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Retirees living in Spain given 6 months to regularise

Retirees living in Spain given 6 months to regularise

Postby scubydoo » Sun Feb 01, 2015 7:53 am

The Spanish Tax office has given six months to retirees living in Spain who are resident at Tax Purposes with pensions from abroad to regularise without penalty.

As a result of the strengthening and effectiveness of international mechanisms of information exchange between tax organizations, the Spanish authorities have discovered that there are many residents in Spain at tax purposes (they stay more than 183 days per year in Spain) receiving pensions from abroad of the country and they are not correctly declaring their annual personal income taxes.


Due to the characteristics of these people: elderly pensioners, who have greater difficulty in knowing the Spanish legislation, living many years abroad and, in general, not having great fortunes; the Government has approved for these groups an extraordinary period of grace of six months from January 2015, to rectify the situation.

This measure affects foreign pensioners that live in Spain and are residents at tax purposes and who claim their pension from abroad, or Spanish pensioners who have returned to Spain after many years working in another country and receive a pension from that country.They will have 6 months from 1 January 2015 to regularize their situation, during this time no sanctions will be applied.

The new disposition includes two special measures for cases of regularization in income tax than income from pensions paid from abroad:
An extraordinary period of legalization: no surcharges, interest or sanctions to pensioners will be applied who voluntarily regularize their fiscal status by filing from 1st January to 30th June 2015 statements IRPF of exercises not prescribed (from 2010-2014)


  • A cancellation of interest, surcharges and penalties required by this concept. The cancellation must be requested by the applicant from 1

    st
    January to 30th June.

During this time, these pensioners should visit a tax adviser who will help them with this year’s declaration, as well as those from previous years that have not been declared, and ensure that they are completely up-to-date with their fiscal affairs from this point.



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Re: Retired in Spain? If so, you should read This!!

Postby Liz & Gordon » Sun Feb 01, 2015 9:07 am

Interesting read Scooby , I am aware the Dept Works and Pensions and HMRC here have been collaborating with their colleagues Europe wide to this end the implications for non compliance are going to be serious indeed,heed the message within the document.
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Re: Retired in Spain? If so, you should read This!!

Postby Jan » Sun Feb 01, 2015 11:31 am

Interesting article - Taxes are an important part of living in Spain that can't be ignored - For those who are Resident and need to know how to do this, there are lots of Abagado's (Solicitors/Fiscal Representatives) who can deal with it and take away all the worry. Most can set up an annual fee and deal with any taxes each year as well, if requested.

There are lots of Abagado/Fiscal Representative recommendations on this forum to find by using the search facility, top right, but here's one topic that may help:
Solicitors - Retain for a fee on an annual basis?
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Re: Retired in Spain? If so, you should read This!!

Postby In Stitches » Sun Feb 01, 2015 2:00 pm

Is this subject to the UK Pensioners only.
My husband is from Austria and has a pension , we are residents.
He says that all of his documents were seen in Torrevieja and he does not need to do this. :o
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Re: Retired in Spain? If so, you should read This!!

Postby Liz & Gordon » Sun Feb 01, 2015 2:07 pm

Irrespective of nation I think it will impact on all,best to do the right thing and double check. Its only fair we all pay our just a lawful dues.
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Re: Retired in Spain? If so, you should read This!!

Postby marcliff » Sun Feb 01, 2015 2:32 pm

In Stitches wrote:Is this subject to the UK Pensioners only.
My husband is from Austria and has a pension , we are residents.
He says that all of his documents were seen in Torrevieja and he does not need to do this. :o


It applies to all countries. As from this year, all pensions whether state, government or private, have to be declared. Any tax paid in your home country will be offset against any tax due in Spain. (Provided the country has a dual tax agreement which all EU countries do).
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Re: Retirees living in Spain given 6 months to regularise

Postby jim » Mon Feb 09, 2015 8:33 pm

with regard to the previous posts i have had my tax advisor check with uk hmrc and the hacienda, she cannot find any changes to the dual taxation agreement of 2013 between spain and the uk regarding declaration of a government or crown pension for tax purposes . the spanish tax declaration still says that govt pensions should not be included in a tax declaration. however she has arranged a meeting with a representative from the hacienda for further clarification.

there was a press release from the hacienda regarding pensions which should be declared as worldwide income eg private pensions that are not declared in spain but in the country of origin and only state pension being declared in spain.

i will post an update when i have more information
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Re: Retirees living in Spain given 6 months to regularise

Postby marcliff » Mon Feb 09, 2015 10:49 pm

The person that does our taxes tells us that you are to declare government pensions from this year. The first time you will need to do it will be in 2016 when you complete the return for 2015.

This is a quote from Advoco tax advisers in Spain:
New UK/Spain Double Taxation Agreement for 2015

A new version of the double tax agreement between Spain and the UK comes into full force on 1 January 2015.

One of the changes closes the loophole whereby persons resident in Spain and receiving a UK government pension may obtain the benefit of personal allowances in both countries.

Spanish tax returns for 2015 will account for UK government pensions (Crown pensions) as using up the Spanish personal tax-free band. The pension income itself will continue to be taxed only in the UK, but other income such as a UK state pension may now be pushed into a higher tax rate band. This is likely to mean that those receiving this type of pension will pay a little more tax than in previous years.


And this is an article from the Daily Telegraph. New Tax Rules in Spain

And, finally, from the Citizens Advice Bureau Spain website.

ONLY be taxed in the country of receipt – e.g UK government pension.
Until this year it was generally accepted that it did not have to be declared on your spansih tax return, but it will be from the return in 2016 for 2015.


(that mis-spelling of Spanish is theirs. I left it in on purpose).
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Re: Retirees living in Spain given 6 months to regularise

Postby Liz & Gordon » Tue Feb 10, 2015 7:52 pm

Legal advice required I think.
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