Retiring Abroad - Pension Tax Implications

Joey122

Can anyone confirm whether is you have a private pension in this country and decide to move / live in a different country whether you will need to pay tax on the yearly annuity payments or not?

Thanks for your help here

seven-day-weekend

We live in Spain. My husband pays tax to the UK on his Teachers' Pension.

Having said that, as a Government pension, it has to be taxed in the UK.

If you are tax resident in another country with a non-government annuity, it will be liable to the tax laws of the country you are in.

You really need to ask a specialist tax advisor. as to whether or not you will be considered non-UK resident for tax purposes.

Joey122

In general if you have a 100K pension and you move to Spain what would happen to tax on your annuity income?

seven-day-weekend

If it is a non-Governemt pension and you are resident in Spain for tax purposes, you would have to fill in a self-assessment form every year and any tax you had to pay would go to the Spanish Government.

I believe their tax allowances are more generous than the UK, however we are not liable for any tax in Spain so I don't really know.

I speak as a plain ordinary expat, not a tax specialist, so I really would take professional advice if I were you.

Unless of course one of the tax specialists on the forum answers your enquiry!

EdInvestor

For non Govt pension you can request the money be paid gross and then taxed in the country of residence, where rates will vary of course. In Cyprus IIRC pensions attract only 5% tax .But do check tax rates on other savings and investments (and other levies imposed in your new home (eg wealth taxes, requirement to pay private health insurance), which may cancel out the pension tax advantage.

Joey122

Can anyone confirm with certainty that is the case?

Basically if I move abroad at 55 will i still get a state pension assuming that I had paid NI all my working life? If I was 55 today and I paid NI all my life how much would i get as a single person?

Would this state pension be taxable and if so by which country?

Cook_County

All non-government pensions are taxed in the country of residence in all countries with appropriate double tax treaties.

Joey122

CookCountry

Have you got a link with countries that are applicabale to double tax?

EdInvestor

Joey122 wrote: »

Basically if I move abroad at 55 will i still get a state pension assuming that I had paid NI all my working life?

You won't get a state pension until you're 65 if you're a man.The amount you would get now at 65 is around 87 pounds a week.This will go up to around 91 pounds a week from next April.Depending on what country you retire to, you might not get the annual inflation increase. There are 2 state pensions. So you might get more than the basic, some people get double.

At some point you'll be able to get a forecast here: www.thepensionservice.gov.uk

Would this state pension be taxable and if so by which country?

Yes, if you are in the UK, but it is covered by your personal allowance.If resident abroad, it will be part of your taxable income.

Joey122

From the website :
Men must normally have 44 qualifying years to get a full State Pension


I left university at 24 and plan to retire at 55 - What happens in that case as I would have worked for only 31 years?

Joey122

Can anyone explain the additional pension?

If you earn 40K a year will you be entitled to it - There was very little info on the website about this