U.K. tax on Private Pensions - Page 2

Hi

I received a cheque  which I could not put in my spanish bank so I filled a complaint form in on the government site and they telephoned me and then put it in my English bank account

Not on Spanish sites yet I think but I have aUK account which I can use

Hi Marcliff. I went on the website and was given Certificado de Situación Censal

Is this the correct certificate

It has a reference number and below states Obligado Tributario then my details 

I don't think so as it sounds too easy. It's a long time since I did mine but I've gone through that link and moved on to the direct application which is here

https://sede.agenciatributaria.gob.es/Sede/en_gb/procedimientoini/G305.shtml

I think it was called a Certificate of Fiscal Residency - Convenio.

You have to submit the application from that link to get a clave. They then send you, by post, a letter (in Spanish) telling you how to register with a rather long code word (mix of letters and numbers). Once that is accepted, they send you, online, a 3 letter Code to enter with your NIE number. They then send the Certificate of Fiscal Resident to you on that link.

Every time you log in on that webpage with the same computer (it won't work with a different one) they just send a 3 letter code like an SMS from your bank.

Hope it works for you but I think the one you have just shows you are on the padron or census.

Do you receive state pension ? If yes it’s best to leave your private pension on U.K. tax  due to different allowances . The allowance in Spain is considerably lower so you’ll end up paying a lot more tax .

I declare my state pension here and pay Spanish tax , my private pensions are taxed at source in U.K. ,this is perfectly acceptable as a Spanish resident 

,I use a tax consultant so I’m confident this is correct  I show evidence via P60 on private pensions so Spanish tax are fully aware and I’ve had no issues for 3 years .

Obviously if your private pension are your only income and your resident this would not apply 

No, it isn't. The only pensions that can be declared for taxes in UK are crown or government pensions. All other pensions, including the state pension, are taxed in Spain if you are a resident. As is interest received on bank accounts or dividends on shares.

Be careful. One of my neighbours was doing that and the Spanish tax authorities audited him and claimed taxes on those pensions going back 4 years (the longest they can do so) and issued him with hundreds of euros in fines for non payment. That meant he ended up paying 4 years of tax on his pension in both UK and in Spain and is still trying to claim a refund from the UK HMRC after completing a belated FD9.

I've posted it before but the UK HMRC guidance on taxes in a different country are listed here

https://www.gov.uk/hmrc-internal-manuals/international-manual/intm343040

Only those marked government are taxable in UK, all others are taxed in your country of residence.

The person doing your taxes does so on the information you give them. Like my neighbour who informed them he was paying tax in UK on a private pension but still got fined with no comeback on the person doing the taxes as they only complete them on the instructions you provide.

Yes, you will end up paying more tax in Spain as the allowances are not so good. But that's a part and parcel of living here. 

I hope you don't get audited as paying tax in UK on private pensions whilst resident in Spain is not acceptable.

Hi,

I asked my solicitor to apply for my residencia fiscal en espana convenio.    Once I received this via email I then filled in manually the  Form DT-Spain Individual that I printed from HMRC website.   I posted the completed form with the residencia fiscal en espana convenio attached to the address shown on the form.   I got a friend to post it in the UK.    I have rang HMRC, they confirm that they have received the form but 2 months waiting for this to be looked at.      In the meantime I have declared Income from my UK private pension in Spain and have now paid Spanish tax taken from my Sabadell Bank 30th June 2023.     So I will ring HMRC again 24th August and hopefully I will receive the refund.    HMRC should then tell your UK pension provider that your UK Tax Code should now be NT and hopefully the next payment from my Pension Company will be not taxed and I will declare the Income in Spain.

Karen

Hi I have now applied for the correct certificate and await the letter. Your advice was really welcome and very much appreciated. 

I rang HMRC in June about my letter from February and was told they were only dealing with urgent cases until September and my query was not classed as urgent. It is to me but not, apparently, to them.

No problem.   Good Luck.