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IMPORTANT – Spanish Tax Agency Audit of UK Pensions

Moody | July 13, 2021

It has come to our attention that commencing immediately, the Spanish Tax Authority (Hacienda), will be doing a pension audit on all UK Expatriates that have income from the following pensions, as part of their drive to prevent tax fraud:

  • UK Civil Service pensions: they want to ensure that all income has been declared to the Spanish tax authorities, irrespective as to whether income tax was paid in the UK, as the income should have also been declared in Spain.
  • Pension Annuities (both Temporary and Lifetime): If you have been declaring pensions income as coming from an annuity, they want proof that it is in fact an annuity and not just being called an annuity to avoid income tax.

The tax office will be looking at years 2017-2018-2019-2020 (fiscal years that are open for inspection)

If you have pensions that fall into the above categories and are contacted by the tax office you will need the following documentation available for submission:

1. In the case of Pensions –Proof tax has been paid in Spain

2. In case of Annuity:
• Policy details.
• Date of the contract and date of annuity income.
• Identification documents of both the contractor and the beneficiary.
• Covered contingencies.
• Redemption conditions.
• Duration, amount and form of benefits: income or capital.
• Form of premium contributions: periodic or in a single payment.

When you receive a request for information, the above documentation must be submitted to the Tax Agency translated into Spanish by a sworn translator and bearing The Hague Apostille (, within a period of 10 days to comply with the deadline for submission.

At Blacktower Financial Management, we have always ensured that our clients are fully aware that all of their pensions should be declared, and how their pension income should be reported; that is as pension income. Transparency has always been at the core of our advice.

Please contact your Accountant/Gestor if you feel you may be impacted by the above.

Blacktower is a truly Global leader in Wealth Management, you can contact me by email [email protected] or call me on 658 892 330.


This communication is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity.

Blacktower Insurance Agents & Advisors Ltd is regulated in Cyprus by the Insurance Companies Control Service and registered with the DGS in Spain. Blacktower Financial Management (Cyprus) Ltd is regulated in Cyprus by the Cyprus Securities & Exchange Commission and is registered with the CNMV in Spain.

Written by Moody

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