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Working in Gibraltar - Living in Spain (Again!)

Working in Gibraltar - Living in Spain (Again!)

Old Feb 1st 2006, 6:13 pm
  #1  
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Default Working in Gibraltar - Living in Spain (Again!)

I understand that if you work in Gibraltar your wages are taxed at something like 40%.

What is the position with Spanish taxes if I live in Spain and work in Gibraltar. Aside from the usual council tax type bills, Am I likely to have to pay any income tax there as well?

Also in the short to medium term (up to 3 years)Could anyone advise me of any pro's and cons of renting a property as apposed to buying (apart from the obvious difference in cost). e.g Will I still be liable for the annual municipal wealth tax? Are tenancies resonably secure?

The plan is not to sell our property in the UK until we are absolutely sure that Spain is for us, give it a year or 2 then sell up and buy in Spain. Any advice gratefully received

Rick
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Old Feb 3rd 2006, 2:19 am
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Default Re: Working in Gibraltar - Living in Spain (Again!)

Gib tax...take 37% off as a general rule for wages between £20 & £28k per annum.

If you are Gibraltarian with kids you actually pay less tax than you would in the UK!

Spanish Tax is no better if you are single and earn in excess of É26k:

Euro from- To-IncomeTax Rate- NationalStateTax Rate- TotalTax Rate-Total
Nil 4,000 9.06% 5.94% 15.00% 600
4,000 13,800 15.84% 8.16% 24.00% 2,952
13,800 25,800 18.68% 9.32% 28.00% 6,312
25,800 45,000 24.71% 12.29% 37.00%13,416
Over 45,000 29.16% 15.84% 45.00%

Taxes vary in the Basque Country, Navarra and in certain other communities


Personal Allowances for Spanish income tax- minimo personal

General PA 3,400 euro
Age PA (65+) 4,200 euro (75+) 5,200 euro
Disabled PA 2,000 - 6,200 euro depending on degree of incapacity

Child allowance

First child - 1,400 euro
Second child - 1,500 euro
Third child - 2,200 euro
Fourth child - 2,300 euro

Elderly relative living with family whose income is less than 8,000 euro pa:

65+ 800 euro
75+ 1,000 euro

Maternity allowance (Reduccion por cuidado de hijos)

1,200 euro pa per child for working mothers with children under three.

Earnings related Personal Allowance (for employees)

Earnings not more than 8,200: 3,500 euro
Earnings 8,200 to 13,000: 3,500 - 22.91% (Earnings - 8,200)
Earnings 13,000 + : 2,400 euro
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Old Feb 3rd 2006, 5:00 am
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Default Re: Working in Gibraltar - Living in Spain (Again!)

Wow Britbull loads of info !!

Thanks for that I shall get my calculator out.

Any comments on the renting vs buying arguement?
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Old Feb 3rd 2006, 5:03 am
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Default Re: Working in Gibraltar - Living in Spain (Again!)

if you earn over £32k in Gib take off 45% as tax.
Social Insurance in Gib is £20.75 per week on top of income tax.
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Old Feb 3rd 2006, 7:03 am
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Default Re: Working in Gibraltar - Living in Spain (Again!)

No probs m8.

I have rented for many years and have been renting in Spain since arriving.
I think this would most certainly be your best option, at least for the initial 12 months whilst you settle and decide what is best for you.

Rentals here are in abundance and if you shop around you can bargain for a great deal in some nice areas.
Lease agreements will probably be in Spanish so get it checked but ours have been pretty standard and solid.
One thing to bear in mind is the 2 months deposit and 1 month rent up from on receipt of the keys which can get pricey, plus the fact that certain landlords/ladies take it upon themselves to return only part of a deposit on departure claiming expenses such as final cleaning, change of locks, dirty curtains etc....but this can happen in any country.
One way to avoid this, if you are suspicious of a dodgy owner, is to miss the final months payment (or 2 months of you can stall long enough) then simply move out and leave the keys.

Last edited by BritBull; Feb 3rd 2006 at 7:07 am.
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Old Feb 3rd 2006, 7:05 am
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Default Re: Working in Gibraltar - Living in Spain (Again!)

Originally Posted by mka2
if you earn over £32k in Gib take off 45% as tax.
Social Insurance in Gib is £20.75 per week on top of income tax.
:scared: I guess i'd better enquire further into my upcoming pay increase as it seems I could be going from 36.5% up to and over 45%.....
That is ridiculous
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Old Feb 3rd 2006, 7:08 am
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Default Re: Working in Gibraltar - Living in Spain (Again!)

