Hi,
please can someone advise. On getting taxed as we are pensioners.
How do you avoid getting taxed twice?
Would we have to employ a solicitor regarding this? We are debating whether to have our pensions paid into our account in Spain or not.
Await some sound advice, thank you.
Posted: Mon Dec 6, 2021 3:08pm
Super helpful member
I've lived here three and a half years and became resident in the first year. I disconnected from the UK tax system as soon as I could (after one year and my first income tax declaration in Spain). My UK state pension comes straight into my Sabadell account every four weeks, there is no bank charge and the exchange rate is good. I do my own tax return online and I only pay tax in Spain - I live here full time, I enjoy all the benefits, so it's only right I should pay my taxes here. I've never used professional advisors of any kind. There's plenty of help out there if you know where to look.
Where you have your pensions paid will have no effect whatsoever on your potential tax liabilty in Spain, either way it MUST be declared as part of your worldwide income.
You don't necessarily need a solicitor but for a first time declaration at least you will likely need the help of Gestor.
Don't forget you may also need a Modelo 720.
Posted: Mon Dec 6, 2021 4:09pm
Super helpful member
A couple of websites to have a look at are as follows:
For bureaucratic items: Citizens Advice Service Spain
Driving in Spain: N332 - run in collaboration with officers of the Guardia Civil for English speaking people.
I have lived here for 16 years and have my UK State Pension paid direct into my Spanish bank account every 4 weeks at a decent exchange rate. I, and my late husband, kept our UK bank account so that we would not have the bother of having to change money if we visited the UK - we had some small private and occupational pensions paid into that account. and the State Pensions paid into our Spanish bank account, all of which have to be reported to the Spanish taxation system.Golandrina wrote on Mon Dec 6, 2021 4:09pm:
A couple of websites to have a look at are as follows:
For bureaucratic items: Citizens Advice Service Spain
Read more...
Driving in Spain: N332 - run in collaboration with officers of the Guardia Civil for English speaking people.
I have lived here for 16 years and have my UK State Pension paid direct into my Spanish bank account every 4 weeks at a decent exchange rate. I, and my late husband, kept our UK bank account so that we would not have the bother of having to change money if we visited the UK - we had some small private and occupational pensions paid into that account. and the State Pensions paid into our Spanish bank account, all of which have to be reported to the Spanish taxation system.
Thank you for the advice,
much appreciated.
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Darro wrote on Mon Dec 6, 2021 3:17pm:
Where you have your pensions paid will have no effect whatsoever on your potential tax liabilty in Spain, either way it MUST be declared as part of your worldwide income.
You don't necessarily need a solicitor but for a first time declaration at least you will likely need the help of Gestor.
Read more...
Don't forget you may also need a Modelo 720.
Dear Darro,
thank you. Will look this up.
Herefordjack wrote on Mon Dec 6, 2021 3:08pm:
I've lived here three and a half years and became resident in the first year. I disconnected from the UK tax system as soon as I could (after one year and my first income tax declaration in Spain). My UK state pension comes straight into my Sabadell account every four weeks, there is no bank char...
Read more...
...ge and the exchange rate is good. I do my own tax return online and I only pay tax in Spain - I live here full time, I enjoy all the benefits, so it's only right I should pay my taxes here. I've never used professional advisors of any kind. There's plenty of help out there if you know where to look.
Thank you Herefordjack.
Posted: Mon Dec 6, 2021 6:13pm
Very helpful member
Darro wrote on Mon Dec 6, 2021 3:17pm:
Where you have your pensions paid will have no effect whatsoever on your potential tax liabilty in Spain, either way it MUST be declared as part of your worldwide income.
You don't necessarily need a solicitor but for a first time declaration at least you will likely need the help of Gestor.
Read more...
Don't forget you may also need a Modelo 720.
I am in this position myself at present, could you please clarify the modelo 720 if needed? Thank you.
Posted: Mon Dec 6, 2021 6:40pm
Super helpful member
Elvira25 wrote on Mon Dec 6, 2021 6:10pm:
Thank you Herefordjack.
If you want some useful info, pm me. Regards
Posted: Mon Dec 6, 2021 6:50pm
Super helpful member
Peter3473 wrote on Mon Dec 6, 2021 6:13pm:
I am in this position myself at present, could you please clarify the modelo 720 if needed? Thank you.
In simple terms, the Spanish tax authorities require you to inform them of any financial assets you hold outside Spain on midnight 31 December of each tax year, if over 50,000€ in any of three categories - all your bank accounts including savings accounts, property, stocks and shares of all types.
You do this via the modelo 720 form. Once you've done your first, you don't need to submit another unless your previously declared asset has increased by more than 20,000€, or you now have more than 50,000€ in a previously undeclared category.
Be aware that this info is to keep the tax authorities informed only, it doesn't lead directly to tax. However, they might get a bit suspicious if, for example, you say in modelo 720 you have £500k in shares, but don't declare any dividend income in your annual tax return!
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