From the most recent Agencia Tributaria bulletins we have been told that 85% of that €6.2 billion tax bill is to come from resident income tax. This affects the employed, self-employed, people with savings and retired people receiving income from outside of Spain such as pensions. It will be administered as a complimentary income tax in addition to the current 24% + income tax that residents already pay. As you might have guessed this tax is on a sliding scale according to how much your income is: Tax range Complimentary income tax €0 – €17.707 0.75% €17.707 – €33.007 2% €33.007 – €53.407 3% €53.407 – €120,000 4% The increases … [Read more...] about Tax hikes to hit residents
Spain Expat
A letter from the Tax Authority
The imputed income tax is a tax on property payable by non-residents on the basis that if they wished they could receive rental income from their property. Spanish residents have to pay it too on any second property they own in Spain. For years Spanish property owners were largely unaware of the need to pay this tax. They were often not told about it at the time of purchase and without a similar tax in the UK they remained in luxurious ignorance. Until now. The Spanish Tax system tends to work according to the assumption that everyone knows what they should pay. Whereas in the UK you would expect to get a reminder of some kind for an unpaid bill, here it can go undetected for years until … [Read more...] about A letter from the Tax Authority
Political incorrectness at the school play
It was when a dozen or so small children charged into the room with their faces blacked up, Afro wigs on their heads and wielding spears, that I started to feel a little uncomfortable. It was the Christmas theatre performance at my son’s school in Madrid, not usually an occasion that leaves me pondering issues of race, politics and political correctness. My four-year-old and his class had already performed a carefully choreographed dance to some Andean music, dressed in traditional Peruvian clothing and the theme of the evening was “cultures of the world”. “How open-minded,” I mused as the troop of mini-Andeans left the stage and I anticipated an hour of multiculturalism. But when … [Read more...] about Political incorrectness at the school play
Understanding Spanish culture
"Spain is different," is a typical phrase you hear from Spanish people when talking about their culture. Indeed, there is a lot to learn and understand for those arriving in Spain for the first time. Below are the main cultural habits for expats to understand, and the best ways to deal with Spanish time management, tapas, weather, and communication. Time management and at the workplace Are Spanish always late? People usually get out of the office late, and to this extent it's quite cultural. The lack of productivity, the lack of organization, but also the good practice includes leaving the office later than the normal time. It is probably another inheritance of the over exploitation of … [Read more...] about Understanding Spanish culture
Moving to Spain: A guide to get you started
As Expatica article ‘Managing your move abroad' points out, the basic things to consider during relocation are visas and permits, vaccines for family members, restrictions or taxes on shipped household items, taxes due when you ship your car, vaccines and quarantines for pets and insurance. Relocation services Find out what you can expect from by making a checklist and how to work with a relocation firm. If your company is relocating you, look at it from the HR manager's perspective on Expatica HR's Relocation section. Also, consider relocation consultants who can help you plan your move with maximum efficiency. Taxation Tax rules vary across the world for foreign-earned income so make … [Read more...] about Moving to Spain: A guide to get you started
How to apply for a Spanish work permit
If you are an EU resident trying to find a job in Spain, congratulations, you’re already closer than most. Since 2003 when Spain opened its borders to allow EU citizens to work in the country, EU nationals do not need a work permit to work in Spain. People from EU countries or Switzerland may enter Spain on a tourist visa and stay for up to three months. If you plan to stay for more than three months you must apply for registration in the Central Resister of Foreigners to obtain the necessary Registration Certificate (Autorización de Residencia y Trabajo). Upon doing so you become entitled to the same legislation and equal citizens as Spanish citizens, including unemployment benefits … [Read more...] about How to apply for a Spanish work permit
Tax in Spain
The tax regime has changed dramatically in Spain in the past decade. It is far harder now to avoid paying tax and the penalties are high. Income tax in particular has risen considerably, although it remains lower than the EU average. But it is still very difficult to get consistent advice on what you should and shouldn't be paying. The rules keep changing, the system is complicated and you may receive different advice from different tax advisers. Foreign residents would be wise to find yourself an English-speaking adviser to explain the intricacies of your tax situation as it will depend upon numerous complicating factors such as where you live in Spain, whether you are resident or … [Read more...] about Tax in Spain