# Question about income tax (pension) in Spain for disabled



## Twain (May 24, 2009)

Norway and Spain has a tax treaty, so my pension is not taxed in Norway when I become a Residencia Fiscal in Spain.
Also, in Norway I'm 100% disabled, but not physically visible all the time.
From what I've learned I need to be physically visible disabled for the Spanish to treat me as 65% disabled (their max number).
If not, it's only advisable to put 33% disabled on the tax return.

Can anyone confirm this?

Also, how low/high will the income tax percent be on my pension if I get this 33% grade of disability accepted?
My gross pension will be in the range around 30000 euros if that affect the tax percent in this case.
My hope is that I've enough left after the tax to live for.

I understand that other deductions will affect the tax as well, but it's worth knowning what the starting point is.
The largest deduction I'll have is the house I guess, but the mortgage is not in a spanish bank so I'm not sure how that works out.
And I can't find any numbers on this.

Thanks


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## NickZ (Jun 26, 2009)

I think the best any body can give you is the max you might pay. I can't tell how old you are so assuming younger then 65.

My math

Income €30000

Basic exemption €5.151

Basic Disability allowance €2.316

So taxable income of 30000-5151-2316 = €22533

First €17.007 taxed at 24.75% 

The remaining €5526 taxed at 30%


€4209.23 + 1657.8 

Or

€5867.03 in total taxes payable.

On the mortgage with all that's happening you might want to consider which law it's under. If Spain leaves the Euro and you've got a non Spanish mortgage you'll end up paying Euros for a home worth the new Spanish currency.


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## Twain (May 24, 2009)

Thank you NickZ.

I will be in my 40's if that has anything to do with the numbers.
Is there an official page where I can get the percentages from, couldn't find it.
Especially the disability allowance.

The max numbers is really ok, I like to plan out of a worst case scenario.
So thank you for the numbers.

Since I'm planning to live in the new home, and not gambling with the market prices for a future sale, and I'm not dependant on a spanish currency or income, I consider the mortgage relatively safe even in Euros.

Regarding the mortgage I found this today, a bit dated as it's from 2009 :
"Currently, borrowers can deduct 15% of their mortgage payments up to an annual limit of 9,015 Euros."
And
"The Spanish government has announced its intention to abolish mortgage tax relief beginning in 2011."

Not sure if the mortgage needs to be in a spanish bank for this to be true.

And in July this year it seems that it has been both given and taken away and given again, and now they just wait for the right time to remove it again.

I could deduct it on my Norwegian tax, but since that is 0 already when I move to Spain there's no use in that. I guess I'll just have to wait and see.

Again, thanks for the numbers on the income tax.
And I'll have to wait and see what happends with the mortgage.

Given the numbers in your reply it seems I'll have around 2000 euros a month. Based on other numbers in this forum that should be enough.


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## NickZ (Jun 26, 2009)

Spanish income tax rates

I can't find it on the government page but all the various non government sites give the numbers in the above link. I did find a government pdf that mentioned the increase to 24.75% but it didn't have the other numbers so the above link is better.

Legally I doubt they can force you to use a Spanish bank. It would likely violate EU rules.


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## stevelin (Apr 25, 2009)

I think you will also have to be officially registered as disabled in Spain and have a Spanish certificate stating what % you are in order to get the disabled tax allowance.


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## Twain (May 24, 2009)

NickZ,
Thank you for that link.

One question, what do they mean with this?
"Earned income allowance (includes pension income)"
When is that used?
Seems like it's possible to get individual, disability and earned income allowances all together?


stevelin,
According to the info from the norwegian tax administration, I'll get a certificate (from the Norwegian welfare office) to prove my disability and that was good enough for the spanish to entitle me to the disability allowance.


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## NickZ (Jun 26, 2009)

Twain said:


> NickZ,
> 
> 
> Seems like it's possible to get individual, disability and earned income allowances all together?
> ...


If you qualify yes but the earned income allowance is limited by income



> Earnings up to €9.180 €4.080
> 
> Earnings over €13.260 €2.652
> 
> (sliding scale applies for income between the two limits)


Now I don't know if above 13260 it stays at 2652 or goes down more. If it stays at €2652 you save more then €750 a year


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## Twain (May 24, 2009)

"sliding scale applies for income between the two limits"
So I guess it stays as €2652, but I don't know.
I'll guess I'll just wait and see when the times comes. I probably will use a tax lawyer the first year.

So far I'm glad to see that the taxes payable don't affect me that much. And that was my main concern.

Thank you for your help.


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