How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask TaxRobin Your Own Question
TaxRobin
TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 15315
Experience:  International tax
14155347
Type Your Tax Question Here...
TaxRobin is online now

I am a Spanish resident in the UK and therefore pay taxes in

Resolved Question:

I am a Spanish resident in the UK and therefore pay taxes in this country, I also have a small State pension in Spain. The new Convention signed this year between the UK and Spain seems to have changed the rules about in which country I should pay tax on my Spanish pension i.e. in this country. Could you clarify this for me?
Many thanks
M. Seoane
Submitted: 2 years ago.
Category: Tax
Expert:  TaxRobin replied 2 years ago.
Hello and thank you for allowing me to assist you.
The UK Spain tax treaty does allow for pensions by residents of one country that are receiving a pension from the other.
Article 17
PENSIONS
Subject to the provisions of paragraph 2 of Article 18, pensions and other similar remuneration paid to an individual who is a resident of a Contracting State, shall be taxable only in that State.
What the above means is that the UK can tax you and Spain should not tax you as a non-resident of Spain.
You would look to the Double Taxation Agreement if Spain were to tax you on the pension as well.
Double taxation agreements usually operate in one of three ways:
1 you pay tax in your country of residence and get an exemption or relief from tax in the country where you have made your income or gain
2 you pay tax in the country where you have made your income or gain and get an exemption or relief from tax in the country where you are resident
3 tax is deducted in the country where you make your income or gain and you declare this tax as already paid on your tax return for the country where you are resident - the tax already paid is known as 'withholding tax'
TaxRobin and other Tax Specialists are ready to help you

Related Tax Questions