Tax on UK pensions in Spain
Oct 11th 2018, 5:00 pm
#1
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Joined: Oct 2018
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Tax on UK pensions in Spain
I have moved to Spain recently and I am enquiring about paying tax on my UK state pension and my Civil Service pension.
Oct 11th 2018, 6:17 pm
#2
Joined: Jun 2006
Location: Granada Costa
Posts: 10,894
Re: Tax on UK pensions in Spain
You pay tax on your UK state pension in Spain. You continue to pay UK tax on your Civil service pension in the UK but you also have to declare it on your Spanish tax declaration. You do not pay Spanish tax on it directly, but it is taken into account in calculating the tax you pay on your other income (the UK state pension).
It is still to your advantage to be taxed this way as you get the UK tax allowances on the Civil Service pension and you also get the Spanish tax allowances against your UK state pension.
It is still to your advantage to be taxed this way as you get the UK tax allowances on the Civil Service pension and you also get the Spanish tax allowances against your UK state pension.
Oct 11th 2018, 9:24 pm
#3
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Joined: Aug 2005
Location: Beckenham, London borough Bromley
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Re: Tax on UK pensions in Spain
Hola
Can I query this; If you pay an amount of tax on a civil service pension, then don't the Spanish authorities add up all the worldwide money you have received this year, calculate the tax on it, then deduct the tax already paid to other countries and ask you for the balance?
This is how it was explained to me
Davexf
Can I query this; If you pay an amount of tax on a civil service pension, then don't the Spanish authorities add up all the worldwide money you have received this year, calculate the tax on it, then deduct the tax already paid to other countries and ask you for the balance?
This is how it was explained to me
Davexf
Oct 12th 2018, 7:09 am
#4
Joined: Jun 2006
Location: Granada Costa
Posts: 10,894
Re: Tax on UK pensions in Spain
No, that's not the way it works. The way that the tax program calculates the tax due is fairly complicated. The UK exempt income is taken into account in calculating the tax rates to apply to the Spanish income. There is no question of deducting the UK tax from the total tax due.
The process you mention would apply to other overseas income such as rental income etc. The situation with UK government pensions is totally different.
The process you mention would apply to other overseas income such as rental income etc. The situation with UK government pensions is totally different.
Oct 12th 2018, 7:16 am
#5
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Joined: Aug 2009
Location: Costa Blanca
Posts: 3,142
Re: Tax on UK pensions in Spain
Lots of useful information here https://www.gov.uk/guidance/living-in-spain#tax
Oct 16th 2018, 9:10 am
#6
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Posts: 3
Re: Tax on UK pensions in Spain
May I ask a question please? I am in receipt of a Police pension (which is taxable) and an injury pension which is not. I am researching renting then buying in property in Spain (due to my injury). I am not in receipt of a UK state pension yet :-)
Fred, would I still be able to receive my injury award tax free, if I moved over or stayed over 183 days and just pay tax on my Police pension?
Regards
Fred, would I still be able to receive my injury award tax free, if I moved over or stayed over 183 days and just pay tax on my Police pension?
Regards
Oct 16th 2018, 9:45 am
#7
Joined: Jun 2006
Location: Granada Costa
Posts: 10,894
Re: Tax on UK pensions in Spain
I think, like many things, "it depends". I can give you two links which sadly could contradict each other.
https://www.citizensadvice.org.es/fa...dent-in-spain/
https://www.agenciatributaria.es/AEA..._exentas.shtml . (first paragraph).
Your Police pension will not be taxed in Spain but it may affect any tax paid on your injury pension (if not exempt). You will get a number of allowances against income which, depending on your income, could be as much as €11250.
https://www.citizensadvice.org.es/fa...dent-in-spain/
https://www.agenciatributaria.es/AEA..._exentas.shtml . (first paragraph).
Your Police pension will not be taxed in Spain but it may affect any tax paid on your injury pension (if not exempt). You will get a number of allowances against income which, depending on your income, could be as much as €11250.
Oct 16th 2018, 10:22 am
#8
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Joined: Sep 2018
Posts: 3
Re: Tax on UK pensions in Spain
Thank you Fred :-)
Looking at the 2nd hyperlink, I believe that I will be exempt but will obviously check when I visit and speak with someone who knows Spanish Taxation.
The text reads "Incomes which in accordance with the Income Tax regulations are exempt and are received by individuals, such as pensions due to total permanent disability or severe disability or public grants" in this case ,luckily for me my injury pension is for total disability :-(
regards
Looking at the 2nd hyperlink, I believe that I will be exempt but will obviously check when I visit and speak with someone who knows Spanish Taxation.
The text reads "Incomes which in accordance with the Income Tax regulations are exempt and are received by individuals, such as pensions due to total permanent disability or severe disability or public grants" in this case ,luckily for me my injury pension is for total disability :-(
regards
Last edited by RossyUK39; Oct 16th 2018 at 10:53 am. Reason: To add text
