# Taxes!!



## funlanza (Apr 19, 2017)

Having moved to Lanzarote I am now retired and getting my state pension paid into a UK account, I have no other income in the UK and only limited savings over there so the interest is very minimal.
I have a job here which is paying a wage with contract and taxes are taken at source,
My question is can i continue like this as my UK pension comes under the tax threshold for tax.
Or as I am paying tax in Spain should i declare my pension here. 
I do not want to bring my pension over to Spain as it losses so much on exchange rates etc.
I have probably not expressed myself very well but I am hopeful someone in a similar position will be able to give me an answer.
Many thanks
Alan


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## The Skipper (Nov 26, 2014)

funlanza said:


> Having moved to Lanzarote I am now retired and getting my state pension paid into a UK account, I have no other income in the UK and only limited savings over there so the interest is very minimal.
> I have a job here which is paying a wage with contract and taxes are taken at source,
> My question is can i continue like this as my UK pension comes under the tax threshold for tax.
> Or as I am paying tax in Spain should i declare my pension here.
> ...


I have State and private pensions paid into my UK bank account and I have to pay tax on this income in Spain. I have an "NT" tax code in the UK so no tax is paid there. Sorry but I think you are legally obliged to tell the Spanish tax office about your UK pension.


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## snikpoh (Nov 19, 2007)

funlanza said:


> Having moved to Lanzarote I am now retired and getting my state pension paid into a UK account, I have no other income in the UK and only limited savings over there so the interest is very minimal.
> I have a job here which is paying a wage with contract and taxes are taken at source,
> My question is can i continue like this as my UK pension comes under the tax threshold for tax.
> Or as I am paying tax in Spain should i declare my pension here.
> ...


The rules are that you SHOULD be declaring ALL worldwide income on your annual, Spanish tax return. This is irrespective of whether you've paid tax on it elsewhere or whether you are under any threshold elsewhere.


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## xabiaxica (Jun 23, 2009)

funlanza said:


> Having moved to Lanzarote I am now retired and getting my state pension paid into a UK account, I have no other income in the UK and only limited savings over there so the interest is very minimal.
> I have a job here which is paying a wage with contract and taxes are taken at source,
> My question is can i continue like this as my UK pension comes under the tax threshold for tax.
> Or as I am paying tax in Spain should i declare my pension here.
> ...


:welcome:

You have to declare your worldwide income in Spain,_ including your state pension _from the UK, regardless of where it is paid. Any income tax you might have already paid in the UK will be taken into account when your tax liablity is calculated in Spain.


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## funlanza (Apr 19, 2017)

*Taxes!*

Very many thanks for your replies


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## expatcanary (Apr 19, 2017)

I think it's all your assets in Lanza. Property. 

I live in Lanza and I advise very strongly you pay taxes as you will have the yearly one on your property as well.

I find its worth paying for the services of a Gestoria solicitor to file all your returns for you. Mine do ours automatically and you do not get caught out.

Never take advice from well meaning folk. 

A good bit of info keep to the letter of the law and you cannot go far wrong.

My private pension is paid in to UK bank. You still need to complete UK tax form so they know your income and you may be pleasantly surprised and get a tax rebate.


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## snikpoh (Nov 19, 2007)

expatcanary said:


> I think it's all your assets in Lanza. Property.
> 
> I live in Lanza and I advise very strongly you pay taxes as you will have the yearly one on your property as well.
> 
> ...


I guess you really mean a Gestor.

If you are living in Spain, then you have to pay tax on ALL worldwide income (including pensions). 

You don't pay tax on any assets, only on the income they generate (or potential income if non-resident).


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## expatcanary (Apr 19, 2017)

Hi we do not generate any income we are completely retired and do not own property in the UK. Own our home here which we live in.

So perhaps a different scenario. 

Not looking to make quick buck. Too many landlords not paying taxes as they should.

We find it easier to stay within the letter of the law, many folk in Lanza have been caught out. So prefer to get professional help. 

Lanzarote is very different from Mainland as it us so small not many professionals speak English.


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## snikpoh (Nov 19, 2007)

expatcanary said:


> Hi we do not generate any income we are completely retired and do not own property in the UK. Own our home here which we live in.
> 
> So perhaps a different scenario.
> 
> ...


With respect, you DO have income (although not actually generated you could argue) and that's your pension.

It therefore needs declaring in Spain as does any interest earned on savings etc.


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## Alcalaina (Aug 6, 2010)

snikpoh said:


> With respect, you DO have income (although not actually generated you could argue) and that's your pension.
> 
> It therefore needs declaring in Spain as does any interest earned on savings etc.


Absolutely. Even if you don't earn enough to pay any tax. The first time we did it we got a rebate on our savings interest!

It might also be useful in any future post-Brexit scenario if there is any question about our residency rights ...


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## expatcanary (Apr 19, 2017)

If you saw my first answer we have a tax consultant via our solicitor. 

All of our savings are in a Spanish bank and are included in the tax return.

As we are early retirees we do not get state pensions so only small private pensions which get included too. It's easier to pay our companies pensions into a British bank account to transfer here.

So perfectly legal than you.


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## Transcend (Dec 25, 2015)

snikpoh said:


> You don't pay tax on any assets, only on the income they generate (or potential income if non-resident).


Sorry to be pedantic, but anyone with assets over the wealth tax threshold will pay tax on those assets regardless of whether they generate any income.

https://harrisonbrook.co.uk/wealth-tax-spain-2017/


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## expatcanary (Apr 19, 2017)

Let's clear up a detail and not offended at all.

We no longer own property here in Lanzarote as we plan to move in a few months. All our costs and taxes are paid on the property as you know as you pay at time of completion As we are fiscal tax residents we do get a rebate but that takes about 2 years.

That is experience not from an article. Spain do take their fair share of tax.

You would think we were Amazon trying to avoid tax LOL

I have found despite research before we moved so much conflicting information posted by well intentioned advisors. 

I found some articles conflicting. Our experience here is probably very different and indeed I have friends in mainland Spain who experience differs.

/SNIP/


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