Question
I’m trying to get my head around paying tax on pension income with a Spanish Non Lucrative visa. Does anyone know if private medical insurance costs can be set against tax?
Answers
These are the answers of some Facebook group members:
First answer: Medical insurance is not tax deductible according to another source.
Second answer: There is no tax free amount on income, it is all liable for tax.
Third answer: Paying for private health insurance is not something I do in the UK, so have no idea about the tax liability as far as that is concerned.”
Fourth answer: No, medical insurance cannot be set against Tax unless you are a worker. All income from anywhere as to be declared but may not be necessarily taxed if its from another country with the DT agreement then any taxed already paid will be deducted on the Tax return, but all should inform the last resident country of the move so that no tax is taken and to be sure it is only taxed in the now resident country which is spain, in the UK a P85 is required to inform the HMRC, Any money in pensions/savings/property over 50,000 needs to be declared on the modelo720 which is an informative modelo apart from the life pensions such as the 401k or lifepolicy’s in the UK
In conclusion, according to Spainguru’s Facebook group members, private medical insurance costs cannot be set against tax on pension income with an NLV.
