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Sunday, April 13, 2008

scampi
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I am hoping to relocate at the end of the year and wonder what the rates abd allowances are for earned and unearned income. Can anyone help?



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14 Apr 2008 7:54 AM

EOS Team
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Hopefully this is what you are looking for:

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

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14 Apr 2008 8:16 AM

scampi
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I'm in London & Alfaix nr. Los Gallardos, Almeria

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Thank you - very helpful  looks as if for my pension income it may be cheaper to let the UK tax it!!



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19 Apr 2008 7:58 AM

jane b
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Hi Scampi

Unfortunately it is not that simple - if you are a resident (and technically you are if you spend more than 183 days a year here regardless of whether you have registered as a resident) you are obliged by law to make a declaration in Spain of all your worldwide income.  Your liability in Spain is then assessed and they deduct tax already paid in UK from what you would owe and you pay the balance in Spain.  If you would have paid less in Spain, unfortunately they do not give you a refund.  However if your UK income is anything other than a Civil Service or Forces pension then you can apply to the Inland Revenue in UK to have it paid gross and then it all falls into the Spanish system.  We take the view that we don't use any services in UK and therefore we prefer Spain to have all the tax due, but it has taken us the best part of two years to get all the forms processed - they seem to delight at holding it all up at the Centre for Non Residents in UK.



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19 Apr 2008 8:14 AM

scampi
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I'm in London & Alfaix nr. Los Gallardos, Almeria

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Hi - Yes i understand this now. My teacher's pension will be taxed in the UK - which is fine as they transfer it at commercial rates into spanish bank account. BTW hpe to be in my house in alfaix in august for a few weks and then more permanently from next January. i can hardly wait!





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