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Government Pensipns

Government Pensipns

Postby auldaw » Mon Nov 16, 2020 2:56 pm

I think I recall advice on the forum that UK government pensions were taxable only in the UK and did not attract tax in Spain.
If this is correct, which pensions is this applicable to?
I am particularly thinking about firefighters pension
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Re: Government Pensipns

Postby marcliff » Mon Nov 16, 2020 3:34 pm

UK government pensions are taxed in the UK. They are not taxed in Spain but are taken into account when assessing your rate of tax on other income. For example, if you have a government pension of 10,000 a year and a retirement pension of 7000 a year, you will only pay tax on the retirement pension but the sum of both pensions will be added together to assess the rate of tax you pay on the 7,000. (I missed out the less tax you have already paid in UK).

The following link shows which are government and which are non-government pensions and fire fighters pensions are classed as non-taxable in Spain:

Government Pension
Last edited by marcliff on Mon Nov 16, 2020 3:39 pm, edited 1 time in total.
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Re: Government Pensipns

Postby jpeg » Mon Nov 16, 2020 3:36 pm

A UK Firefighter pension scheme is a government scheme and is only taxable in the UK but the pension you receive must be declared in Spain and is added to all your other income for the purpose of deciding what level of tax grade you will be taxed on but any tax you have already paid in the UK will be deducted from the tax payable in Spain under the Double Taxation Agreement that is in force between Spain and the UK ,
Brexit will have no effect on this
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Re: Government Pensipns

Postby Espanabums » Mon Nov 16, 2020 9:50 pm

A firefighter's pension, I have one, is taxable only in UK and not taxed in Spain. You do need to declare it on your Spanish tax return, however, as exempt income. As has been said by other posters, it is taken into account to determine the rate of tax applied to your Spanish income. If you have no Spanish income, like me, you will pay no Spanish income tax. My wife has a UK state pension which is taxed in Spain, so we usually file a joint return to reduce her Spanish tax burden.
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Re: Government Pensipns

Postby auldaw » Tue Nov 17, 2020 7:31 am

Thanks to everyone who has replied This is very informative and helps the decision outcome
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Re: Government Pensipns

Postby jpeg » Tue Nov 17, 2020 9:10 am

Espanabums wrote:A firefighter's pension, I have one, is taxable only in UK and not taxed in Spain. You do need to declare it on your Spanish tax return, however, as exempt income. As has been said by other posters, it is taken into account to determine the rate of tax applied to your Spanish income. If you have no Spanish income, like me, you will pay no Spanish income tax. My wife has a UK state pension which is taxed in Spain, so we usually file a joint return to reduce her Spanish tax burden.



Surely a UK state pension is well below the level that she would pay tax on in Spain if that is her only income
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Re: Government Pensipns

Postby Espanabums » Tue Nov 17, 2020 9:27 am

jpeg wrote:Surely a UK state pension is well below the level that she would pay tax on in Spain if that is her only income



Yes jpeg, you are correct.
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