Income Tax & Pension

Information and questions about the Law in Spain and Andalucia.
El Cid
Andalucia Guru
Posts: 15490
Joined: Sun Oct 24, 2004 10:42 pm
Location: La Herradura, Costa Tropical, Granada

Re: Income Tax & Pension

Postby El Cid » Thu Jun 10, 2021 10:36 pm

If you are below it you get the whole amount.

Sid

elusive
Andalucia Guru
Posts: 2878
Joined: Sat Apr 07, 2012 11:49 am
Location: East of Malaga

Re: Income Tax & Pension

Postby elusive » Fri Jun 11, 2021 8:45 am

Free at Last wrote: Thu Jun 10, 2021 4:19 pm I guess the low income allowance won't be relevant to British citizens moving to Spain after 1 January 2021, now that they have to meet the minimum income requirements for third country nationals in order to qualify for a visa they certainly won't be eligible for it!
It can be in the form of savings so i presume you still get the allowances if you have a small income but a large amount of savings?

LifeofBrian
Andalucia.com Amigo
Posts: 38
Joined: Tue Mar 31, 2020 3:00 pm
Location: Vinuela

Re: Income Tax & Pension

Postby LifeofBrian » Sun Jun 13, 2021 10:15 pm

I guess there is no further feedback so can I thank those that have tried to help. Seeing the accountant tomorrow (Monday) so fingers crossed!!

Thanks again all.

LifeofBrian
Andalucia.com Amigo
Posts: 38
Joined: Tue Mar 31, 2020 3:00 pm
Location: Vinuela

Re: Income Tax & Pension

Postby LifeofBrian » Sun Jun 13, 2021 10:18 pm

Sorry, I missed the last post from El Cid and Elusive. Thanks for that...fingers crossed for Monday!

LifeofBrian
Andalucia.com Amigo
Posts: 38
Joined: Tue Mar 31, 2020 3:00 pm
Location: Vinuela

Re: Income Tax & Pension

Postby LifeofBrian » Mon Jun 14, 2021 10:27 pm

Hi All...quick update after my meeting with the accountant I mentioned earlier. I was grateful for your input El Cid but just to let you know that if you are below the income range given in an earlier note the fact is you do not get the whole amount of the 'special allowance' that Free at Last mentioned. In fact I am below the range and get none of the allowance. Quite disappointed about that. Taxes for those of us on relatively small pensions are pretty hefty compared to the UK. Sad fact of life but hey...
Once again I appreciated ALL the input. Take care and stay safe friends.

User avatar
peteroldracer
Andalucia Guru
Posts: 7546
Joined: Wed Oct 13, 2004 5:56 pm
Location: Los Alcázares, Murcia

Re: Income Tax & Pension

Postby peteroldracer » Mon Jun 14, 2021 11:16 pm

Sometimes I wonder - I have a private pension and a uk state pension, total around €1200 a month (depending on exchange rate).
Is this a small pension? I paid no Spanish tax last year, and think this year it was a couple of Euros.
Nothing to complain about there!
Just a thought - the cost saving on buying my first two bottles of wine here pays for my tax, everything else is a bonus. Worrying about miniscule tax differences will put you in an early grave!
Last edited by peteroldracer on Tue Jun 15, 2021 9:26 am, edited 1 time in total.
I used to cough to disguise a [email protected] I [email protected] to disguise a cough.

El Cid
Andalucia Guru
Posts: 15490
Joined: Sun Oct 24, 2004 10:42 pm
Location: La Herradura, Costa Tropical, Granada

Re: Income Tax & Pension

Postby El Cid » Tue Jun 15, 2021 8:27 am

LifeofBrian wrote: Mon Jun 14, 2021 10:27 pm Hi All...quick update after my meeting with the accountant I mentioned earlier. I was grateful for your input El Cid but just to let you know that if you are below the income range given in an earlier note the fact is you do not get the whole amount of the 'special allowance' that Free at Last mentioned. In fact I am below the range and get none of the allowance.
He is incorrect. I have run a number of examples of the situation you refer to on the AEAT tax program and you DO get the increased allowance even if your income is below the threshold. There could be different personal circumstance in your case, but I can't think of any that would cause this effect.

The figure of 13115 is the point at which the allowance is reduced, not the point at which it starts.

Sid

LifeofBrian
Andalucia.com Amigo
Posts: 38
Joined: Tue Mar 31, 2020 3:00 pm
Location: Vinuela

Re: Income Tax & Pension

Postby LifeofBrian » Tue Jun 15, 2021 2:23 pm

I want to thank peteroldracer and El Cid for their further information. I will double check with the accountant. First, I have a partner but we are not married if that makes any difference. Second, I have carefully added figures up after contacting my pension providers and I am just over the 13115 mark (only just if you include a minor late payment from another provider) so according to your posts I should get 'special allowance' (as opposed to the 'general allowance' of 2000 which I know I get) of just over 5500 which would help a great deal. So much appreciate your help guys. I will let you know what the accountant says. Take care all.

Free at Last
Resident
Posts: 1827
Joined: Thu Dec 07, 2006 1:32 pm
Location: Velez-Malaga

Re: Income Tax & Pension

Postby Free at Last » Wed Jun 16, 2021 5:49 pm

You should show your accountant this:-

https://www.agenciatributaria.es/AEAT.i ... abajo.html

It is the paragraph from the Agencia Tributaria's tax manual which clearly states that anyone whose income from work (and that does include pensions) gets the full allowance of €5,565 if their income is equal to or below €13,115 (providing they do not have income of over €6,500 from any other sources, that is). If their income is over €13,115 it sets out how the extra allowance is calculated until the threshold is reached where it tapers away altogether.

