my wife and i receive Uk state pensions into our spanish bank and we are ok withthat.We also have invested monies in Spanish banks that we receive interest,BUT AFTER 18% Tax has been paid.Is there any way we can reclaim that tax paid??

You’ll have to fill out a tax return form - Declaracion de la Renta. You are too late for tax year 2010 though. You can file the declaration from April (I beleive) until the end of June. If your Spanish is good enough and you understand financial jargon, you can do it yourself with the PADRE program from Hacienda, but I always use my gestor, it costs me about 60?. You and your wife can declare jointly, and this usually works out better if one or both of you doesn’t work. Come April you will see ads all over the place for gestors who will do your declaration.