taxes

Get in touch with an accountant in Spain. You're welcome.

In what way? Permanent move as a resident?

Your worldwide income, which includes a state pension, will be liable to income tax. This includes bank interest, share dividends and so on. The only thing exempt would be government pensions which are taxed at source but this is taken into account when assessing the tax bracket. Personal allowances are much lower than many other places, the basic allowance is only €5,550 which rises to €6700 at age 65 and €8100 if over 75. Tax is then levied at 19 to 23 percent with various levels.There are also allowances given for a married man, dependent children, low income allowances etc.

You will definitely pay more income tax in Spain than in UK unless your sole income is a government pension. For example, all bank interest is taxed and no allowances are given.

Council tax. Varies according to size and value of property, area including facilities provided and so on. It will depend on the cadastral or rated value of the property and the average can be 200 to 400 per year but, obviously, big detached villas with large grounds will be more expensive. Our 3 bed semi 105 sq m interior and 240 sq m exterior cost us 242 euro last year.

Rubbish collection. You pay a tax to get your rubbish collected. About 78 euro per year.

If non resident then you pay an imputed income tax on the value of your property which usually comes in at around 100 to 200 euro a year (depending on the value of the property) which is shared between the owners. 

Thank you i have a state pension and as a widow my husbands pensions which are both taxed at source. 

Plus savings.

Do you mean taxed at source because the provider(s) will not pay them gross (quite common with UK annuities) or because they are so called 'crown' or government pensions which are always taxed in UK?

Either way it's the gross amounts which must be declared in Spain to arrive at your liability then any tax which had been paid on crown pensions will be offset against it.

Tax can be quite complicated to work out but in broad terms you can expect to pay tax on any income above approx €14,000.

If AnnieOakley is a UK citizen and meets the financial requirements to become resident, she will more than likely be paying 19% tax on the state pension and interest from savings. The taxed at source income will eat up the tax allowances but won't be taxed if exempt under the dual tax agreement.

Dual tax agreement?

Under the dual tax agreement, you only pay tax in one country. If your pensions are taxable in UK then they aren't taxed in Spain as well. 

If UK based, are you planning to move over permanently, and applying for an NLV - or do you already possess an EU passport?