Pensions in Spain
Annually, residents residing in Spain will have to file their personal income tax return in Spain. This is an obligation for anyone living, working or retired in Spain. If you receive any kind of income inside or outside Spain, you will have to declare this income and depending on the amount of that income (pension, benefits, income from work or from an activity, ...) you will have to pay tax on it or not.
We annually take care of the file of residents in Spain and often receive the question or remark, especially from Belgian pensioners and benefit recipients, that they are shocked that they already have to pay tax in the first place and secondly about the amount of their tax due. This does not apply to retired civil servants because they remain taxed at source in the country where they did their career. But all other pensions and benefits are subject to the Spanish system.
The reason is actually quite simple, the Belgian pension and/or benefits for the disabled and long-term sick are among the highest within the EU. In Spain, according to the SMI - Salario Mínimo Interprofesional - more than 60% of pensioners receive less than the legal minimum pension of 1,000 euros every month, of which more than 10% even receive less than 500 euros. In many cases, it is a question of having worked for 38 years. To this should be added the fact that often the wife of a retired couple in Spain receives nothing or a pittance in the total sum.
Perhaps a message to those residents who are dissatisfied each year with their tax returns in Spain and their tax owed and yet take a moment to reflect on this fact. More than half of Spanish pensioners do not get by on their "small" monthly pension. If you find it unjust that Spanish pensioners are paid well below the legal minimum, you can help this group by making a donation. For more information please contact us. Go to the contact form and mention your desire to make a donation. We will then contact you.
Related Posts