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.

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

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.

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.

Hi Chrisdee, would it be ok to ask which solicitors you use to work out your tax returns and the cost please.

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.

Thanks for the reply. All advice is gratefully received.

We use Fontanals and it's all sorted for 180 euros for both of us.

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.

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