Can they pay him less?

I am 71 years old, retired, and I receive a state pension from the UK. At the last municipal elections I was elected councillor. 

I was told that I am not entitled to the retribution of €16,000 per year which the other part-time councillors receive, because this salary is incompatible with my pension. 

Instead, I am offered a payment of €700 a month for attending the monthly ‘Information Commission’ meetings and €300 a month for attending the council meetings. If I don’t attend, I don’t get paid.

I do not receive any expenses or benefits. This sounds wrong to me. Can you please tell me if the decision taken by the town hall is correct?  

S B (Costa Blanca)

In principle, yes, it is correct.  Spanish law states that a pensioner can earn up to the amount of the legal minimum wage without affecting the amount of his pension.

After a big jump last year the legal minimum wage for 2019 is almost €10,000. The councillor’s salary of €16,000 is well above this.

Because the Spanish tax man cannot reduce your UK pension, it seems they have found a way around this.

Send your questions for David Searl through lawyers Ubeda-Retana and Associates in Fuengirola at Ask@lawtaxspain.com, or call 952 667 090.