2015 Pension Income Threshold for Tax in Spain

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pensure1988
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2015 Pension Income Threshold for Tax in Spain

Postby pensure1988 » Sat Mar 26, 2016 4:47 pm

I receive a Pension from outside the EU from which Tax is deducted at source. This Country does has a Double Taxation with Spain. Does anybody know what the Threshold Figure is for 2015 before Tax has to be paid on your Yearly Pension Income for the year. Also can you confirm all the Allowances for 2015 including Investment Income. I mention that I am a Fiscal Resident in Spain.

Many Thanks

Nigel

El Cid
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Re: 2015 Pension Income Threshold for Tax in Spain

Postby El Cid » Sat Mar 26, 2016 4:53 pm

Your threshold for tax will depend on factors such as age, marital state and whether you make joint or separate declarations.

Are you possibly talking about the point at which you have to make a tax declaration? You say you are tax resident, have you never made a declaration in the past?

Sid

pensure1988
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Re: 2015 Pension Income Threshold for Tax in Spain

Postby pensure1988 » Sat Mar 26, 2016 4:59 pm

Hi Sid

I have been submitting Tax Returns since 2009 and wondered if any the allowances have changed since 2014 as well as the Pension Threshold Figure.

Many Thanks

Nigel

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Re: 2015 Pension Income Threshold for Tax in Spain

Postby El Cid » Sat Mar 26, 2016 6:03 pm

Yes, all the allowances have changed significantly for 2015. The age allowances have gone up slightly. The general allowance has changed and now disappears completely above a certain figure. To offset this, thee is €2000 flat allowance.

All the tax rates and bands have changed and if you are resident in Andalucia, they have a different set of tax bands and some are higher than the state rates. UK Government pensions now have to be taken into account.

I am not sure I understand what you mean by the Pension Threshold figure - I have never seen that.

The biggest effect on 2015 tax will be the increase in the exchange rate compared to 2014. This will almost certainly wipe out any benefits from the new rates and allowances.

I am in the process of rewriting the FAQ on the subject, but I will not post it until I have the latest tax manuals and the PADRE program available, probably mid April.

Sid

pensure1988
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Re: 2015 Pension Income Threshold for Tax in Spain

Postby pensure1988 » Sat Mar 26, 2016 9:42 pm

Hi Sid

What I mean by the Pension Threshold Limit is amount you are allowed before you have to pay Tax on this Income. I think it might be part of the Allowances in Andalucia. I shall wait for your update in April on this subject.

Nigel

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Re: 2015 Pension Income Threshold for Tax in Spain

Postby Parilla » Sun Mar 27, 2016 12:40 pm

I think,Pensure, Sid will tell you no such "threshold" exists in the tax system

If your pension income exceeds whatever allowances you are due to, based on your personal circumstances, then all the excess is taxable.

Parilla

pensure1988
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Re: 2015 Pension Income Threshold for Tax in Spain

Postby pensure1988 » Tue May 10, 2016 8:29 am

El Cid wrote:Yes, all the allowances have changed significantly for 2015. The age allowances have gone up slightly. The general allowance has changed and now disappears completely above a certain figure. To offset this, thee is €2000 flat allowance.

All the tax rates and bands have changed and if you are resident in Andalucia, they have a different set of tax bands and some are higher than the state rates. UK Government pensions now have to be taken into account.

I am not sure I understand what you mean by the Pension Threshold figure - I have never seen that.

The biggest effect on 2015 tax will be the increase in the exchange rate compared to 2014. This will almost certainly wipe out any benefits from the new rates and allowances.

I am in the process of rewriting the FAQ on the subject, but I will not post it until I have the latest tax manuals and the PADRE program available, probably mid April.

Sid


Hi Sid

I don't know if I have missed your FAQ on this subject which you said you would post mid April.Please can you point me to your post in this matter.

Many Thanks

Nigel

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gerryh
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Re: 2015 Pension Income Threshold for Tax in Spain

Postby gerryh » Tue May 10, 2016 8:45 am

It's in the FAQs section.
Here is the link viewtopic.php?f=42&t=27576
Cheers
Gerry
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pensure1988
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Re: 2015 Pension Income Threshold for Tax in Spain

Postby pensure1988 » Wed May 11, 2016 6:04 pm

Hi Gerry

Very informative,just have see what the New Tax I will have to pay for 2015.

Many Thanks

Nigel

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Re: 2015 Pension Income Threshold for Tax in Spain

Postby Mrs Ancient » Mon May 16, 2016 3:36 pm

Hi, I have read through all the information on Tax Returns here on the forum and still not sure about 1 or 2 things. We live together but are not married. Can we make a joint return? We both receive just the normal UK State Pension. Nothing else. Him indoors receivied 14,900€ in 2015.This is his only income. We have been told he will have to pay 1300€ tax on this. Do allowances come off the 14,900€ first or not. We have always gone to a tax adviser in the past and have just changed to a nearer one this year. It just seems such a vast amount to pay. Oh he is 72, by the way. Any advise would be helpful thanks.

pensure1988
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Re: 2015 Pension Income Threshold for Tax in Spain

Postby pensure1988 » Mon May 16, 2016 4:21 pm

Hi Mrs Ancient

Here is El Cid's updated Tax Guide for 2015. If you question is not covered in here,you could send him a private message.


viewtopic.php?f=42&t=27576

Good Luck

Nigel

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Re: 2015 Pension Income Threshold for Tax in Spain

Postby El Cid » Mon May 16, 2016 4:33 pm

If you are not married, or officially in a civil partnership, then you cannot submit a joint declaration. If you also have a state pension it would cost you much more if you did.

The tax he should pay is €1344.25. That includes all the allowances, including the extra one for being over 65.

The allowances were changed this year and for incomes between €11000 and €14000 there may be some unpleasant surprises - particularly if you are just above €14000 - as you have found.

Sid

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Re: 2015 Pension Income Threshold for Tax in Spain

Postby Miro » Mon May 16, 2016 4:58 pm

Mrs Ancient wrote:...receive just the normal UK State Pension. Nothing else. Him indoors received 14,900€ in 2015.


Going off topic, and none of my damned business, but that looks like a damn sight more than "normal". Someone receiving the new full state pension today would only get around €10,000 a year. :shock:
Don't worry about what people think, they don't do it very often

"Acquiring a dog may be the only opportunity a human ever has to choose a relative," Mordecai Siegal 1935-2010.

El Cid
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Re: 2015 Pension Income Threshold for Tax in Spain

Postby El Cid » Mon May 16, 2016 5:10 pm

It's not uncommon. Many people get more than the basic state pension as a result of the various GMB, second state pensions and contracted out deals that have existed in various forms over time.

My total state pension is over £10500 which equates to about €14500.

Sid

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Re: 2015 Pension Income Threshold for Tax in Spain

Postby Mrs Ancient » Tue May 17, 2016 1:23 pm

Thank you for answering my questions. I appreciate it.

Miro
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Re: 2015 Pension Income Threshold for Tax in Spain

Postby Miro » Tue May 17, 2016 2:00 pm

El Cid wrote:for incomes between €11000 and €14000 there may be some unpleasant surprises - particularly if you are just above €14000
Sid


Just done our declarations, and on an income of €18,237 the tax payable is around €2,223. Actually not much difference from last year.

Thanks Sid for clarifying the differences in state pensions that people receive, although throwing "GMB" into the mix has only added to my confusion - what the *** is that?! :crazy: (no need to reply, I Googled it, although still none the wiser really)
Don't worry about what people think, they don't do it very often

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