petew

So do we and they are always on time except when there is a public holiday in the U.S.A. Only 1 day late though, so we can live with that.

ElaineGon

teuchterpete, If you have a UK goverment paid pension I would be very surprised if the rate obtainable when paid direct by UK Government (they use City Bank) to a Spanish bank can be improved on. My experience of over 20 years,

marcbernard

I would agree with Elaine. The rate obtained from my Civil Service pension was much improved when I changed it from direct to Spain, then using my UK bank and thence Currencies Direct. By watching the FX rate cloely I make the change when I wish, not at the behest of HMG or their agent. Many years experience.

SUPERPOT

Can anyone give any advice on pensions in the respect of tax. I am a Spanish resident and will one day have a pension paid from the UK. Where is the tax collected \ paid? is it UK or Spain. I would be interested in knowing the best way forward with this situation.

Any pitfalls to look out for before deciding on which way to go?

cheers

ElaineGon

Unless it is a Crown Pension, then it is taxable only in Spain

Fred James

I think you have that the wrong way round. UK government pensions are only taxed in the UK, although the amount is used in calculating the tax rate on other income that is taxed in Spain.

Normal UK state and private pensions are only taxed in Spain.

ElaineGon

Thank you Fred that was what I said, although I could have said it without the abiguity. Unless it is a Crown Pension, (taxed in UK) then it is taxable only in Spain

Clarification

Unless it is a Crown Pension,which is taxed in UK (although as from the next Spanish tax declaration, i.e that in 2016, Crown Pensions will be 'taken into consideration' when the Spanish tax bill is assessed, although not 'actually taxed in Spain' ).

If it s any other UK pension, then it is taxable only in Spain

teuchterpete

Yes I found that to be the case. My comment related to the fact that I usually get it one day early, i.e. it is paid into my Spanish bank the day before it is due!
Pete

SUPERPOT

Assuming I am allowed as I have read and been told about it is possible to take a 25% tax free lump sum and then draw a pension does Spain recognise this fact or is it likely to be taxed in total including the 25% ? Confused now to say the least.

bobd22

I believe that depends on your residency at time of drawing the lump sum. If you are Spanish resident they will not see it as tax free.

Fred James

As Bobd22 said, it will be taxed if you are a tax resident, but only a part of it depending on the age of the pension plan.

Also, if the rest of the money is invested in a money purchase annuity, it will be taxed very favourably in Spain - approximately only a quarter of the income is taxed and it is taxed at the savings rate.

wilsman77

I don't know why you old people are worrying about this as your state pensions won't be paid into any bank in Spain v soon as the UK Govnt will stop it.

jonboy

May I be the first to wish you a happy Christmas

wilsman77

Only kidding, love you guys. Happy Xmas

bobd22

You could be right as I am due my state pension in 3 years, that would be the full house. Bought house in Spain 2007, crunch came pound collapsed while i was paying of euro mortgage. Pound goes back up after mortgage paid off. House price fell through the floor all that's left to go wrong now is UK comes out of EU and they screw old age pension. Sorry if it happens blame me lol.