Re: Pensions /tax
 

No, I just used the ECB rates.

Use whatever rate you are happy with.

Re: Pensions /tax
 

When I do my tax I give all the details of income in pounds and clearly indicating on the sheet of information that I give the Gestor that all amounts are pounds sterling. He then sorts it all out.

Re: Pensions /tax
 

Isn't there an official rate to be used for 31st December of the tax year in question, which is available on tributaria site?

Re: Pensions /tax
 

There is yes as per comments from Fred and others it's the ECB rate for 31 of Dec of relevant year. My Gestor applies that to amounts sterling I give him. Simpler for me.

Re: Pensions /tax
 

As I said, that is the rate used for asset declaration on Form 720. It should NOT be used for income tax declarations.

Re: Pensions /tax
 

That's why I give Gestor amounts for income in pounds and he applies correct rate of exchange for euro. I looked up the ECB rate for 720 not tax .

Re: Pensions /tax
 

AFAIK, they don't specify what exchange rate to use for tax declaration, so it can be the average over the year, rate as at 31st December, or the actual rate used when exchanging into euro. You just have to be able to justify it when challenged.

Re: Pensions /tax
 

I'm sure that is correct. My aim is to comply and avoid being challenged by the tax office . So far and at little cost using the Gestor has achieved that.

Re: Pensions /tax
 

I would not assume that just because your gestor does the conversion that it is correct. I know of cases where they have used the Dec 31st rate. This is clearly wrong and if that happened with the current 2023 declaration, it would be greatly to your disadvantage. If the gestor gets it wrong, you are the one that will have to deal with the tax office.

If you do wish to use the Sterling amounts, the least I would expect from the gestor is to explain how he converted the amounts.

Re: Pensions /tax
 

…which was my point. I’m surprised there is no documented method of conversion rather than different people using various conversions. :confused:

Re: Pensions /tax
 

It's because the PADRE tax system is designed for Spanish taxpayers and the quite reasonable assumption is that they will be paid in Euros.

The asset declaration system is designed, by definition, for the valuation of foreign assets, which may inevitably be valued at source in a foreign currency. Hence the need to define a way of converting their value into Euros.

Re: Pensions /tax
 

Yes I understand that even though I submit through a Gestor it is my declaration and responsibility. That said I am not in anyway competent or or confident enough to submit my own Spanish tax return. I have to submit it and trust the Gestor to do that on my behalf and correctly. I have no other option

Re: Pensions /tax
 

Which is why I give our accountant the dates of transfer for my pension and the date paid to my UK account... Last year I made around €200 because I waited to transfer my pension for three months and the rate had increased.. But I didn't pay tax on that.

At the end of the day you and you alone are responsible for your return.

Re: Pensions /tax
 

Official exchange rates are published in the BOE. Here's a link to a search which will find them.

Re: Pensions /tax
 

I do my own tax returns. I wouldn't trust a gestor to get it right, why would you do that anyway when it's so easy to arrive at the exact figures yourself?

Our state pensions are paid into our Spanish bank in Euros so no problem whatsoever in adding those up. I also have annuities paid monthly in UK so all I have to do is consult the ECB website for the rate on the day to come up with exact figures for those.

Once I have that total I usually go back and work out whether it's to my advantage to use those figures or take the gross Sterling amount and apply the 'average', whichever comes out the lowest is what I use.

Ultimately you can work it out however you like so long as you can justify your figures if challenged!