However, for some, there is an alternative. Renting is now the new buying. It seems like everyone is doing it and whether you want to upgrade, downgrade or just try a new area, it can be the solution to a sluggish market. It can also be a worry. Stories of terrible tenants and unlucky landlords bounce around the forums. It seems that everyone knows someone with a cautionary tale to tell. Of course, what you don’t hear as often are the success stories where it all came together with a happy ending. For those considering the renting option, let’s dispel a few myths first. Here are some of the snippets of conversation you might here at your local: Myth: ‘Tenants have all the rights in … [Read more...] about The myths about renting property in Spain
tax in spain
Tax hikes to hit residents
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
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