Question About Spanish Taxes - Do they tax U.S pensions?

I have a question for the group about Spanish taxes on pensions.  My apologies in advance if it’s already been asked and responded to.   I am getting ready to retire from the U.S. military and will have a post military pension which equals around 2,500 U.S. dollars a month.  My question is, is this pension (which comes directly from the U.S. government) taxable by Spain?  Thank you all so much in advance for your assistance!


Got a feeling that you have to declare it anyway - my partner was a policeman in the UK and he has to declare his police pension to both Spain and English tax authorities (but its taxed at source anyway)  - hope this is what you mean. Its just declaring it.  We have to declare our property which we have in the UK AND an investment which WAS over £50,000 and isn't now...... hope you can understand.

I would suggest researching the requirements vis-a-vis American pensions as opposed to European Union pensions (UK, Spain, etc). . . very different for Americans from what I've learned so far.

Or go to an IFA in Spain !

If it is income, it is taxable.

If it's income then yes it will be taxed, end of. As to who taxes it depends on intergovernmental agreements.

No, as a Spanish resident you need to pay taxes. I do not know about pension tax rates. I would check with an accountant in Spain.

As an American, you will always have to file tax returns no matter where you live. If you have paid taxes in the country that you reside in, you will need to prove that to the IRS. If the US tax rate is higher, you will probably have to pay the difference to the US. But taxes are mostly way higher in Europe, so it is unlikely, but depends on your situation.

I hope that helps!

Just like to say we went to a abagardo - think that's what is called an accountant - my partner has a police pension from uk. First bill was 60euros by the third yr he could do it himself. The accountant tasked usual questions filled out the form and submitted it.  We thought it was cheap for what he did - and peace of mind. He we paid tax but it was next to nothing.


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Barne:  my partner was a policeman in the UK and he has to declare his police pension to both Spain and English tax authorities

Although that will become correct as from this years' tax declaration in Spain, until this year Crown Pensions were totally ignored in Spain by Hacienda, and recipients of such even got the full free allowance in UK and in Spain.

Tax to be paid by citizens of other countries is normally subject to the conditions set out in  Double Taxation Agreements between countries. Each agreement will usually be different so one needs to study the agreement, if any, which apply to you.

Further to my post.

When I declared my police pension (Crown Pension) this year, for the first time in the 30  years I have lived in Spain.  I ended up paying just over 150% more tax than last year.    My income was the same both years.

Whilst the Crown Pension cannot be taxed in Spain, when it is 'taken into consideration to arrive at the appropriate tax band'  it amounts to the same.   

PS     Take care if you have a Crown Pension when you make such a return. My gestor, whom I had trusted to get it right, first said I had to pay 5,600 euros,. When I said she was wrong,   she reassessed it and said it was 1,065 euros (she ignored the pension) .   I again said that was wrong as I had consulted friend in Hacienda.-  I finally paid just under 3,000 euros.

If you have a Crown Pension, make sure the gross amount is shown in box 470 of the declaration, if it is shown elsewhere,  then it gets automatically assessed as  taxable income.   That was happened in my declaration when the amount came out as 5,600 euros.

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