Spanish Tax

Go Back   Expat Forum For People Moving Overseas And Living Abroad > Europe > Spain Expat Forum for Expats Living in Spain

Spain Expat Forum for Expats Living in Spain The Spain Expats forum is a dedicated community of people who have moved to Spain, or who are planning to. This is the place for Expats to meet and discuss anything about moving to, & living in, Spain.

Like Tree2Likes

Spanish Tax


Reply
 
Subscribe to this Thread Thread Tools
  #1 (permalink)  
Old 2nd June 2020, 08:56 AM
New Member
 
Join Date: Jun 2020
Posts: 1
Rep Power: 0
LindaHaydon is on a distinguished road

Question Spanish Tax

Hi Everyone,

I am some what confussed about my tax as a Spanish resident. I am a pensioner who recieves a UK state penion and a small Teacher's pension. I have been told that if you receive a govenment pension it is exempt from Spanish tax.

Could anyone clairify is, would appreciate your help

Thank you, Linda

Reply With Quote Quick reply to this message
  #2 (permalink)  
Old 2nd June 2020, 09:04 AM
Member
 
Join Date: Feb 2014
Location: Velez-Malaga
Posts: 7,774
Rep Power: 9944
Lynn R has a reputation beyond reputeLynn R has a reputation beyond reputeLynn R has a reputation beyond reputeLynn R has a reputation beyond reputeLynn R has a reputation beyond reputeLynn R has a reputation beyond reputeLynn R has a reputation beyond reputeLynn R has a reputation beyond reputeLynn R has a reputation beyond reputeLynn R has a reputation beyond reputeLynn R has a reputation beyond repute
9588 likes received
5842 likes given

Users Flag! Originally from uk. Users Flag! Expat in spain.
Default

UK Government pensions are taxable only in the UK - a list of the types of pensions which come into this category is shown here, and teachers' pensions are included.

https://www.gov.uk/hmrc-internal-man...ual/intm343040

Under the Spain/UK Double Taxation Treaty such pensions do, however, have to be included on your Spanish income tax return in a separate category from your state pension, as "renta exenta" ie exempt income. That can result in people paying a higher rate of tax on their other taxable income, but in your case if you only have a UK state pension in addition to the teachers' pension that should not apply.

Reply With Quote Quick reply to this message
  #3 (permalink)  
Old 2nd June 2020, 09:47 AM
Member
 
Join Date: Apr 2016
Location: England
Posts: 59
Rep Power: 0
Pipeman is on a distinguished road
34 likes received

Users Flag! Originally from uk. Users Flag! Expat in uk.
Default

Slightly off topic, but if you are not yet of retirement age (61) and are living off savings you only pay tax on the interest on the savings (no other income) ?

For example, 300k savings at 10% (to make the sum easier) giving 30k interest, only the 30k is taxable ?

I thought I had fully "got" this but lockdown has made my noggin fuzzy

Reply With Quote Quick reply to this message
Sponsored Links
Advertisement
 
  #4 (permalink)  
Old 2nd June 2020, 09:59 AM
Alcalaina's Avatar
Member
 
Join Date: Aug 2010
Location: Pueblo blanco in Cádiz province since 2008
Posts: 15,027
Rep Power: 98433
Alcalaina has a reputation beyond reputeAlcalaina has a reputation beyond reputeAlcalaina has a reputation beyond reputeAlcalaina has a reputation beyond reputeAlcalaina has a reputation beyond reputeAlcalaina has a reputation beyond reputeAlcalaina has a reputation beyond reputeAlcalaina has a reputation beyond reputeAlcalaina has a reputation beyond reputeAlcalaina has a reputation beyond reputeAlcalaina has a reputation beyond repute
10314 likes received
7688 likes given

Users Flag! Originally from uk. Users Flag! Expat in spain.
Default

Quote:
Originally Posted by Pipeman View Post
Slightly off topic, but if you are not yet of retirement age (61) and are living off savings you only pay tax on the interest on the savings (no other income) ?

For example, 300k savings at 10% (to make the sum easier) giving 30k interest, only the 30k is taxable ?

I thought I had fully "got" this but lockdown has made my noggin fuzzy
That's correct. The current rate is (I think) 19% on interest payments up to €6,000, 21% between €6,000 and €50,000, and 21% above that.

