Pension payments and taxes
hi, wondered if anyone could advise on where to have uk state pension paid when we move to Spain, and how are state and work pensions taxed.
Mark
hi, wondered if anyone could advise on where to have uk state pension paid when we move to Spain, and how are state and work pensions taxed.
Mark
Posted: Mon Aug 3, 2020 9:24pm
We originally had hubby’s RAF pension still pain into his U.K. bank then we would just transfer the money over to our Spanish bank as and when we needed it. But after over a year or so he got them to pay it directly into our bank as we were always paying for money to be exchanged from sterling into euros.
We use Caixa bank and have had no problems so far with them.
You have to put a tax return in once a year declaring all your world wide income then they work out if you need to pay any tax. There is a dual taxation system between Spain and U.K. , but will leave someone else to explain that one lol
Posted: Tue Aug 4, 2020 7:19pm
Lorraine2019 wrote on Mon Aug 3, 2020 9:24pm:
We originally had hubby’s RAF pension still pain into his U.K. bank then we would just transfer the money over to our Spanish bank as and when we needed it. But after over a year or so he got them to pay it directly into our bank as we were always paying for money to be exchanged from sterling ...
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...into euros.
We use Caixa bank and have had no problems so far with them.
You have to put a tax return in once a year declaring all your world wide income then they work out if you need to pay any tax. There is a dual taxation system between Spain and U.K. , but will leave someone else to explain that one lol
Lorraine thank you very much, useful as I have an Army pension, and off course will have state pension in years to come, hopefully you can get that paid into Spanish bank too. Mark
Posted: Thu Sep 24, 2020 1:50pm
You can have your UK pension paid more or less into any bank anywhere, even into somebody else's account ( I have done so ) , just have to inform the UK International Pension Service where you want to be paid giving the account details ; if it is abroad and outside the EU you may lose the anual increase of your pension ; check it up on internet, there is a lot of information. In relation to income tax in Spain : if you are tax resident in Spain you are obliged to put a tax return ( which usually means paying ) ONLY if your income exceeds 22000 euros a year , coming from only one source (e.g. UK state pension ) , if it comes from two or more " pagadores " (ARF and UK - two pensions) the limit comes down to 14000 euros.
Jose
Posted: Sun Oct 25, 2020 4:36pm
Jose wrote on Thu Sep 24, 2020 1:50pm:
You can have your UK pension paid more or less into any bank anywhere, even into somebody else's account ( I have done so ) , just have to inform the UK International Pension Service where you want to be paid giving the account details ; if it is abroad and outside the EU you may lose the anual i...
Read more...
...ncrease of your pension ; check it up on internet, there is a lot of information. In relation to income tax in Spain : if you are tax resident in Spain you are obliged to put a tax return ( which usually means paying ) ONLY if your income exceeds 22000 euros a year , coming from only one source (e.g. UK state pension ) , if it comes from two or more " pagadores " (ARF and UK - two pensions) the limit comes down to 14000 euros.
Jose
Jose, thanks for the response, my Army pension which I am unclear as to whether I pay tax on will exceed 22000, its that really what I need to know whether I pay tax or not as that will be my income. Someone said government pensions don't attract tax but that might just be Spanish government pensions.