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Spanish tax on Army pension

Posted: Thu Jun 23, 2022 11:27am
14 replies802 views6 members subscribed
david36

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Joined: 23 Jun 2022

I have been advised by my tax adviser that tax is now liable on my Army pension which has increased my tax payment by over €1200 this year. I this correct?.  

Villas

Posted: Thu Jun 23, 2022 11:42am

Villas

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Posted: Thu Jun 23, 2022 11:42am

No. Unless (an) other know's recent news. A "crown" pension ( although declared to ES authorities), under agreement is protected. V

Darro

Posted: Thu Jun 23, 2022 11:51am

Darro

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Posted: Thu Jun 23, 2022 11:51am

Villas wrote on Thu Jun 23, 2022 11:42am:

No. Unless (an) other know's recent news. A "crown" pension ( although declared to ES authorities), under agreement is protected. V

I believe some military disability pensions may be exempt but if it's just a regular pension not.

Villas

Posted: Thu Jun 23, 2022 12:10pm

Villas

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Posted: Thu Jun 23, 2022 12:10pm

Darro wrote on Thu Jun 23, 2022 11:51am:

I believe some military disability pensions may be exempt but if it's just a regular pension not.

Darro thanks, but the answer is "no" , disabilities not considered. Search on certain, "UK government" "crown pensions ". Or provide a link. I am out until later & will provide link ( unless someone can clarify first. V

PeterPan

Posted: Thu Jun 23, 2022 12:39pm

PeterPan

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Posted: Thu Jun 23, 2022 12:39pm

david36 wrote on Thu Jun 23, 2022 11:27am:

I have been advised by my tax adviser that tax is now liable on my Army pension which has increased my tax payment by over €1200 this year. I this correct?.  

Is it possible that increases to your army pension have pushed you into a higher band of Spanish tax?

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Villas

Posted: Thu Jun 23, 2022 1:41pm

Villas

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Posted: Thu Jun 23, 2022 1:41pm

PeterPan wrote on Thu Jun 23, 2022 12:39pm:

Is it possible that increases to your army pension have pushed you into a higher band of Spanish tax?

Double taxation

The UK and Spain have had a Double Taxation Convention for some time. Rules covering income tax and other taxes came into effect on January 1 and April 6, 2015.

UK Government service pensions paid to retired members of the fire service, police, civil servants, armed forces and local authorities are exempt from Spanish tax. Under the new treaty the amount of the pension is still exempt but must be included when calculating how much tax is due in Spain. This could have the effect of pushing any other income – perhaps from investments and rent – into a higher tax bracket meaning you’d have to pay more tax in Spain.

EDIT:

https://www.spenceclarke.com/articles/when-a-pension-is-not-a-pension/

V


GrahamLynn

Posted: Thu Jun 23, 2022 1:49pm

GrahamLynn

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Posted: Thu Jun 23, 2022 1:49pm

There’s a list a available  of  exactly which pensions are covered I’ll see if I can find it again.

I checked a couple of days ago, because I receive a crown pension , but it’s not covered under the agreement.

Lynn

GrahamLynn

Posted: Thu Jun 23, 2022 2:01pm

GrahamLynn

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Posted: Thu Jun 23, 2022 2:01pm

Found the list of which pensions are covered see , link below

https://www.gov.uk/hmrc-internal-manuals/international-manual/intm343040

Lynn

Darro

Posted: Thu Jun 23, 2022 4:18pm

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Posted: Thu Jun 23, 2022 4:18pm

Villas wrote on Thu Jun 23, 2022 12:10pm:

Darro thanks, but the answer is "no" , disabilities not considered. Search on certain, "UK government" "crown pensions ". Or provide a link. I am out until later & will provide link ( unless someone can clarify first. V

It was a while ago I read about it but possible it applied to Spainish military pensions.

The OP wrote "I have been advised by my tax adviser that tax is now liable on my Army pension" which clearly implies that something has changed since the last tax return so assuming it's the same adviser what has he/she got to say about it?

Yorks

Posted: Thu Jun 23, 2022 11:23pm

Yorks

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Posted: Thu Jun 23, 2022 11:23pm

David 36 your military pension is safe from tax as it is taxed at source, If you earn anything in Spain then it will be taxed as most military pensions make you over the Spanish tax threshold.

Are you sure your tax advisor knows what he is doing?

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