House Buying - Page 3

Not savings, one safe area but UK, but UK state pensions or occupational pension income are taxable in Spain. 

Because a lot of people in our position have moved to Spain over the years I assumed there would be no problem with Tax. I have paid more than my fair share to HMRC for well over 40 years and I continue to be taxed on my pensions. I will be retaining and maintaining an abode here in Northern Ireland

From my recent research, it is now clear that if I become a Tax Resident in Spain my modest (but adequate) income will be further eroded which would clearly not be the case in Portugal. The situation in the event of my death could also be potentially messy.

We are travelling to Malaga next week but I have booked no return ticket and might now be minded to take a train to Faro.

Thanks for all the help so far. Please keep the conversation going as they don't tell you a lot of these things on TV.

By the way, in the event that we stick with Spain, does anyone have anything good or bad to say about Álora?

"From my recent research, it is now clear that if I become a Tax Resident in Spain my modest (but adequate) income will be further eroded"

Indeed, up until Brexit most Brits had little problem keeping their tax affairs in the UK, however, those wanting to stay have rushed to their peril for a TIE & now subject to 'being a Spanish Tax resident', taxes are one thing & with a higher tax free allowance than UK, but the major blow Spain being no age limit on 'social security for those over 65' & that's an additional 34%. Strangely most web sites mention the tax rates and leave out the 'social security'. one reason being, if employed in Spain the employer pays 90%. However, income other than pensions face horrendous tax rates when you add the 34% SS. It turns UK by comparison into a tax haven.

See link below. 'Foreign private pension schemes are not treated as pensions by the Spanish tax system and instead are subject to income tax like a savings or investment schemes, much like Spanish “Planes de Jubilación” that can be obtained from any Spanish high street bank'

https://www.spenceclarke.com/articles/when-a-pension-is-not-a-pension/

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