Taxes on pensions

Posted: Thu Jun 14, 2018 7:01pm

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Posts: 9

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Location: Turre

Joined: 22 Apr 2017

Having spent the afternoon googling taxes in Spain, I seem to come up with the impression that I will be paying more tax on my pensions then currently (not moving out until Sept and will become resident). My situation is I am receiving my state pension, a very small private pension and a very small local government pension (the last 2 being taxed due to state pension taking a large chunk of UK allowance) I have grasped that the local gov pension has to be taxed in UK, but the state and small private pension will be taxed in Spain. Looking at the personal allowances it seems for someone over 65 it is 6700 per annum but there appears to be another allowance of 2000 ??, using a Spanish online tax calculator I found, it is saying that I wont have to pay tax, as I have no other income apart from these 3 pensions

Has anyone got any experience of the tax system ? did they find that they were worse off ? and if you used a tax advisor how much did it cost and would you recommend ? thanks

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Posted: Mon Jun 18, 2018 7:32am

Mogsy2015

Posts: 81

27 helpful points

Location: Turre

Joined: 5 Oct 2015

Posted: Mon Jun 18, 2018 7:32am

Hi Caz51

Spanish tax system is not very simple. We are just going through the ins and outs with an assessoria. You are best to get one yourself and most will give you time for your questions and will advise initially for free. I have a state pension as does my husband. We both also have ´works´ pensions too. You need to be a resident to pay tax in Spain and then go on their system. It isn´t a matter of choice. You don´t pay half you tax in England and half here. The pension from your work at the council could be except from tax here and would allow you to be free of tax paid on it in the UK. We started our tax late here so I will benefit from a rebate but my husband will be taxed. We have been told that the threshold is 12,000 euros for multiple pensions and if you only have a state pension then you will be exempt as it will fall under the higher threshold here. Please do not take my word for it and find yourself an assessor as you may have different things that could affect your taxability. I hope that this rather long reply is helpful to you.