Pension

If you plan to be in Spain for >6 months per year, you need to pay your tax in Spain. You stop paying tax in the UK (although there is a cut-over period to be managed, as the UK works April-April and Spain works Jan-Dec).

The exceptions are "government pensions", which continue to be taxed in the UK. "Government pensions" includes military, civil service, and (I believe) some NHS, teachers etc. Although the tax is paid in the UK, a tax return must be made in Spain, declaring the payments made in the UK.  

These rules derive from a bilateral non-double taxation treaty, and are independent of any Brexit issues.

However .... Brexit (in whatever form !!??) will impact the process of gaining Spanish Residency, and potentially the qualifying requirements, which in turn determines your ability to be in Spain for >6 month per year. 

To get your pension paid net of UK tax you need to submit a 'Spain Individual' form through the Spanish tax office.

Not these days, as the system changed some years ago. You now get a fiscal residency certificate from AEAT after submitting your first tax return, and then submit that along with Spain-Individual to HMRC. After that, you won't be taxed in the UK.

I suggest you read some of my guides about tax:

Jim's guides - your complete guide to Spain

Does the option to engage with the Spanish system via the Spain Individual prior to that first tax submission no longer exist ?

Absent that, and depending on when you actually arrive in Spain, it could mean waiting up to two years - or more - to get any UK tax paid back.

AEAT no longer need to see and certify a Spain-Individual.

When you send that form and the fiscal residency certificate to HMRC, you do need to be careful about the declared start date of your fiscal residency. here.

Otherwise there's the risk that you'll have done a tax return here, claiming relief for the amount of tax paid in the UK, and then find you get a refund of that tax from HMRC. That would then mean you putting in a supplementary tax return here to correct the situation.

Hi all. Ball park is the taxation rate on pensions/income lower or higher or the same in Spain? What about tax on share dividends? TIA

Hi Kim

Wise words and received with thanks. So is there double tax then if you do? Sounds like I should keep my tax affairs in the uk.

I will read Jims piece, just finished the residency guide (;-) (:-)