Government pension

Once again thank-you Kim, I will have a look at their web - site

Paul

I've not seen the French/UK double taxation treaty, but the Spain/UK treaty states that a pension in respect of government employment can only be taxed in the UK.

The only time it is taken into consideration in Spain is if you have other income which is taxable here, and the effect would be to increase the rate at which tax is calculated.

Thank-you for the response. 

Yes my pension is taxed in the UK . My question is

if the tax I pay on my pension in the uk is less than I would pay in Spain would I have to pay the difference 

paul

No. As I said, the pension is only taken into account here on calculating the rate at which you pay tax on other income.

When you start receiving your DWP state retirement pensions then it will have quite an impact on the tax due in Spain.

For information on how allowances work, read what I posted here:

https://www.costablancaforum.com/area/la-marina-spain-72/taxes-suma-nie-tax-advice-in-la-marina-25/residents-income-tax-allowances-20054/

I've also posted a series of other tax topics in this sub-forum. Still to come are how to do the actual return, and how to get out of paying tax in the UK on income which is taxable in Spain.

Thank you Jim,

Very helpul

Regards

Paul

Jim if I elect to have my UK pension paid directly into my Spanish bank account will this mean I only pay tax in Spain on the amount?

If you're resident here, you're obliged to pay tax in Spain on all your income, irrespective of the country it's paid to; the only exception being a pension in respect of service for the government. In that case, it doesn't matter which country it's paid to - it's only taxed in the UK.

Hi Jim , hope your wife's recovery goes well ,I've been there myself so know what it's like. Just to clarify my position.

government pension, tax paid in uk , do I still declare this on a tax return here ( as I do in France)

When I reach the state pension age do I just declare that pension ,and would my allowances be paid on the state pension alone or the sum of both pensions

Kind regards

Paul

Hi Paul

Govt pension - yes, you declare it here, but it goes in a special section of the tax return, which doesn't in any way affect the way your allowances are worked out. What it does do is change the rate at which you pay tax on any other income.

State pension - that and any other income (e.g. savings interest) are declared here. Your allowances are calculated only on that income.

As an aside, the method for getting into the system to do a tax return here has changed for this year. It will be more secure, but also a lot more of a faff to do. I need to suss this out before the tax return system goes live. Change isn't always for the better!