For those working in the system ie with a contract and living permanently in Spain you may be interested to know that the Spanish government offers very good financial incentives (via tax relief) to make additional pension contributions. Now is the time to look at this as the tax year end is fast approaching. Many banks offer advice and guidance.

I guess the UK equivalent (at least when I made them years ago in the UK) would be AVCs (Additional Voluntary Contributions)

I’ve been looking into this but what i am unable to find information on is how i will be taxed on this kind of pension once i retire at 65. I realise that we cannot predict what will happen with tax rates etc in the years to come, but supposed I was retired now, what kind of tax rates would i be paying?

Thanks
Ranpal

Pensions (unless they are annuity which are treated more sympathetically) are taxed as normal income with the standard allowances plus age allowance. Suggest you visit the site below or ask the pension provider for more information.

The big deal about the special pensions (see my original post) is the up front tax allowances but you must be a resident.

http://www.spainaccountants.com/