Rise in income tax

Post reply   Start new thread
:: New - Old :: Old - New

Pages: 1 | 2 | Next |

Forum home :: Latest threads :: Search forums
The Comments
06 Jun 2013 18:51 by camposol Star rating in Camposol. 1408 posts Send private message

I have heard several people say that their annual declaratioin has considerably increased by as much as 30%! Someone commented that the exchange rate used is 1.23euro to the pound. If so, what a cheek! It's been approx 1.17 for some time. Haven't heard what ours will be yet, but it sounds ominous.





Like 0      
06 Jun 2013 20:07 by Kathyslad Star rating. 329 posts Send private message

The average rate for 2012 was 1.2332, so you will find this is the rate your gestoria is using. You can use actual exchange rates on the day of receipt, even if you don't convert your sterling on the day but if you use a gestoria, they normally use the average. Having said that, when I worked my average out, using the rates on receipt, it wsa more or less the same as the average.

In terms of tax rates, the temporary ( for 2012,2013 and 2014) increases will apply. For taxable income upto €17,007 it's 24.75% ( up from 24%). The next €16,000 is at 30% (up from 28%), ad so on, upto an extra 7% if you earn over €300,000.

In addition, savings income has gone up from 19% to 21%.



Like 0      
07 Jun 2013 08:27 by Acapulco Star rating in Costa Blanca South.. 342 posts Send private message

Acapulco´s avatar

 I got a shock yesterday as well. My tax went up from 1100 euros to 1600 euros.This is over 10% of my annual income. The increase just about matches the rise in pension  we had that year. This is most frustrating when i know so many people who are living over here but paying no tax at all.



_______________________

If you're going through hell keep on going, you might get out before the devil even knows you're there.

 




Like 0      
07 Jun 2013 09:24 by elaineG Star rating in Spain . 409 posts Send private message

I agree with Kathslad.
 
 I have a friend who was complaining that 1.2353 euros to the pound was much higher than the actual exchange rate in 2012.
I did an historical search for the year and found that for 7 months the rate was in fact above 1.2353 
 
This is the web page for the official exchange rates for 2012 http://www.boe.es/boe/dias/2013/01/03/pdfs/BOE-A-2013-104.pdf
 
(The table is pounds  etc to the Euro, So to get euros to the pound    100 ÷  .8161 ÷ 100 = 1.2353





Like 0      
07 Jun 2013 10:19 by marcbernard Star rating in Marina Alta; Alicant.... 253 posts Send private message

My detailed records for 2012 show that over the year I obtained €1.220 to £1 for transfers actually made, and this was (more often than not) below the interbank rate on the date of payment, and also below the 5-day average rate. It seems somewhat unfair to use the (usually) higher EURIBOR/LIBOR rate for tax purposes but when have you known any government not to decide in its favour? In my case 1% uplift is not bad. It depends on the service provider and the date(s) used to deal, of course.





Like 0      
07 Jun 2013 14:59 by formentera costa Star rating. 369 posts Send private message

this is our 3 rd year as a tax resident and it will be the first time we

will be paying tax because of the rate being so high.



_______________________

coolyes




Like 0      
07 Jun 2013 18:14 by kathyslad Star rating. 329 posts Send private message

  I got a shock yesterday as well. My tax went up from 1100 euros to 1600 euros.This is over 10% of my annual income. The increase just about matches the rise in pension  we had that year. This is most frustrating when i know so many people who are living over here but paying no tax at all.

 €1,600 on earnings of around €15,500 is about right.

The improved exchange rate would account for about 7% (about €242). The additional tax of 0.75% accounts for another €95, and if you got a rise of about €600, then this is the difference.





Like 0      
08 Jun 2013 09:03 by bilbo.s Star rating in Albuñol.. 14 posts Send private message

The exchange rate used is the official rate for 31st December of the relevant tax year- nothing to do with averages.





Like 0      
08 Jun 2013 09:04 by Acapulco Star rating in Costa Blanca South.. 342 posts Send private message

Acapulco´s avatar

 Thanks Kathyslad. Just seems a bit rough when you get a 6ooe rise in state pension and every penny goes in tax. Fortunately they cannot tax the sunshine.



_______________________

If you're going through hell keep on going, you might get out before the devil even knows you're there.

 




Like 0      
08 Jun 2013 09:24 by elaineG Star rating in Spain . 409 posts Send private message

Bilbo, The exchange rate used is the official rate for 31st December of the relevant tax year- nothing to do with averages. 


 

 
I thought it was, in effect, the average exchange rate over the year in question, not the actual rate on 31st Dec each year.





