Personal taxation
Posted: Tue Nov 29, 2016 12:44pm
We will be moving to Spain early next year to retire. Our income will be two state pensions and personal savings. Could anyone tell what tax if any we would have to pay please.
Posted: Tue Feb 21, 2017 11:05am
Hi, when you move to Spain, you will have to pay non resident income tax, for being owners of a property. This is paid anually.
Also the land tax called IBI, and Rubbish tax, both paid anually. (local taxes)
Posted: Tue Feb 21, 2017 11:06am
Hi, when you move to Spain, you will have to pay non resident income tax, for being owners of a property. This is paid anually.
Also the land tax called IBI, and Rubbish tax, both paid anually. (local taxes)
Posted: Wed Feb 22, 2017 4:59am
Legendary helpful member
As you may be aware, you are legally liable to pay tax on all your income in Spain, so you need to follow the necessary procedure to register here for tax.
Although you can offset any tax deducted in the UK from tax due in Spain, it's much cleaner (and fairer to Spain) to also do the paperwork to get out of paying tax in the UK. The proviso to this is that any pension paid in respect of work for the government - armed forces, civil service etc, will still be taxed in the UK, but the amount received will be taken into account when calculating tax due on other income in Spain.
You will need to submit tax returns in May/June for the previous calendar year.
The income tax system is complicated, and I'd need to know details of income from both pensions and savings before I could give any idea of tax due.