tomreneemcq

I·m 71yrs,resident in Spain for 6 years. My only income is from 3 pensions,approx 21000 euros.
What personal taxation allowances am I entitled to?
For my 2007 tax return I was allowed 2600 euros. Was this correct?

EsuriJohn

It all depends on the source of the pensions. If any of them are governmet pensions paid by the UK government. They should be ignored in Spain and taxed at source in UK with a full UK personal allowance. Your Spanish alowances are then set against what is left.

Fred James

No, it should have been a lot more than that. The personal allowance for that year was 5050 plus an age allowance of 900. On top of this you would get another 2600 as an "earnings related" allowance. It might be this is where your figure came from.

As John has said, certain government pensions are not taxable in Spain and personal annuities are taxed very favourably, but whatever your income you are allowed the personal allowances.

They have all been increased by 2% for the current declaration for 2008 income.

Mitzyboy

you will find you allowances and tax rates here HERE

tomreneemcq

My pensions are from the following sources;
-NHS(non-governmental)
-British State Pension
-Irish State Pension(pro-rata)

tomreneemcq

Fred, my pensions are from the following sources;
-NHS(non-governmental)
-British State Pension
-Irish State Pension(pro-rata)

Fred James

They will all be taxable in Spain.

You will get total allowances of 8721 leaving a taxable base of 12279 which will be taxed at 24% giving you a tax bill of 2947. There is a special deduction of €400 for the 2008 tax year so you will end up paying €2547

I am assuming that it will be a single declaration. If you are married and declare jointly the tax will be lower.

tomreneemcq

My wife is 63 yrs,and declares separately.Her income is approx.,19000 euros from 2 pensions.
-NHS
-British State Pension
Would it be advantageous to us to make a joint tax return?

jdr

It would be advantageous to me if you mcq`s shared your pensions with me. ;-) ;-)

Fred James

Most certainly not. The incomes would be lumped together and taxed at the higher rates. You also do not both get the personal allowances, there is a reduced "family" allowance instead.

It is not a decision you need to make. The tax is calculated using the PADRE program issued by the tax office and is used by individuals, accountants and the tax office. This calculates both joint and individual declarations and you just submit the option that gives the lowest tax bill.

tomreneemcq

Thank you Fred for your advice it is much appreciated. I am glad I found this site,it has a wealth of appropriate information.