We would like to retire in 10 years in Spain. My husband has a commonwealth PSS while I have a regular retail super. I have 2 questions:
1.- does PSS taxes stay the same if we were to live in either Australia or Spain.
2.- Do I need to pay taxes on my retail super if I draw it from Spain rather than from AU where there will be no taxes?

Hi Maria,

The super (whether PSS or retail) may cause you to have taxable income in Australia, and thus require you to pay tax here regardless of where you live in the world.

If you are over the age of 60 when you access your retail super - it will be tax free to you in Australia. The tax treatment of that pension in Spain, I have no idea and you’d have to seek advice.

The PSS super is treated as ordinary income (with maybe some tax offset) so depending on the size of the pension could cause your husband to have to pay tax in Australia, even if he lives overseas.

Ideally you should seek advice so as to ensure you are both doing all you can to maximise your super benefits before retirement in 10 years.

Regards
James