rachelk

Hope someone can help me out here

I've been quoted a gross monthly salary (12 payments) of 2050€.

I'm told this will work out at about 1750€ net; however the online calculators I've tried have the actual net figure at just under 1600€. That's a pretty big difference.

I'm single, no kids, paying rent but no mortgage.

Would be very grateful if anyone who knows how these things work could tell me which of the 2 net figures is closer to the mark.

Thanks

Mitzyboy

Your allowances are here

http://www.spainaccountants.com/it.html

Personal allowance 5050 euros
Earnings related 2600 euros
Total allowances 7650 euros

Net 16950 euros pa

Think thats right anyway. If you are a Spanish resident you also have to pay wealth tax on your worldwide assets

rachelk

Thank you

So, I pay tax (at 18%?) on the 16950 but the other 7650 is not-taxed?

And I also pay about 110€ seguridad social?

[edited to say:]

I really don't get this! I've just read about a basic tax of 15% on the frist 4000€, plus 24% on the rest. That gives me the 1600€ figure I've been seeing. A long way short of the figure I was quoted.

Can anyone work out where the discrepancy is?

Fred James

You are looking at last years figures.

The allowances Mitzyboy quoted are the current figures (income earned in 2007)and they have increased quite a bit.

The downside is that the lower rate tax band has gone and you now start at 24% on the first 17360 of taxable income.

You can also deduct your social security contributions from your income.

On the basis of your figures your tax should be 3751/pa giving you a net monthly income of 1737 less the Social Security of 110 giving you 1627/mth.

I would check out exactly what your annual social security payments are and also check that you are not paid 14 times a year - many people are.

rachelk

Many thanks Fred, that's very helpful.

Sadly, it's definitely not 14 times per year.

sunnydee

Rachel
I will be earning about 2000 euros a month - after tax and social security I have been told I will take home 1594 euros a month. But I also get allowances for 2 children.
I think you can pay different amounts of social security depending on what you are covered for.
Fred probably knows more about this.

rachelk

Thanks, it all makes sense now. I've done the calculations with the new figures that Fred & Mitzyboy quoted and now understand where they come from.

The 1750€ is clearly wrong, unless they actually meant to place me on the next band. If only!

At least I know where I stand now and know what to ask them - would have been awful to turn up and suddenly realise the money was so much less than expected!