# Teachers pensions



## Ilovepatnevin (Feb 26, 2009)

Has anyone here started receiving a UK teacher's pension whilst living in Spain? I'm finding it a little difficult to work out the tax implications (especially with regard to the initial lump sum).


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## uk03878 (Jul 4, 2018)

Sorry to be the bearer of bad news...
If you are tax resident in Spain, there is no tax free lump sum.. it will be treated as income
From Blevin Franks ..
“While 25% of cash withdrawals can be taken tax-free in the UK, if you are Spanish resident they are usually fully taxable in Spain (under the Spain/UK double tax agreement).

Income from UK occupational and state pensions will be taxable only in Spain under the terms of the Spain/UK tax agreement. Conversely, UK government service pension income – including teachers’, local authority, army, police and civil service pensions – remains taxable in the UK only (although it is considered when calculating your Spanish final tax rate).”
Which paraphrases it better than I could


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## stevesainty (Jan 7, 2011)

uk03878 said:


> Sorry to be the bearer of bad news...
> Income from UK occupational and state pensions will be taxable only in Spain under the terms of the Spain/UK tax agreement. Conversely, UK government service pension income – including teachers’, local authority, army, police and civil service pensions – remains taxable in the UK only (although it is considered when calculating your Spanish final tax rate).”
> Which paraphrases it better than I could


Presumably the lump sum, taxable only in UK, would be added to the total teacher´s pension received for the year and this sum will need to be declared in Spain as exempt income. This will have the effect of moving any income taxable in Spain into a higher tax bracket whist also eroding some of your Spanish tax allowances. If you have no income, or very little income, that is taxable in Spain, then it should make no difference at all.


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