# Declaring UK government pension on Spanish tax return



## extranjero (Nov 16, 2012)

A few months ago,I seem to remember reading that although UK government pensions are only taxable in Spain, they now have to be declared on the Spanish tax return, and are used in working out the tax base.previously they were invisible to the Hacienda, but now there is a new ruling on this.Can anyone remember reading this? I think Cap'n Billy commented on it, but I can 't find the post.


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## Aron (Apr 30, 2013)

extranjero said:


> A few months ago,I seem to remember reading that although UK government pensions are only taxable in Spain, they now have to be declared on the Spanish tax return, and are used in working out the tax base.previously they were invisible to the Hacienda, but now there is a new ruling on this.Can anyone remember reading this? I think Cap'n Billy commented on it, but I can 't find the post.


I think you mean UK government pensions are only taxable in the UK. As far as I am aware, that fact should have been reported on last years asset declaration, which the Hacienda are now using.


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## extranjero (Nov 16, 2012)

Aron said:


> I think you mean UK government pensions are only taxable in the UK. As far as I am aware, that fact should have been reported on last years asset declaration, which the Hacienda are now using.


I am aware about govnt pensions being taxed only in UK, (sorry, I wrote Spain by mistake )but I am sure I read on this forum that this year, these pensions have to be declared on the yearly tax return, even though they aren't taxed in Spain.
As regards the 720 assets form, it was established last year that only pension annuities had to be submitted, and then only if they were above a certain value.


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## snikpoh (Nov 19, 2007)

extranjero said:


> I am aware about govnt pensions being taxed only in UK, (sorry, I wrote Spain by mistake )but I am sure I read on this forum that this year, these pensions have to be declared on the yearly tax return, even though they aren't taxed in Spain.
> As regards the 720 assets form, it was established last year that only pension annuities had to be submitted, and then only if they were above a certain value.


That's my understanding too.

You only have to declare assets and not 'income'. So a pension does NOT need declaring, only the annuity (if above 5ok€).


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## Aron (Apr 30, 2013)

Not every government pension is taxed in the UK. My employer was the UK government but mine is taxed with the rest of my income in Spain.


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## extranjero (Nov 16, 2012)

snikpoh said:


> That's my understanding too.
> 
> You only have to declare assets and not 'income'. So a pension does NOT need declaring, only the annuity (if above 5ok€).


In my question I am only referring to the yearly income tax declaration. I only mentioned the 720 because you brought it up.
In past years, government pensions were not declared in Spain, they didn't exist, they were invisible to the Spanish tax office.Now, apparently the Govnt pension has to be declared on the yearly tax return, but not of course, taxed in Spain.
I'm sure I read it on thus forum last year
Cap'n Billy- Help!


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## snikpoh (Nov 19, 2007)

extranjero said:


> In my question I am only referring to the yearly income tax declaration. I only mentioned the 720 because you brought it up.
> In past years, government pensions were not declared in Spain, they didn't exist, they were invisible to the Spanish tax office.Now, apparently the Govnt pension has to be declared on the yearly tax return, but not of course, taxed in Spain.
> I'm sure I read it on thus forum last year
> Cap'n Billy- Help!


... actually Aron brought up Modelo 720 in post #2 - not me.

I thought they always had to be declared but most were advised 'not to bother' as 'they are taxed in UK'. I have always advocated the need to do a tax return in Spain - whether anyone needs to or not.


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## extranjero (Nov 16, 2012)

snikpoh said:


> ... actually Aron brought up Modelo 720 in post #2 - not me.
> 
> I thought they always had to be declared but most were advised 'not to bother' as 'they are taxed in UK'. I have always advocated the need to do a tax return in Spain - whether anyone needs to or not.


Yes, sorry, it was Aron.
I search this subject on the forum, and Cap'n Billy wrote about it in February 2014! Said it was a new DTA, allowing Spain to take the UK Govnt pension into account when working out your tax rate, with the possible outcome that you will pay more tax, even though the Govnt pension itself is not taxed in Spain


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## Aron (Apr 30, 2013)

extranjero said:


> Yes, sorry, it was Aron.
> I search this subject on the forum, and Cap'n Billy wrote about it in February 2014! Said it was a new DTA, allowing Spain to take the UK Govnt pension into account when working out your tax rate, with the possible outcome that you will pay more tax, even though the Govnt pension itself is not taxed in Spain


If your UK income only taxed in the UK takes your combined world wide income to above the normal tax threshold, you would pay a higher rate, at least I guess that would be the case


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## 90199 (Mar 21, 2010)

I have always declared my U.K. govt. pension in Spain and provided a copy of the P60.

U.K. Govt pensions can be taxed in Spain, if the recipient is a Spanish national and makes an application to the Inland Revenue.


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## snikpoh (Nov 19, 2007)

Hepa said:


> I have always declared my U.K. govt. pension in Spain and provided a copy of the P60.
> 
> U.K. Govt pensions can be taxed in Spain, if the recipient is a Spanish national and makes an application to the Inland Revenue.


Do you, perhaps, mean Spanish Resident?


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## 90199 (Mar 21, 2010)

snikpoh said:


> Do you, perhaps, mean Spanish Resident?


No, Spanish national in receipt of a U.K. Govt. pension.


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## CapnBilly (Jun 7, 2011)

The new Double Taxation Agreement will come into force on the 12th June 2014.

It will apply in Spain as follows :

- in respect of withholding taxes, on income derived on or after 12 June 2014

- in respect of income taxes and other taxes (other than withholding taxes), for any tax year beginning on or after 1 January 2015

This is the post that Extranjero refers to where I explained what it will mean. Note the final sentence, as far as I recall, the calculation was based on someone with a basic state pension, and a government pension of circa £3,000


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