How come our UK State Pensions are entirely wiped-out by Hacienda? - Page 3

Hi

Pensions in Spain are indeed taxed, however not as regular income. Hence the OP's question.

Details here:

https://www.boe.es/eli/es/res/2003/01/13/(1)

Thanks again.

Once your income from pension et al, exceeds €22000 PA, it is treated as ordinary income and therefore falls under Article 77 of Tax Regulations

I wish that it were!

In fact if your pension is from one source, your allowance before tax is around €22000, which is then applied at a lower rate than regular income.

Unfortunately both the OP and I have two sources contributing to our pension and so are taxed on anything above €14000:(

Same as UK. Your first pension taxed at 20% and your second and subsequent pensions taxed at 40%, less any allowances and subject to some small tweakings, if you investigate

40%... Wow. I suppose with Spain at just under 9%, we pensioners should consider ourselves fortunate!

Just remember that, in any country, the tax code is not there to benefit you. It is your responsibility to educate yourself (or pay someone for that knowledge) in order to maximise  your benefit. No government is your friend. Remember these 9 killer words "I'm from the government, i'm here to help you"

Hi can anybody tell how much pension can you have before paying tax and there a married couple allowance

 Thanks Dave

I noticed this article from one Tax Advisor.in English

https://www.orbitax.com/news/archive.php/Update---Spanish-2023-Budget-T-51731

The requirement to declare with two or more pension incomes (or indeed any two or more earned income sounrces) went up from eur14000 to eur15000 in 2023. If you have a single pension  then apparently still no need to declare.up to eur22000.

If the additional pensions are ess than eur1500 ieach t does not seem to affect the eur22000 limit.

I also understand that if you have no more than eur6500 of investment or private pension income to declare then  you might benefit from some tax reduction on your pension or earned income if the total is less than eur19747.50.

I would think without going into great detail the maximum tax benefit of the single earnings source eur22000 limit should be very roughly about 19% of (22000-15000) so suggest around eur1400.

Seems unlikely loosing the max tax benefit of a single source should wipe out all the entire value of the second or addiitional pension. 

All in all a very complicated way of setting personal allowances. 

If anyone who knows better and thinks I have misunderstood please put do me right. 

Not sure where you got this from. I am based in the UK and have 3 pensions, a state pension and 2 occupational ones - they are all taxed at 20%. The tax free allowance (currently £12,750 pa) is applied to my state pension and 20% applied to the other two. I checked with a couple of other reired colleagues and they are taxed the same. My tax advisor tells me you have to be receiving over £50,270 before you start paying tax at 40%.

Hi Thankyou Dave