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Tax pain in Spain

Tax pain in Spain

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Old Oct 8th 2013, 9:12 pm
  #91  
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Default Re: Tax pain in Spain

Originally Posted by jackytoo
There was an exodus of well-off Germans from the CDS some years ago when Germany changed it's tax regime re. second homes.

It was always the rule of tax in Spain that you should pay tax on all your worldwide assets and earnings. Whether people fully declared is another matter! What is different now are the punitive consequences of not declaring. Because they are counting pension funds etc. Directorships and shares in family Companies etc. many will have been brought into the Wealth Tax bracket even though their income may not be great. I know someone who owns shares in a family business wrth 1.3 million but as a non-participant in the business it only around 27,000pa.
Do you think they have the resources to do this though ?
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Old Oct 8th 2013, 9:21 pm
  #92  
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Default Re: Tax pain in Spain

Originally Posted by andyrich666
Do you think they have the resources to do this though ?
Probably not but who knows when people have declared like lambs to the slaughter. I had a CGT bill for around €25,000 equivalent in the 90's which I ignored and no pasa nada. However, there wasn't the computerisation as there is now.
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Old Oct 9th 2013, 5:03 am
  #93  
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Default Re: Tax pain in Spain

Originally Posted by jackytoo
Good point Fiona. Spain's debt is expected to reach 100% of GDP next year, someone has to pay for it.
Considering that at least 30% of the population is exempt from paying for it, the burden will be on those who have an income. And about 20% of those - the few who are lucky enough to prosper - will pay for the bulk of it.

No wonder they're taking their business elsewhere. You'd have to have a lot of confidence in the Spanish economy to be willing to jump into that prospect right now. Of course if you were able to get a 'special' deal and not have to take on the bulk of Spain's burdens....
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Old Oct 9th 2013, 7:48 am
  #94  
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Default Re: Tax pain in Spain

Originally Posted by amideislas
Considering that at least 30% of the population is exempt from paying for it, the burden will be on those who have an income. And about 20% of those - the few who are lucky enough to prosper - will pay for the bulk of it.
Never been any different, but never more so than in Spain. Plus it's reckoned about the equivalent of 25% of GDP is people working on the black, so difficult to catch them for any tax! So the obvious target are the minted guiris, you'll all have to have a word with the likes of Bárcenas, he'll tell you how to squirrel away your hard earned cash.
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Old Oct 9th 2013, 7:58 am
  #95  
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Default Re: Tax pain in Spain

If Spain is such a bad place to do business why is Ford increasing its production in Spain reducing its capacity in other EU countries ??
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Old Oct 9th 2013, 8:00 am
  #96  
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Default Re: Tax pain in Spain

Originally Posted by agoreira
Never been any different, but never more so than in Spain. Plus it's reckoned about the equivalent of 25% of GDP is people working on the black, so difficult to catch them for any tax!
It's estimated that 20% of UK GDP is people working on the black, so not that much difference really. The 5% difference is more than made up for by the UK's very generous benefits system. The same people on here say that Spain's only business sector is tourism, yet tourism only accounts for a few % points more in Spain than in the UK (11% vs 9%)

As for debt levels, Spain's are very similar to that of the UK's. It depends which way you look at the numbers

And of course Spain already has a PAYE system.

Last edited by cricketman; Oct 9th 2013 at 8:03 am.
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Old Oct 9th 2013, 8:19 am
  #97  
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Default Re: Tax pain in Spain

Originally Posted by jackytoo
Probably not but who knows when people have declared like lambs to the slaughter. I had a CGT bill for around €25,000 equivalent in the 90's which I ignored and no pasa nada. However, there wasn't the computerisation as there is now.
Which is what people are really upset about, isn't it - the fact that it is now so much easier, and will become much more so in the near future, for the authorities to detect people who ignore tax demands or fail to declare that which they should declare. And illustrates perfectly why the punitive sanctions have had to be introduced.
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Old Oct 9th 2013, 8:27 am
  #98  
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Default Re: Tax pain in Spain

Originally Posted by Lynn R
Which is what people are really upset about, isn't it - the fact that it is now so much easier, and will become much more so in the near future, for the authorities to detect people who ignore tax demands or fail to declare that which they should declare. And illustrates perfectly why the punitive sanctions have had to be introduced.
Yes, amazing that jackytoo admits to being a tax evader. That's maybe why she feels so well off
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Old Oct 9th 2013, 8:35 am
  #99  
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Default Re: Tax pain in Spain

