KeithJN

I have taken early retirement from the NHS and want to retire to Ibiza. Can anyone advise me on how much tax I will need to pay in Ibiza, on a pension income of £11500?

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

quiltman

It depends on your NHS pension.
If it is paid by Capita , then it's classed as a government pension and is EXCLUDED from the double taxation treaty between Uk/Spain and will be taxed by HMRC - less your personal allowance.
However, if it's paid by a local authority, it's NOT classed as a government pension and so you can apply to HMRC to have it paid gross, BUT you will have to declare it to the Spanish tax authorities once you become tax resident in Ibiza.
Double taxation details here:

https://www.gov.uk/government/upload...n_Treaties.pdf

Pension classes here;

INTM343040 - DT claims and applications - Types of income: Pensions and Annuities

I don't know the rates of income tax in Spain - rather I can't be bothered to google it.

KeithJN

Thanks for the reply. My pension is paid by Paymaster, so I guess it will be taxable in Spain. Do you know if there is an allowance before the tax kicks in?
Thanks in advance.

EsuriJohn

Under the new DDT coming into effect this year if the if you make a tax declaration in 2016 you will have to declare the NHS Government pension in Spain as well as UK. The net effect of this new change is that if you have any income that is taxable in Spain such as rental income (UK or Spain) then you will pay more tax in Spain on your NHS Government pension. The new DTT is not what the label says.