Join Talk Quesada
Welcome to Talk Quesada! My name's Alex and this is my website all about Ciudad Quesada in Spain. Talk Quesada is free to sign up and use so register below!
Advice on living in Spain, moneywise
Re: Advice on living in Spain, moneywise
by RJC » Sat Apr 20, 2024 8:05 pm
Presumably, these are the tax bands after allowances have been deducted from income received.
To complete the picture, do you have the main allowances?
To complete the picture, do you have the main allowances?
-
RJC - Posts: 650
- Joined: Sun Jun 28, 2020 1:31 pm
- Gender: Male
Re: Advice on living in Spain, moneywise
by Paul Uden » Sat Apr 20, 2024 8:29 pm
Bee wrote:I took the €22000 from Costa Luz Lawyers so I am sure it is correct. The income must be just from one source i.e one pension. As I read it if the income is from different sources i.e a private pension and the state pension and rental income then it is back to the normal tax bands starting at income tax band of up to €12450 and on up through the different bands.
Currently the Spanish income tax rates are as follows:
Spanish income tax for incomes up to €12,450: 19%
Spanish income tax for incomes ranging from €12,451 to €20,200: 24%
Spanish income tax for incomes ranging from €20,201 to €35,200: 30%
Spanish income tax for incomes ranging from €35,201 to €60,000: 37%
Spanish income tax for incomes ranging from €60,000 to €300,000: 45%
Spanish income tax for incomes over €300,000: 47%
The Andalucia Forum is very good on tax matters. This is their Faq on Income tax. You might glean an extra bit of information from it.
https://www.andalucia.com/forums/viewto ... 42&t=27576
Bee
I still think Bee that the paragraph in your link, referring to the €22000, is all about "legal employment".
Later the blog states: "You can see from this that apart from some wage earners almost everyone else is obliged to make a tax declaration". No mention of pensioners.
Unless we have some members on here who can confirm that they never submit an income tax return, I can't see people who rely solely on one pension being exempt. There must be a very large number of pre-Brexit pensioners, and native Spaniards, who receive less than €22000 per year from one source and they would be able to confirm one way or the other. I am happy to be shown otherwise as I am not 100% on this, it's just what I had previously understood.
-
Paul Uden - Posts: 1576
- Joined: Sat Feb 01, 2014 12:09 am
- Location: Rojales
- Which part of Spain are you from?: Ciudad Quesada
- Gender: Male
Re: Advice on living in Spain, moneywise
by Paul Uden » Sat Apr 20, 2024 8:34 pm
RJC wrote:Presumably, these are the tax bands after allowances have been deducted from income received.
To complete the picture, do you have the main allowances?
The main ones are listed in Bee's link.
-
Paul Uden - Posts: 1576
- Joined: Sat Feb 01, 2014 12:09 am
- Location: Rojales
- Which part of Spain are you from?: Ciudad Quesada
- Gender: Male
Re: Advice on living in Spain, moneywise
by Bee » Sat Apr 20, 2024 9:58 pm
I don't know the answer Paul. I think the Spanish State Pension is now €1386 per month x 14 months €19404p.a plus the extra payment for a dependent spouse so the €22000 doesn't look too far out. The full state retirement pension is quite good by other country standards. I do see articles about some Autonomous Communities having different less generous pension payments so are the Moncloa figures guidelines and is it up to each Autonomous Community to decide their own.
To RJW the allowances are in the Andalucia Forum link
https://www.andalucia.com/forums/viewto ... 42&t=27576
Bee
To RJW the allowances are in the Andalucia Forum link
https://www.andalucia.com/forums/viewto ... 42&t=27576
Bee
Last edited by Bee on Sun Apr 21, 2024 3:58 pm, edited 1 time in total.
- Bee
- Posts: 3349
- Joined: Sun Dec 10, 2017 1:07 am
- Which part of Spain are you from?: Torrevieja
- Gender: Female
Re: Advice on living in Spain, moneywise
by Darro » Sun Apr 21, 2024 2:30 am
From your link Bee and where I think you're tripping yourself up:
"If you are in legal employment you will normally pay the Spanish equivalent of PAYE. If your income is under €22000 and from only one source you are not required to declare but it may be advantageous to do so."
That does not say or mean that no tax is due under that level of income simply that, because of being on a PAYE scheme where tax has already been paid, a separate declaration is neither required nor necessary.
The bottom line is that, save for potential benefits due to age or disability, the tax thresholds, allowances, and rates, are the same for all.
For Paul: My wife is on a low income with just her state pension and after submitting her first return (necessary both to get into the tax system and qualify for free prescriptions) each year since when accessing the tax return web page has been greeted with "No Obligado".
"If you are in legal employment you will normally pay the Spanish equivalent of PAYE. If your income is under €22000 and from only one source you are not required to declare but it may be advantageous to do so."
