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Do pensioners from the uk living in Spain get taxed on their public pension and what is the allowance threshold?

Posted: Wed May 15, 2024 4:07pm
4 replies3 members subscribed
Joeboy

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Joined: 8 Feb 2024

Do pensioners from the uk living in Spain get taxed on their public pension and what is the allowance threshold they are allowed before they pay any tax on a public pension, and at what percentagee?

marcliff

Posted: Wed May 15, 2024 4:33pm

marcliff

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Joined: 5 Jan 2023

Posted: Wed May 15, 2024 4:33pm

Yes, pensions are taxed at normal income tax rates. You will get a tax free allowance depending on your age, you will also get other allowances like the personal low income rate of 2,000 euro to be added to your other allowances, married allowance, families allowance (which includes parents) and so on. If you only receive the UK state pension then you won't be taxed as, generally, only those over 12 to 14k earners will be affected.

It will, however, be included with any other income such as private pensions, interest on savings (all taxed at the normal income tax rates) and any other such as dividends and so on.

Some regions have different tax rates so you'd be best getting at least your first return done by an accountant or gestor. You must submit an annual tax return if you have more than one source of income and must declare it in year 1 so they can assess the level of co-payment you pay on your prescriptions. Plenty of sites around which tell you the tax levels and tax free allowances.

Joeboy

Posted: Wed May 15, 2024 5:06pm

Joeboy

Original Poster

Posts: 8

3 helpful points

Location: Cabo Roig

Joined: 8 Feb 2024

Posted: Wed May 15, 2024 5:06pm

marcliff wrote on Wed May 15, 2024 4:33pm:

Yes, pensions are taxed at normal income tax rates. You will get a tax free allowance depending on your age, you will also get other allowances like the personal low income rate of 2,000 euro to be added to your other allowances, married allowance, families allowance (which includes parents) and ...

...so on. If you only receive the UK state pension then you won't be taxed as, generally, only those over 12 to 14k earners will be affected.

It will, however, be included with any other income such as private pensions, interest on savings (all taxed at the normal income tax rates) and any other such as dividends and so on.

Some regions have different tax rates so you'd be best getting at least your first return done by an accountant or gestor. You must submit an annual tax return if you have more than one source of income and must declare it in year 1 so they can assess the level of co-payment you pay on your prescriptions. Plenty of sites around which tell you the tax levels and tax free allowances.

Thanks, this is very helpfull.

Thankyou for your time.

Joeboy

Herefordjack

Posted: Wed May 15, 2024 10:02pm

Herefordjack

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Joined: 18 Dec 2017

Posted: Wed May 15, 2024 10:02pm

If you are in this position, and you know your way around a simple computer spreadsheet, it helps if you keep a record of all your income from whatever source, through the calendar year.

The Spanish tax man divides your income into two types, i.e. work related, so all pensions, and then unearned income, so everything else like savings interest, share dividends, etc. It helps if you can add up these two types seperately.

Remember your income will have to be declared in euros, not pounds, and you can find the official average exchange rate for the year on the European Central Bank website.

Stevec2x

Posted: Thu May 16, 2024 2:49pm

Stevec2x

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Posts: 1941

1098 helpful points

Location: Playa Flamenca

Joined: 23 Jan 2020

Posted: Thu May 16, 2024 2:49pm

Hi

I concur with Herefordjack about entering interest etc separately from your pension.

I've just done my return and found that the taxman actually owes me money when I entered the 2 figures separately!

Cheers

Steve

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