The new co-payments system has been functioning since July 1 and it is now clear that: Pensioners with an income below €18,000 pay 10% toward the cost up to a maximum of €8 per month. Pensioners with an income above €18,000 but below €100,000 pay 10% toward the cost up to a maximum of €18 per month. Pensioners with an income above €100,000 pay 10% toward the cost up to a maximum of €60 per month. Non-pensioners with an income below €18,000 pay 40% toward the cost with no maximum. Non-pensioners with an income above €18,000 but below €100,000 pay 50% toward the cost with no maximum. Non-pensioners with an income above €100,000 pay 60% toward the cost with no maximum. Your … [Read more...] about Disentangling Spain’s new medical prescription co-payment process
income tax
New co-payment scheme for Spanish medical prescriptions
This is the information we are aware of at the time of writing. On July 1 a co-payment system for prescriptions in Spain was introduced. Everyone now has to make a contribution towards the cost of medical prescriptions in Spain according to their income. This new co-payment system is being implemented in two stages: Stage 1 From July 1 anyone given a prescription in Spain should notice that it will include the percentage of the cost of the medication that they have to pay. This percentage will be taken from information about your income obtained from the annual resident tax declaration (IRPF). Anyone with an income greater than €18,000 a year will have to pay half the cost of the … [Read more...] about New co-payment scheme for Spanish medical prescriptions
And there was peace in Portugal
An average Portuguese citizen might make about €800 per month, has bought a house and is paying back the loan to the bank, leaves home each day at 7am and returns at 7pm. He has one child, whom he leaves at school all day. Take those €800 and let’s do some math. The mortgage will cost an average of €300, leaving €500 for food, transport and basic services. By the end of the month his bank account will just have small change left – if not a huge credit card hole. This data is accurate as of May 2012 and can be checked at Pordata, the private national database, run by the former Socialist Party agriculture minister from the seventies and eternal presidential candidate, the respected … [Read more...] about And there was peace in Portugal
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