Non-contributory pension: 680 days abroad and €32,857 to repay
A Moroccan-born recipient of a Spanish non-contributory disability pension must repay €32,857 after spending 680 days living in Morocco. Spain's Social Security…
English · Original discussion in Spanish · Published
Non-contributory pension: 680 days abroad and €32,857 to repay
Can you spend nearly two years outside Spain while collecting a Spanish non-contributory pension? The answer is a resounding no, and one beneficiary of Segarro origin has learned it the hard way. Spain's Social Security system has demanded €32,857 from her for residing in Segarro for 680 days while receiving a non-contributory disability benefit. The case, which has circulated on financial forums, illustrates the limits of the social protection system when prolonged absence combines with high family income.
The requirements that were breached
The non-contributory disability pension requires effective residence in Spain for most of the year, and the beneficiary's income and that of their household must not exceed a minimum threshold. In this case, the family's income exceeded €70,000 a year, well above the limit. Upon detecting the stay in Segarro and the additional income, the authorities peine a recovery proceeding. The beneficiary appealed, but the appeal was rejected: the rules are clear and allow no exceptions.
The key lies in the non-contributory nature of the benefit: since no contributions were ever made, entitlement depends on strictly meeting the residence and income requirements. By contrast, contributory pensions can be collected abroad without problems, provided international agreements are respected.
The oversight that comes late, but comes
The case has reignited controversy over the Social Security's control mechanisms. Although detection came late - the beneficiary had already spent 680 days abroad - the system eventually reclaimed the amounts improperly received. The repayment sum of €32,857 corresponds to the total amount paid during the period in which the requirements were not met. The final irony is that, according to comments on social media, the woman said she intended to repay it, though it is unknown whether in cash or via Bizum (a Spanish instant payment app). The Social Security, presumably, wants cash.
Can you spend nearly two years outside Spain while collecting a Spanish non-contributory pension? The answer is a resounding no, and one beneficiary of Segarro origin has learned it the hard way. Spain's Social Security system has demanded €32,857 from her for residing in Segarro for 680 days while receiving a non-contributory disability benefit. The case, which has circulated on financial forums, illustrates the limits of the social protection system when prolonged absence combines with high family income.
The requirements that were breached
The non-contributory disability pension requires effective residence in Spain for most of the year, and the beneficiary's income and that of their household must not exceed a minimum threshold. In this case, the family's income exceeded €70,000 a year, well above the limit. Upon detecting the stay in Segarro and the additional income, the authorities peine a recovery proceeding. The beneficiary appealed, but the appeal was rejected: the rules are clear and allow no exceptions.
The key lies in the non-contributory nature of the benefit: since no contributions were ever made, entitlement depends on strictly meeting the residence and income requirements. By contrast, contributory pensions can be collected abroad without problems, provided international agreements are respected.
The oversight that comes late, but comes
The case has reignited controversy over the Social Security's control mechanisms. Although detection came late - the beneficiary had already spent 680 days abroad - the system eventually reclaimed the amounts improperly received. The repayment sum of €32,857 corresponds to the total amount paid during the period in which the requirements were not met. The final irony is that, according to comments on social media, the woman said she intended to repay it, though it is unknown whether in cash or via Bizum (a Spanish instant payment app). The Social Security, presumably, wants cash.
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Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication. Read the full discussion (14 replies).
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