Article 18 of the 2013 Tax Treaty between Spain and the UK is difficult to follow. My Government Pensions are taxable only in the UK.
Other small pensions are taxed here in Spain. The first time I declared my Government Pensions, my tax bill doubled.
If the amount of the Civil Service pension is added to other income, thus moving you into a higher tax bracket, and the amount itself is then removed, technically the Civil Service pension is not double taxed.
But if your income tax bill rises significantly, then part of your income is clearly taxed twice. I want to know to whom I can appeal to sort out this convoluted scam.
J M (Costa Blanca)
I like your term ‘convoluted scam.’ It is both expressive and accurate.
You can start with Spain’s Tax Agency but any serious appeal you plan will involve impugning a treaty between two sovereign nations and will require years to resolve, quite likely going to the European Court of Justice before any final ruling.
Spain has similar treaties with several countries, including the Netherlands and Canada, so it will not be simple or inexpensive.
Send your questions for David Searl through lawyers Ubeda-Retana and Associates in Fuengirola at Ask@lawtaxspain.com, or call 952 667 090.