# Double taxation



## cyclequeen (Oct 5, 2012)

Hello All, I have heard some worrying news today that Spain may have decided to end their tax treaty with they UK. In that if you pay your tax to the UK tax authority you don't pay to the equivalent Spanish authority as well. Has anyone else heard this please or is it just another one of those myths. I should say I live in La Linea & this person also lives here & works in Gibraltar so pays his tax there. There is a lot of understandable bad feeling here due to the awful border issues at the moment.


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## 90199 (Mar 21, 2010)

I have heard nothing, further to that Bosslady was talking to a top financial advisor from Tenerife, just today, about Spanish tax returns and other subjects. Nothing was mentioned regarding the ending of the double taxation treaty.


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## CapnBilly (Jun 7, 2011)

I should think it's very unlikely that the DTA agreement would end, bearing in mind that both countries are key members of the EU, it would be like breaking off diplomatic relations. There is in fact a new draft DTA which was agreed last year, and is awaiting parliamentary procedures before beiing implemented.


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## Aron (Apr 30, 2013)

cyclequeen said:


> Hello All, I have heard some worrying news today that Spain may have decided to end their tax treaty with they UK. In that if you pay your tax to the UK tax authority you don't pay to the equivalent Spanish authority as well. Has anyone else heard this please or is it just another one of those myths. I should say I live in La Linea & this person also lives here & works in Gibraltar so pays his tax there. There is a lot of understandable bad feeling here due to the awful border issues at the moment.


Spain has had a double taxation treaty with the UK for almost 40 years. There has been no news on that topic which would be headline news if it was true. 
Gibraltar has always been a thorny issue, even at the time they started the double taxation treaty.


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## cyclequeen (Oct 5, 2012)

thanks for that guys must be one of those "Urban myths" I pretty much though if there was any truth in it it would spread like wild fire, have a lovely Xmas everyone


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## extranjero (Nov 16, 2012)

A query relating to tax.
I read in the Euro Weeklytoday, on p 50, an advertisement feature by a firm of accountants stating that UK state pensions are not taxable in Spain. This is contrary to what I have been told, advised, or researched. UK state pensions are are apparently treated as earned income and declared on the annual Spanish tax return, as I have been doing for years.
If the writer is correct, I have been overpaying tax for years, if not, his lucky clients have been underpaying for years.
How can such contrary advice be given; either tax is payable on UK state pensions or it is not, and cannot differ according to whichever firm of accountants you go to, meaning some are not paying and some are.


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## Aron (Apr 30, 2013)

extranjero said:


> A query relating to tax.
> I read in the Euro Weeklytoday, on p 50, an advertisement feature by a firm of accountants stating that UK state pensions are not taxable in Spain. This is contrary to what I have been told, advised, or researched. UK state pensions are are apparently treated as earned income and declared on the annual Spanish tax return, as I have been doing for years.
> If the writer is correct, I have been overpaying tax for years, if not, his lucky clients have been underpaying for years.
> How can such contrary advice be given; either tax is payable on UK state pensions or it is not, and cannot differ according to whichever firm of accountants you go to, meaning some are not paying and some are.


My Euro Weekly only goes to page 40!


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## extranjero (Nov 16, 2012)

It has104 pages


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## CapnBilly (Jun 7, 2011)

My version has 96 pages, but I can't see an advert about this on page 50, or any other page come to that. Having said that, if it says that a UK state pension is not taxable in in Spain, that is rubbish. However if you are on the basic, and that is your only income, then whilst it is taxable, it is within the allowances, so no tax would be due, but then that's the case in the UK as well.


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## kurt85 (May 7, 2013)

I also have heard nothing regarding the ending of double taxation and im sure I will have done if it was happening, as another member said, it would be headline news.

Current position is if you are a spanish tax resident and you are for whatever reason taxed in the UK, this will be given as a credit against spanish tax due, should the spanish tax have been higher than the tax paid in the UK, the taxable element in Spain will be the difference between the two.

With regards to the comments regarding pensions currrently being taken, they are subject to spanish taxation if you are a spanish tax resident and regarding the tax treatment, it is calculated as above, should you have been taxed in the UK for whatever reason which is under the double taxation agreement.

Best Regards,

Kurt


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## extranjero (Nov 16, 2012)

CapnBilly said:


> My version has 96 pages, but I can't see an advert about this on page 50, or any other page come to that. Having said that, if it says that a UK state pension is not taxable in in Spain, that is rubbish. However if you are on the basic, and that is your only income, then whilst it is taxable, it is within the allowances, so no tax would be due, but then that's the case in the UK as well.


It's the Costa Blanca South edn.


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## CapnBilly (Jun 7, 2011)

extranjero said:


> It's the Costa Blanca South edn.


I read the North edition. Must be more pictures in the South edition :rofl


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