__________________
Read about life in the pueblo: La Vida Alcalaina
Reply With Quote Quick reply to this message
  #5 (permalink)  
Old 2nd June 2020, 10:03 AM
Member
 
Join Date: Apr 2016
Location: England
Posts: 59
Rep Power: 0
Pipeman is on a distinguished road
34 likes received

Users Flag! Originally from uk. Users Flag! Expat in uk.
Default

Thanks

Reply With Quote Quick reply to this message
  #6 (permalink)  
Old 3rd June 2020, 09:07 AM
Member
 
Join Date: Sep 2017
Location: Malaga 34 years
Posts: 863
Rep Power: 1391
Juan C has a reputation beyond reputeJuan C has a reputation beyond reputeJuan C has a reputation beyond reputeJuan C has a reputation beyond reputeJuan C has a reputation beyond reputeJuan C has a reputation beyond reputeJuan C has a reputation beyond reputeJuan C has a reputation beyond reputeJuan C has a reputation beyond reputeJuan C has a reputation beyond reputeJuan C has a reputation beyond repute
377 likes received
32 likes given

Users Flag! Originally from uk. Users Flag! Expat in spain.
Default

If your crown pension and other pension exceed the Spanish tax free allowance, you will pay some tax in spain.

In my case I pay tax on all my income excluding my crown pension, in Spain. I have no tax free allowance left in Spain. Because I declare my crown pension I start paying tax at around 29% from the first euro.


Last edited by Juan C; 3rd June 2020 at 09:11 AM.
Reply With Quote Quick reply to this message
  #7 (permalink)  
Old 3rd June 2020, 09:30 AM
Member
 
Join Date: Feb 2014
Location: Velez-Malaga
Posts: 7,774
Rep Power: 9944
Lynn R has a reputation beyond reputeLynn R has a reputation beyond reputeLynn R has a reputation beyond reputeLynn R has a reputation beyond reputeLynn R has a reputation beyond reputeLynn R has a reputation beyond reputeLynn R has a reputation beyond reputeLynn R has a reputation beyond reputeLynn R has a reputation beyond reputeLynn R has a reputation beyond reputeLynn R has a reputation beyond repute
9588 likes received
5842 likes given

Users Flag! Originally from uk. Users Flag! Expat in spain.
Default

Quote:
Originally Posted by Juan C View Post
If your crown pension and other pension exceed the Spanish tax free allowance, you will pay some tax in spain.

In my case I pay tax on all my income excluding my crown pension, in Spain. I have no tax free allowance left in Spain. Because I declare my crown pension I start paying tax at around 29% from the first euro.
My income (excluding my Crown Pension) exceeds the tax free allowance in Spain. I declare my Civil Service pension as exempt income and I do pay a small amount of tax in Spain but it certainly isn't charged at 29%. I don't know where you get the 29% from, as it doesn't correspond to any of the income tax rate bands.

https://www.spenceclarke.com/wp-cont...guide-2019.pdf

As the OP stated that she has only the UK state pension in addition to her teacher's pension, she will not be in the position you describe anyway.


Last edited by Lynn R; 3rd June 2020 at 09:32 AM.
Reply With Quote Quick reply to this message
  #8 (permalink)  
Old 3rd June 2020, 09:44 AM
Member
 
Join Date: Sep 2017
Location: Malaga 34 years
Posts: 863
Rep Power: 1391
Juan C has a reputation beyond reputeJuan C has a reputation beyond reputeJuan C has a reputation beyond reputeJuan C has a reputation beyond reputeJuan C has a reputation beyond reputeJuan C has a reputation beyond reputeJuan C has a reputation beyond reputeJuan C has a reputation beyond reputeJuan C has a reputation beyond reputeJuan C has a reputation beyond reputeJuan C has a reputation beyond repute
377 likes received
32 likes given

Users Flag! Originally from uk. Users Flag! Expat in spain.
Default

thanks Lynn

Sorry but I did say around 29%. That was the rate for me, the first year it became a requirement to declare the crown pension.

I see the bands have changed slightly. It is 30% at my income level, for this year.

From your table that would seem to be 15% State tax plus 15% Andalucía tax.

