Spanish income Tax for a UK 🇬🇧 expats.

Exactly how much income Tax would a single person pay that has a full UK state pension of approximately €11,600 per year when they make up the shortfall out of savings when they have a Spanish  NLV....someone asked me this question and I couldn't give them the answer as I am a holiday home owner not a Spanish Tax resident does anyone know the answer assuming they will pay income tax. 

Agencia Tributaria should be able to advise. You can  request an appointment by:

• App"Agencia Tributaria" (Tax Agency)
• Telephone for general appointments with personal attention 91 290 13 40 or 901 200 351.Monday to Friday, from 9am to 7pm (until 3pm in August).

What a fabulous post this has been. Never seen this kind of useful post. I am grateful to you and expect more number of posts like these. Thank you very much. 

The UK pension is added to any interest from savings, dividends etc to calculate their worldwide income. Also any rental income or any income at all except from certain crown pensions.

If under 65, they will get a tax free allowance of €5,550 a year, at 65 this goes up to €6,700 and at age 75 to €8,100. Everything above that is taxable at 19% for up to €12.450 (over the tax free allowance), up to €20,200 then 24%, up to €35200 then 30%.

You can work it out on this tax calculator 

caveat. I think that calculator is using previous allowances and hasn't been updated with this year's tax free allowances but will give you an indication. 

As an example, I get a crown pension which is not taxed in Spain but is used as a guide for the level of tax and uses up your personal allowance. I am taxed fully on my state pension and private pension amounting to just over 17000 euro and was taxed €3,000 (give or take a few cents) this year. 

Interesting. So if you only receive the basic UK state pension you will have to pay tax on it.

There are extra allowances for the low paid. 

Single people earning under 15,000 and a married man under 19,000 euro will pay no tax at all so if the UK state pension is your only income (if born after 1955 you get 203 quid a week or 189 a week if born before, you will not pay any tax.

Thank you mariedav, much appreciated. The tax calculator did not seem to know that. There also seems to be a lot of misinformation on the internet.

‘’For the 2022 and 2023 Spanish tax years there is a basic personal allowance for people under 65 of €5,550. Once you reach 65, the allowance rises to €6,700 and from aged 75 this increases again to €8,100.’’ See as one example:- https://www.expertsforexpats.com/country/spain/tax/taxes-in-spain/#:~:text=Spanish%20tax%20personal%20allowance&text=For%20the%202022%20and%202023,increases%20again%20to%20%E2%82%AC8%2C100.

This explains the reduction for low paid earners

Spain tax

Is pension income classed as earnings?

Yes. It is in UK as well. They don't take tax off it but add it to any other income and tax it on that.

In the press the other day they were saying if inflation continued its rise and allowances were frozen then the pension could exceed the allowance thus incurring tax directly if that' s your only income.

Thank you mariedav. Do you have a link to an official Spanish government website that publishes the up-to-date true tax allowances for 2023/2024?

https://sede.agenciatributaria.gob.es/Sede/en_gb/ayuda/manuales-videos-folletos/manuales-practicos/irpf-2022/c14-adecuacion-impuesto-circunstancias-personales/minimo-contribuyente.html