That does not say or mean that no tax is due under that level of income simply that, because of being on a PAYE scheme where tax has already been paid, a separate declaration is neither required nor necessary.
The bottom line is that, save for potential benefits due to age or disability, the tax thresholds, allowances, and rates, are the same for all.
For Paul: My wife is on a low income with just her state pension and after submitting her first return (necessary both to get into the tax system and qualify for free prescriptions) each year since when accessing the tax return web page has been greeted with "No Obligado".
- Darro
- Posts: 1346
- Joined: Tue Sep 21, 2021 12:51 pm
- Which part of Spain are you from?: Catral
- Gender: Male
Re: Advice on living in Spain, moneywise
by Paul Uden » Sun Apr 21, 2024 6:32 am
Darro wrote:From your link Bee and where I think you're tripping yourself up:
"If you are in legal employment you will normally pay the Spanish equivalent of PAYE. If your income is under €22000 and from only one source you are not required to declare but it may be advantageous to do so."
That does not say or mean that no tax is due under that level of income simply that, because of being on a PAYE scheme where tax has already been paid, a separate declaration is neither required nor necessary.
The bottom line is that, save for potential benefits due to age or disability, the tax thresholds, allowances, and rates, are the same for all.
For Paul: My wife is on a low income with just her state pension and after submitting her first return (necessary both to get into the tax system and qualify for free prescriptions) each year since when accessing the tax return web page has been greeted with "No Obligado".
OK thanks. I guessed that the salaried employees, and possibly Spanish pensioners too, would pay their income tax through PAYE. This wouldn't apply to UK state pensioners and I'd be gobsmacked if anyone else with an income as high as €22k could legally avoid tax by simply not declaring. The circumstances of your wife I had not heard of, but I can believe that a declaration would not be obligatory for a 'low income' however that may be defined - much lower than €22k I assume. If she was to start receiving income above the threshold from a second source, such as bank interest, which many others must do, she would then need to declare it voluntarily I suppose. In the UK many low earners are reportedly now having to pay tax as a result of the personal allowances not keeping up with earnings inflation, including state pensioners who have received increases totalling circa 18% in the past two years. In any case it is best for anyone new to the system to consult an accountant as it can get complicated.
-
Paul Uden - Posts: 1576
- Joined: Sat Feb 01, 2014 12:09 am
- Location: Rojales
- Which part of Spain are you from?: Ciudad Quesada
- Gender: Male
Re: Advice on living in Spain, moneywise
by mondo » Sun Apr 21, 2024 7:00 am
Sounds to me like a good Spanish financial advisor would be worth the money..
..
..
- mondo
- Posts: 2788
- Joined: Thu Jul 03, 2014 9:05 am
- Which part of Spain are you from?: Benimar
- Gender: Male
Re: Advice on living in Spain, moneywise
by Darro » Sun Apr 21, 2024 8:54 am
Actually Paul for many the net pension increase has been more than 18% and that's because the headline triple lock figure applies only to the basic state pension whereas in fact the SERPS or graduated pension elements also increase, albeit under different formulas.
My increase works out to 9% and my wife's 9.1%.
My increase works out to 9% and my wife's 9.1%.
- Darro
- Posts: 1346
- Joined: Tue Sep 21, 2021 12:51 pm
- Which part of Spain are you from?: Catral
- Gender: Male
Re: Advice on living in Spain, moneywise
by Paul Uden » Sun Apr 21, 2024 9:19 am
Darro wrote:Actually Paul for many the net pension increase has been more than 18% and that's because the headline triple lock figure applies only to the basic state pension whereas in fact the SERPS or graduated pension elements also increase, albeit under different formulas.
My increase works out to 9% and my wife's 9.1%.
Interesting. So there's a chance some of the 'no obligado' people will fall into the tax bracket at some point. I wonder how they are alerted to their crossing the threshold if they don't normally declare. They could be illegally evading tax without knowing it. I know my wife's tax liability here increased hugely when she started receiving her state pension (on top of other existing passive incomes).
-
Paul Uden - Posts: 1576
- Joined: Sat Feb 01, 2014 12:09 am
- Location: Rojales
- Which part of Spain are you from?: Ciudad Quesada
- Gender: Male
Re: Advice on living in Spain, moneywise
by Bee » Sun Apr 21, 2024 9:50 am
Yes Paul it was the "income from more than one source" and how it affected the calculation of your tax liability that I found puzzling. It is difficult to know the Spanish tax system when you are not familiar with it. Using our own tax system the personal tax allowances are set so that those on State Pension are kept outside the tax income and similarly with those on minimum wage. Spain looks to me to be quite similar. The Communidad Valenciana is considered to be one of the best autonomous communities where tax allowances are concerned. As with all tax you need the services of a professional be that Accountant, Gestor or the Tax Office itself to set you straight and the Tax Office are quite good on helping people and they come with their mobile office every year to Torrevieja, but if you don't speak Spanish that is no good to you. These professional people are dealing with the tax system and how it operates on a daily basis.
