.S.S. will set the necessary administrative arrangements in motion.
You should apply for a form E106 (medical cover for up to 2 years) - see D.S.S. - Alternatively, a private insurance or voluntary contributions should be considered when the E106 expires or if you have not reached the age of state retirement (Contact your local French social security office).
If the pensioner does not get a pension from France at a later date, the United Kingdom will accept costs. A form E121GB will be issued on request from the pensioner to allow him to register for health care in France.
A form E121GB will be issued. When the French (or other European Union Country) pension becomes payable, the health care liabilities will be reviewed. For example, the E121GB may have to be cancelled if insurance periods in the other European Union country were no longer than those in the UK. The Health care costs will then be the responsibility of this European Union country, which will provide the form E121.
Further information can be obtained from the D.S.S. (see address below), especially leaflet SA29 "your special security, health care and pensions right in the European Community".Mobile Home Retirement - Portugal Pension Information
What are my pension and benefit entitlements if I live in Portugal?
UK State Pensions as well as some other benefits are payable in Portugal. For some benefits, you will have to have been in receipt of them before you left the UK for Portugal. These are:
• Contribution-based Jobseekers Allowance
• Statutory Maternity Pay
• Statutory Sick Pay
• Winter Fuel Allowance
• Severe Disablement Allowance
For others, you can apply for them even if you are already living in Portugal:
• Contribution-based Employment Support Allowance (replaced Incapacity Benefit on 27 October 2008)
• Industrial Injuries Disablement Benefit
• Bereavement Benefits
• Disability Living Allowance (Care component)
• Maternity Allowance
• UK Child Benefit
• Guardian’s Allowance
Other benefits, particularly those that are means-tested, are not payable abroad. These include Income Support, Pension Credit, Housing Benefit, Council Tax Benefit and Disability Living Allowance (mobility component).
If you’re concerned about how moving abroad will affect your benefits, you should contact the International Pension Centre (IPC) in the UK as they’ll be able to advise you on your specific case.
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All information obtained via the UK British Consulates information services available for:
Spain Retirement | Portugal Retirement
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