What are the personal resident tax free allowances ?

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09 Jan 2012 12:00 AM by STEVEE Star rating in Urcal. 30 posts Send private message

Hi , I'm soon moving with my wife to the Bedar area to live out my pension, i will be 100% resident and NT for UK tax, we will have 1 income and my wife will be dependent. at what amount  will i need to start paying tax on my pension ?

i've not got a stright answer yet .

any offers

Thanks Steve & Dawn





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09 Jan 2012 5:48 PM by LexlandMarbella Star rating. 12 posts Send private message

 Hello Steve and Dawn,

 

I work as a Tax Adviser at Lexland Abogados. Regarding your question, you need to take into account the fact that tax residency is not achieved by simply moving to Spain as there are several requirements that you must meet. Once considered a Tax Resident in Spain you should know that all your World Wide Income will be taxed in Spain according to Spanish tax legislation (taking into account any tax agreement with other countries).

 

Regarding your pension, as a tax resident in Spain you will have to pay tax on this, however, there are many different rates so I recommend that you contact your financial adviser for detailed information regarding specific income and situation.  

 

If you wish to contact us directly for more information, you can use the private messaging facility on here or email directly to comunicaciones@lexland.es

 

I hope this helped your query. 





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11 Jan 2012 5:58 PM by STEVEE Star rating in Urcal. 30 posts Send private message

thanks for your reply , you have a PM

 

steve & dawn





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12 Jan 2012 6:51 PM by Poppyseed Star rating. 897 posts Send private message

13 Jan 2012 8:55 AM by johnzx Star rating in Spain. 5242 posts Send private message

Steve
 
The first reply was I think deliberately madeto make  it appear  complicated maybe to encourage you to use the posters' business. In reality it is all quite simple. 
 
When you move to Spain, as you will be intending to stay for longer than 3 months you will be required to register on the foreign citizens register (this was previously the residencia, that has been abolished)   
 
 Once registered you will automatically be tax resident in Spain and will be required to make your first tax return in the June in the year following your arrival. In Spain one declares tax for the previous year in the following June. So if you arrive this year you will make your tax return for 2012 in June 2013.
 
Having registered as  above notify your tax office in the UK that you are now living permanently in Spain and are thus tax resident here. They will send you the paperwork to take to the Spanish tax office, who will return it to UK. You are then tax resident here..
 
You will be able to make your tax return either jointly of individually. There are allowances for individuals and for couples. Until last year it was advantageous for us to make a joint return, last year we did separate ones on the advice of our gestor.
 
If you are former UK government employee (police, army etc) then the pension is taxed in UK. Most other income world wide is taxed in Spain including private pensions and OAP. The gestor who completes your return will advise you
 
Ask around when you get here about which gestors to use. They vary a lot. We pay about 40 euros for two tax returns.





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18 Jan 2012 1:37 PM by BarryDavys Star rating in Spain. 1 posts Send private message

Thank you to Poppyseed for the mention.  Please feel welcome to PM if you have a query



_______________________
Barry Davys www.expatfinancialadvicespain.com - A resource website



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