Spain and the UK have a joint tax agreement which means that you should not end up paying income tax in both countries. You can elect to pay your tax either in Spain or in the UK. Some say it is better to pay in Spain.
We have no choice because Government pensions , including teacher's are taxed in the UK. Even still we have to make a declaration to the Spanish tax authorities each year to prove that we have paid the appropriate amount of tax.
This is done for us by the Consulting Services Bureau as part of the ongoing service we pay for. All we have to do, is present our P40s, the notices from the bank here in Spain and a copy of our last SUMA bill and it is all worked out for us.
I’ve just had a call to say that we are due to a rebate this year of wait for it………. one euro thirty cents. Quite what we will spend it on I’m not sure, perhaps Pam has some ideas.
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