LifeofBrian
Andalucia.com Amigo
Posts: 38
Joined: Tue Mar 31, 2020 3:00 pm
Location: Vinuela

Re: Income Tax & Pension

Postby LifeofBrian » Wed Jun 16, 2021 10:57 pm

Thank you to peteroldracer and Free at Last. I have added everything and converted it to euros using the exchange rate the accountant sent. The total is just over the figure that peteroldracer mentioned. Therefore I think I should be expecting to pay perhaps just a little more than a couple of euros! I would like to thank Free at Last for the link he sent too. The thing is that the accountant, when pressed, mentioned that he would (before using the software ahead of me providing the necessary paperwork) guessed I would have to pay 2 - 300 hundred euros. Hence my confusion!!

User avatar
peteroldracer
Andalucia Guru
Posts: 7546
Joined: Wed Oct 13, 2004 5:56 pm
Location: Los Alcázares, Murcia

Re: Income Tax & Pension

Postby peteroldracer » Wed Jun 16, 2021 11:05 pm

Why not go onto the website and put your figures in. Do it soon though.
I used to cough to disguise a [email protected] I [email protected] to disguise a cough.

LifeofBrian
Andalucia.com Amigo
Posts: 38
Joined: Tue Mar 31, 2020 3:00 pm
Location: Vinuela

Re: Income Tax & Pension

Postby LifeofBrian » Wed Jun 16, 2021 11:12 pm

Will do, have you got the link peteroldracer and thank you again.

User avatar
peteroldracer
Andalucia Guru
Posts: 7546
Joined: Wed Oct 13, 2004 5:56 pm
Location: Los Alcázares, Murcia

Re: Income Tax & Pension

Postby peteroldracer » Wed Jun 16, 2021 11:21 pm

https://www.agenciatributaria.es/AEAT.i ... enta.shtml
Change the language to English, click on Individuals, and use Renta Web to get a draft return
I used to cough to disguise a [email protected] I [email protected] to disguise a cough.

El Cid
Andalucia Guru
Posts: 15490
Joined: Sun Oct 24, 2004 10:42 pm
Location: La Herradura, Costa Tropical, Granada

Re: Income Tax & Pension

Postby El Cid » Thu Jun 17, 2021 8:27 am

If you are not actually going to submit it online it’s easier to use the simulator as you don’t have to identify yourself. It’s a blue box on the rhs of the page.

Sid

LifeofBrian
Andalucia.com Amigo
Posts: 38
Joined: Tue Mar 31, 2020 3:00 pm
Location: Vinuela

Re: Income Tax & Pension

Postby LifeofBrian » Thu Jun 17, 2021 2:52 pm

Hi peteroldracer and El Cid yup went to the simulator and English was not available. Just a pop-up saying something about language not available at present. The first page asks for all details like NIE name etc but all in Spanish. There is a selection of languages Catalan etc but not English. Listen, you guys have been so helpful but I'm not really getting anywhere (my fault I'm sure - might have missed a button or some such thing) so I will send the accountant all I can and keep my fingers crossed. I will let you know what happens. Stay safe and well friends.

El Cid
Andalucia Guru
Posts: 15490
Joined: Sun Oct 24, 2004 10:42 pm
Location: La Herradura, Costa Tropical, Granada

Re: Income Tax & Pension

Postby El Cid » Thu Jun 17, 2021 3:39 pm

Just use Google translate.

Sid

LifeofBrian
Andalucia.com Amigo
Posts: 38
Joined: Tue Mar 31, 2020 3:00 pm
Location: Vinuela

Re: Income Tax & Pension

Postby LifeofBrian » Thu Jun 17, 2021 4:08 pm

Hi El Cid, I have sent all the numbers I had to the accountant except for an IBI reference number which apparently I need. Every time I try to get it they are shut! I will see what tax figure he comes back with and use your suggestion to verify it if it seems too much. Using the example of peteroldracer it should not be too much more than him so it will be interesting to say the least. Bit fed up of forms and all that good stuff. Still it's good to know there are people willing to help so thank you. I will take a look around the forum to see if I can help elsewhere to 'pay it forward', as it were. Take good care of yourself.

El Cid
Andalucia Guru
Posts: 15490
Joined: Sun Oct 24, 2004 10:42 pm
Location: La Herradura, Costa Tropical, Granada

Re: Income Tax & Pension

Postby El Cid » Thu Jun 17, 2021 6:12 pm

I have no idea why he would want your IBI reference number as it is not relevant. You may need the catastral number as that has to be entered when you give the details of your habitual residence on the tax declaration.

If you have submitted a declaration previously that will be on the form already. You would only need to enter it again if you had moved.

Sid

LifeofBrian
Andalucia.com Amigo
Posts: 38
Joined: Tue Mar 31, 2020 3:00 pm
Location: Vinuela

Re: Income Tax & Pension

Postby LifeofBrian » Thu Jun 17, 2021 10:35 pm

Thank you El Cid. Appreciate your help.

LifeofBrian
Andalucia.com Amigo
Posts: 38
Joined: Tue Mar 31, 2020 3:00 pm
Location: Vinuela

Re: Income Tax & Pension

Postby LifeofBrian » Wed Jun 23, 2021 2:14 pm

Hi El Cid and peteroldracer just to mention to you guys after helping me so much...account has informed me I am liable to pay 583 euros for pensions amounting to a little more than peteroldracer. Bit gob-smacked to be honest. Just thought it might help for future reference. Take care all.


Who is online

Users browsing this forum: No registered users and 2 guests