Income Tax on Pensions

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This topic contains 2 replies, has 3 voices, and was last updated by Profile photo of Ptr Ptr 1 year, 9 months ago.

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  • #58007
    Profile photo of Anonymous
    Anonymous
    Participant

    I’m trying to compare income tax that would be paid on a pension of about 60K pounds sterling say 73K euros in Spain, France and UK. The UK simulator comes up with about 13.5K pounds tax, the French simulator says I’d pay about 15K euros and the Spanish simulator tells me I’d pay 24K euros if I lived in Spain. Help! Can it really be that in Spain a pension of 60K sterling would attract almost 60% more income tax than in France or in the UK? Surely I’m doing something wrong when I input the figures? (by the way, this assumes all income is from pensions and that there is no dividend or other revenue. It also assumes a single person with no special deductions). Any comments, advice or help would be appreciated!

  • #119526
    Profile photo of logan
    logan
    Participant

    Nope you are correct but I make it €28k. 😯 Why are you so surprised, Spain is a high tax society.

    Your income attracts 47% income tax after allowances of €6,069 if over 65. Also your world wide assets including a UK property attracts taxation. There are child allowances and disability concessions.

    Then there is IVA at 21% on just about everything including all utility bills. 🙁

    Also some tax rises have recently been announced for 2014/15.

    Last year 90,000 Brits left Spain or rather de-registered. It’s not difficult to see why.

    • #184973
      Profile photo of Ptr
      Ptr
      Participant

      I remember a reply from a lady previously that on top of the 6069 there is an Age Allowance of about 2000 euros and that person had been previously a property owner in Spain. But I have not been able to find this or is it something that used to exist but not now ?Spanish Personal Allowances are not very generous and they don’t seem to increase them regularly as in UK. They do seem to be reducing the marginal tax rates at the lower income levels if by not much.

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