Many UK citizens choose to live and work in Spain, and for a good reason – Spain has a lot to offer, with a beautiful coastline, delicious food and fantastic markets, to name a few. But should you still pay UK national insurance while living and working in Spain? Read on to find out.
Reasons for Continuing to Pay UK NI
Paying the minimum into your UK national insurance pot every month while living or working in Spain means you will be eligible for several benefits and allowances, whether you return to the UK or not.
Voluntary national insurance contributions will help you build up the following benefits:
- Basic state pension
- Benefits and allowances if you return to the UK
- Certain state benefits within the EEA
- Contribution-based jobseeker’s allowance
- Contributions-based employment and support allowance
- Maternity allowance
- Incapacity benefit
- Bereavement allowances, including widowed parents allowance, bereavement
While some of these depend on returning to the UK, they are still great to have as you never know what the future holds.
The conditions that need to be met before you can pay voluntary National Insurance Contributions are:
- That you spent at least a continuous three years living in the UK before making the payments.
- That you paid NI for at least three years in the UK before moving to Spain.
Classes of NICs
There are six NIC classes, and the one you pay depends on your situation (employed, self-employed etc.). The two most common NIC classes are:
Class 2
To qualify for paying class 2 NI payments, you must have met these criteria before you moved to Spain:
- Lived and paid NI in the UK for three years.
- Were either employed or self-employed directly before you moved
- Were employed or self-employed immediately before moving abroad
Class 3
Class 3 contributions are usually paid when you are not eligible to pay class 2 contributions. They also do not cover some of the benefits that class 2 offers. To qualify to pay for class 3, you must have met these criteria:
- Lived and paid NI in the UK for three years before moving to Spain
- Are not eligible to pay class 2 contributions.
- Are unemployed in Spain
Class 3 contributions may also be paid if you haven’t paid enough class 1 and 2 that tax year,
Contact Spanish Probate Matters for Spanish probate assistance on 0208 1502010.
