Pension and taxable income

Posted: Sat Sep 21, 2024 10:21pm

21 replies8 members subscribed

Page 1 of 3:
1
2
3
Next

Posts: 1

Location: Vera

Joined: 11 Jun 2020

Hello people.went to the APlace in the exhibition at Birmingham nec today and had very good feedback about a lot of questions but one that is bugging the other half and myself is the issue with pension and savings.how do I get on with my state pension from the UK and a bit of savings to get around the tax if there is any to pay in spain.you hear so many stories but would like to hear from you guys over there so if you have any info that would help with this please.glad to give more info if required.

Ian and Diane.

Reply
View 21 replies

Posted: Sun Sep 22, 2024 8:09pm

RobClaret

Posts: 11

10 helpful points

Location: Arboleas

Joined: 7 Apr 2022

Posted: Sun Sep 22, 2024 8:09pm

You pay tax in Spain on your state pension and interest on savings and cgt . If you have one pension and it’s 22000 € or less you don’t need to declare the pension. I’f toy have 2 pensions then the limit drops to 11000€ before you need to declare. The personal allowance is far less than the UK 5800€ and then there is a sliding scale of tax. So if you have the state pension and another small pension then you will pay tax, it’s due the July after you complete your 1 st full year of fiscal residence. Any assets over 50000€ must be declared. If you buy a property you pay tax on purchase and non resident tax the year before you become fiscally residen

B

Reply

Posted: Sun Sep 22, 2024 11:22pm

Chrissy 48

Posts: 20

4 helpful points

Location: La Alfoquia

Joined: 5 Jun 2024

Posted: Sun Sep 22, 2024 11:22pm

My wife and I also went there on Saturday. Lots of good advice but, the pension and savings gives me concern as it appears very complicated

I will have my state pension and, work pension next year so, worried about how much I will be getting dedi. In respect of assets, how does that work and, is it just property or savings as well.

Many thanks.

Reply

Posted: Tue Sep 24, 2024 6:08pm

LosPardoslady

Very helpful member

Posts: 689

520 helpful points

Location: Vera

Joined: 22 Jun 2019

Posted: Tue Sep 24, 2024 6:08pm

Chrissy 48 wrote on Sun Sep 22, 2024 11:22pm:
My wife and I also went there on Saturday. Lots of good advice but, the pension and savings gives me concern as it appears very complicated
I will have my state pension and, work pension next year so, worried about how much I will be getting dedi. In respect of assets, how does that work and, is it just property or savings as well....

Read more...

...
Many thanks.

Savings as well. Even your premium bond winnings have to be declared and are taxable in Spain. If you are a fiscal resident in Spain it is essential that you find a good accountant/gestor who will advise you. There's lots to consider. There's a double taxation agreement which allows you to reclaim tax from the UK if you have been taxed there. There's also the fact that if you are in receipt of a 'crown pension' it can only be taxed in the UK but has to be declared to the Spanish tax authority.

Posted: Tue Sep 24, 2024 6:19pm

Chrissy 48

Posts: 20

4 helpful points

Location: La Alfoquia

Joined: 5 Jun 2024

Posted: Tue Sep 24, 2024 6:19pm

LosPardoslady wrote on Tue Sep 24, 2024 6:08pm:
Savings as well. Even your premium bond winnings have to be declared and are taxable in Spain. If you are a fiscal resident in Spain it is essential that you find a good accountant/gestor who will advise you. There's lots to consider. There's a double taxation agreement wh...

Read more...

...ich allows you to reclaim tax from the UK if you have been taxed there. There's also the fact that if you are in receipt of a 'crown pension' it can only be taxed in the UK but has to be declared to the Spanish tax authority.

Really appreciate your advice

Reply

Posted: Tue Sep 24, 2024 8:59pm

Linda57

Posts: 84

24 helpful points

Location: Zúrgena

Joined: 30 Sep 2020

Posted: Tue Sep 24, 2024 8:59pm

LosPardoslady wrote on Tue Sep 24, 2024 6:08pm:
Savings as well. Even your premium bond winnings have to be declared and are taxable in Spain. If you are a fiscal resident in Spain it is essential that you find a good accountant/gestor who will advise you. There's lots to consider. There's a double taxation agreement wh...

Read more...

...ich allows you to reclaim tax from the UK if you have been taxed there. There's also the fact that if you are in receipt of a 'crown pension' it can only be taxed in the UK but has to be declared to the Spanish tax authority.

Hi LosPardoslady,

Sorry to sound a bit thick but what is a ‘crown pension’?

Thank you in advance,

Linda

Posted: Tue Sep 24, 2024 9:31pm

LosPardoslady

Very helpful member

Posts: 689

520 helpful points

Location: Vera

Joined: 22 Jun 2019

Posted: Tue Sep 24, 2024 9:31pm

Linda57 wrote on Tue Sep 24, 2024 8:59pm:
Hi LosPardoslady,
Sorry to sound a bit thick but what is a ‘crown pension’?

Read more...

Thank you in advance,
Linda

Armed forces, some NHS, pensions, police, fire brigade.

Reply

Posted: Tue Sep 24, 2024 11:34pm

Linda57

Posts: 84

24 helpful points

Location: Zúrgena

Joined: 30 Sep 2020

Posted: Tue Sep 24, 2024 11:34pm

LosPardoslady wrote on Tue Sep 24, 2024 9:31pm:
Armed forces, some NHS, pensions, police, fire brigade.

Thank you 😊

kind regards

Linda

Reply

Posted: Wed Sep 25, 2024 8:51pm

Tastytel47

Posts: 40

17 helpful points

Location: Albox

Joined: 8 Oct 2023

Posted: Wed Sep 25, 2024 8:51pm

Hello. All I can say is…First you need to Get rid of the Savings Bloody quick. Next is that if your State Pension is of a said amount you will be UNDER THE THRESHOLD FOR TAX. YOUR TAX IS PAID IN ENGLAND ON YOUR PENSION. Do not show any correspondence or evidence that you had or have Savings. Stick it in a English Bank get a card account and use this But you can do better than that…Use the Money Transfer Account called WISE and the App These are FIRST CLASS

Reply

Posted: Wed Sep 25, 2024 9:01pm

Chrissy 48

Posts: 20

4 helpful points

Location: La Alfoquia

Joined: 5 Jun 2024

Posted: Wed Sep 25, 2024 9:01pm

Tastytel47 wrote on Wed Sep 25, 2024 8:51pm:
Hello. All I can say is…First you need to Get rid of the Savings Bloody quick. Next is that if your State Pension is of a said amount you will be UNDER THE THRESHOLD FOR TAX. YOUR TAX IS PAID IN ENGLAND ON YOUR PENSION. Do not show any correspondence or evidence...

Read more...

... that you had or have Savings. Stick it in a English Bank get a card account and use this But you can do better than that…Use the Money Transfer Account called WISE and the App These are FIRST CLASS

Thanks for this information. I need to prove savings as this is, along with pensions is my justification to live in Spain in reference to the 36000 euros for my wife and me??