Talk Quesada forum

Good morning, any further news on reason for 300% increase ?
Also, what exchange rate being used ? This seems to vary from person to person which confuses me.

T.I.A.

It can vary as the increase could put one person into the next tax bracket but not the other

VMW wrote:Good morning, any further news on reason for 300% increase ?
Also, what exchange rate being used ? This seems to vary from person to person which confuses me.

T.I.A.

Thanks for response but I hear people have used different exchange rate and that can't be right.
I normally estimate my tax and am accurate within few euros but can't believe people can use different exchange rate.

My gestor told me the rate is dictated by the government on 1/1 each year!

Thanks Toonlass, that's my understanding too but some people seem to have used a different rate and I wondered if they'd changed their system or Gestor explaining the massive increase mentioned.

The Spanish Tax Office via the Government seys the rate of exchange for tax matters each year.

Cheers, but some people seem to use a, considerably, different xrate.

The Citizens Advice Bureau Spain publishes the official rates to be used sometime in May each year.

Reference Rate is the rate used for the year and, on 31/12/2021 it was 1.19007 with and average in the year of 1.16333

For the previous year on 31/12/2020 the reference rate was 1.11230 and the average rate was 1.1239.

The figures used for income tax and Modelo 720 this year was 1.19007.

These figures are provided by the Bank of Spain

You can check the annual rates to be used on this site CAB Exchange

Thanks Marcliff, I wondered if you'd resolved your massive interest along with the OP. I know people,who in your example, used the 1.16 figure and don't understand how it can be possible. I've used 1.19007 for my estimate and expect to be very close.

Did anyone who experienced, and questioned, massively increased assessments manage to resolve the issue ?

Did you get a reduced assessment or acceptable / justifiable explanation ?

Perhaps marcliff can update us on his personal findings.

t.i.a.