Recent posts re. +300% Renta

Just been told that Private Pensions no longer qualify for Tax Relief therefore the Personal Allowance is reduced from, for instance, 6700€ to 2000€ which will also make the 30% much more easily breached.

Anyone else finding this ?

We did our tax returns with our solicitor last week and both got refunds ,,,,,,he will be getting 18 cent, I’ll get 19 cent.

I think last year he had to pay 120€ and I had to pay 29€

They normally use the average over the tax year

Cheers 007

VMW wrote:Just been told that Private Pensions no longer qualify for Tax Relief therefore the Personal Allowance is reduced from, for instance, 6700€ to 2000€ which will also make the 30% much more easily breached

'Told' by whom exactly?

For the exchange rate there are only two ways and only one of those is 100% correct

1. You can use an officially published average.

2. You work out exactly how much you received in Euros converted using the ECB rate on the day you actually received the money.

I work it out both ways and use whichever is to my advantage, this year method two reduced my tax by €4 and some cents.

I've said this before and I'll say it again 300% means nothing without numbers attached, a rise from €10 tax in 2020 to €30 in 2021 is 300% and easily attributable to exchange rates, €1000 tax in 2020 to €3000 in 2021 is also 300% but cannnot possibly be down to the same thing!

Thanks,again, Darro. I take, and get, your points. The people who raised the 300% didn't clarify it so we're going round in circles. The comment about reduced Pension allowance proved to be incorrect.

Just a quick point about the allowances in Spain. The 2,000€ general tax allowance is taken off your income. Then your tax liability is calculated at whatever rates of tax you have to pay. Then your other allowances are calculated at the lowest rate of tax, that is 19%, and this amount is applied to reduce your tax liability. These other allowances are not taken off your income before the tax is calculated.
Example income 22,000€, less 2,000€ general allowance = 20,000€. Tax liability at say 23% = 4,600€. Personal allowance of 6,700€ applied at 19% = 1,273 therefore tax to pay 4,600-1,273= 3,327