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I am looking to move as a pensioner and widow to Mutxamel and I need to know if my pension would be taxed in spain as I live in Ireland currently and I have an Irish passport
Posted: Fri Jan 19, 2024 2:21pm
Super helpful member
If you intend to become a permanent resident (and therefore a tax resident) of Spain, you will need to submit a tax return for your first year of tax residency at least, so you will be registed on the system.
On this return, you will need to declare all your worldwide income, including pensions. There are various tax allowances in place, so if you only have a small income, it is unlikely you will be liable for any tax.
Don't forget being on the tax system is important because it affects other things too, like your entitlement to free pharmacy prescriptions.
Yes, state pensions are treated as earned income in Spain and liable for tax. As is interest on savings accounts, share dividends and so on. They tax you on your worldwide income less certain government or crown pensions which are taxed at source.
There are tax free allowances and other things you can claim especially if you are among the low paid. But as said, you must initially register for tax and submit a tax return in your first year of residency. After that, if you only have one source of income and it's below a certain amount then you don't need to do one every year. If you have two or more sources of income, such as pension and interest, then you do need to submit one.
Posted: Fri Jan 19, 2024 3:14pm
Super helpful member
You may find the contents of the following links helpful:
https://balcellsgroup.com/taxes-on-pensions/
https://www.lexidy.com/blog/spanish-tax-rates-for-pensioners/
https://costaluzlawyers.es/blog/your-guide-to-tax-on-pensions-in-spain/
Posted: Fri Jan 19, 2024 7:14pm
Helpful member
Noreen2 wrote on Fri Jan 19, 2024 2:01pm:
I am looking to move as a pensioner and widow to Mutxamel and I need to know if my pension would be taxed in spain as I live in Ireland currently and I have an Irish passport
