Income tax returns for foreign residents in Menorca

Living and paying tax in Menorca

Foreign pensions have no Spanish tax withheld, so almost every pensioner in Menorca must file. Government pensions, such as those of former civil servants, are usually taxed only in the paying country but count for the Spanish rate. Savings accounts and investments at home must be declared and, above the thresholds, reported on the modelo 720. Couples should compare joint and individual returns every year.

What goes into your Spanish return

Item	What we check
Foreign pensions and salaries	Which country taxes them under the treaty
Dividends, interest, gains	Savings scale and foreign tax credit
Rental income	Expenses and reductions
Joint or individual	We compare both every year
Modelo 720 and wealth tax	Thresholds and filing

How we prepare your return

Before the campaign we collect your foreign and Spanish documents, explain the result in English or German and only file once you have approved it. We also keep the calendar for the modelo 720 and wealth tax, and answer any letter from the tax agency about your return.

Our general service page explains the rules in more detail: Income tax return in Spain. We also advise in Mallorca, Ibiza.

An illustrative example

Based on situations we commonly see; not a specific client. A retired English couple in Es Castell had a teacher's pension, a private pension and UK savings. We declared the private pension and savings in Spain, the government pension only for the rate, and filed the modelo 720 for their UK accounts.

This page is published by Castell.tax, the tax practice of Castell.law in Palma de Mallorca. It is general information; tax rules and rates change, so check your case with us before filing.