The UK state pension is lower than that of many other countries, but that's because people pay less in social security contributions. In many European countries the state pension is the main income in retirement because there is not the same occupational pension provision in addition to the state pension, that is certainly the case in Spain. So the comparisons often made in the tabloids about it being "the lowest state pension in Europe" are misleading. In the UK around 30% of pensioners rely solely on the state pension for income (and some of those may receive more than the basic pension if they paid SERPS). So why would it be fair to make the state pension tax free for all pensioners, including those who may have substantial income from occupational pensions, when young people and families are struggling? Many younger people may also find it impossible to earn extra income because they have childcare or other caring responsibilities, or limitations on their physical ability, but the pensioners don't appear to think they should get any extra help, in fact they are constantly clamouring for them to get less.

For your information, a UK worker (single, no dependents) earning 17,500 per year, which is well below the national minimum wage, would pay 1,379 per year in income tax and NI. A Spanish worker in a similar situation, earning the equivalen of €20,000 which doesn't entitle them to receive the low income tax allowance referred to by the OP, would pay a total of €3,626 in income tax and social security contributions. In addition, the standard rate of VAT in Spain is 21% and there is a lower rate of VAT on a lot of food items which ar exempt from VAT in the UK. In Spain we pay VAT at 21% on domestic energy bills, not 5% as it is in the UK. People of working age in Spain have to pay 40% of the actual cost of prescription medicines, unless they earn over €100k when they pay more.

My view is that if the state pension is tax free if over the tax threshold then that amount should be tax free for all not just certain pensioners. To me it is wrong to tax those who have paid into a separate system to make their retirment better on their state pension. Any income over and above the tax threshold from other than State pension i see as just that income and taxed. I am not one who thinks any pension should be totally tax free, it is fair to make the basic state pension tax free for all pensioners rather than as the chancellor plans to do tax free for some not all as that adds yet another tier to the pension system its already 2 tiers with the old and new type state pension and the gap between the two ever widening given annual increase is based on % of pension paid. I have other pensions than my state pension and although not wealthy i do ok. I dont begrudge paying tax on income over the tax threshold i just think it should be fair and treat all State pensioners the same on the Income they get from their state pension.

I wrote specifically regarding pensioners on lower income not all. Regardless of situation in Spain in Europe, the state pension in the UK in the UK is barely livable even more so with the increase in costs in recent years.

The situation for young people that you mention has no bearing on whether in an advanced industrial economy the state pension in the UK is reasonable or not, Young people do have more options to change their income status or lifestyle in any case. I agree with you young people with children face challenges with day care and so forth but that is the same any where these days.

As far as I can ascertain that generally housing in many parts of Spain less expensive than the UK, and overall seems utility costs, groceries, and other expenses are much lower so your comparison needs to take that into account. Just an anecdotal observation : I was in Madrid two years ago for a month, staying in a non-tourist area, my daily costs were 1/2 what I spend in the UK, and I am based in a poor part of the UK. So I am not sure if your comparison takes into account the difference in cost of living.

It isn't getting any easier for Spanish people to buy a property, that's for sure. A report just published shows that prices in my municipality rose by 16% in 2025 (and the previous year's increase was 22.1%). And this is one of the cheaper areas in the province, even after the increases prices here are 14% below the provincial average. I could now buy a 3 bed semi detached house with a garden in the town I grew up in, just 10 miles from Manchester city centre so an easy commute for jobs (not a particularly "nice" area but not a particularly bad one either, just boring), for what a 2 bed flat in a reasonable state costs here.

La vivienda subió un 16% en Vélez-Málaga en 2025 según un informe elaborado por la tasadora Tinsa - AxarquíaPlus

Of course salaries in Spain are considerably lower than in the UK (AI summary tells me the Málaga average is between 20 and 25K per year), and buyers can only borrow 80% of the value of a property so need a larger deposit (especially if the bank puts a lower value on the property as they often do), plus have the funds to pay the property transfer tax which ranges from the 7% for properties costing €400k or less here in Andalucia to 10% in some regions, and that's on the whole cost of the property rather than the first 125k being exempt from stamp duty in the UK and the next 125k charged at only 2%. Legal costs tend to be charged as a percentage of the purchase price rather than fixed price conveyancing being available.

What's driving up the property prices?

As always, supply and demand. Not enough new houses and lots of people wanting to live there.

Wish I knew, but I can neither believe nor understand it. In the case of this particular town it's not even a case of particularly high demand from foreign buyers. It's of no consequence to me because I've no wish to sell in the forseeable future, but I can certainly understand the impossible position most Spanish would-be buyers find themselves in. Our flat is now worth 2.5 times what we paid for it in 2017, going by what two in the same development were priced at during the last 12 months. Madness. And rents are no better. There are very few properties advertised for long term rent, and I saw a 2 bed flat with no outside space, not even a small balcony, no parking space or storeroom, advertised for €900 per month yesterday and the amount of documentation required to prove solvency was unreal, they even wanted copies of would be renters' bank statements and most recent tax return (and wouldn't arrange a visit to view the property unless all that information was provided in advance). Even tiny 28 sq m studios are advertised for €595 per month.

In Spain foreign born citizens accounted or less than 2% of the population in 1998, by 2026 last figures I saw it is 20%- and ease of entry from Latin America alone means the flow will continue, not least the recent law legalizing over 500,000 in a fast-paced manner will encourage even more to come. So normal housing price have increased. If zoning and permit issues as difficult as the UK that could another reason plus immigration for rise in housing prices.

well that went completly off track

even tho the average wage is 20-25k a year in spain, i only take home 16 and change. €1365 a month after all the deductions. and i work on public holidays.. and christmas... i even get a 10% + because ive worked here 15 years...

i put 100 a month into a pension pot at the bank .. so we are only left with 1265. i wish i earned 20-25k.

my dad gets more than that just from his pension and im working 40h a week.

we bought 3 years ago. the house was 120k. we put 30k of savings into it.. and still have a mortgage of 110k. we are paying the same in mortgage and home insurance, as we did when renting, but it will be ours at the end of it. we´ve paid off 10k already, it is only 1.75% interest, so thats good

It's available now.

https://sede.agenciatributaria.gob.e...-web-open.html

do you have an actual link to the program please as this is just a link to the instructions (I think)

EDIT ' found it, sorry, it´s under procedures, other, then simulators (but says 2024 not 2026???)

No, that's still referring to RENTA 2024

2025 simulator now available