Pension tax - Page 2

Don't listen to anyone telling you not to fill in any more tax returns as it is illegal for anyone who is receiving a pension from another country, not to declare their incomes, including state pensions to the Hacienda. Certainly do not use a solicitor for your financial activities, though! There are lots of local Gestorías or Asesores who often charge just a few euros to do your declaración de la renta each year. We pay just 10€ each to do ours and our gestor does them while we wait. If your husband only has a state pension to declare, then it is unlikely that there would be any tax due, but his declaración still has to be done.

Sorry Mags, but that is not correct. 

If you fall below the thresholds below, there is no requirement to submit a tax declaration after the first year! (assuming you are Spanish Tax Resident)

Below from a specialist tax advisor, rather than forum experts.

To file your resident tax return in Spain for the first time, you need to register with the Agencia Tributaria, or the Spanish Tax Authority. To do this, you’ll need your Foreigner’s Identity Number (NIE) and the form Modelo 30, which registers your obligations as a resident taxpayer. You’ll also need to fill out this form if your details have changed. You can find instructions on how to do this on the Spanish Tax Authority’s website. Although there is an English version of the website, you should be aware that a lot of important information is only available in the official, validated Spanish version. Remember, if it’s your first year as a Spanish tax resident, you have to file a declaration irrespective of your income. Spanish income tax declarations are made using the form Modelo 100. At the time of writing, the deadline for submission was 30th June 2020 for the preceding tax year. Again, you can find advice about how to complete the form on the Spanish Tax Authority website. Alternatively – and advisably – you should seek advice from an expert about how to complete your tax return. After the first year, you won’t have to file a Spanish tax return if the following applies to you: • Your income from all sources is less than €12,000. • If you have a single pension worth less than €14,000. • You have less than €1,600 worth of interest or investment income. • Rental income of less than €1,000. • If you earn less than €22,000 as an employee, as your employer will deduct your income tax at source. Note: Taxation if you’re self-employed If you’re self-employed, or an autonomo as they’re called in Spain, you’ll pay your tax quarterly. However, you still need to make an annual tax declaration. Here, the Tax Authority will calculate whether you’ve paid too much or too little across the course of the year. Considering the requirement of quarterly returns plus an annual declaration, it is strongly suggested seeking the advice of an accountant or fiscal representative.

I would suggest to the Original Poster that they contact a Spanish tax specialist, rather than rely on forum 'advice' or that of a solicitor!

Well, I stand corrected! Thanks for the updated information. I've been doing my declaraciones de la renta for 37 years and both my hubby and I are now Spanish pensionistas as well as receiving our small UK pensions from our years of working there. We do have to do our declaraciones every year, as our higher social security payments here, gave us better Spanish state pensions than the UK pension pays.

I do my own Renta, which costs me nothing, and although we are now in the "no tax to pay" zone it makes sure that we are in the system thus can sell or property with no tax to be paid (pensioners, sole residence), plus if the tax rates alter next year the computer will tell me if and how much tax has become due without me having to calculate it.

Do not listen to mags 🤣

I hired a gestor to complete my return as this is my first year in Spain. I'm  single, 70 and get a state pension and a works pension. Have been presented with a tax bill of €2036! I paid £750 UK tax on my combined income which I will be claiming back but can't help feeling my Spanish bill is rather high. My gestor assures me it is correct. Once I stop paying UK tax this will work out at about €170 a month that I need to put away. Offset the UK tax that I used to pay then I am €100 a month worse off. 

Digger - unless you have a fantastic private pension there is something wrong. Get an appointment at the Agencia Tributaris and get them to check your return - you will need proofs of what you are getting, and what they are. A nice day out in Cartagena and you might come back richer.

I agree something very wrong here 

Not the only one paying high income tax here Digger. - My late husband paid exactly the same on our joint income. Spanish tax is 25% of gross income to start with.Allowances before tax are negligible, and your total tax is calculated on all worldwide income/assets.On top of this you really need a tax accountant to make your return for you as even if you have no tax to pay the declaration is 6 pages long all in Spanish and you have the added weight of being officially accepted.  

If you don't have complications like rental income you only have to put income into one or two boxes. The tax on assets outside Spain is dealt with separately using Form720, and wealth tax only starts with income over €750,000. Anyone can access the Agencia Tributaria website and fill in trial declarations - it needs the Clave system or a Digital Certificate and lots of the site is in English. If anyone lives in Spain and cannot manage to understand the system using Spanish and English they deserve to pay too much tax.