# Tax questions were moving to Spain in Oct



## marios (Apr 16, 2016)

Hi All

Totally confused on what we will be taxed on, ok so first our incomes

My wife will be earning a private pension of £11000 which would not be taxed in UK so can anyone tell us what she would pay tax wise in Spain.

Myself I have private pensions of £31100 again what tax will I pay in Spain

Things that may need to be taken into account are that we pay approx £840 a month for a spanish mortgage will this be taken into account if we are to become residents.

Thanks


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## extranjero (Nov 16, 2012)

marios said:


> Hi All
> 
> Totally confused on what we will be taxed on, ok so first our incomes
> 
> ...


You need to see an accountant who is familiar with Spanish and UK tax, as it depends on the type of pensions, eg annuities are treated differently and there are also various allowances.


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## CapnBilly (Jun 7, 2011)

marios said:


> My wife will be earning a private pension of £11000 which would not be taxed in UK so can anyone tell us what she would pay tax wise in Spain.
> 
> Myself I have private pensions of £31100 again what tax will I pay in Spain
> 
> Thanks


As a guide, and based on the following assumptions :

- Exchange Rate €1.20
- Both aged under 65
- No disabilities
- No children
- Normal pensions (so no government pension or annuities)

Your wife - circa €800
You - circa €8,000

I'm afraid there is no relief for mortgages. There used to be, but it was aboilshed a few years ago.


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## snikpoh (Nov 19, 2007)

CapnBilly said:


> As a guide, and based on the following assumptions :
> 
> - Exchange Rate €1.20
> - Both aged under 65
> ...


.... it's only been abolished for NEW mortgages.


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## CapnBilly (Jun 7, 2011)

snikpoh said:


> .... it's only been abolished for NEW mortgages.


Actually that's not correct, it was abolished for new claims. So even if you have had a mortgage since before 2012, unless you claimed the relief whilst it was still available, then you are unable to do so now.

So, the relief is not available to the OP, which is why I posted as I did.


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## marios (Apr 16, 2016)

Thanks guys I actually though it would be over €10000, can you show the working out on your calculation CapnBilly, also I may well be 65 when we apply for residency will that increase my allowance, also we have been paying a mortgage on our property since 2005 but I take it that makes no difference?.


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## xabiaxica (Jun 23, 2009)

marios said:


> Thanks guys I actually though it would be over €10000, can you show the working out on your calculation CapnBilly, also I may well be 65 when we apply for residency will that increase my allowance, also we have been paying a mortgage on our property since 2005 but I take it that makes no difference?.


when you register / apply for residency is immaterial

It's when you move here that counts


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## marios (Apr 16, 2016)

xabiachica said:


> when you register / apply for residency is immaterial
> 
> It's when you move here that counts


How would you classify move here xabiachica.


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## xabiaxica (Jun 23, 2009)

marios said:


> How would you classify move here xabiachica.


It isn't how I would classify it that matters.

If you are here, or planning to be here, more than 90 consecutive days, as far as the Spanish govt is concerned, you are resident & required to register as such


Tax residency is different - simply put - if you are here 183 days Jan 1st to Dec 31st, you are tax resident

there are other issues, but for most people moving here it's the number of days which count


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## extranjero (Nov 16, 2012)

marios said:


> Thanks guys I actually though it would be over €10000, can you show the working out on your calculation CapnBilly, also I may well be 65 when we apply for residency will that increase my allowance, also we have been paying a mortgage on our property since 2005 but I take it that makes no difference?.


It's still a hell of a tax bill!


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## marios (Apr 16, 2016)

extranjero said:


> It's still a hell of a tax bill!


Tell me about it, going to talk to Blevin Franks.


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