Financial Planning - Tax Calculations

anthony63 wrote on Fri Feb 17, 2023 1:06pm:

Hola

I am planning my finances in advance of moving out to Spain.   I have the potential of income coming from private pensions, ultimately the state pension and savings.   I want to forecast the potential income tax I will incur on my pension income, so I can balance the need to draw down f...

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...rom my personal pension funds verse funding myself from savings.  I may also do some contract work in the UK in the first year of my retirement as I will not get my state pension for two years.

Are there any Spannish tax calculators that you would recommend?

Also, I have read that you can combine tax returns as a couple in Spain as opposed to each submitting separate returns as in the UK.   Is this beneficial?   My wife is likely to delay taking her private pensions for a couple of years and will not be due the state pension for another four years, so all our income will be coming from my pensions or our joint savings.

Ultimately I will see a financial planner but like to do some work beforehand so I am prepared with questions.  Any advice welcomed!

Thanks, Anthony

billy68 wrote on Mon Feb 20, 2023 12:17pm:

hi Anthony

i am moving to spain in August and i have had an initial meeting with my finacial advisor which i recomend you do sooner rather than later as there are a lot of experts on these sort of sites that give wrong information

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i am becoming a spanish resident and not staying on a visa so this my change what advise you get

i will be a spanish resident in august but not a tax resident as i will be in spain for less than 183 days and this makes a big difference

you say that you are going to live off your pension but i recommend that you take any lump sums that you are entitled to out off your pension before you become a tax resident as if  you do the spanish will not be able to tax you on it 

also you will need to ask about any property in the UK as that will also be an issue

I am using Blevins Franks Wealth Management for my advise they are a large company with offices all over Europe

well good luck and enjoy your time in Spain

Billy

Holaitsdavid wrote on Fri Feb 17, 2023 3:03pm:

When you move to Spain the moment you get your Visa you become a 'tax resident', back dated to the first of January, the year you get your residence, If a retired civil servant you can be taxed UK, private pensions taxed in Spain. Timing important when you move, self employed is tricky you would ...

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...be working as a Spanish resident, there is a provision you can be employed by firm abroad pay tax there up to what I think is 60K, but you need 'top very specialised advice'. Here is one link you might find useful  https://www.lemon.consulting/

Lots of information on this site which is good for submitting returns.   https://taxadora.com/ 

The man who runs an expert and can answer many questions by E Mail https://es.linkedin.com/in/vilho-heiskanen-13273613

billy68 wrote on Mon Feb 20, 2023 12:17pm:

hi Anthony

i am moving to spain in August and i have had an initial meeting with my finacial advisor which i recomend you do sooner rather than later as there are a lot of experts on these sort of sites that give wrong information

Read more...

i am becoming a spanish resident and not staying on a visa so this my change what advise you get

i will be a spanish resident in august but not a tax resident as i will be in spain for less than 183 days and this makes a big difference

you say that you are going to live off your pension but i recommend that you take any lump sums that you are entitled to out off your pension before you become a tax resident as if  you do the spanish will not be able to tax you on it 

also you will need to ask about any property in the UK as that will also be an issue

I am using Blevins Franks Wealth Management for my advise they are a large company with offices all over Europe

well good luck and enjoy your time in Spain

Billy

Kerri wrote on Mon Feb 27, 2023 3:55pm:

A 'resident' means 'tax-resident'. (Stay over 183 days per year.)

If you are not a 'resident' (ie. pay tax) you cannot stay more than 90 days at a time.  The Schengen Rule.  

billy68 wrote on Mon Feb 27, 2023 5:45pm:

A tax resident does not mean resident for the first year as you can spend less than 183 days in Spain so you will not be a tax resident but you can still apply for residency and get it making you a resident 

As I said too many experts on these sites