Income tax

I haven't been able to find a reliable answer to my question on google.

Can anyone tell me what the tax threshold is for a person on a pension aged 77. Mixed pension. State pension from the UK and a small Spanish pension.

Also for a person aged 70 with a UK state pension
What percentage do you pay if you are over the threshold by a small amount.
Thank you

If you are over 75 you will get a tax free allowance of €8,100 a year. Any income (pensions, dividends, bank interest etc) will be taxed at 19% up to 12,450 euro above that tax free allowance. Over 65 to 75 the allowance is 6,700 euro a year.

However, there are other allowances granted for the low paid on less than €18,100 a year plus other personal allowances depending on circumstances.

Savings interest (no tax on the savings, just the interest) is 19% up to €6,000 a year.

Always best to get a tax specialist to complete the forms in the first instance to ensure you get all your allowances.

You forgot to add the free allowance of 2000 euros per person

Personal and family allowances
In 2023, the following allowances apply:
• A personal allowance, which is generally EUR 5,550. The allowance is EUR 6,700 when the taxpayer is over 65 years of age and EUR 8,100 when the taxpayer is over 75 years of age. When the taxpayer is disabled, allowance is increased by EUR 3,000 or, if the disabled taxpayer's level of disability is 65% or more, by EUR 9,000. This minimum is increased by EUR 3,000 of care assistance expenses when the taxpayer can justify that one needs the care or has reduced mobility or a disability of at least 65%.
• A minimum family allowance of:
o EUR 1,150 for each relative in an ascending line over 65 years of age who forms part of the taxpayer's household and is dependent on the taxpayer and whose annual income does not exceed EUR 8,000. The allowance is EUR 2,550 when the relative is over 75 years of age.
o EUR 2,400 for the first relative in a descending line who forms part of the taxpayer's household and whose annual income is not over EUR 8,000. For the second, third, and subsequent relatives in a descending line, the allowance is EUR 2,700, EUR 4,000, and EUR 4,500, respectively. The allowance is increased by EUR 2,800 when the relative is under three years of age.
• A minimum family allowance for disability of relatives in an ascending and descending line of EUR 3,000 for each relative or EUR 9,000 when the level of disability is 65% or more. This minimum is increased by EUR 3,000 of care assistance expenses for each relative that can justify that one needs the care or has reduced mobility or a disability of at least 65%.
• General reduction of €2,000 for income from work and pensions, that is, this reduction will apply to all expatriate residents with income from pensions or work, even if such income comes from other countries.
• Reduction applicable to rental income generated both in Spain and abroad.
A 60% reduction applicable to income from the rental of housing, provided that the property constitutes the permanent residence of the lessee. This reduction is also applicable to rental incomes from properties located abroad.
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When two or more taxpayers are entitled to apply these allowances, they are equally divided between the taxpayers. However, when taxpayers have different degrees of kinship, the allowance is applied by the taxpayer with the nearest kinship unless their annual income, excluding exempt income, does not exceed EUR 8,000, in which case the allowance is applied by the taxpayer with the next degree of kinship.
The allowance cannot be applied when the income of the relatives in ascending or descending order with respect to which this allowance may be applied is over EUR 1,800 and these persons file their own tax returns.
The minimum thresholds stated above will apply to the personal and family circumstances existing on the date on which the tax becomes due and payable (generally, 31 December).
In the cases of legal marital separation, the allowance for relatives in a descending line is applied by the parent who is assigned the guardianship and custody of the child/children at the date of accrual (generally, 31 December) as this is the person who the child/children live with.
When guardianship and custody is shared, the allowance is pro-rated between the parents, regardless of which parent the child/children lives with at the date of accrual.
Losses
Capital losses arising from transfers of assets are included in savings income and can only be offset against capital gains included in savings income of the tax period. If the result of offsetting capital losses is negative, they may only be offset against certain positive moveable capital income, with the limit of 25% of such positive moveable capital income. If the result of this last offsetting is still negative, they may only be offset against capital gains (or 25% of positive moveable capital income) included in savings income generated in the following four years.
Capital losses that do not arise from transfers of assets are included in general income and can only be offset against capital gains included in general income of the tax period. If the balance is negative, the amount should be offset against the positive balance resulting from compensating the tax period’s income and allocated income included in the general tax base up to the limit of 25% of that positive balance. If, following this compensation, there is still a negative balance, the amount of the balance should be offset over the following four years.
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