Moving to El raso in April / income tax liabilities

If you move in April then you won't have to do a tax return in Spain until 2021 and then any tax due won't become payable until June or July. 

To receive your pensions gross you need to submit a 'Spain Individual' 

https://www.gov.uk/government/publications/double-taxation-united-kingdomspain-si-1976-number-1919-form-spain-individual

In essence then you really should never actually be in a position of being double taxed. There may be a delay in getting the form validated by the Spanish tax authorities but any tax you pay in the interim should be refunded although it's possible it might not be until the end of the next UK tax year. 

Note if your state pension is derived from government service then it will remain taxed in UK but will be offset against your total tax liability in Spain. 

Cheers I’ll follow up on the gov.uk link you sent 

J

Hi Locknut,

As you're now drawing UK State pension, have you applied for your S1, in order to transfer your free healthcare rights from the UK to Spain?  This used to be handled by the DWP, but has recently transferred to NHS Business Services Authority.  I can add the contact details, if you need them,  when I'm back at my PC.

Kind regards  

Kim

Cheers that would be very helpful 

As long as none of the other pensions relate to government employment, you can get out of the HMRC system entirely, but not until you've done your first tax return here:

https://www.costablancaforum.com/area/almorad%C3%AD-spain-11/taxes-suma-nie-tax-advice-in-almorad%C3%AD-25/residents-income-tax-uk-hmrc-de-registration-giving-the-inland-revenue-the-elbow-35441/

Hi Locknut,

Contact details below for obtaining your S1 - I thought it would be useful to include the text from NHS BSA as well, so that you know what is required for your application.

Kind regards,

Kim

"Thank you for your email.

I would like to sincerely apologise for any delay you have experienced, Overseas Healthcare Services has recently transitioned from the Department for Work and Pensions to the NHS Business Services Authority. Unfortunately, this has caused some delays in responding to customer queries whilst we have finalised this transition. I sincerely apologise that we have not answered your particular enquiry sooner.

Thanks for your email.

To process your application for an S1 we need further information. Please provide the following details about the individual applying for an S1:

• Full name
• Date of birth
• National Insurance (NI) number
• Contact number and email address

Please also answer the following questions:

·  What country are you/is the applicant/and or dependant moving to?

·  When are you/is the applicant/and or dependant moving?

·  Are you/Is the applicant being paid a UK State Pension, or will you/they be within the next four weeks?

·  If so, when did you/the applicant start to be paid your/their UK State Pension, or when will it start to be paid?

·  Are you/Is the applicant being paid a state pension from the country you/they are moving to?

·  Are you/Is the applicant being paid a state pension from any other EU/EEA country or Switzerland?

·  If so, which countries are paying you/the applicant a state pension?

·  Do you/Does the applicant/and or dependant have an address in the country they are moving to?

·  If so, what is this address?

An application for an S1 can only be made up to four weeks before the person has moved to another country, or once the main applicant has moved abroad. In addition, an application can only be made by those already in receipt of a UK State Pension or those due to start receiving their UK State Pension within the next four weeks.

Find out more about your data rights and how we use your information atwww.nhsbsa.nhs.uk/yourinformation.

Kind regards

Jennifer

Registrations Officer

Overseas Healthcare Services

Bridge House, 152 Pilgrim Street, Newcastle Upon Tyne, NE1 6SN, UK"

Another thing to consider is that the Spanish tax year runs from 1st January to 31st December so if you move here in April, you will be fiscally resident in Spain for the whole of 2020. If you delayed moving until after about 2nd July, you would remain liable only for UK tax until 1st January 2021. This could be particularly relevant if you are selling a UK home this year and face the possibility of having to pay Spanish Capital Gains Tax on the proceeds.