“Spanish property market shrinks 28% in January”; “Bank of Spain warns of further house price fall” – If you are one of the people who has a home in Spain that you use, enjoy and want to keep for good, these headlines won’t really matter to you. The value of your property is in the pleasure you get from it. But behind these headlines are individual stories of people who need to sell for all kinds of different reasons and can’t. For them it’s not just a matter of pulling down the ‘se vende’ sign and riding it out.
We all know that Spain, like many other EU countries, is in the doldrums as far as its economy is concerned and is expected to find the remedy, fast. Unsurprisingly, the PP government intends to try and address the deficit through cutting budgets and increasing revenue from taxes. A tidy sum of €8.9 billion is to be cut from government departments and €6.2 billion collected by the Tax Authority.
Taxes are inevitable and inevitably confusing, especially in a foreign country. Here is a potted guide to how to cope with Spain’s fiscal system.