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Tax on uk state pension

Posted: Sun Jan 9, 2022 11:51am
17 replies1317 views9 members subscribed
Colin 66

Posts: 11

Location: Pego

Joined: 1 Dec 2021

Can anybody advise the procedure for paying tax on uk state pension will the spanish tax.office contact me  for payment as I became a uk pensioner in september 2021Or can anybody advise me what to do thank you in advance.

tebo53

Posted: Sun Jan 9, 2022 12:04pm

tebo53

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Location: Benidorm

Joined: 29 May 2018

Posted: Sun Jan 9, 2022 12:04pm

Colin 66 wrote on Sun Jan 9, 2022 11:51am:

Can anybody advise the procedure for paying tax on uk state pension will the spanish tax.office contact me  for payment as I became a uk pensioner in september 2021Or can anybody advise me what to do thank you in advance.

If you are a permanent resident in Spain you should be filling in your annual tax returns and declare your full annual income including your UK government pension. 

I assume that you will need to update your modelo 720 too.

Have you done the duel taxation forms so not to pay taxes in both UK and Spain? 

Steve 

Colin 66

Posted: Sun Jan 9, 2022 12:11pm

Colin 66

Original Poster

Posts: 11

Location: Pego

Joined: 1 Dec 2021

Posted: Sun Jan 9, 2022 12:11pm

tebo53 wrote on Sun Jan 9, 2022 12:04pm:

If you are a permanent resident in Spain you should be filling in your annual tax returns and declare your full annual income including your UK government pension. 

I assume that you will need to update your modelo 720 too.

Have you done the duel taxation forms so not to pay taxes in both UK and Spain? 

Steve 

Thank you steve for your reply how do you go about doing all you have said please like I said ive only just become a pensioner. And I am resident here thank you for your advice. I have only just moved to spain.

Darro

Posted: Sun Jan 9, 2022 12:28pm

Darro

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Posted: Sun Jan 9, 2022 12:28pm

The basic UK state pension falls below the threshold for paying tax in Spain but nevertheless you will still need to submit an initial return to get you into the Spanish system.

It's that which will get you out of paying tax in UK as well as potentially getting you free medicines.

In future years you will not need to submit a declaration unless your income exceeds the threshold.

Obviously if you have other income which will put you above the threshold then you will need to declare every year.

The threshold is not a fixed number but depends on individual circumstances but for a 'back of a fag packet calculation' you can work around 13k€.

PS for tebo53:

Pardon the correction Steve but for as much as it might sometimes feel like it in this context it's not duel, which means pistols at dawn etc., but 'dual' as in two or double.

Don't feel bad about the transposition though, in my experience it seems that in 90% of posts which mention the Dual Tax Agreement people use the wrong one!

tebo53

Posted: Sun Jan 9, 2022 1:53pm

tebo53

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Posts: 4816

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Location: Benidorm

Joined: 29 May 2018

Posted: Sun Jan 9, 2022 1:53pm

Darro wrote on Sun Jan 9, 2022 12:28pm:

The basic UK state pension falls below the threshold for paying tax in Spain but nevertheless you will still need to submit an initial return to get you into the Spanish system.

It's that which will get you out of paying tax in UK as well as potentially getting you free medicines.

In future years you will not need to submit a declaration unless your income exceeds the threshold.

Obviously if you have other income which will put you above the threshold then you will need to declare every year.

The threshold is not a fixed number but depends on individual circumstances but for a 'back of a fag packet calculation' you can work around 13k€.

PS for tebo53:

Pardon the correction Steve but for as much as it might sometimes feel like it in this context it's not duel, which means pistols at dawn etc., but 'dual' as in two or double.

Don't feel bad about the transposition though, in my experience it seems that in 90% of posts which mention the Dual Tax Agreement people use the wrong one!

Thanks for the spelling correction but none of us on here are perfect!! We don't need the spelling and grammar police on this forum. (Especially on an early Sunday morning)

..........................

Quote...."It's that which will get you out of paying tax in UK"......

You still need to fill out the dual taxation form and send it to HMRC. 

You also need to fill out the modelo 720 and declare all your worldwide income including savings, income and property ownership. 

Steve 

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tebo53

Posted: Sun Jan 9, 2022 1:58pm

tebo53

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Posted: Sun Jan 9, 2022 1:58pm

Colin 66 wrote on Sun Jan 9, 2022 12:11pm:

Thank you steve for your reply how do you go about doing all you have said please like I said ive only just become a pensioner. And I am resident here thank you for your advice. I have only just moved to spain.

Its easier if you employ someone to help you with the forms and calculations. Perhaps a local Gestor or Solicitor who can suggest an accountant. I pay a local Solicitor about €80 per annum to do all my income tax returns and any other legal paperwork.

Please excuse any spelling or grammar mistakes..........

Steve

Colin 66

Posted: Sun Jan 9, 2022 2:21pm

Colin 66

Original Poster

Posts: 11

Location: Pego

Joined: 1 Dec 2021

Posted: Sun Jan 9, 2022 2:21pm

tebo53 wrote on Sun Jan 9, 2022 1:58pm:

Its easier if you employ someone to help you with the forms and calculations. Perhaps a local Gestor or Solicitor who can suggest an accountant. I pay a local Solicitor about €80 per annum to do all my income tax returns and any other legal paperwork.

Please excuse any spelling or grammar mistakes.............

...

Steve

Thank you both of you for your.advice Happy New Year.

Relyat

Posted: Sun Jan 9, 2022 3:18pm

Relyat

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Posts: 906

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Posted: Sun Jan 9, 2022 3:18pm

These are knowledgeable and helpful 

VIDAL FOLQUES ASESORES S.L.

965 57 04 00

https://maps.app.goo.gl/jt5wdJXbfKXHrX3c7

Colin 66

Posted: Sun Jan 9, 2022 3:36pm

Colin 66

Original Poster

Posts: 11

Location: Pego

Joined: 1 Dec 2021

Posted: Sun Jan 9, 2022 3:36pm

Relyat wrote on Sun Jan 9, 2022 3:18pm:

These are knowledgeable and helpful 

VIDAL FOLQUES ASESORES S.L.

Thank you for the update and address.

Myra2020

Posted: Sun Jan 9, 2022 9:19pm

Myra2020

Helpful member

Posts: 278

290 helpful points

Location: Orihuela Costa

Joined: 19 Nov 2020

Posted: Sun Jan 9, 2022 9:19pm

Shop around - I use an asesor and usually pay 35€ for my very simple annual tax return. 

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