Social Security
Spain has reciprocal social security agreements with
many countries including all EU states, Australia,
Canada and the USA. Depending on the agreement your
country has and the contributions you’ve made,
you’re entitled to social security benefits
in Spain.
If you’re resident in Spain and receive a state
pension from a country with an agreement with Spain
you’re automatically entitled to health benefits
under the Spanish social security system. Note, however,
that if you’re under 65 (official retirement
age in Spain for both men and women) you may not be
entitled to health benefits, although this also depends
on rules in your home country.
To find out, you should contact the social security
authorities in your home country and ask for the appropriate
form (E-121 in the EU). In Britain you should contact
the Department of Social Security, Pensions and Overseas
Benefits Directorate, Newcastle-upon-Tyne, NE98 1BA,
UK in writing, by phone (0191 218 7777) or via the
Internet (
www.dwp.gov.uk).
The Department also publishes a series of useful booklets
about benefits overseas.
If you’re entitled to social security benefits
in Spain, you should take proof of this (e.g. form
E-121 or proof you’ve applied for a residence
permit) to your nearest social security department
(INSS). There’s one in most towns and addresses
are in the white and yellow pages under INSS or available
on the website (
www.seg-social.es).
At the office you can apply for a social security
card (also a health card), which will be sent to your
address once the application is approved. Once you
have the card you should register with your local
health centre and choose a GP. Note that queues are
INSS offices are notoriously long, so you should either
go very early (offices open at 9 am but Spaniards
start queuing outside from about 8.15 am!) or take
several good books.
Note that if you do not have form E-121, you will
be charged for medical treatment in Spain, although
you may get a refund if you inform the INSS that you
have applied for the form. You will not be covered
for healthcare until your E-121 have been registered
with the Spanish authorities, which cannot be done
until you have a residence permit. You are therefore
advised to take private health insurance for the period
between applying for and receiving your residence
permit.
Income tax
If you retire to Spain you will be liable for income
tax under Spanish tax laws (pensions received by residents
are taxed at the same rates as income tax). Before
leaving your home country for residence in Spain,
you should consult a tax expert in order to plan the
date of your move to avoid paying taxes in both your
home country and Spain.
Inheritance Tax
If you are a resident in Spain you are liable for
Spanish Inheritance Tax (IHT)
even if the inheritance is inherited outside of Spain
itself. If you are not a resident in Spain you are
only liable for Spanish inheritance tax on items located
in Spain itself - such as a property. Spanish inheritance
tax can be complicated and we advise that you discuss
any such matters with an expert in this field.
