Foreign National with state pension being paid into a UK bank account

My 82yr old mother, a Spanish national, moved back to northern Spain in the early 00's after living & working in the UK for the previous 40 years or so. Father passed away and she wanted to go home. She kept her UK account active to allow her state pension to be paid into it, never transferring any funds over to Spain to avoid the penal tax laws that exist there for cash coming into the region. Instead she would use the monies saved for when she was visiting her children/grandchildren. 
Last month she received a letter from her bank (THE BLUE EAGLE) informing her that she needed to close her account (Flexible Current Account) with all haste as the address attaching was out of the UK (EEA). She's a little put out as she's been with them for over 50 years and is naturally worried that the state pension she has accumulated and is still receiving will now get hit for Spanish tax after already paying UK tax (a needless & unnecessary double hit).
I would imagine this has come about because of BREXIT.
Are there alternatives available to her where she can keep her state pension being paid into a UK bank account. If so, could someone please help.
Any help or advice offered would be greatly appreciated.
Many thanks for your time & kindest regards
Mike

Comments

  • Daliah
    Daliah Posts: 3,792 Forumite
    1,000 Posts First Anniversary Photogenic Name Dropper
    edited 8 June 2022 at 4:39PM
    UK state pension is paid gross, no UK tax gets deducted. In addition, people not living in the UK are extremely unlikely to have to pay UK income tax. Plus, there is a double taxation agreement which ensures people only have to pay tax on the same income etc in either the UK or in Spain. So she is not needlessly hit with double tax.

    You are unlikely to get hints and tips on tax evasion on this forum, and your mother is unlikely to be able to open a different UK current account as you need to be a UK resident for this. Up to you and her whether she would want to risk pretending she lives at a UK address she doesn’t live at, and for which she can’t provide proof of address.
  • sheramber
    sheramber Posts: 21,529 Forumite
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    What ax do you refer to ?

    Spanish residents are taxed on their word wide income so she should already be paying any tax due in Spain.

    Getting the pension paid into  a Spanish bank shouldn't incur any tax.
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