Hi,

We have owned a property in Spain for over 3 years but have so far only used this as a personal holiday home.

We have paid the wealth tax each year through our solicitors.

We are now looking to spend the vast majority of the year in Spain only returning to England for holidays

I have a company pension (Royal Mail) of approx. £12400 per annum. I currently pay tax on this in the UK. We also have bank/building society investments of approx. £120000 for which we are currently receiving approx. 6% interest before tax but with tax deducted at source.

In approx. 18 months time I will also qualify for the UK state pension.

My husband has no income except for the interest on the money invested.

Looking at your site I am concerned about income tax in Spain. There is no indication that any personal allowance is made before income tax is applied. Is this true? This would have a very negative effect on our ability to live within our means in Spain as the tax rates indicated would drastically reduce our disposable income. Obviously in the UK my personal allowance means that my tax on the Royal Mail Pension is only about £1200 per year.

Is it possible that you could give me a personal illustration as to what being Spanish residents would mean to us financially?

Yours sincerely, Margaret Gooch