# Paying Tax in Spain



## Codsallman In Spain (Dec 19, 2009)

Advice please.
I receive my BT pension which is taxed at source in the UK.
I believe this is compulsory because we used to be Civil Servants before we were privatised.
Although I have residencia in Spain the tax office consider me ''non resident'' because I don't pay Spanish Tax.
I have been sent a non residents tax bill on my pension for 2008 because according to them I am liable because I have a house in Spain.
3 Questions
1) Is this correct?
2) I get my state pension in January, would I be better off declaring that over here?
3) Would I be better of financially declaring both my BT Pension and my State Pension over here or back in the UK?

Many thanks


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## jojo (Sep 20, 2007)

Codsallman In Spain said:


> Advice please.
> I receive my BT pension which is taxed at source in the UK.
> I believe this is compulsory because we used to be Civil Servants before we were privatised.
> Although I have residencia in Spain the tax office consider me ''non resident'' because I don't pay Spanish Tax.
> ...


Stravinski, my co mod is the man to answer this one! I'm not sure about taxes etc ... altho something tells me that you should pay the tax in the country you live in - however, with civil service stuff it maybe different - ignore me LOL Hopefully Stravinski will be along soon, or I'm sure some of the others here will help. Meanwhile, I've gotta feeling this question has arisen before, so you could try doing a search - I'll have a look too and see if I can find anything

Jo xxxx


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## jojo (Sep 20, 2007)

this might help?? I'll keep sticking things on here that may help

http://ukinspain.fco.gov.uk/en

Jo xx


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## Rofa (Dec 3, 2009)

Codsallman In Spain said:


> Advice please.
> I receive my BT pension which is taxed at source in the UK.
> I believe this is compulsory because we used to be Civil Servants before we were privatised.
> Although I have residencia in Spain the tax office consider me ''non resident'' because I don't pay Spanish Tax.
> ...


I believe the following to be true - but get some expert guidance please.
Govt and Local Govt pensions are transparent - or treated as such by the Spanish Tax Authorities.
Your State Pension will be paid gross.
Your UK tax office will know when you are entitled to draw your pension but not if you are doing so. They will send you forms to fill in so they can extract the tax. IGNORE them for the moment.
You can complete a Spanish Tax return at the end of the tax year- which if based solely on your State Pension will be probably null i.e. you can take advantage of the Spanish tax free allowance. If necessary you can later present this to your UK Tax Office.


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## Stravinsky (Aug 12, 2007)

Codsallman In Spain said:


> Advice please.
> I receive my BT pension which is taxed at source in the UK.
> I believe this is compulsory because we used to be Civil Servants before we were privatised.
> Although I have residencia in Spain the tax office consider me ''non resident'' because I don't pay Spanish Tax.
> ...


Tax residency and residency are two different things. If you live here then you sign on the register of foreigners. You sign on the padron at your local town hall and then you pay "council tax". You wont be liable to the property tax you speak of. If you were paying no tax here then you should have made a NIL declaration in Spain to the Hacienda which then registers you as a Spanish tax resident. Will cost you about €50 with a Gestoria

More logically though, transfer your state pension taxation liability to Spain. You will then be able to use your tax allowances here and you use your tax allowances in the UK for your Civil Service Pension. Therefore you legally take advantage of both tax allowances. My wife does this, and pays no tax at all.


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