What is the tax threshold for state pensions?


What is the tax threshold for state pensions? I was told by a tax consultant that if you had no assets and no income other than a state pension from an EU country that the threshold was €20,000. My Gestor tells me it’s €14,000 but on a trip to Hacienda they also said it was €20,000.

Reading on an EU website it said that state pensions would be taxed at the same rate as the country in which you are resident. Again in Spain the threshold for Spanish pensions is €20,000. I’m now totally confused but the last thing I want to do is fall foul of the tax authorities.


These are the answers of some Facebook group members:

“I went to the gestor and got a print out that said 22000 euros. She sent my annual pension to the government offices and they replied on a printed statement the tax liability”

“State pensions are not taxed in the U.K. only if you have another pension and it’s added to that then your personal allowance is calculated from the whole amount. If you are a fiscal resident in Spain and it’s your only income you shouldn’t be taxed in Spain as you have your Spanish personal allowance to not that it’s like the U.K. one! Speak to an accountant who may say still fill in a tax form with what you have but will be no tax to pay but definitely speak to someone legal or citizens advice Spain”

“There are different limits. For example, if your pension was only 3.000€ and on that you have got bank interest, dividends, prices from premium bonds or even the sale of some shares where you make just 1€ gain, you also have the obligation to complete the tax return.”

“In the the number changes depending on the number of “sources of income”. 1 source is the higher number and more than 1 source is the lower number.”

“The limit it’s 14.000 euros, as pensions from abroad don’t have any kind of retention from the payer for the Spanish tax office/Hacienda. Normal limit is 22.000 however there are exceptions, and this is one of them.”

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