Bee
Bee
- Bee
- Posts: 3349
- Joined: Sun Dec 10, 2017 1:07 am
- Which part of Spain are you from?: Torrevieja
- Gender: Female
Page 2 of 5 • 1, 2, 3, 4, 5
41 posts
• Page 2 of 5 • 1, 2, 3, 4, 5
Related topics
-
- Similar Topics
- Replies
- Views
- Last post
-
-
Living the Dream; Avoiding isolation in Spain.
by Upstream » Fri Nov 24, 2023 12:30 pm in Quesada general discussion - 2
- 428
-
by nnejy
Fri Nov 24, 2023 6:42 pm
-
Living the Dream; Avoiding isolation in Spain.
-
-
living room closet
by Edje » Fri Sep 15, 2023 8:06 pm in Items for sale in Quesada and surrounding areas - 0
- 161
-
by Edje
Fri Sep 15, 2023 8:06 pm
-
living room closet
-
-
Obtaining empadronamiento (Living in Algorfa)
by Expat in Quesada » Mon Jun 19, 2023 12:09 pm in Residency in Spain: padron, residencia and passport advice - 7
- 609
-
by Expat in Quesada
Tue Jul 04, 2023 3:37 pm
-
Obtaining empadronamiento (Living in Algorfa)
-
-
Living Room unit wanted
by Sunshine&Showers » Tue Sep 19, 2023 3:19 pm in Items for sale in Quesada and surrounding areas - 1
- 115
-
by Nesso
Thu Sep 21, 2023 9:48 am
-
Living Room unit wanted
-
-
Living Room unit wanted
by Sunshine&Showers » Sun Mar 17, 2024 3:18 pm in Items for sale in Quesada and surrounding areas - 0
- 74
-
by Sunshine&Showers
Sun Mar 17, 2024 3:18 pm
-
Living Room unit wanted
Return to Quesada general discussion
Who is online
Users browsing this forum: Bing [Bot], Google [Bot] and 108 guests
Login
Find in Quesada
Quesada pages
Quesada discussion
- Quesada general discussion
- Banking and finances
- Broadband, Wifi, Phone and TV
- Buses and public transport in and around Quesada
- Driving to Spain / Car hire in Spain / Buying and owning a car in Spain
- Fiestas in Quesada
- Flights, baggage and airports
- Health services in Quesada
- Insurances and wills in Spain
- Items for sale and wanted in and around Quesada
- Interesting articles about Spain
- Jobs and careers in Quesada
- Lost and found in Quesada
- Market days
- Places to go for free Wi-Fi
- Recommended restaurants / cafes / bars
- Recommended Tradesmen and Companies
- Residency in Spain: padron, residencia and passport advice
- Safety / security information and property in Spain hints and tips
- Taxes in Spain: Suma, NIE and general tax advice
- Taxis in Quesada
- Things to do and places to go in and around Quesada
- Utilities in Spain: Electric, gas and water recommendations and advice
- Weather in Quesada
- Where to buy things in and around Quesada
- Where to hire things in and around Quesada
Properties discussion
Businesses and places in Quesada
- Bars and pubs in Quesada
- Beaches near Quesada
- Beauticians / Beauty salons in Quesada
- Bedding and soft furnishings shops in Quesada
- Butchers in Quesada
- Car dealers in Quesada: new and used car dealers
- Car garages, mechanics, tyre fitter centres in Quesada
- Car hire in Quesada
- DIY / Bricolage / Ferreteria stores in Quesada
- Equipment hire centers in Quesada
- Estate agents in Quesada
- Furniture shops in Quesada
- Garden centres and garden furniture shops in Quesada
- Golf Courses in Quesada
- Grills / gates / metal items shops in Quesada
- Hairdressers in Quesada
- Hotels, guest houses and bed and breakfasts in Quesada and nearby
- Internet service providers that cover Quesada
- Launderettes / dry cleaners in Quesada
- Markets in Quesada
- Medical / Health centers in Quesada
- Pet shops in Quesada
- Pharmacies / Chemist shops in Quesada
- Restaurants in Quesada
- Shopping centres in Quesada
- Sports centres and gyms in Quesada
- Supermarkets in Quesada
- Swimming pool services in Quesada
- Town Halls (Ayuntamientos) in Quesada
- Waterparks/Aquaparks in Quesada
- TalkQuesada » Board index
- The team • Delete all board cookies • All times are UTC [ DST ]
- Our other websites:
- Costa Blanca forum
- Costa Calida forum
- Costa del Sol forum
- Costa de Almeria forum
- Costa de la Luz forum
- Costa Dorada forum
- Costa Brava forum
- UK forum
- Jobs in the UK
- Our policies:
- Privacy policy
- User agreement
- Content policy
- Website created and operated by JSM Forum Websites