# New UK-Spain double taxation agreement



## UKinSpain (Apr 9, 2010)

New UK-Spain double taxation agreement to come into force on 12th July 2014. Check out what it means for you on the HMRC website.


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## snikpoh (Nov 19, 2007)

UKinSpain said:


> New UK-Spain double taxation agreement to come into force on 12th July 2014. Check out what it means for you on the HMRC website.



... the document actually states June NOT July - which is it?


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## stevesainty (Jan 7, 2011)

*New DTA - Government Pensions*

I am a little confused about whether the new DTA requires that a UK Government Pension should be liable to Spanish Income Tax. I enclose an extract taken From HMRC which states that Government Pensions are only taxable in Spain if you are a Spanish National or the pension was earned whilst being a resident in Spain.

I specifically asked the Spanish accountant who did my tax return this year whether or not my GP needed to be entered on the tax return next year due to the DTA he replied with an emphatic NO!

If I have got this all wrong and GP are indeed to be included in the Spanish tax return, will it be for Spanish tax year 2014, or 2015 as the DTA becomes effective for income derived from 1 January 2015 according to the heading of the new DTA

GOVERNMENT SERVICE
1.
a) Salaries, wages and other similar remuneration paid by a Contracting State or a political subdivision or a local authority thereof to an individual in respect of services rendered to that State or subdivision or authority shall be taxable only in that State.
b) However, such salaries, wages and other similar remuneration shall be taxable only in the other Contracting State if the services are rendered in that State and the individual is a resident of that State who:
(i) is a national of that State; or
(ii) did not become a resident of that State solely for the purpose of rendering the services.
2.
a) Notwithstanding the provisions of paragraph 1, pensions and other similar remuneration paid by, or out of funds created by, a Contracting State or a political subdivision or a local authority thereof to an individual in respect of services rendered to that State or subdivision or authority shall be taxable only in that State.
14
b) However, such pensions and other similar remuneration shall be taxable only in the other Contracting State if the individual is a resident of, and a national of, that State.
3. The provisions of Articles 14, 15, 16 and 17 shall apply to salaries, wages, pensions, and other similar remuneration in respect of services rendered in connection with a business carried on by a Contracting State or a political subdivision or a local authority thereof.


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## Aron (Apr 30, 2013)

stevesainty said:


> I am a little confused about whether the new DTA requires that a UK Government Pension should be liable to Spanish Income Tax. I enclose an extract taken From HMRC which states that Government Pensions are only taxable in Spain if you are a Spanish National or the pension was earned whilst being a resident in Spain.
> 
> I specifically asked the Spanish accountant who did my tax return this year whether or not my GP needed to be entered on the tax return next year due to the DTA he replied with an emphatic NO!
> 
> ...


Taxation changes every year in one form or another. It will still be dual taxation and if there are any changes to your circumstances, the HMRC will inform you of whether you have a tax code or not and where you pay your tax.


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## stevesainty (Jan 7, 2011)

Aron said:


> Taxation changes every year in one form or another. It will still be dual taxation and if there are any changes to your circumstances, the HMRC will inform you of whether you have a tax code or not and where you pay your tax.


I'm sorry Aron, I think you have the wrong end of the stick. We have three sorts of income, government pensions up to yet taxable only in UK, UK rental income taxable in UK but needs to be declared in Spain, and UK state pensions and bank interest taxable only in Spain.

The new DTA agreement which comes into force next month was supposed to change, amongst other things, the way government pensions (Civil Service & Local Authorities) are treated in Spain for taxation puposes. It is this last point that I am puzzled about.


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## Aron (Apr 30, 2013)

stevesainty said:


> I'm sorry Aron, I think you have the wrong end of the stick. We have three sorts of income, government pensions up to yet taxable only in UK, UK rental income taxable in UK but needs to be declared in Spain, and UK state pensions and bank interest taxable only in Spain.
> 
> The new DTA agreement which comes into force next month was supposed to change, amongst other things, the way government pensions (Civil Service & Local Authorities) are treated in Spain for taxation puposes. It is this last point that I am puzzled about.


Okay, the easy solution is to phone the HMRC in the UK. They are really helpful and will help you understand the situation. The dual taxation treaty was set up in 1975 so that people wouldn't pay twice. Phone them now and ask their advice!


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