bobd22

Yes but the allowance allowed before tax is not as high as the UK but I don't know specific amount

Joppa

Personal allowance under 65: 5,550 euro
65+: 6,700 euro
75+: 8,100 euro
In addition there are allowances for children, dependent elderly relative etc.

Fred James

On top of that there is an additional allowance introduced for low incomes.

The allowance is now €5565 and the band is increased and is now from €13115 to €16825. So if your income is below €13115 you get the full allowance. With an income between these two figures it is reduced pro-rata so that if your income is above €16825 you get nothing extra.

missile

Higher than UK tax allowance

Lynn R

Plus the €2000 general allowance against earned income which everyone gets, not mentioned by Joppa.

guirijohn

There are two definitions of tax residence: residence as defined in Spanish domestic law that determines whether you are liable to submit tax returns, file form 720 etc., and residency as defined for purposes of the Double Tax Agreement. The former is much wider and is posted below.. The latter is relevant when making a claim for relief from double taxation.


Individual resident in Spain

When is an individual considered a Spanish resident, and when is he or she a non-resident?

An individual is resident in Spanish territory when any one of the following circumstances apply:

They have stayed longer than 183 days in Spanish territory over the calendar year.In order to determine the permanence in Spanish territory, occasional absences are included, except if the taxpayer accredits their residency in another country.In the case of countries or territories labelled as tax havens, the Tax Administration can demand proof of stay in that tax haven over a period of 183 days within the calendar year.

They situate the main base or centre of their activities or economic activities, directly or indirectly, in Spain.

They have dependent not legally separated spouse and/or underage children who are usually resident in Spain.This latter situation accepts evidence to the contrary.

Individuals of Spanish nationality who accredit their new fiscal residence in a country or territory labelled as a tax haven will not lose their status as taxpayers for Individual Income Tax.This rule is of application during the tax period in which the change of residence occurs and for the next four tax periods.

Otherwise, where none of the previous situations applies, an individual is considered as non-resident in Spain.

https://www.agenciatributaria.es/AEA...n_Espana.shtml

steviedeluxe

If you're looking to teach English, maybe better to start via Skype/Zoom, and build up clients?
It's true that there is normally work in academies in the big cities like Madrid and Barcelona - but wages as an employee tend to be lower than you can earn as a self-employed teacher. But there, in order to get the lucrative business English contracts you have to go autonomo. The fees have been mentioned, but they can be offset against tax. The biggest danger is that earnings can be irregular. Even without a health scare you'll find classes cancelled at holiday and puente (long weekend) times. And getting customers between June and September is somewhat close to impossible.
Start building up your client base online now - I've heard the Chinese market is particularly lucrative (others may correct me here). And the more experience you gain, the more students you'll attract when you move to Spain.

Emmaandrichi

Hello, I am quite confused by these figures. If I have 7,000 euro in the bank (as is required for residency purposes) would I need to pay tax on it? It is not earnings, but savings which I will live off.

Fred James

No, you only pay tax on the actual interest on any savings.

Rorypens

Hi I don't understand that, I thought UK allowance was 12,500 GBP?