# pensions



## nickbish (Aug 30, 2011)

I have a pension from my previous employment which has to be paid in the UK and is taxed there. I am now due to recieve my state pension from the UK and have been advised to have this paid into my Spanish bank account in order not to increase the tax burden in the UK.
I was told that it would be below the Spanish tax threshold and i would not have to pay tax on it,but someone else has now said that i could be in danger of double taxation if i do this.
does anyone have any experience of this and can advise
thanks


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## xabiaxica (Jun 23, 2009)

nickbish said:


> I have a pension from my previous employment which has to be paid in the UK and is taxed there. I am now due to recieve my state pension from the UK and have been advised to have this paid into my Spanish bank account in order not to increase the tax burden in the UK.
> I was told that it would be below the Spanish tax threshold and i would not have to pay tax on it,but someone else has now said that i could be in danger of double taxation if i do this.
> does anyone have any experience of this and can advise
> thanks


I'm not an expert, but the dual taxation agreement doesn't mean you'll pay tax twice, as the UK takes into account anything you might have paid in Spain

you would need to do a tax return in both countries, but you still wouldn't actually pay anything if the income is below the threshold


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## 90199 (Mar 21, 2010)

If you check with the inland revenue in the U.K. they will provide you with all the information and the forms for having your state pension declared for tax in Spain. The said forms can be obtained online, I am sure someone will point us in the right direction.


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## gill556 (Dec 23, 2010)

My understanding is that if you have a government pension that has to be taxed in the Uk you will receive UK tax allowances against it and your state pension can be paid in to a Spanish bank and you will receive Spanish tax allowances so you have the advantage of double allowances whereas anyone else with a non government pension would have to add it together with their state pension and declare both to the Spanish authorities and only recieve one set of personal allowances meaning that you would have to pay tax.


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## 90199 (Mar 21, 2010)

You have that more or less right, but you cannot choose where you pay your tax, you have to apply through the U.K. tax authorities and they will provide all the information and papers for you to complete.

I am not sure if you have to have it paid into a Spanish bank, I think any will do


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## nickbish (Aug 30, 2011)

gill556 said:


> My understanding is that if you have a government pension that has to be taxed in the Uk you will receive UK tax allowances against it and your state pension can be paid in to a Spanish bank and you will receive Spanish tax allowances so you have the advantage of double allowances whereas anyone else with a non government pension would have to add it together with their state pension and declare both to the Spanish authorities and only recieve one set of personal allowances meaning that you would have to pay tax.


many thanks for that.


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## nickbish (Aug 30, 2011)

Hepa said:


> If you check with the inland revenue in the U.K. they will provide you with all the information and the forms for having your state pension declared for tax in Spain. The said forms can be obtained online, I am sure someone will point us in the right direction.


thanks so much


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## Stravinsky (Aug 12, 2007)

Its not as simple as just getting the papers I'm afraid ... we went through the procedure.

Yes you get the (I think) FD9 document off the internet. That has to be completed and taken to the Hacienda (we had to go to Valencia) where they check it against your residency certificate, and they also like proof that you are paying tax in Spain, i.e. a tax return copy.

That is then sent off to HMRC Nottingham, and anything up to 6 months later you will get a certificate confirming you have been zero rated for tax in the UK.

Yes, if you have a Government pension that will always be taxed in the UK taking account of the UK allowances
Your State Pension doesnt have to be paid in a Spanish bank, but you then have to declare it in Spain for tax. However a State Pension will fall within the allowances normally, especially if you do a joint return.

Technically you should declare your Government pension in Spain also, but in reality the Spanish authorities are not interested so even the gestor says not to bother.

Double taxation treaty doesnt mean you pay double tax. It means in effect you wont pay taxes twice because of the agreement between UK and Spain.


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## nickbish (Aug 30, 2011)

Stravinsky said:


> Its not as simple as just getting the papers I'm afraid ... we went through the procedure.
> 
> Yes you get the (I think) FD9 document off the internet. That has to be completed and taken to the Hacienda (we had to go to Valencia) where they check it against your residency certificate, and they also like proof that you are paying tax in Spain, i.e. a tax return copy.
> 
> ...


just when i thought i was getting there. I thought that life got easier when you were a pensioner!!


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## stevelin (Apr 25, 2009)

You have to make a Spanish declaration ( cant do that now until 2012) for this year (2011)you then get the relevant forms from the Hacienda stating your a tax resident submit these to HMRC who should then refund any tax taken for 2011 and 2012 and from then on you will be paid gross in UK and declare in Spain. We received a refund and then found we didnt have to pay in Spain as we submit a joint tax return. Bear in mind UK tax is April to March and Spanish is Jan -Dec


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## Stravinsky (Aug 12, 2007)

stevelin said:


> You have to make a Spanish declaration ( cant do that now until 2012) for this year (2011)you then get the relevant forms from the Hacienda stating your a tax resident submit these to HMRC who should then refund any tax taken for 2011 and 2012 and from then on you will be paid gross in UK and declare in Spain. We received a refund and then found we didnt have to pay in Spain as we submit a joint tax return. Bear in mind UK tax is April to March and Spanish is Jan -Dec



You get the relevant form HERE

Iirc you get the form in English and Spanish, and these are what you take to Hacienda with your residency, padron and (hopefully) a Spanish tax return form copy


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## nickbish (Aug 30, 2011)

Stravinsky said:


> You get the relevant form HERE
> 
> Iirc you get the form in English and Spanish, and these are what you take to Hacienda with your residency, padron and (hopefully) a Spanish tax return form copy


thanks to everyone who has responded to this thread. the information has been really helpful and i now feel confident to wade through the mire of the tax system!


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## Stravinsky (Aug 12, 2007)

nickbish said:


> thanks to everyone who has responded to this thread. the information has been really helpful and i now feel confident to wade through the mire of the tax system!


I just gave you the information ...... I didnt tell you to be confident 
Dealing with the powers that be in Spain is always stressful. Take deep breaths, count to ten, close your eyes and hope for divine intervention

Good luck


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## nickbish (Aug 30, 2011)

Stravinsky said:


> I just gave you the information ...... I didnt tell you to be confident
> Dealing with the powers that be in Spain is always stressful. Take deep breaths, count to ten, close your eyes and hope for divine intervention
> 
> Good luck


As the old Monty Python song goes,'always look on the bright side of life....'
Problem is that i am not fluent enough to be able to sing it in Spanish!!


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