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Gas, water, electricity, rail travel... what's going up and what's going down in 2021
31 December 2020 @ 14:38

2021 will start as 2020 ended: with the cornavirus pandemic dominating the news. The COVID-19 crisis will carry on having a knock-on effect on the economy over the coming year. There will be good news and bad, so let’s take a look at some of the changes on the cards for our pockets in 2021:

Income tax to increase for highest earners

Income tax (IRPF) will increase by up to 3% - from 23 to 26% - for those who earn more than 200,000€, with those whose salaries exceed 300,000€ paying a further 2%. This measure will affect 36,194 taxpayers and bring 580€ million in revenue for the tax office in 2022.

Higher VAT on soft drinks

Next year's budget includes a VAT increase on fizzy and sweetened soft drinks from 10% to 21%.  As justification for this increase, the treasury has cited a need to promote a healthy lifestyle. Both the OECD and the European Commission have encouraged governments to limit reduced VAT levels for these types of products. The government expects to collect an extra 340€ million in 2021 thanks this measure. 

Higher tax on assets over 10€ million

Tax on assets will rise from 2.5 to 3.5% for fortunes of over 10€ million. Nevertheless, regional authorities have control over the collection or otherwise of this tax. In some regions, like Madrid, it is reimbursed 100%. 

Read more at thinkSPAIN.com

 



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