How does the retirement of Spaniards who work abroad work and who pays it?
More and more Spaniards decide to work abroad, either to expand their professional horizons or simply because they do not find suitable opportunities in Spain. With retirement approaching, a recurring question arises: Who pays my pension if I have worked in another country? The Spanish Social Security confirms that Yes, it is possible to accumulate contribution periods carried out abroad.
This process depends on the country in which you have worked and the agreements that exist with Spain. There are three scenarios: work in a country of the European Union, in a country with a bilateral agreement with Spain, or in a country without any agreement. Each of these cases has particularities and its own way of calculating the amount of the pension that should be known before requesting retirement.
EU member countries or with an agreement
In the case of EU member countries, contributions made abroad are automatically added to those made in Spain. The Social Security Administration is in charge of verifying the periods of contributions in each country and calculating the corresponding proportional pension, allowing the worker receive the full amount in the country where you have residence or where you carried out your last work activity.
When it comes to countries with bilateral agreementthe operation requires a coordination process between institutions. The National Social Security Institute (INSS) must contact the equivalent organizations in other countries, so that the pertinent calculations can be made. Each place analyzes the period contributed by the worker and adjusts the amount of the pension depending on time worked and local rules.
This procedure is called “prorated benefit”. If the worker has met the minimum contribution requirements in both countries, the system compares the resulting pensions and The retiree receives the highest amount, ensuring that you are not disadvantaged by the fact of having worked abroad.
Countries with prorated benefit
- European Economic Area: Iceland, Norway, Liechtenstein.
- Ibero-American countries: Argentina, Brazil, Chile, Colombia, Ecuador, Mexico, Peru, Dominican Republic, etc.
- Other Bilateral Agreements: United States, Australia, Canada, Philippines, Japan, Morocco, Cape Verde, South Korea, Tunisia, Ukraine, Andorra.
Countries without agreement
In countries that do not have an agreement with Spain, the situation is a little more complicated. In these cases, it is possible to receive pensions from both countries, but each request must be processed independentlycomplying with the requirements and procedures of each administration. Social Security, in these cases, decides whether the payment is made directly in Spain or If it should be sent to a bank account in the country where the work was done.
An important aspect is that, to be entitled to a contributory pension in Spain, a minimum contribution period of 15 years is required, of which at least two must have been carried out in the 15 years prior to the application. These requirements are maintained even if you have worked in other countries, so periods abroad only complement the calculation and do not replace the minimum requirements in Spain.
