Pensioners Tax Threshold

At what level of pension income does the Hacienda begin to tax? What allowances are there ? 

Can anyone help?

Lexi it appears you are new here (1 post).  If you search you will find a multitude of answer’s to your question, albeit, that they may be very confusing !

"Maybe taking MIcky Finns advice might be the easiest route. 

                            Quote:-                  " I get the vivid impression that the Spanish and government and johnzy come to that, thinks all expats in Spain lack the common sense to seek individual tax advice from a Spanish tax advisor if they are fiscal residents".

Personal allowance for an individual over 65 is €6069 thereafter tax at 24.75% or above €17000 30%.

There is a marriage allowance taken into account of €3400 but is complicated to apply.

For the sake of saving about 50€ , not to mention the stress, by asking folk on forums et al and then  trying to do it yourself, Lexi, take advice from a Spanish aesoria because they know ALL the rules and it will save you money.

Actually a lot of them don't know al the rules, specifically with regard to double taxation. Based on my experience,  I would guess that a  number of the 27,000 plus expats who haven't declared their pensions ( as listed by MickyFinn on another thread) will have been advised they don't need to by their professional adviser.

Have had 2 Aesorias in Spain and both have saved us money because they definately know the rules ...and more. But then they had access to all our finances.

Have many acquaintances here who think because their income comes from various sources and may also have a property in another country they need only admit to the basic facts and a financial expert can only work with the info given.

Appreciate , like accountants in UK , some are better than others but they all have access to more data than we forum folk.

I generally agree with your comments Floella, but I am talking about people who have been advised that they don't need to make a declaration, because they have already been taxed in the UK. 

Even those whose with government/ independant pension that are taxed in UK must declare their state pensions here. Common knowledge even without financial advice.

 But then lots of folk these believe... because it is in their interest to do so....that UK state pensions  below the tax limit are totally free of tax, which if living in UK and a on basic pension appears to be true,  because it is always the other pensions from which tax is deducted. But even in UK MUST be included.

So, sorry, know intelligent people here who say they have been advised likewise !!!!.but even if one pays sans tax here one must still be in the system.......plus knowing their lifestyle...don't actually believe them.

Even those with government/ independent pension that are taxed in UK must declare their state pensions here. 

That appears ambiguous.  Only the government employee pensions are taxed in the UK.  An independent pension (whatever that means) just like the OAP, is taxed in Spain and not UK.

Have many acquaintances here who think because their income comes from various sources and may also have a property in another country they need only admit to the basic facts and a financial expert can only work with the info given.

In my experience, the person making the tax return signs it not the professional who completes it, so they are liable for any errors or omissions.

Also, a person who is tax resident in Spain must pay income tax (and maybe Patrimonio tax too) on any property, other than their main home in Spain,  situated in or outside Spain.

Generally speaking, having lived in Europe over half my life time, expats fit into three categories.

The first type are those who follow the rules. Do absolutely everything they are told to or have read and register themselves up to the hilt. Pay their tax bills on time, buy a European car, have every conceivable piece of paper they are required to have and some they are not. Have wallets stuffed with identity cards and medical cards and all the other paraphernalia which goes with an over regulated European state.

Then they worry and bore all their friend to death with what they conceive is a superior position.

The second type are those who do nothing. Live illegally, drive their own home nation car without the correct papers, pay no taxes, work on the black and pay only the essential bills with cash. They never register for anything, never use a credit card, don’t even have a overseas bank account and if they get sick they use the EHIC. They stay under the radar for years quite unconcerned by any inconvenient rules or laws.

The third category is a mixture of the two others. They dip in to some that suit them and ignore the rest or remain deliberately and obliviously ignorant of any requirements.

Now you guess as a general observation which of these three is the happiest with their life?

Not ambiguous John because in old days I would have written  pensions via PostMaster General being automatically taxed in country of origin but this no longer applies to all former Government employees. Plus many try to stay under the radar, obviously prefering for UK to tax the private pensions. Thus declaring just the UK state pension here and being told that their income is below the Spanish threshold so no need to make a Spanish tax return.

We totally legal bods know what one should do...what I am saying is many  ( actually know a great many) don't because they assume...wrongly I hope...they will get away with it.

Aesorias and Brit Accountants have never bothered whether they are told all the facts or not because as you correctly write the onus is on the informant.

Well, Mickyfinn...I dont bore people , feel superior or worry just because I prefer do things legally however when people ask on forums then not to remind them what the correct procedure is, is tantamount to stupidity.

People bucking the system might think they are happier because they are ducking and diving...but not in my book.

Before this thread goes 'off thread' .....please be constructive with your posts and keep to the topic and refrain from posting inciting content.

Thank you

My post was not meant to be incitement, about or directed at any individual posting on these forums. I was merely musing in a personal way and reflecting how new draconian Spanish tax laws are making life difficult for some and not others who simply ignore them.

BTW. I'm not suggesting either that's a good idea. However there are legal ways to limit your tax liability, even in Spain and to do that you require the services of a decent tax accountant.

To get back "on thread", and to answer the orignial question: I actually asked my gestor the exact same question recently, and her answer was a resounding "es depende..."

So in other words, as already advised, go ask a gestor/asesoria, because the answer depends on so many variables that it cannot be given here.