First time Spanish tax payer

Just require a little reassurance. This is my first year for tax assessment in Spain. I've always been under the impression that my private pension may be subject to tax and also any interest earned on my savings. I also believed that I could claim some tax relief for my wife who currently has no income. I'm about to submit all the necessary paperwork to our solicitors but have been told by a long term resident that I can't claim any tax relief for my wife as our savings are in joint names. Also that all our savings are taken into account when calculating the tax, not just the interest earned. Is this correct.

Tax will include your Oh income,if any...

The tax allowance for the first person is around €5600 with an added age allowance for over 65s and the second person gets an allowance of around €3500. So yes your wife has an allowance. Interest on savings and assets is taxed at different bands. This article from Expatica should help you understand the Spanish Tax system. As with all tax systems all income is totalled and applied at a particular % rate and then your allowances are deducted and you arrive at your final tax bill.

https://www.expatica.com/es/finance/tax ... in-471614/

Bee

Thanks for the replies. Is it the interest earned on savings or all your savings that are taxed.

Only the interest

Thank you. That's eased my mind. I have no income bar company pension and savings. So taxing all of the savings would be scary.

There is a wealth tax too if the value of your total worldwide savings and other assets is very high. Details on the attached from Pellicer & Heredia lawyers.

Thank you, I won't have to worry about that

Brewingdog wrote:Thank you, I won't have to worry about that

OK good! It sometimes catches people unawares if they still have property in the UK. Further reading, however, suggests it may have been all but repealed in Valencia for 2024 anyway.