TODAY´S Viewpoint (Saturday) refers to a lack of voting power among many of us British residents and also our restricted benefits. Both these lacunas can be due to the length of time we have lived here, no Westminster votes if you moved before 1994 or the winter fuel payment if before 1998. On the up side many of us have worked here for some time and every year more of us become entitled to a Spanish pension but even here there are some pitfalls.
While everyone in the UK is entitled to the same state pension Queen or Commoner - this is not the case in Spain where the pension is means tested as I have just discovered to my cost.
While the full Spanish Pension is quite generous being almost double the British if you have income in addition to your Spanish pension in excess of about 7000 your pension will be progressively reduced. So as well as having paid income tax as you saved and made extra provision for your retirement and then paid capital gains tax as you cash in your investment and go SKIING (Spending the Kids Inheritance) you pay yet a third time as your pension is reduced.
In my case the solution is quite simple - I am moving investments out of Spain offshore.
Mike Lillico
Playa de Palma
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