Mikeef

Hi..my name is Michael. I am 62 and I live in the New York City area. I was born in N.Y. state and I am.a citizen of the USA.

I receive social security and a public pension from civil service in New York City.

I have been hoping to get a retiree visa to Spain and move to Madrid area on 2019.

However I am confused about taxation issues..

I read that usa social security and public pensions will still be taxed by the USA system and not Spain. However, is it true that once I become a Spanish resident the Spanish government will tax my savings?

This does not happen in USA and it has me very concerned. Any c clarification is appreciated.

Michael

scot47

I have never heard of any jurisdiction that taxes savings. Income from investments - maybe.

spainrico

If you hold assets in another country you are required to submit a Modelo 720 but this is just for information and not direct taxation.

More here

Rosemary

Hi and a warm welcome to the Spanish forum on BE. Myself and Fred James are the moderators for the Spanish forums whilst BEVS moderates Europe. Moderators are there to ensure that the site runs smoothly within the rules of BE. This is so that members gain the information that they are looking for and find their experiences on the forums to be friendly and worthwhile.

Problems and complaints should always be addressed to a moderator who will look into the matter and deal with it efficiently and fairly. Our members who post in the Spain Forums are usually friendly and helpful with a wealth of knowledge about the issues of living in Spain. I hope that you enjoy your time participating in the forums.

Please let me know if you need any further help.

Rosemary

Fred James

In most cases, if you are tax resident in Spain, you will pay tax on all your income including income in the UK. The UK insists on you paying tax on income arising in the UK irrespective of your tax residency. Under those circumstances, you can deduct tax paid in the UK from tax paid in Spain.

I have no idea what the implications are if you are a US citizen.

netherlandsexpat

Just as an example, the Netherlands taxes savings:

"There is a flat tax on the total value of the savings and investments of 1.2% per year. It is nominally part of the income tax, as a 30% tax on a fixed assumed yield of 4% of the value of the assets (this is regardless of the actual income from the assets). EUR 21,139 (2012; higher for 65+ with a low income) of the value of the assets is exempted."

Fred James

Spain also taxes savings in the form of wealth tax.