Tax on pension - Page 3

Hi, strange, we have had a great service from PALS, and they take care of our tax returns.

The accountant is named CARMEN, and to date she has been very good.

However it is personal choice.

You must do your tax declaration, as the fines are very heavy for not completing it.

Some stay below the line, but have no doubt they will catch up with them, the last person I know was charged nearly 36.000 Euros in fines, and back tax. ( he was caught out when he sold his property )

Even if you think you are getting away with it, the day you come to sell your property, they will get you, as all comes to light.

Thank you so much for all that info. My son and I are existing on my state pension only right now as he can’t work during lockdown. That’s all I have and we are now living over here full time and have my residencia. 

In many cases the best way is to get your pension paid free of uk tax, and declare it on the Spanish return that you must do. Easier than claiming back and forth. Be very aware that a UK government pension (e.g police, customs officers, civil servants etc) must be declared along with all other income and assets over €50k held outside Spain, but in a different category. I have yet to find a gestor that understands this properly as Spaniards do not have to declare this on their return anywhere. One wanted to add it to state pension income (tax bill in the € thousands) or not declare it at all, leaving you liable to hefty fines for underdeclaring. Remember if they submit an incorrect return on your behalf they will not be fined, just you!

If you have simple financial affairs do the return yourself at zero cost.

Chat to jim. There are earns related allowances . Also if your 1st return is zero tax .

Then you dont fill annual one .unless circumstances change. But ask jim.he.ll keep you right 

Thanks oink