# Tax on pension income



## Broomie (Aug 7, 2010)

Hi,

I've just been flicking through the various threads and information on the website and I've got a question around retirement income. The website says that if you spend more than 183 days in Spain then you are considered an expat resident and your global income is eligible for taxation in Spain, including retirement income. 

So, my question is this, my pension will be a UK Civil Service one and I anticipate that when I retire I will pay tax on it in the UK. If I live in Spain permanently will I also pay tax in Spain, so effectively paying tax twice? Is that the case or have I got it wrong?

Thanks,

Clive


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## xabiaxica (Jun 23, 2009)

Broomie said:


> Hi,
> 
> I've just been flicking through the various threads and information on the website and I've got a question around retirement income. The website says that if you spend more than 183 days in Spain then you are considered an expat resident and your global income is eligible for taxation in Spain, including retirement income.
> 
> ...


you have to make a declaration in Spain - but you don't actually pay double tax

whatever you pay in the UK is taken off any tax you might need to pay in Spain


somepeople actually end up with a tax rebate


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## Broomie (Aug 7, 2010)

xabiachica said:


> you have to make a declaration in Spain - but you don't actually pay double tax
> 
> whatever you pay in the UK is taken off any tax you might need to pay in Spain
> 
> ...


Thanks Xabiachica for that, phew!! I take it that even though I may not pay tax in Spain I will still have access to healthcare etc?

Clive


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## xabiaxica (Jun 23, 2009)

Broomie said:


> Thanks Xabiachica for that, phew!! I take it that even though I may not pay tax in Spain I will still have access to healthcare etc?
> 
> Clive


that depends..........


will you be getting a state pension too?

if so, you can access the state healthcare here by way of a reciprocal agreement with the UK - you need S1s from the DWP

if you aren't getting a state pension you _might _still be entitled to S1s for up to 2 years if you have been paying NI in the UK - you need to ask the DWP in Newcastle about your specific circumstances

if neither of those apply then you will need private healthcare or have to work so that you pay NI here & access healthcare that way

yo need to be aware also that before you can register as resident you will have to prove sufficient income

have a look at this & the links from it http://www.expatforum.com/expats/sp...-uk-other-eu-citizens-spain-april-2012-a.html



you said 'healthcare etc.' - what _etc. _were you thinking of :confused2:


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## Broomie (Aug 7, 2010)

xabiachica said:


> that depends..........
> 
> 
> will you be getting a state pension too?
> ...


Thanks Xabiachica, 'healthcare etc' no I don't know what I was thinking of. It's been a long weekend.. I won't be getting a state pension, I don't get mine until I'm 68 and I'm a way away from that. I won't fully retire until I'm 60. The plan is to buy in Spain and partially retire in three years time spending weekends and weeks in Spain to acclimatise to the way of life before I fully retire at 60.


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## xabiaxica (Jun 23, 2009)

Broomie said:


> Thanks Xabiachica, 'healthcare etc' no I don't know what I was thinking of. It's been a long weekend.. I won't be getting a state pension, I don't get mine until I'm 68 and I'm a way away from that. I won't fully retire until I'm 60. The plan is to buy in Spain and partially retire in three years time spending weekends and weeks in Spain to acclimatise to the way of life before I fully retire at 60.


at the moment, if you're paying NI in the UK up until such time as you move, you should be entitled to the S1 - as I say, for a limited period


but the way things are changing here atm who knows what will happen by the time you properly move here?


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## Stravinsky (Aug 12, 2007)

I dont want to minimise what Xabia said, but having been through the Civil Service Pension thing I can tell you that Hacienda are *not* interested in you declaring your Civil Service Pension in Spain. Under the taxation treaty a Civil Service Pension will always* only* be taxed in the UK. Never here. Therefore the tax man here isnt interested, as they know this. A gestor will also more often than not tell you this also

Keeping that one in the UK you take advantage (legally) of the UK tax allowance. If you have a state pension, you move that here for taxation in Spain, and take advantage (legally) of the Spanish tax allowances.

Job done


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## xabiaxica (Jun 23, 2009)

Stravinsky said:


> I dont want to minimise what Xabia said, but having been through the Civil Service Pension thing I can tell you that Hacienda are *not* interested in you declaring your Civil Service Pension in Spain. Under the taxation treaty a Civil Service Pension will always* only* be taxed in the UK. Never here. Therefore the tax man here isnt interested, as they know this. A gestor will also more often than not tell you this also
> 
> Keeping that one in the UK you take advantage (legally) of the UK tax allowance. If you have a state pension, you move that here for taxation in Spain, and take advantage (legally) of the Spanish tax allowances.
> 
> Job done



I wasn't saying that it would be taxed in Spain - just that he had to do a declaration - even if 'they' say he doesn't need to because, as you say, the tax is paid

it's in his interests to do so, even if it's 'nil' - I know a lot of pensioners having problems with the new prescription charges because they have never done a tax declaration


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## Stravinsky (Aug 12, 2007)

xabiachica said:


> I wasn't saying that it would be taxed in Spain - just that he had to do a declaration - even if 'they' say he doesn't need to because, as you say, the tax is paid
> 
> it's in his interests to do so, even if it's 'nil' - I know a lot of pensioners having problems with the new prescription charges because they have never done a tax declaration


Heh heh, and I'm not saying he shouldnt do a tax declaration 
As I said, one in each country, state (Spain) and Public Services (UK)
We've done returns ever since we have been here, even though there is a Civil Service Pension involved, but the Civil Service Pension is not declared here .... thats not the gestors choice, it was the Hacienda


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## NickZ (Jun 26, 2009)

There are potentially more issues then just taxes. 

Are prescriptions based on taxable income or on total income? It wouldn't surprise me that it's total income. That means things that aren't taxed by Spain can still enter into the calculation.


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## JaveaExile (May 31, 2012)

Best thing to do is contact a financial advisor who can inform you of the best options


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