REGARDING your response of May 14, 2015 about whether UK Civil Service/Armed Forces are declared for tax year 2014 or 2015. My Spanish accountant in Torrevieja informed me that my Army pension must be declared this year for the tax year 2014. This is the opposite of your advice. She informed me that she had been in direct contact with the tax office and they told her that UK Civil Service pensions must be included for the tax year 2014. I would be very grateful if you could re-clarify the situation and also advise me of the BOE where this ruling can be found.
G.P. (Costa Blanca)
This whole thing is driving me crazy. My lawyers interpret the Treaty, Article 28, to mean what I said in my EWN column, declare next year for 2015.
However, the Tax Agency has told several tax advisors in several areas of Spain that the government service pensions paid in 2014 must be declared now. My advice is that, if your tax consultant has been told to declare the pension, then do so. The main treaty did not go into effect for any purpose at all until June of 2014, so declaring for the whole year makes it retroactive for six months, which simply is not on.
The Tax Agency replies that they are not taxing you, really. Rather than fight it, just declare. The UK-Spain Treaty is published in Spain’s official State Bulletin, the BOE, of May 15, 2014.