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Herefordjack wrote on Tue Aug 11, 2020 8:25pm:
And it gets worse! Check out my posts in the comments section of the latest Jims Guide to income tax.
Although your crown pension shouldn't be taxed in Spain, there is some internal flaw in the online tax system which means it will be.
I agree that the system is punitive if your other taxable income is savings related, and exceeds a certain amount.
However, if income taxable in Spain is earnings related, for example another pension, or a relatively low level of savings related income like interest on a bank account, then it can increase the amount of tax due here, but not by a great amount.
It's too early in the morning for me to start doing calculations but, without knowing what other income Cpop has, I'd say that no tax will be payable in Spain unless other income exceeds ~€13,000.
Bear in mind that, for the first year of fiscal residency here, you need to file a tax return even if no tax is due.
Those in receipt of a crown pension are fortunate in that they receive the personal allowance in the UK to offset against the crown pension, and also receive the personal and other allowances in Spain to offset against other income.
