Brexit hit British pensions in Germany hard

Expats receiving UK pensions abroad face new complications after Brexit—here's what changed and what you need to do.

By Matt at Seasoned Expat · Sep 8, 2026

If you're a British expat drawing a UK pension while living abroad, Brexit has made your life more complicated. The rules around pension payments, tax treatment, and currency exposure have shifted in ways that directly affect your monthly income and your tax obligations in your new country.

The core issue: UK pensions paid to expats abroad now face additional layers of tax and administrative friction that didn't exist before. Currency swings between sterling and your local currency add volatility to what should be a stable income stream. And the coordination between UK tax authorities and your country of residence—which used to flow smoothly through EU frameworks—now requires manual compliance on both sides.

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Currency swings between sterling and your local currency add volatility to what should be a stable income stream.

What you need to do now: First, notify both HMRC (the UK tax authority) and your new country's tax authority that you're receiving a UK pension abroad. You'll need to file tax returns in both places and understand which country has the right to tax your pension income under any bilateral tax treaty your country has with the UK. Second, review your pension provider's currency hedging options—leaving your pension unhedged means you're betting on sterling, which is a bet you may not want to make. Third, if you haven't already, register for a tax identification number in your country of residence and provide it to your UK pension provider to avoid unnecessary withholding.

The timing matters. If you're planning to move abroad or are newly abroad, sort this before you leave or as soon as you arrive. Delays in notifying authorities can trigger back taxes and penalties.

Source: original report ↗

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