State pension - Page 3

According to this the personal allowance for +65 is 6,700e. 

This post is going round and round and round in circles 😴🥱

Steve 

Probably because so much duff and misleading information is posted. I sometimes despair.

I think you correct my wife only had a state pension and she paid tax

I understand, perhaps wrongly, that any non initial lump sum private pension withdrawls taken from a SIPP or similar  is taxed in Spain as an investment. So you pay Spanish investment  income tax calculated  only on the accumulated  total gain of the figure you withdraw.  So if you have in invested £1000 in SIPP over 10 years and it is now worth £2000 and you withdraw £500  you would declare £250 of investment income on your Spanish tax declaration.  Anyone confirm this is indeed the case ?

My SIPP helpfully  states daily  the % gain on all investments since start which should aid completing a spanish tax return. 

Here is one reference that seems to detail the tax on overseas private pensions.

https://www.spenceclarke.com/articles/when-a-pension-is-not-a-pension/

If non resident in UK of course you should be paid any SIPP withdrawl in UK without a UK tax deduction. Although you might be obliged to pay and then  reclaim any UK tax deduction made.

Seems like you also ought to declare your SIPP value on the spanish 720 overseas assets declaration form, if over eur50000 but not sure what happens if you do not. Anyone declaring their SIPP value on a 720 form  each year ?

"Seems like you also ought to declare your SIPP value on the spanish 720 overseas assets declaration form, if over eur50000 but not sure what happens if you do not. Anyone declaring their SIPP value on a 720 form  each year ?"

Yes, you must declare your SIPP on the Modelo 720 if over €50,000.  Fines in Spain for under-declaring and/or failing to declare are huge - they start from €5,000 for each infraction and can be much higher, depending on the value of the concealment.

By the way, you don´t have to complete a Modelo 720 "each year", only if there is an increase in any one of the 3 asset categories which amounts to €20,000 or more, but this doesn´t mean that level of increase in one year.  For example, if you added €5,000 to a savings account this year, you wouldn´t need to update the Modelo 720 next year, but if you then added a further €15,000 to those savings next year, you would have to submit an updated Modelo 720 the following year.

Kind regards,

Kim

What is the tax free allowance in spain are you taxed as a couple .or individually. 

Hi Wendy,

The basic personal allowance is €5,550 per person.  However, the Spanish tax system is much more complex than the UK's and there are many other allowances available, for example, a further amount is available for married couples and further amounts again dependant on increasing age.  Our tax advisor always calculates our income tax returns both individually and joint each year, and then we submit whichever one works out cheaper.

Kind regards,

Kim