Declaration of uk government pension to Spanish tax authority1 Replies
I have recently been advised that I must now declare my military pension which is taxed by HMRC to the Spanish tax authority who declare that they use the value of this income to be added to all other income to determine which tax bracket I am in. They emphasise that they do not tax this element as that would go against the 'double taxation agreement'. The effect of this is that I am moved into a much higher tax bracket on which all my other income will be taxed thereby increasing my annual tax liability by almost €2000.00. Is this correct as to me it seems to be doubLe taxation by 'stealth'.