This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Moving to Spain

puffinislander@btope
Posts: 2
Joined: Wed Aug 06, 2008 3:03 pm

Postby puffinislander@btope » Mon Jun 30, 2003 4:06 am

Good afternoon.

I retire early from the Royal Marines in the next year or so. Like so many others from middle England, my wife and I are banging out. We've chosen Spain.

My pension will be taxed at source at 22%. I would be grateful for a steer on how to reduce this percentage, as my pension will be my main source of income.

Many thanks.

Keith Tupman

EXPATAX@BLUEYONDER.C
Posts: 7
Joined: Wed Aug 06, 2008 3:04 pm

Postby EXPATAX@BLUEYONDER.C » Tue Jul 01, 2003 3:50 am

Hi Keith,

Assuming you are ging to be a resident of Spain and not a resident of the UK you will be liable to Spanish tax on the pension and will be able to claim zero UK withholding by virtue of the UK/Spanish Double Taxation Treaty.

Regards

Mark

EXPATAX@BLUEYONDER.C
Posts: 7
Joined: Wed Aug 06, 2008 3:04 pm

Postby EXPATAX@BLUEYONDER.C » Tue Jul 01, 2003 3:52 am

Apologies your pension may not be exempt if it is from government sources as opposed to company pensions.

Ian McTernan CTA
Posts: 1232
Joined: Wed Aug 06, 2008 3:02 pm
Location: Bedford
Contact:

Postby Ian McTernan CTA » Tue Jul 01, 2003 8:55 am

My understanding is that if it is an armed forces pension then it will be taxable in the UK. Tax will only be payable in the UK and you will be entitled to your UK personal allowance against this income, an the tax deduction will be adjusted accordingly. If not, then a repayment claim can be made on a Tax Return after the year end, and it would be sensible in any case to fill in a Tax Return for the year of departure in case a refund is due for other reasons.

The state pension (if you are receiving one) will be taxable in Spain, and may not recieve the benefit of any indexing each year as you will be receiving it abroad.

Ian McTernan CTA
McTernan Associates Ltd
ian@imcternan.com
McTernan Associates Ltd
Chartered Tax Advisers
Bedford
Email through link on website:
http://www.imcternan.com

puffinislander@btope
Posts: 2
Joined: Wed Aug 06, 2008 3:03 pm

Postby puffinislander@btope » Tue Jul 01, 2003 12:47 pm

Mark, Ian,

Many thanks for the replies. It would seem I will be filling out one last tax return! I am content that in due course, the IR will refund any overpayment of tax and I can invest that in a rather swish yachting cap and blazer...

Thanks again,

Keith


Return to “Income Tax”