normaneddey

Hello,can anybody help me? went into an internet site re:spanish income tax,they state the allowances (for me-over 65) as 6,069 euros:it then goes on to an earned income allowance stating"earnings up to 9,180-4,080euros.I take that to mean a further allowance of 4,080? total 10,149? Is this correct,would welcome advise.

Rosemary

As Concierge for the Spanish section of BE I would like to say hello and welcome.

BE is a very large expat website, so if you have problems finding your way around we have concierges who will try to direct you. The moderators for the Spanish forums are Mitzyboy and Fred James, moderators are there to ensure that the site runs smoothly within the rules of BE. Problems and complaints should always be addressed to a moderador who will look into the matter and deal with it efficiently and fairly. Our members who post in the Spain Forums are friendly and helpful with a wealth of knowledge of the issues of living in Spain. At the top of the page you will find a quirkily named thread called Free Beer which is full of important and useful information. Hope you enjoy your time participating in the forums.

Please let me know if you need any further help.

Rosemary

Fred James

Yes, that's correct. The 4080 reduces on a sliding scale above 9180 to a minimum figure of 2652 when your income has increased to 13260

Porth

Here in France we are taxed as a couple and our individual income varies somewhat. In Spain is it please on an individual basis? For instance if your husband or wife here suffers from a maladie a longue duree you get 2.5parts to compensate.

Does the same apply in Spain please?

Fred James

You can choose, from year to year, whether you declare jointly or separately.

The program that works out your tax produces both options and you simply choose the better option.

If you choose to declare jointly, only one person gets the normal 5151 allowance, the other gets a reduced allowance of 3400. Both parties get age allowances if applicable and clearly there is only one general allowance of 4080.

Unless one party has a very low income it usually works out better to declare separately.

Porth

Thanks and as we are leaving mid-term in the French year as in April when please do we declare in Spain? And equally as we will be living in Javea would there be a local office?

rdgs

Fred James

You become tax resident when you have spent 183 days in one calendar year in Spain. You also become tax resident for the whole of that year.

Depending on the rules in your previous country it is possible that you could end up being tax resident in both countries (particularly the UK as it has a 90 day residency rule).

You declare in Spain by the end of June for income in the previous year.

You can do your declaration in various ways. You can pay someone to do it - anything up to €200 each. You can do it yourself using the same computer program that the gestors and the tax office use or you can go to your local tax office (with an appointment) and they will do it for you while you wait - you just take the relevant details of income with you.

Porth

Once more thanks and I do hope I am not boring anyone with the system here in France. However our income comes in monthly in £ and of course at varying rates between the £ and the euro. Some do the very diligent thing and treat the income in their hands on the day and then apply the exchange rate. Some rely upon local tax districts view as to the rate and others on the Banque de France rate.

Is there please a preferable route in Spain?

best wishes

Porth

Sorry is the computer programme in the public domain?

Fred James

It seems to be acceptable to take your entire foreign income and convert at the average rate for the year. On the other hand, if the income varies from month to month then you can use the rates applicable on the day the income was generated.

For pension income that is paid direct into my Spanish account I use the actual credited Euro amounts.

You download the computer program free from the AEAT website. It usually becomes available towards the end of March.

Porth

thanks for that perhaps I should employ an accountant?

Fred James

In your first year that might be a good idea. Once you have seen what an 11 page tax declaration looks like you will find it much easier to do yourself.

normaneddey

Thanks to Fred for that answer;that's quite good news,I think it will be beneficial for me to have my interest on UK savings paid gross and declared in Spain? I have only got my State pension to declare which is nowhere near the allowance stated(10,149euros) What does the forum think?

snikpoh

For the small amount we having in building societies (or banks) this is what we do. We then declare the interest here as normal.

Porth

As to interest on savings paid gross we have some savings with one of the remaining true Building Societies. They will not pay us gross and deduct tax at 20% and which we have to recover from HMRC and which takes months and months.

They say the HMRC rules are onerous and they will not subscribe to it is a pain in the backside.