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Cost Of Living In Spain
Re: Cost Of Living In Spain
by TonTri » Wed Jan 18, 2017 4:06 pm
We've just bpught a 2-bed, 1-bath apartment in Quesada, no mortgage, and I have estimated our annual bills at around €2400, so about €200 a month. That doesnt include a car or food/drink as we would need to eat and drink wherever we were, and although Spain does work out cheaper than the UK for booze, the food evens itself out to be much of a muchness with UK prices.
So unless you are planning on renting a Mercedes Cabriolet and eating out in 5-star restaurants every night, €1500 a month is way over the top IMO.
So unless you are planning on renting a Mercedes Cabriolet and eating out in 5-star restaurants every night, €1500 a month is way over the top IMO.
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Re: Cost Of Living In Spain
by miken112 » Thu Jan 19, 2017 9:18 am
Hi, my first time on forum. I am looking to move to Spain over the next 12 months and buy my own villa probably not where I would pay a monthly community fee. I am a pensioner but my wife is below pensionable age. She is not looking to work when we arrive. I have looked at the link on "scubydoo" 's message and find this very useful, thank you. Taking the 6750 eur allowance for me and the (roughly) 3400 eur for the wife what % Spanish tax would I have to pay on the balance.
Mike
Mike
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Re: Cost Of Living In Spain
by marcliff » Thu Jan 19, 2017 10:21 am
If you only have a UK pension then you will probably not pay any tax at all in Spain. Allowances are worked out differently here and you get others that aren't mentioned.
You don't just add your allowance and then the allowance for a spouse.
On top of the allowances you get an "earned income" allowance which includes pensions and that is €2000. You also get a low income allowance (provided you don't have more than €6500 in investments) which is €3750 a year if your earnings are lower than €11,250 a year.
All in all, the allowances are quite good but you would really need to see a solicitor or gestor, especially to complete the first year's return which will get you on the system. After that, if you only have one source of income and it is less than €22000 a year then you don't even have to file an annual tax return.
Also your wife will be covered for healthcare as your beneficiary even though she will have to pay a contribution towards prescriptions until she reaches retirement age.
You don't just add your allowance and then the allowance for a spouse.
On top of the allowances you get an "earned income" allowance which includes pensions and that is €2000. You also get a low income allowance (provided you don't have more than €6500 in investments) which is €3750 a year if your earnings are lower than €11,250 a year.
All in all, the allowances are quite good but you would really need to see a solicitor or gestor, especially to complete the first year's return which will get you on the system. After that, if you only have one source of income and it is less than €22000 a year then you don't even have to file an annual tax return.
Also your wife will be covered for healthcare as your beneficiary even though she will have to pay a contribution towards prescriptions until she reaches retirement age.
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Re: Cost Of Living In Spain
by miken112 » Thu Jan 19, 2017 10:46 am
Hi Marcliff. Many thanks for your reply. I have got a govt & private pension that should given me around €1500 a month. The wifey has around £60k in investments and savings and I hope to have around £50k left over after buying a home in Spain. So i'll take on your advice and seek advice when I arrive. Many thanks again, Mike
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Re: Cost Of Living In Spain
by marcliff » Thu Jan 19, 2017 11:18 am
You will continue paying UK income tax on your government pension after the UK tax allowance. The dual tax agreement between UK and Spain means you will not pay tax on that in Spain. However, both pensions will be added together to work out the rate at which you pay tax in Spain so that you don't get both rates of tax allowance from UK and Spain.
For example, gov pension 10000 a year, other pension 5000 a year. UK tax on government pension is zero as it falls within the allowance. Both incomes will be added together in Spain and the tax rate (between 19 and 24 percent for under a certain amount) will be applied. You will be taxed at that rate on the 5000 a year and not on the whole 15000.
As you have more than one source of income, you will need to make a tax return each year regardless of how much.
Whoever does your taxes will work out the amount to pay as two single people and then as a couple. You will pay whichever is beneficial to you. If your wife has no, or very little, income then it is best to submit it as a married couple.
For example, gov pension 10000 a year, other pension 5000 a year. UK tax on government pension is zero as it falls within the allowance. Both incomes will be added together in Spain and the tax rate (between 19 and 24 percent for under a certain amount) will be applied. You will be taxed at that rate on the 5000 a year and not on the whole 15000.
As you have more than one source of income, you will need to make a tax return each year regardless of how much.
Whoever does your taxes will work out the amount to pay as two single people and then as a couple. You will pay whichever is beneficial to you. If your wife has no, or very little, income then it is best to submit it as a married couple.
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marcliff - Posts: 9694
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Re: Cost Of Living In Spain
by florimondo » Thu Jan 19, 2017 2:02 pm
ready766 wrote:well i comfortably live on my old age pension around 600 pounds a year. Mike
Goodness and I thought that I was frugal
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Re: Cost Of Living In Spain
by spanishmickey » Thu Jan 19, 2017 7:08 pm
You may also wish to consider the costs for a sudden trip back to the UK should a family member or close friend become seriously ill or even die.
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