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Tax on Pension

Posted: Wed Jan 31, 2024 4:54pm
18 replies5 members subscribed
Belinda280965

Posts: 40

10 helpful points

Location: Salinas

Joined: 21 Jul 2022

Hello we are early retirees in Spain and live off our NHS pensions. They are below the tax there in the UK. Does that apply here in Spain? Thanks 

John123456

Posted: Wed Jan 31, 2024 5:06pm

John123456

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1065 helpful points

Location: Benidorm

Joined: 27 Feb 2021

Posted: Wed Jan 31, 2024 5:06pm

Tax allowances in Spain are much different to that of the UK and the tax year runs from 1 January until 31 December of each year. 

For the 2022 and 2023 Spanish tax years there is a basic personal allowance for people under 65 of €5,550. Once you reach 65, the allowance rises to €6,700 and from aged 75 this increases again to €8,100.

The contents of these links provides more detailed information:

https://www.expertsforexpats.com/country/spain/tax/taxes-in-spain/#:~:text=For%20the%202022%20and%202023,increases%20again%20to%20%E2%82%AC8%2C100.

https://taxsummaries.pwc.com/spain/individual/deductions#:~:text=Personal%20and%20family%20allowances,over%2075%20years%20of%20age.

Belinda280965

Posted: Wed Jan 31, 2024 5:51pm

Belinda280965

Original Poster

Posts: 40

10 helpful points

Location: Salinas

Joined: 21 Jul 2022

Posted: Wed Jan 31, 2024 5:51pm

John123456 wrote on Wed Jan 31, 2024 5:06pm:

Tax allowances in Spain are much different to that of the UK and the tax year runs from 1 January until 31 December of each year. 

For the 2022 and 2023 Spanish tax years there is a basic personal allowance for people under 65 of €5,550. Once you reach 65, the allowance rises to €6,700 and from aged 75 this increases again to €8,100.
...

Thank you I was told it was 22,000 Euros I thought that sounded a bit high

rds1234

Posted: Thu Feb 1, 2024 7:18am

rds1234

Helpful member

Posts: 471

54 helpful points

Location: Villamartin

Joined: 16 Feb 2021

Posted: Thu Feb 1, 2024 7:18am

22,000 I wish, but you can be the new new tax inspector 🫣

Stevec2x

Posted: Thu Feb 1, 2024 10:25am

Stevec2x

Super helpful member

Posts: 1860

1057 helpful points

Location: Playa Flamenca

Joined: 23 Jan 2020

Posted: Thu Feb 1, 2024 10:25am

Hi

Spanish income tax is complicated! The first time we filed a return we used an advisor who asked us a number of unexpected questions, such as "do you own your home or rent?". There are various different allowances for such things.

In our case, we filed separately (we're not married) and overall the threshold worked out to about €12k each.

Hope this helps!

Cheers

Steve

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Tott1950

Posted: Mon Feb 19, 2024 3:48pm

Posts: 6

2 helpful points

Location: Mil Palmeras

Joined: 23 Jul 2022

Posted: Mon Feb 19, 2024 3:48pm

Hi will l have to pay capitol gains tax on the house l am selling l am a pensioner l have not paid tax in Spain but in England thank you 

rds1234

Posted: Mon Feb 19, 2024 4:09pm

rds1234

Helpful member

Posts: 471

54 helpful points

Location: Villamartin

Joined: 16 Feb 2021

Posted: Mon Feb 19, 2024 4:09pm

Tott1950 wrote on Mon Feb 19, 2024 3:48pm:

Hi will l have to pay capitol gains tax on the house l am selling l am a pensioner l have not paid tax in Spain but in England thank you 

Are you a resident of uk or sp

Tott1950

Posted: Mon Feb 19, 2024 4:29pm

Posts: 6

2 helpful points

Location: Mil Palmeras

Joined: 23 Jul 2022

Posted: Mon Feb 19, 2024 4:29pm

rds1234 wrote on Mon Feb 19, 2024 4:09pm:

Are you a resident of uk or sp

Hi l am a resident in spain 

rds1234

Posted: Mon Feb 19, 2024 4:42pm

rds1234

Helpful member

Posts: 471

54 helpful points

Location: Villamartin

Joined: 16 Feb 2021

Posted: Mon Feb 19, 2024 4:42pm

Tott1950 wrote on Mon Feb 19, 2024 4:29pm:

Hi l am a resident in spain 

Then you should do a tax return in Spain.

Tott1950

Posted: Mon Feb 19, 2024 6:18pm

Posts: 6

2 helpful points

Location: Mil Palmeras

Joined: 23 Jul 2022

Posted: Mon Feb 19, 2024 6:18pm

Tott1950 wrote on Mon Feb 19, 2024 4:29pm:

Hi l am a resident in spain 

I used to do a tax return but after my husband passed away l was told l did not have to do one but my question is will l have to pay capitol gains tax on my property when l sell it l am a pensio

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