Taking a personal pension income

You will be tax resident in Spain and so pay Spanish tax on this pension, as you will with your UK state pension when you receive it.

Have you done all your research on the income and healthcare requirements to apply for the non lucrative visa (NLV) to live in Spain?

How to apply for a Non-Lucrative visa (NLV)

If you become a legal resident in Spain all your worldwide income will need to be declared to the Spanish tax man. 

Steve 

The real question here is where is your Pension coming from?  If its a Government one, ie Police, Fire Service etc you will be taxed at source and the Spanish Tax man cant touch it.

If however you are receiving it elsewhere, then once you become a Spanish Resident sadly you will be required to pay your taxes here in Spain on that Pension, including State Retirement age one, and on any assests over €40,000 regardless of what or where they are.  Taxes are charged at 21% here and if you try to flout the system and get found out, there will be a hefty fine to pay.  

This is misleading. You are not taxed on assets, only the income you receive from them, for example savings account interest or share dividends.

Perhaps you are referring to the Modelo 720? All tax residents are required to declare their assets held outside Spain on this tax form annually. Only assets valued over €50,000 are included in each of three classes - property, bank accounts, and company shares and similar instruments. You are not taxed on these per se, the form is merely for the information of the tax authorities. But obviously they are going to take note if, for example, you said you had a million pounds' worth of company shares, but there is no mention of share dividends in your next income tax return!

 Furthermore, you don't need to send in another Modelo 720 unless the value of one or more of the classes has inceased by €20,000 over your previous declaration.

EDIT: I see you're going to be living just down the road from me. If you want more help on paying your tax, or anything else, just PM me your email address. I've been here four and a half years, and have overcome all the usual admin hurdles. Happy to pass on my knowledge.

Hi 

I'm resident in Spain and take a monthly income from my personal pension (with Scottish Widows).

Tax is paid here in Spain, but I deliberately take an income just under the threshold for tax - so I've never actually paid anything. 

Btw, if you intend to take the 25% tax free lump sum, make sure you do so before you become tax resident in Spain!

Cheers 

Steve 

Thank you. What is the current threshold? 

That's a good tactic, but new residents please note that you do have to submit your first income tax return whether you end up being eligible for tax or not, because you need to be registered on the system.

Hi 

Taxation in Spain is rather complicated, there are others on this forum who have far wider knowledge than me.

However, in my very simple case, the threshold is roughly €12000.

Cheers 

Steve