Access To Tax Exempt Money
When the retired British immigrate to Spain, they enjoy a terrific retirement. Some retirees from England wonder how far their pensions will go further living in Spain. Some even wonder about accessing their pensions in Spain. Many ask aloud about the tax implications. They question if they will be better off or not. Most British retirees experience a marvellous way of life. Most end up with a standard of living that they couldn't have in their own country. Retiring in Spain enables retirees to pay for luxuries such as eating out and taking holidays.
But, the number one question is, 'will I still receive my pension in Spain?' The short answer is - Yes. if you're eligible for a pension from the United Kingdom the Department for Work and Pensions stands ready to deposit your pension into a UK account (which you can access from inside Spain), or into a Spanish bank account. For that Spanish bank account option, be certain there will be little or no charge.
How do I arrange this? You can arrange all this quite simply through the DWP. Inform them of your move and provide the relevant information. Some ask if they will have to pay taxes to both countries. Permanent residence in Spain means that you will pay a tax only in Spain. Just tell the DWP or any private pension administrators that you now live in Spain. You will receive an Inland Revenue code so that you're not taxed on your pension twenties. Obtain up to date taxation advice from a Spanish tax adviser. They can assist you with the necessary tax returns.
However, it's surprising but pensioners in Spain still get the winter fuel allowance just as if they were still living in the UK. At least that was the last information we had. 'QROPS', what are they? It stands for Qualifying Recognized Overseas Pension Schemes. Simply put it means HM Revenue and Customs will allow UK pensions of non-UK residents to be transferred into a recognized and approved QROPS account. This can be advantages for numerous people.
Be certain to talk to a tax expert before you transfer your UK pension. One advantage, is the ability to move your pension offshore to places such as to Guernsey Island. You'll have access to tax exempt money. There are also improved death benefits, and according to an international corporation such as Blevins Franks, offering financial advice to expatriates, you can find out more about QROPS. You'll also find the DWP ought to be able to give you advice.
This article is not a substitute for getting up-to-date information from the authorities in either country. Obtain good financial advice from a source that knows about the United Kingdom as well as Spanish Tax law.