State pension abroad: how EU residents move a pension

Many people who buy a home abroad plan to spend their retirement there. The practical question is simple: will my pension keep arriving, in what currency, who taxes it, and who pays for my doctor? Within the EU the answers are reassuring in principle, but the details depend on your country of insurance and your new country of residence. This article is a map of the questions, not a calculation. It is not advice, and you should confirm every point with your pension institution and a local adviser. For country specifics see our guides on retiring in Portugal, Spain, Greece, Cyprus, Italy and Montenegro.

Within the EU: your pension is not lost by moving

The EU rules on social security coordination, Regulation (EC) No 883/2004 and its implementing regulation 987/2009, are built so that statutory pensions are paid to people living in another EU or EEA country. According to the Your Europe portal, each country that owes you a pension generally pays the amount into a bank account in the country where you live. If you worked in several countries, each one pays its own part, and the authority of the country where you live (or where you last worked) can pass your claim on. The portal recommends contacting the pension authority at least six months before retirement.

Two practical consequences:

• A state pension earned in Poland, Germany, Latvia, Lithuania, Estonia or Czechia continues to be payable if you move to Spain or Portugal. You do not lose it because of the move.
• Each paying institution may want regular proof that you are alive and where you live (a life certificate or similar). Missing the request can suspend payment, so ask your institution how and how often this works. Check ZUS, the German pension insurance (DRV) or the respective Baltic and Czech institution for their own procedures and forms, because we have not verified each one.

Pensions that are not statutory, such as employer or private pension schemes, are handled under different rules; ask the provider whether it pays abroad and in what currency.

The health cover link: S1

For a pensioner living in another EU country, the pension and the medical cover are linked. A form S1, requested from the institution that pays the pension, is registered with the health insurer in your new country, and you receive care on local terms, normally at the cost of the paying country. If you do not register it, you may be left without public cover or asked to pay. See our article on healthcare for EU residents living or staying abroad, including the difference between staying and living. Plan the S1 before you change your address, not after.

Tax: the pension and the treaty

Paying a pension abroad does not by itself settle where it is taxed. Two things decide it: your tax residence and the double taxation treaty between the paying country and the country where you live. Tax residence follows its own tests; see tax residency when relocating and the 183-day rule and property abroad.

General patterns, to be checked in the treaty that applies to you:

• Many treaties, following the OECD model, give the right to tax private pensions to the country of residence.
• State pensions and pensions linked to public service are sometimes taxed by the paying country instead. Treaties differ on whether a social-security pension is taxed in the country of residence or in the paying country.
• Some countries tax foreign pensions of residents and give a credit for foreign tax; some exempt part of it; some offer special regimes for new residents or retirees. Whether such a regime exists, and whether it is still in force, must be checked locally. We have not verified any particular regime here.
• Health contributions or social levies may be taken from the pension in the paying country, in the new country, or in both under certain conditions. Ask your institution.

Our article on double taxation treaties and foreign property explains the logic of the credit and exemption methods. If you move your tax residence, you may need to inform the tax office of the paying country, and some pay institutions need a tax residence certificate from the new country to change withholding.

Outside the EU: Turkey, UAE, Thailand, Georgia

The EU coordination regulation does not apply outside the EU, EEA and Switzerland, so the answers come from other sources.

• Payability. Many countries pay their own pensions abroad, sometimes under bilateral social security agreements, but the conditions, the frequency of checks and whether payments are indexed can differ. Ask the paying institution in writing whether it will pay to a bank account in the country you choose, and in which currency.
• Health cover. The S1 does not work, so you need private insurance, often a condition of a residence permit. Our article above lists the usual starting points.
• Tax. Tax treaties exist with some of these countries, not necessarily with all. The UAE has no personal income tax on most income as a general matter, but your home country may still treat you as resident, and the question of where you are resident is a legal test, not a choice. Do not assume that an absence of tax abroad means an absence of tax at home. Check treaty and residency position first.
• Residence. A pension can support some retirement or long-stay visas outside the EU, with minimum income conditions that change; verify them with the immigration authority. We have not confirmed current thresholds.

Currency and banking

A pension paid in euros, zloty or another currency and spent in a different currency carries exchange-rate risk. If your costs abroad are in euro and the pension is in zloty, the margin of the bank matters for years. Ask your bank and the pension institution what is cheapest, and keep a small reserve for the first months while the first payments are redirected.

Practical sequence

• Decide the country, then check the visa or registration route for your situation.
• Ask the pension institution what it needs when you change address, and what will be paid where.
• Request the S1 if it applies, and register it in the new country.
• Check the treaty and, if the new country has a special regime for pensioners, whether it fits you.
• Inform the tax office and the pension institution of your new tax residence, and get a local adviser to file the first year correctly.

FAQ

Will my Polish, German, Baltic or Czech state pension still be paid if I move to another EU country? In general yes: EU coordination rules are designed for statutory pensions to be payable across the EU. Confirm the details, such as the account and life certificates, with the paying institution.

Do I pay tax on my pension in the country where I live? Often yes for private pensions, but state pensions and public-service pensions can follow different treaty rules. Check the treaty between the two countries.

Does my health cover move with me? In the EU, a pensioner usually uses form S1 for this. Outside the EU you rely on private insurance or a bilateral agreement.

What if I move to Turkey, the UAE, Thailand or Georgia? The EU rules do not apply. Ask the paying institution whether it pays there, check any bilateral agreement, and plan private health insurance.

Do I need to tell my pension institution when I move? Yes. The address and, usually, the residence status and the tax residence are part of the file.

How we help

We are a trilingual platform that finds properties abroad and coordinates independent local lawyers and tax advisers. We do not manage pensions or give tax calculations, but we can help you find a lawyer and a tax adviser in the country you are considering. This text is informational and is not legal, tax or investment advice, and the rules summarised here change. Verify them with your pension institution, the Your Europe portal and your tax adviser. See also relocating abroad with family.