Tax on UK Pension

Before we moved over that was one thing we checked on. There is an agreement between Spain and uk for only one taxation on state pension. As we are still a few years away from that did not follow up. Worth looking at uk gov website to check if anything has/Will change.

Thanks, Phil.

Ther has been a dual taxation agreement, but after Brexit (in what ever form) who knows! We have always found it easier to have all pensions paid tax-free from UK and declared on our Spanish return. It makes no difference wherr they get paid into, you simply work out the sum to declare using the official rate as declared each year at Renta time.

Anne, that's something I need to find out too. We each have a state and NHS pension. Both NHS and one state pension are paid into our Spanish bank account and we obviously need to declare those for tax purposes. The other state pension goes into an English account and is used when visiting the UK (so not recently). I'm also unsure whether that needs to be declared, I thought it was only overseas assets worth more than 50,000 Euros which needed to be. Think I need to do some reading!

Fiscal Residency, meaning you spend >183 days in Spain in any year .... 

UK "Government" pensions (Armed Services, Civil Service, some NHS and some Local Authority) continue to be taxed in the UK, but must be declared in Spain.

Income from UK property (e.g. rental income, capital gains tax) - taxed in UK but declared in Spain.

UK tax paid must be declared in Spain. It is not double-taxed, but it may determine your marginal tax rate in Spain.

UK State Pension - taxed in Spain.

Investment income (e.g. bank interest and share dividends) - taxed in Spain

Spain requires you to complete a "Modelo 720" form. You have to declare assets outside of Spain of >50k Euros value, including property, bank accounts, interest-bearing investments, company shares, self-invested pensions.

Thank you, Peter.

Every bit of knowledge gained helps.

Hi Kalli,

Our research on both UK & Spanish sites would lead us to believe that ALL income - including ALL pensions - paid into UK Banks must be declared and are taxable in Spain.   I think it was also agreed between Spain+UK that one pension can be taxed in the UK.   If so, my hubby's civil service pension would be the one to tax in UK 'cos Spanish tax is slightly higher.  BUT, once we are back in Spain, we shall be seeking professional advice.

Confused?????   So are we.  It's quite complex so it will be nice to walk into an office and get professional advice.

Hope you are enjoying your sunshine.  Over here it's rainy, dull, windy and temp in single figures all this coming week.  

Thanks for reply.   Anne.

Thank you so much, Will.

Really helpful and confirms the research we had been doing all day on both UK & Spanish Gov sites.

Anne.

What Will said "UK "Government" pensions (Armed Services, Civil Service, some NHS and some Local Authority) continue to be taxed in the UK, but must be declared in Spain." is correct, but must be declared in the box for exempt - unless you want a hefty tax bill.

And Anne2019 who said "my hubby's civil service pension would be the one to tax in UK 'cos Spanish tax is slightly higher." this pension will always be taxed in the UK but like all income from anywhere in the world, once you are tax resident in Spain MUST be declared in Spain - the important thing is to declare it properly, not simply add it to all the orher income.