After Brexit
#76
BE Enthusiast
Joined: Aug 2012
Location: Granada Province
Posts: 549
Re: After Brexit
I am no expert, so can only pass on the story of my friend, Andy who has a deferred Fire Service Pension paying out on his 60th birthday. He can commute a proportion to give him a bigger lump sum (as with most Services pensions) He was told that although the commutation was exempt in the UK, as a Spanish tax resident, it would be taxed as a capital gain here. Don't shoot the messenger.... It was a Spanish tax advisor that gave him the guidance. I have suggested he get a second opinion, but he's not hopeful. Personally, I would ensure I had it in the year before becoming tax resident if possible.
I have also learned of the Spanish knack of dressing personal interpretation and opinion as the 'Law' rather than researching the facts. Bloody irritating if its serious stuff.
I have also learned of the Spanish knack of dressing personal interpretation and opinion as the 'Law' rather than researching the facts. Bloody irritating if its serious stuff.
Last edited by lurchio; Aug 7th 2017 at 11:32 am.
#77
Re: After Brexit
You can't even trust the officials in the tax office to get it right. A friend with a UK Govt pension is still trying to get his pension correctly entered as an exempt pension on his declaration. They seem to have no idea how to do this and at the same time were adamant that only Police pensions are exempt - all other govt pensions are not.
He is now in a position that over the two years he has been undertaxed by €12000 and cannot get anyone to correct it. OK, he can just think himself very lucky, but one day they will recognise their mistake and of course it will be his fault with resultant large fines and interest charges!!
He is now in a position that over the two years he has been undertaxed by €12000 and cannot get anyone to correct it. OK, he can just think himself very lucky, but one day they will recognise their mistake and of course it will be his fault with resultant large fines and interest charges!!