tommy.irene

Does everyone have to do a Tax return now..someone said there is new rules..

lynnxa

it's in your interest to do one - a lot of people are having problems because they haven't done so in the past

some pensioners are having to pay a higher rate on their prescriptions because Spain has no record of their income so they assume the higher rate

tommy.irene

Medicine was free for pensioners..and under the new rules you pay now.. as a pensioner do i have to do a Tax return.

lynnxa

as I said - it's best to - even if it's a nil return - you might even get a rebate!

there is more than one prescription payment level for pensioners - those with higher income pay more (can't remember the details, but they are on here somewhere) - if you can't prove that you are on a lower income 'they' might assume a high income & out you on a higher rate

the best way to 'prove' income is to make a tax declaration - that's how they check

tommy.irene

A rebate.. dont think so as i have never paid anything in..and i pay the high rate of €6 .00

lynnxa

ah - but you might owe less than you have paid in the UK.....

you are supposed to declare all you worldwide income in Spain, if you are resident here - but in the past 'they' have always said that if your only income is a pension from another country which has already been taxed, then not to bother


but now 'they' say that you really should have............

Rosemary

You do not have to have paid anything in. If you are very lucky and the numbers work in your favour you can get a rebate because of any interest on bank accounts.

Rosemary

lynnxa

do you mean the higher rate for prescriptions?

if that's what you mean it's because they think you're rich - now you have to prove otherwise



unless you are rich of course

tommy.irene

I have been living in Gran Canaria for 4 years now..my pension and rent from my house comes to £1000 =€1200 a month.. i do not pay UK Tax as there are 2 of us..i pay here €500 rent and €600 to buy food a month..my money is in a UK bank.

Fred James

In which case you should have been making a Spanish tax declaration for the last 4 years as your income is well over the minimum limit for declaring.

You could be fined for not doing so. I suggest you make sure that you do so next year for this years income. Just because the money goes into a UK account makes no difference.

lmj50

Why did you think you did not need to submit a tax return?

tommy.irene

Fred..I was told that as i am the only one with any income for me and my wife ..we are under the Tax Code here and dont need to pay anything..We are not bringing in enough to pay Tax..

Fred James

You were wrongly advised.

The income you quoted puts you above the minimum level to declare. The fact that there are two of you is irrelevant as it is the family income that determines whether you have to declare. You will probably end up paying little or no tax but that doesn't mean you don't have to declare it.

tommy.irene

So i am not taking anything out of the spanish system as all my income is in the UK .. I still have to pay tax on my UK pension to spain

Fred James

Unless it is a UK Government pension (not the UK state pension) it should be taxed in Spain and you can get it paid free of any tax in the UK.

If you live in Spain for more than 183 days in a year you must pay Spanish tax on all your income, wherever it comes from.