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Tax on UK pension

Posted: Fri Mar 6, 2020 1:40pm
16 replies489 views5 members subscribed
East End Lad

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Location: Santa Pola

Joined: 1 Sep 2019

Hi, just a quick question, what tax would l pay on my state pension if l become a resident Spain. Thanks in advance.

Kimmy11

Posted: Fri Mar 6, 2020 3:44pm

Kimmy11

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Posted: Fri Mar 6, 2020 3:44pm

Hi,

Take a look at Jim's guides - follow this link to the guides, then scroll down to the heading 'Residents income tax in Spain':

Jim's guides - your complete guide to Spain 

Kind regards, 

Kim

jimtaylor

Posted: Fri Mar 6, 2020 4:51pm

jimtaylor

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Posted: Fri Mar 6, 2020 4:51pm

Without giving details of your age and total income it's a question that's impossible to answer.

As Kim says, look at my guides and you can work it out yourself.

Andycolleen

Posted: Sun May 23, 2021 4:34pm

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Joined: 15 Nov 2019

Posted: Sun May 23, 2021 4:34pm

I was told Military Pensions are tax free in Spain.? 

Kimmy11

Posted: Sun May 23, 2021 4:53pm

Kimmy11

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Posted: Sun May 23, 2021 4:53pm

Andycolleen wrote on Sun May 23, 2021 4:34pm:

I was told Military Pensions are tax free in Spain.? 

Hi Andy,

Military pensions are one of a number known as "Crown pensions" and, as such, they have to be taxed at source in the UK.  However, if you are resident in Spain, you have to declare them on the Modelo 720 Declaration of (worldwide) Assets and when you submit your annual Modelo 100 tax return, the income tax you pay on the military pension in the UK is offset against your tax liability in Spain.  This is in accordance with the Dual Taxation Agreement between the UK and Spain, which prevents you from being taxed on the same income in both countries.

Kind regards,

Kim

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Marcbernard

Posted: Mon May 24, 2021 9:55am

Marcbernard

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Posted: Mon May 24, 2021 9:55am

Kimmy11 wrote on Sun May 23, 2021 4:53pm:

Hi Andy,

Military pensions are one of a number known as "Crown pensions" and, as such, they have to be taxed at source in the UK.  However, if you are resident in Spain, you have to declare them on the Modelo 720 Declaration of (worldwide) Assets and when you submit your annual Modelo 100 tax return,...

... the income tax you pay on the military pension in the UK is offset against your tax liability in Spain.  This is in accordance with the Dual Taxation Agreement between the UK and Spain, which prevents you from being taxed on the same income in both countries.

Kind regards,

Kim

Kimmy11: Are you sure that you are referring to "Government Pension" in relation to a military one?

My understanding is that the measure of reporting a UKGP to the Spanish tax office is to place such pensions in the "Exempt except for calculating the marginal rate" box 525, and no account is taken of the UK tax aspect.

Kimmy11

Posted: Mon May 24, 2021 2:32pm

Kimmy11

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Posted: Mon May 24, 2021 2:32pm

Marcbernard wrote on Mon May 24, 2021 9:55am:

Kimmy11: Are you sure that you are referring to "Government Pension" in relation to a military one?

My understanding is that the measure of reporting a UKGP to the Spanish tax office is to place such pensions in the "Exempt except for calculating the marginal rate" box 525, and no account is taken of the UK tax aspect....

...

Hi Marcbernard,

Andycolleen asked about "Military" pensions and I explained that they are amongst a group of pensions designated "Crown" pensions.  Neither of us mentioned "Government" pensions.

Kind regards,

Kim

Marcbernard

Posted: Mon May 24, 2021 2:52pm

Marcbernard

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Posted: Mon May 24, 2021 2:52pm

Kimmy11 wrote on Mon May 24, 2021 2:32pm:

Hi Marcbernard,

Andycolleen asked about "Military" pensions and I explained that they are amongst a group of pensions designated "Crown" pensions.  Neither of us mentioned "Government" pensions.

Kind regards,

Kim

OK. so is it a Crown Pension or not? Civil Service and Military pensions are, I believe, in the same "Crown" category.

Kimmy11

Posted: Mon May 24, 2021 2:57pm

Kimmy11

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Posted: Mon May 24, 2021 2:57pm

Marcbernard wrote on Mon May 24, 2021 2:52pm:

OK. so is it a Crown Pension or not? Civil Service and Military pensions are, I believe, in the same "Crown" category.

Yes, a Military pension is a "Crown" pension, I said that in my original reply to Andycolleen.

Marcbernard

Posted: Mon May 24, 2021 3:13pm

Marcbernard

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Posted: Mon May 24, 2021 3:13pm

Kimmy11 wrote on Mon May 24, 2021 2:57pm:

Yes, a Military pension is a "Crown" pension, I said that in my original reply to Andycolleen.

See my reply at 2:32 today

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