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 taxes
Spain’s tax hike threatens La Liga’s appeal
One of the first moves by Spain’s new Mariano Rajoy-lead Partido Popular government has been to increase the maximum personal income tax (IRPF) rate by seven percentage points to 52 percent for annual salaries over €300,000. Given the shocking state of the Spanish government finances this should not really have been a difficult decision to take, especially considering the small percentage of Spanish tax-payers affected. For most Spanish citizens the most visible losers (of this particular increase) will be the football teams they follow. Spain’s politicians have traditionally been keen to be seen to support football, and a past PP tax ‘incentive’ aimed at attracting higher earners from … [Read more...] about Spain’s tax hike threatens La Liga’s appeal
Modern Spain’s legacy: airports, deficits and brutal cuts
Last week, Spanish newspapers reported that a recently busted gang of drug smugglers had planned to buy part of Ciudad Real airport in order to ship cocaine into the country. It was hardly the kind of news that the Castilla-La Mancha authorities would normally have enjoyed hearing, but right now, almost any potential buyer of this huge building with a four-kilometre airstrip will be welcomed with open arms. The Aeropuerto Central Ciudad Real, as it is known, is now as representative of Spain –particularly 21st century Spain– as the windmills and plains that surround it. Built in 2008, it was, for a time, presented by the local government as a bold way of putting the land of Don … [Read more...] about Modern Spain’s legacy: airports, deficits and brutal cuts