I reside in Spain and receive a retirement pension for the 20 years I was employed here. I also receive a small amount from the UK for the 5 years that I was employed there. I thought, when I applied for the latter, that it would be an addition to my Spanish pension but in reality it is deducted from this amount. Is this correct or should I receive both amounts?

Good question - did I hear something about you can only receive 1 pension in Spain (if you are involved in the Spanish pension system) - be interested to see other posts on this.

I am considering retirement and I have read somewhere that you can receive your UK pension, tax free. Our only income is from pensions in the UK and since we came here in 2007 the monthly payments have just been on a steady spiral downwards and just now it’s the equivalent of a 20-25% drop in income.

If you are Spanish resident you should declare for tax here. Yes you can arrange to have your UK pension paid gross of tax on which you pay tax here subject to Spanish tax rules with the allowances etc. This is the ‘Double Taxation Treaty’ in action.

Maybe a confusing name as it does not mean you pay double!

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