# Tax Treatment in Spain of UK Pension Lump Sum



## ivorra (Sep 24, 2008)

Can anyone confirm if the UK tax free status of an occupational pension lump sum payment made in the UK to a fiscal resident in Spain is respected under Spanish tax rules - i.e. would it be covered by the double taxation treaty?


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## chris(madrid) (Mar 23, 2008)

Afaik - If such a sum is taxable here - you'll be due to pay TAX if you're fiscally resident.

The fact it's tax free in the UK is of NO accord. Any tax paid at source in the UK would simply be deducted from TAX due here. That's the nature of the treaty afaik.

Speak to Hacienda or an IFA in Spain.


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## Stravinsky (Aug 12, 2007)

No Chris, you are quite right

If you have a tax free sum from a pension in the UK, it will be treated as income here in Spain if you are a tax resident here and taxed accordingly


A government pension will be taxed only in the UK.
However its likely that the Spanish authorities will see that lump sum as income as well ......... if they know about it


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## Pasanada (Feb 5, 2008)

My husband receives a military pension from his "1st Army career" - we declared this to the Spanish tax authorities and it wasn't taken into account as income in Spain. Government pensions are treated very differently from a private pension.


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## chris(madrid) (Mar 23, 2008)

Government pensions IN GENERAL are taxed at source per se iirc.


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## Stravinsky (Aug 12, 2007)

chris(madrid) said:


> Government pensions IN GENERAL are taxed at source per se iirc.



Yes ..... thats what I said


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## chris(madrid) (Mar 23, 2008)

Stravinsky said:


> Yes ..... thats what I said


Me too - Snap!


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## Stravinsky (Aug 12, 2007)

chris(madrid) said:


> Me too - Snap!


Me first


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