Originally Posted by cricketman
Yes, amazing that jackytoo admits to being a tax evader. That's maybe why she feels so well off
It's even more amazing that someone can admit to being a tax evader themselves yet slag off the Spanish for doing the same, and slag off the Spanish Government for not providing benefits and public services to help its people (paid for through taxation, no?), and even slag off Hacienda for being useless at collecting tax!!!!
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Old Oct 9th 2013, 8:40 am
  #100  
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Default Re: Tax pain in Spain

Just a question, as many of these Spanish taxation laws will effect citizens of fellow EU states, have they been ratified by Brussels? I only ask because if a leading Islamic terrorist executed say, the king of Jordan on Sky TV, prior to fleeing to the UK, Brussels would no doubt hold up said terrorist leaders extradition to Jordan for a year or two.

Anyway, all our wealth, if that is what UK pensions, savings, property and investments is classed as, was earned and accumulated in the UK, who's taxation regime I'm familiar with. So call us old fashioned, but if any nation's tax-man is going to stuff us, it's going to be the UK's.
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Old Oct 9th 2013, 8:41 am
  #101  
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Default Re: Tax pain in Spain

Originally Posted by EMR
If Spain is such a bad place to do business why is Ford increasing its production in Spain reducing its capacity in other EU countries ??
Well, in Europe, it's individuals who pay the most tax. No doubt Ford negotiated a crackin tax deal or other goodies for putting more people on hook for taxes. You think Volkswagen pays much tax? Mercedes Benz? Porsche? Fiat? Not after threatening to move to greener pastures, which would effectively turn ordinary taxpaying employees into benefit consumers.

Germany or any other government can't afford to have more on the dole than above the tax line. If you're going to employ 10's of 1000's, you have a pretty big stick. Our governments can be pretty opaque when they need to.

Otherwise, I seriously doubt Ford or anyone else would have much incentive to pay through the nose for corporate taxes and high labour costs. They could do better elsewhere.

And regarding the black economy, well, as oppressive as taxes are, especially for those who have decent incomes, there's huge motivation to either avoid taxes, or stay below the tax line (black economy) if possible.

In fact, virtually every German pays a tax consultant to creatively minimise their tax burden. There's a Steuerberater on almost every street corner in Germany. Tax declarations in Germany are incredibly complex, and It's practically a requirement to have a professional sift through it all, or else ordinary people get slammed for as much as they can tax you for.

No doubt every German could therefore be considered a criminal tax evader for simply avoiding getting taxed into oblivion. In fact, the finanzamt assumes most Germans are tax avoiders, or evaders, and even engages in espionage to find it.

Tax: The more the merrier. After all, it's equally merry to spend it. And you're a criminal if you don't give it to us.

Last edited by amideislas; Oct 9th 2013 at 9:12 am.
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Old Oct 9th 2013, 8:51 am
  #102  
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Default Re: Tax pain in Spain

Originally Posted by Lynn R
Which is what people are really upset about, isn't it - the fact that it is now so much easier, and will become much more so in the near future, for the authorities to detect people who ignore tax demands or fail to declare that which they should declare. And illustrates perfectly why the punitive sanctions have had to be introduced.
So easy to reel in the green eyed ex-union posters

Evader or not bet hacienda had more out of me than some of you whingers!

Last edited by jackytoo; Oct 9th 2013 at 8:53 am.
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Old Oct 9th 2013, 8:55 am
  #103  
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Default Re: Tax pain in Spain

Originally Posted by EMR
If Spain is such a bad place to do business why is Ford increasing its production in Spain reducing its capacity in other EU countries ??
Because it's cheaper!
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Old Oct 9th 2013, 9:00 am
  #104  
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Default Re: Tax pain in Spain

Please allow me to attempt to make a point, let he or she who is totally without sin, stick the boot in first. Having paid cash in hand to window cleaners, gardeners etc; I don't feel qualified to hold the high morale ground.
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Old Oct 9th 2013, 9:06 am
  #105  
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Default Re: Tax pain in Spain

[QUOTE=crookesey;10936895]Just a question, as many of these Spanish taxation laws will effect citizens of fellow EU states, have they been ratified by Brussels? QUOTE]

Erm yes, they are being pushed through by Brussels!

There is nothing illegal about taxing worldwide income based on residence
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