Is anyone out there in receipt of a Forces pension paid into a bank in Spain?

I have been told that these types of pensions are not liable for tax in Spain.  However, I am also told you still have to continue paying tax in UK even if you are resident overseas but you can have the OAP and private pensions paid in Spain free of UK tax which means you have to pay tax on them in Spain.

I would be grateful for anyone in this situation to give some advice on this as I currently pay some £3,000 a year tax in UK on my Army pension which, with the pound crashing against the euro, would make quite a difference. 

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Hi bobao,

Forces Pensions are in a catagory called Governmant Pensions (civil service, teachers, police etc) and are always taxed in UK before payment except if you become a tax resident of Cyprus and a few other places.

You can export your State Pension tax free to most countries and in both cases the government in uk will pay in local currency into your overseas bank account.

Here is the good bit if you are in Spain more than 183 days you are automatically tax resident in Spain and you get the full Spanish earned income alowance to set against your state pension.and depending on your age (65 is retirement age in Spain where you get extra allowances) it willbe about the same as your state pension so you will pay no tax on that.

Meanwhile back in UK you will get your full annual allowances to set against your government pension so your tax on that will be reduced if you are already in receipt of your state pension.

regards, John.

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Sorry folks I got this all wrong so have edited it!

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