Join the Pilar de la Horadada forum

My name's Alex and this is my website all about Pilar de la Horadada in Spain. Register now for free to talk about Residency in Pilar de la Horadada: padron, residencia and passport advice and much more!

State pension - Page 2

Posted: Tue Oct 12, 2021 11:37am

trotter

Helpful member

Posts: 79

star340 helpful points

Location: Rojales

Joined: 20 Mar 2020

Posted: Tue Oct 12, 2021 11:37am

Smoggie wrote on Mon Oct 11, 2021 5:55pm:

Can anyone tell me if they get taxed on their state pension,I've heard they do, and also, would the pension taken when you're 55,be taxed also, I don't no at all,,thanks in advance

You will be taxed if the state pension, when added to your current income, takes you over the current tax free allowance (Spain or UK).

I would be careful if you are due a private pension with a "tax free" lump sum at 55. This lump sum is not tax free in Spain and could be quite a considerable amount. 

Posted: Tue Oct 12, 2021 12:33pm

dinnerout

Legendary helpful member

Posts: 2195

star2447 helpful points

Location: Beniarbeig

Joined: 18 Sep 2015

Posted: Tue Oct 12, 2021 12:33pm

HerefordJack is correct. To summarise..

• the UK State Pension is not taxed at source 

• you cannot be tax resident in both the UK and Spain. Once resident in Spain you should file a tax return. They will send you a certificate to state that you are a Spanish taxpayer and you should send this with the HMRC Double Taxation Form to the HMRC in the UK in order to exit the UK system. 

• if your income declared in your Spanish tax return is above your personal allowance you will be taxed on the income above that personal allowance.

Steve

Posted: Tue Oct 12, 2021 5:24pm

Smoggie

Original Poster

Posts: 18

star1 helpful points

Location: Rojales

Joined: 14 Jun 2020

Posted: Tue Oct 12, 2021 5:24pm

Stevec2x wrote on Tue Oct 12, 2021 11:09am:

Hi Smoggie

I don't have all the answers, it's a confusing subject at times, but here's my own situation...

 

Read more...

I started taking my personal pension when I was 55. I chose to take an amount per month which is just below the threshold for paying tax in either country. If I was to take more than that, then tax would be payable when I do my Spanish tax return. Iirc, the UK Inland Revenue would not tax it because I am no longer tax-resident in the UK, but I'm not sure if there may be a few bits of paperwork involved first!

Cheers

Steve

So what is the ceiling before tax is deducted, on worldwide income, or state 

Posted: Tue Oct 12, 2021 6:20pm

dinnerout

Legendary helpful member

Posts: 2195

star2447 helpful points

Location: Beniarbeig

Joined: 18 Sep 2015

Posted: Tue Oct 12, 2021 6:20pm

Smoggie wrote on Tue Oct 12, 2021 5:24pm:

So what is the ceiling before tax is deducted, on worldwide income, or state 

The personal allowance for a single person over 65 was €14265 last time I checked. Not sure for under 65 but presumably a little less.

You only pay tax on income above your allowance. 

Posted: Wed Oct 13, 2021 11:07am

Golandrina

Super helpful member

Posts: 1663

star1227 helpful points

Location: Almoradí

Joined: 24 Mar 2018

Posted: Wed Oct 13, 2021 11:07am

tebo53 wrote on Mon Oct 11, 2021 6:37pm:

I think, but may be wrong, that UK state pension is taxed at source and exempt from taxation in Spain. 

Steve 

The UK State Pension  paid into a Spanish Bank Account does certainly not have tax deducted at source if you are paying your taxes correctly, i.e. having a tax declaration processed each year in Spain, it is taxed as part of your world-wide income.

Advertisement - posts continue below

Posted: Wed Oct 13, 2021 12:17pm

Pacoboy

Helpful member

Posts: 478

star317 helpful points

Location: Algorfa

Joined: 11 May 2018

Posted: Wed Oct 13, 2021 12:17pm

tebo53 wrote on Mon Oct 11, 2021 6:37pm:

I think, but may be wrong, that UK state pension is taxed at source and exempt from taxation in Spain. 

Steve 

Incorrect as kim says its part of your income for tax 

Posted: Wed Oct 13, 2021 1:09pm

tebo53

Legendary helpful member

Posts: 4841

star5035 helpful points

Location: Benidorm

Joined: 29 May 2018

Posted: Wed Oct 13, 2021 1:09pm

Pacoboy wrote on Wed Oct 13, 2021 12:17pm:

Incorrect as kim says its part of your income for tax 

Yes, yes, Thanks to "everyone " who has corrected my post. I do and always have included my UK state pension in my tax declaration in Spain.  Thank you. 

Steve 

Posted: Wed Oct 13, 2021 5:32pm

Posts: 29

star8 helpful points

Location: Orihuela Costa

Joined: 18 Oct 2019

Posted: Wed Oct 13, 2021 5:32pm

tebo53 wrote on Wed Oct 13, 2021 1:09pm:

Yes, yes, Thanks to "everyone " who has corrected my post. I do and always have included my UK state pension in my tax declaration in Spain.  Thank you. 

Steve 

If it's just your state pension you will never have to pay tax on that it's one of the lowest 

Pensions in Eu

Posted: Wed Oct 13, 2021 8:19pm

Posts: 19

star9 helpful points

Joined: 29 Mar 2021

Posted: Wed Oct 13, 2021 8:19pm

tebo53 wrote on Mon Oct 11, 2021 6:37pm:

I think, but may be wrong, that UK state pension is taxed at source and exempt from taxation in Spain. 

Steve 

UK state pension is not taxed at source even in the UK and not exempt from tax in Spain if resident in Spain.

Posted: Wed Oct 13, 2021 8:25pm

Posts: 19

star9 helpful points

Joined: 29 Mar 2021

Posted: Wed Oct 13, 2021 8:25pm

Binz1 wrote on Mon Oct 11, 2021 7:24pm:

This is correct all UK pension is taxed at source if it is above the threshold outlined by hmrc. 

ATB Binz

No it isn’t!!!!! Some specified occupational pensions are taxed in UK others have to be declared and taxed in Spain. UK state pension is NEVER taxed at source anywhere.

Sign up for free or login to reply to this topic

Want to reply to this topic? Login or register for free to post your message:

Find more Padron, residencia and passport advice topics from a particular area: