ColinG posted an update 3 weeks, 2 days ago
Just found out that once you become a resident your tax free draw down on any UK pensions doesn’t apply in Spain.
I have had this confirmed with independent pension advisors and our Spanish solicitor. So now I am a resident I have lost access to a considerable amount of tax free money. So I do the right thing and lose out financially. Maybe this is why so many people live under the radar
ColinG – so what tax rate is paid on UK pensions as a resident? If one has State and Occupational it would be a big deal!
In the uk you are entitled to draw down 25% of your private pension tax free.
Over here once you are a resident you cannot take that element tax free so quite a significant loss.
If I hade known about this I would have taken my tax free drawdown element before applying for residencia
Gotcha! I was thinking tax allowances and tax rates so I can calculate the impact of becoming a resident.