Tax on pension
Posted: Sun Jan 12, 2020 7:35am
Does anyone know if I should be paying tax in Spain on a military pension from the UK
Lyn358 wrote on Sun Jan 12, 2020 7:35am:
Does anyone know if I should be paying tax in Spain on a military pension from the UK
Double taxation
The UK and Spain have had a Double Taxation Convention for some time, but the new treaty only came into force in June, with further rules covering income tax and other taxes kicking in on January 1 and April 6, 2015.
Government service pensions paid to retired members of the fire service, police, civil servants, armed forces and local authorities are exempt from Spanish tax. Under the new treaty the amount of the pension is still exempt but must be included when calculating how much tax is due in Spain. This could have the effect of pushing any other income – perhaps from investments and rent – into a higher tax bracket meaning you’d have to pay more tax in Spain. There are many posts on the forum. Look up more information "Jim´s Guides".
V
Posted: Sun Jan 12, 2020 1:52pm
Legendary helpful member
Hi Lyn,
No, you don't pay tax on a UK military pension in Spain, but you still have to submit a Spanish tax return, if you're resident here, and declare all your worldwide assets. My husband's RAF pension, when combined with our other assets, pushes him from Spain's basic tax rate of 19% up to the next level of 24%, but he only pays that higher rate on the other assets, nothing on the military pension.
Kind regards,
Kim
Ok thank you I am only 62 what happensnlw
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