Originally Posted by BritBull
:scared: I guess i'd better enquire further into my upcoming pay increase as it seems I could be going from 36.5% up to and over 45%.....
That is ridiculous
i cant remember the amount but once you hit a certain wage you can register as Cat3 which is meant to be better tax wise. i dont earn enough for that so don't know the details.
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Old Feb 3rd 2006, 7:09 am
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Default Re: Working in Gibraltar - Living in Spain (Again!)

Originally Posted by mka2
i cant remember the amount but once you hit a certain wage you can register as Cat3 which is meant to be better tax wise. i dont earn enough for that so don't know the details.
Will certainly enquire further m8.
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Old Feb 3rd 2006, 8:25 pm
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Default Re: Working in Gibraltar - Living in Spain (Again!)

Originally Posted by mka2
if you earn over £32k in Gib take off 45% as tax.
Social Insurance in Gib is £20.75 per week on top of income tax.

MKA2 Whats the social insurance? Is this still payable if you don't live in Gib? Probably looking at living in Spain
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Old Feb 4th 2006, 1:22 am
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Default Re: Working in Gibraltar - Living in Spain (Again!)

Originally Posted by rickstevens
MKA2 Whats the social insurance? Is this still payable if you don't live in Gib? Probably looking at living in Spain

social insurance is like NI is in the uk. i work in Gib but live in spain but pay it. although i do need to question my HR dept whether or not i should be paying it.
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Old May 15th 2006, 9:14 pm
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Default Re: Working in Gibraltar - Living in Spain (Again!)

Good god, sound likes taxes are higher her than in Germany or Belgium. My wife is a top wage earner (over 70K in euros) and she gets 68% of her gross, I don't work. As a single person she'd lose 45 - 50 percent.

Our concern is that they offered her a position here and she will have to accept a wage that is in between German and Spanish rates. Wouldn't be a problem if the tax bite were lower but if its several points higher ouch.

If I've done it right based on a wage of 75.000 euros (average for a manager in Germany) the tax bite alone would be 37.180 or 50% plus social security payments.

Ouch!!!!!!

That means that if we move here Chris would lose 50 to 60 percent of her pay, that doesn't sound right.

I've been told that the bike from your pay cheque is about 15-25% on the high end.

Been also checking out the cost of living, somethings are cheaper but overall I'd put the cost of living at about 95% of Germany.
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Old May 15th 2006, 10:43 pm
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Default Re: Working in Gibraltar - Living in Spain (Again!)

I worked freelance in Belgium for 3 years and yes the taxes here are indeed higher, it's a nightmare.

Working in Gib I work until Wednesday morning before I begin to line my own pocket...
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Old May 15th 2006, 11:35 pm
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Default Re: Working in Gibraltar - Living in Spain (Again!)

Do they make allowances for dependants?

Manger Germany with dependents gross 75.000 net 51.600 or 4300 per month

Spain:

up to 45.000 = 23.280

45.000 to 75.000 = 30.000 @ 45% = 13.500

total 36.780

75.000 -36.780 = 38,220 or 3.185 net (plus another 10% for social taxes) say 3.000 per month net.

Good god I never thought of Germany as a tax haven.

I don't think they're going to get anyone to move, good weather goes only so far.
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Old May 15th 2006, 11:58 pm
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Default Re: Working in Gibraltar - Living in Spain (Again!)

Originally Posted by BritBull
No probs m8.



Rentals here are in abundance and if you shop around you can bargain for a great deal in some nice areas.
, plus the fact that certain landlords/ladies take it upon themselves to return only part of a deposit on departure claiming expenses such as final cleaning, change of locks, dirty curtains etc....but this can happen in any country.
One way to avoid this, if you are suspicious of a dodgy owner, is to miss the final months payment (or 2 months of you can stall long enough) then simply move out and leave the keys.
Its the same in Germany and I give the same advice, skip the last 2 payments claiming poverty.
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Old May 16th 2006, 12:18 am
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Default Re: Working in Gibraltar - Living in Spain (Again!)

Originally Posted by tim hortons man
Do they make allowances for dependants?

Manger Germany with dependents gross 75.000 net 51.600 or 4300 per month

Spain:

up to 45.000 = 23.280

45.000 to 75.000 = 30.000 @ 45% = 13.500

total 36.780

75.000 -36.780 = 38,220 or 3.185 net (plus another 10% for social taxes) say 3.000 per month net.

Good god I never thought of Germany as a tax haven.

I don't think they're going to get anyone to move, good weather goes only so far.
Yes:

Child allowance

First child - 1,400 euro
Second child - 1,500 euro
Third child - 2,200 euro
Fourth child - 2,300 euro
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