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!

Joint Income Tax Returns

Joint Income Tax Returns

Postby marcliff » Sun May 02, 2021 8:02 pm

The Spanish gov is seriously thinking of abolishing joint income tax returns for married couples. This would get rid of the €3,400 tax allowance for married people under the guise of "equality".

They say it lessens the odds of a (generally) a woman joining the jobs market and would encourage more of them to find work.

This allowance currently affects around 4.2 million families and is worth in the region of 2.3 billion euros.

It will mean the main earner will just have the basic tax allowance but this will be available to both earners if they are both working.

The economy and treasury department has said this will be a gradual implementation and will not happen overnight but concern has been shown by what the papers are calling middle class and working class families who have already been hit by several new taxes including the tax on sugary drinks, the green taxes, the tax on insurance policies and the increase in transfer taxes although the last one is a regional tax, not a national one.
User avatar
marcliff
 
Posts: 9694
Joined: Sat Mar 03, 2012 4:41 pm
Location: Doña Pepa 2
Which part of Spain are you from?: Dona Pepa 2
Gender: Male

Re: Joint Income Tax Returns

Postby Chrisdee » Sun May 02, 2021 8:16 pm

How would that affect married couples who are pensioners and don't work?
User avatar
Chrisdee
 
Posts: 12208
Joined: Sun Jul 31, 2016 12:36 pm
Which part of Spain are you from?: Torrevieja
Gender: Female

Re: Joint Income Tax Returns

Postby marcliff » Sun May 02, 2021 8:30 pm

Chrisdee wrote:How would that affect married couples who are pensioners and don't work?



You will both have to submit individual tax returns. At the moment, my solicitor prepares two tax returns, one individually and one joint. They submit the one that is better for me.

Now this says it will be phase in gradually (no idea how long that will be) but maybe pensioners will be the last to be affected as neither (in most cases) will go out to work.
User avatar
marcliff
 
Posts: 9694
Joined: Sat Mar 03, 2012 4:41 pm
Location: Doña Pepa 2
Which part of Spain are you from?: Dona Pepa 2
Gender: Male

Re: Joint Income Tax Returns

Postby Chrisdee » Sun May 02, 2021 8:37 pm

That's exactly how our solicitor does ours, works out the best way for us. All good fun.

marcliff wrote:
Chrisdee wrote:How would that affect married couples who are pensioners and don't work?



You will both have to submit individual tax returns. At the moment, my solicitor prepares two tax returns, one individually and one joint. They submit the one that is better for me.

Now this says it will be phase in gradually (no idea how long that will be) but maybe pensioners will be the last to be affected as neither (in most cases) will go out to work.
User avatar
Chrisdee
 
Posts: 12208
Joined: Sun Jul 31, 2016 12:36 pm
Which part of Spain are you from?: Torrevieja
Gender: Female

Re: Joint Income Tax Returns

Postby Brewingdog » Mon May 03, 2021 12:20 pm

Hi Chrisdee, would it be ok to ask which solicitors you use to work out your tax returns and the cost please.
Brewingdog
 
Posts: 469
Joined: Sat Oct 12, 2019 4:58 pm
Which part of Spain are you from?: Salford
Gender: Male

Re: Joint Income Tax Returns

Postby Chrisdee » Mon May 03, 2021 1:02 pm

Hi, we use a company called PSB in Torrevieja centre. We dont pay as such because we pay around 1 or 2 hundred a year retainer and get little benefits
Like them doing the tax, legal advice, different things.

The
Brewingdog wrote:Hi Chrisdee, would it be ok to ask which solicitors you use to work out your tax returns and the cost please.
User avatar
Chrisdee
 
Posts: 12208
Joined: Sun Jul 31, 2016 12:36 pm
Which part of Spain are you from?: Torrevieja
Gender: Female

Re: Joint Income Tax Returns

Postby Brewingdog » Mon May 03, 2021 2:55 pm

Thanks for the reply. All advice is gratefully received.
Brewingdog
 
Posts: 469
Joined: Sat Oct 12, 2019 4:58 pm
Which part of Spain are you from?: Salford
Gender: Male

Re: Joint Income Tax Returns

Postby carolandgraeme » Mon May 03, 2021 4:49 pm

We use Fontanals and it's all sorted for 180 euros for both of us.
carolandgraeme
 
Posts: 158
Joined: Tue Aug 16, 2016 7:58 pm
Which part of Spain are you from?: Benimar
Gender: Female

Re: Joint Income Tax Returns

Postby marcliff » Mon May 03, 2021 5:37 pm

Probably because of the elections coming up in Madrid but the opposition party has voiced concern about the loss of income that would affect many if the joint tax returns were abolished.

The government finance minister has now said the cancellation of this procedure had not been brought in but hummed and hahhed over whether it was a plan that had been submitted to Brussels as a way of increasing the income tax take in Spain.

The opposition has now asked Brussels if they have indeed received this plan as a genuine proposal.
All opposition parties seem to be against this and say that they have raised the question in the EU parliament.

The spokeswoman on Monday showed her " concern " about the "intention" of the Spanish Government to suppress a tax aid for those who file personal income tax returns jointly, reports Servimedia.
User avatar
marcliff
 
Posts: 9694
Joined: Sat Mar 03, 2012 4:41 pm
Location: Doña Pepa 2
Which part of Spain are you from?: Dona Pepa 2
Gender: Male

Re: Joint Income Tax Returns

Postby marcliff » Tue May 04, 2021 4:36 pm

Chrisdee wrote:How would that affect married couples who are pensioners and don't work?



To answer your question, Chrisdee, ElMundo has come up with the figure that a retired couple with an income of 18,000 euro would be 1,000 worse off.

It also points out the "plan" that this would enable more married women to seek work would not be applicable to pensioners.

Real case: the blow to joint taxation would cost a thousand euros to a retired couple with a pension of 18,000 euros

The plan sent to Brussels does not exclude retirees from the setback, although it would not serve to activate them in the search for employment as the measure intends
User avatar
marcliff
 
Posts: 9694
Joined: Sat Mar 03, 2012 4:41 pm
Location: Doña Pepa 2
Which part of Spain are you from?: Dona Pepa 2
Gender: Male

Next






  • Similar Topics
    Replies
    Views
    Last post

Return to Taxes in Spain: Suma, NIE and general tax advice

 
 

Who is online

Users browsing this forum: No registered users and 1 guest

Login
Username:


Password:


Remember me


Forgot password?

Register now

Find in Quesada
What are you looking for in Quesada?: