Tax question
Jan 3rd 2019, 1:32 pm
#1
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Joined: Oct 2017
Posts: 34
Tax question
Planning to move to Spain on 28/02/19. If I make a drawdown withdrawal from my UK pension fund in say May (less than 183 days) will this be subject to UK tax or Spanish tax?
If Spanish tax, what personal allowance and tax rate would apply to an amount of €20k? I am 53, single and will not be working.
If Spanish tax, when do I pay it? In the next calendar/tax year ie 01/01/20-31/12/20?
Thanks.
If Spanish tax, what personal allowance and tax rate would apply to an amount of €20k? I am 53, single and will not be working.
If Spanish tax, when do I pay it? In the next calendar/tax year ie 01/01/20-31/12/20?
Thanks.
Jan 3rd 2019, 2:19 pm
#2
Joined: Jun 2006
Location: Granada Costa
Posts: 10,902
Re: Tax question
Once you become tax resident you are deemed to have been resident for the whole year, so really you needed to do it in 2018 as you will become tax resident for the whole of 2019. The tax will be due in June 2020.
Jan 10th 2019, 7:50 am
#4
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Joined: Jul 2018
Posts: 24
Re: Tax question
Out of interest as you are less than 55 how can you withdraw from a drawdown pension without enormous UK tax penalties at source?
Jan 10th 2019, 8:01 am
#5
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Posts: 34
Re: Tax question
Under old pensions rules at A-Day, 06/04/2006, I was entitled to a Protected Pension Age of 50. 30 years of working in pensions admin for crap salaries at least gave me a lot of useful knowledge.
Jan 10th 2019, 8:02 am
#6
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Posts: 34
Re: Tax question
Under old pensions rules at A-Day, 06/04/2006, I was entitled to a Protected Pension Age of 50. 30 years of working in pensions admin for crap salaries at least gave me a lot of useful knowledge.
Jan 13th 2019, 7:18 pm
#7
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Posts: 34
Re: Tax question
Is anyone able to confirm what allowance and tax rates would apply regarding my opening post?
Thanks.
Thanks.
Jan 13th 2019, 9:13 pm
#8
Joined: Jun 2006
Location: Granada Costa
Posts: 10,902
Re: Tax question
It depends on the exact details of your pension scheme and that will determine just how much will be liable to tax. The standard tax rates are well published if you Google it. It also will depend on what your other income is as one major allowance is dependant on what your income is.
Jan 13th 2019, 10:24 pm
#9
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Joined: Mar 2018
Location: Gandia
Posts: 201
Re: Tax question
We are self-employed here and run a UK ltd company and originally thought a tax advisor who is used to dealing with expats was what we needed.
Various firms on the Costa Blanca wanted €3000 or a portfolio or pension worth €100K to invest before they would bother... We went up and down this for months. In the end we spoke to our accountant at the Gestors and she gave us an hours appointment and answered everything we needed to know for €20!
Last edited by Smithy73; Jan 13th 2019 at 10:35 pm.
Jan 13th 2019, 10:33 pm
#10
Forum Regular
Thread Starter
Joined: Oct 2017
Posts: 34
Re: Tax question
I can't confirm exactly, but what I can say is go to a good Gestoria and check with the accountant... preferably one recommended to you in the area you wish to move to.
We are self-employed here and run a UK ltd company and original thought a tax advisor who is used to dealing with expats was what we needed.
Various firms on the Costa Blanca wanted €3000 or a portfolio or pension worth €100K to invest before they would bother... We went up and down this for months. In the end we spoke to our accountant at the Gesters and she gave us an hours appointment and answered everything we needed to know for €20!
We are self-employed here and run a UK ltd company and original thought a tax advisor who is used to dealing with expats was what we needed.
Various firms on the Costa Blanca wanted €3000 or a portfolio or pension worth €100K to invest before they would bother... We went up and down this for months. In the end we spoke to our accountant at the Gesters and she gave us an hours appointment and answered everything we needed to know for €20!
Cheers.