Or 30% from https://spainaccountants.com/tax-rates

Reply With Quote Quick reply to this message
  #9 (permalink)  
Old 3rd June 2020, 01:49 PM
Member
 
Join Date: Apr 2008
Location: Spain
Posts: 22,087
Rep Power: 47501
mrypg9 has a reputation beyond reputemrypg9 has a reputation beyond reputemrypg9 has a reputation beyond reputemrypg9 has a reputation beyond reputemrypg9 has a reputation beyond reputemrypg9 has a reputation beyond reputemrypg9 has a reputation beyond reputemrypg9 has a reputation beyond reputemrypg9 has a reputation beyond reputemrypg9 has a reputation beyond reputemrypg9 has a reputation beyond repute
6156 likes received
3621 likes given

Users Flag! Originally from england. Users Flag! Expat in spain.
Default

My advice to anyone unsure about tax would be to find yourself a local Spanish accountant recommended by local business people and taxpayers in general. Not a gestor.
These local accountants are usually well-known as 'fixers in the local community and are also usually well-known at the local tax offices.

My accountant is called Aurelio. Nothing like the accountant we had in the U.K. He smokes those vile cigarillos, wears dark glasses indoors summer and winter and rolls up his sleeves with garter-like bands to hold them in place. He looks like a Las Vegas gambler circa 1940. Not a word of English.

He's not 100% kosher. When he told Sandra how much tax she should pay he said 'What do you want to do?' and seemed surprised when she said 'Pay it of course'. He then said 'How much?' and shook his head as if amazed when she replied 'All of it'.

But once we made our views on tax obligations clear he was very efficient in sorting out our somewhat complicated taxes.

He once charged me 25 euros for doing my tax return. I think he feels sorry for our naïve honesty. I'm still waiting to be billed for the sorting out of the 36000 euro fine plus late tax payment I was mistakenly asked for. When I asked him how much I owed him he replied 'How much money have you got?'

It's good to have an Aurelio, however eccentric he may seem.
Alcalaina likes this.

Reply With Quote Quick reply to this message
  #10 (permalink)  
Old 3rd June 2020, 06:32 PM
Alcalaina's Avatar
Member
 
Join Date: Aug 2010
Location: Pueblo blanco in Cádiz province since 2008
Posts: 15,027
Rep Power: 98433
Alcalaina has a reputation beyond reputeAlcalaina has a reputation beyond reputeAlcalaina has a reputation beyond reputeAlcalaina has a reputation beyond reputeAlcalaina has a reputation beyond reputeAlcalaina has a reputation beyond reputeAlcalaina has a reputation beyond reputeAlcalaina has a reputation beyond reputeAlcalaina has a reputation beyond reputeAlcalaina has a reputation beyond reputeAlcalaina has a reputation beyond repute
10314 likes received
7688 likes given

Users Flag! Originally from uk. Users Flag! Expat in spain.
Default

Quote:
Originally Posted by mrypg9 View Post

It's good to have an Aurelio, however eccentric he may seem.
Mine is called Jesús. He was a bit bemused at first that we weren't looking for loopholes but now he thinks we are model citizens, and as he's related to half the village that's good for our street cred. He's a gestor but I can't really see what difference it makes, he knows the system inside out. And he only charges €20. Jesus saves!
mrypg9 likes this.

__________________
Read about life in the pueblo: La Vida Alcalaina

Last edited by Alcalaina; 3rd June 2020 at 06:34 PM.
Reply With Quote Quick reply to this message
Reply


Quick Reply
Message:
Options

Register Now

In order to be able to post messages on the Expat Forum For People Moving Overseas And Living Abroad forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.
User Name:
Password
Please enter a password for your user account. Note that passwords are case-sensitive.
Password:
Confirm Password:
Email Address
Please enter a valid email address for yourself.
Email Address:
Location
Where you live
Expat From Country
Please select the country you originate from. This will appear as a flag when you make posts on the site.
Expat To Country
Please select the country you have either moved to or want to relocate to. This will be presented on the site when you make posts.

Log-in


Thread Tools

Posting Rules
You may post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


FORUM PARTNERS

ExpatForum.com is owned and operated by VerticalScope Inc.

Retiring Overseas Guides | Moving Overseas Guides | Cost of Living | Health Care Guides


All times are GMT. The time now is 11:23 PM.


Powered by vBulletin®
Copyright ©2000 - 2020, vBulletin Solutions, Inc.
Search Engine Friendly URLs by vBSEO
vBulletin Security provided by vBSecurity v2.2.2 (Pro) - vBulletin Mods & Addons Copyright © 2020 DragonByte Technologies Ltd.