Like 0      
08 Jun 2013 10:34 by wizzard2 Star rating in Costa Blanca. 32 posts Send private message

I was told it was the average rate for the tax year in question.I was also advised to declare what you get by monthly payments by converting pounds to euros at the rate it was on that day of the month,if you are having pensions paid into an English account,more paperwork but at least you pay the tax on what you earned that month.If it is true at least you cant really gripe at the Government  setting the pound-euro rate





Like 0      
08 Jun 2013 10:44 by wizzard2 Star rating in Costa Blanca. 32 posts Send private message

I don't  worry about the averaging out of the pound-euro rate over the year in order to pay tax.what bugs me is that I pay on average 1700 Euros more to the Spanish Government in tax per year than I would of done if I had remained in the U.K.

But the set up for paying tax in Spain is so  different to the U.K.Personal allowances are about half in Spain compared to U.K,Spain gives allowances for the things Ex Pat wouldn't be able to claim,i.e Children at home,your Parents at home etc.So I gather the Spanish gain more than Ex_Pats





Like 0      
08 Jun 2013 12:02 by marcbernard Star rating in Marina Alta; Alicant.... 253 posts Send private message

I understand that IF you had children at home (as my daughter and her husband have) in Spain, then you would be able to claim the due allowance(s). Likewise for aged parents dependent upon you. There is NO differentiation between "locals" and "Guiris". 





Like 0      
08 Jun 2013 13:00 by wizzard2 Star rating in Costa Blanca. 32 posts Send private message

Sorry marcbernard,

Yes you are correct,what I was meaning,was meant to read,that a large amount of U.K. Ex-Pats over here are of pensionable age or close to it,so they wouldn't have Parents or Children with them over here,of course some will and they can claim the same as Spanish tax payers,as is  tax payers in ill health,and possibly tenants and mortgagees may be able to. .Sorry for the misunderstanding





Like 0      
08 Jun 2013 14:04 by formentera costa Star rating. 369 posts Send private message

I ALSO THINK WHY EVERYONE IS PAYING MORE INCOME TAX OVER HERE IN SPAIN

IS BECAUSE IN ENGLAND THE PERSONEL ALLOWANCE GOES UP EVERY YEAR, BUT HERE

IN SPAIN IT IS THE SAME FIGURE THAT IT WAS IN 2010 WHEN WE CAME OVER HERE TO LIVE

PERMANENTLY.

WONDER WHY SPAIN DO NOT RAISE THE PERSONAL ALLOWANCE AT LEAST NOW AND AGAIN!!!



_______________________

coolyes




Like 0      
08 Jun 2013 14:13 by elaineG Star rating in Spain . 409 posts Send private message

Formentara,
                        Having been making tax returns in Spain for over 20 years, I am pretty certain that until the last couple of years, when cutbacks have been required to help combat the crisis, personal allowances did increase each year. 




Like 0      
08 Jun 2013 15:20 by Kathyslad Star rating. 329 posts Send private message

The tax allowances were last revised in November 2006, with effect from 1st January 2007, so applied to the return in 2008. From memory the personal allowance went upto €5151 from €5050, although i think the earned income and joint allowances were improved.

So they haven't changed in 6 years, which when you take inflation into account means they are now considerably lower. I would point out that there was no crisis in 2007, far from it. When the crisis did occur, then the rates were increased, together with IVA, which at the top rate is now 5% higher.

For those on low income (below about €8500) there was a deduction of €400 in the last couple of years. This was on a scale basis upto about €12,000. It was supposed to be abolished this year, but it has been retained. Whether it will continue next year is anybodies guess.



Like 0      
09 Jun 2013 10:49 by formentera costa Star rating. 369 posts Send private message

It is quite a long time to not increase the personal

allowances.

as most peoples pension goes up by a small amount

each year then unless the allowances are increased then

everyone is going to pay more and more tax as each year

goes by.



_______________________

coolyes




Like 0      
10 Jun 2013 08:50 by Acapulco Star rating in Costa Blanca South.. 342 posts Send private message

Acapulco´s avatar

 The best way for them to get more tax in would be to catch all the people who are living over here full time but still paying taxes elswhere. I have got to know quite a lot of people over here in the last 5 years and I would say about 30% that should be paying tax are not doing so.



_______________________

If you're going through hell keep on going, you might get out before the devil even knows you're there.

 




Like 0      
10 Jun 2013 08:55 by elaineG Star rating in Spain . 409 posts Send private message

Acapulco,  I hope you have told  ‘all those people’ that if / when Hacienda discover they are evading their taxes here, then the fact that they are paying them elsewhere is no defence to being fined here and made to pay the back taxes plus interest.

 





Like 0      

Pages: 1 | 2 | Next |

Post reply    Start new thread


Previous Threads

HOW DO I SET UP AN ANIMAL CHARITY IN SPAIN? - 2 posts
IS IT STUPID? - 15 posts
Housing prices are on the rise in some coastal areas - 37 posts
Inheritance Tax for non-residents - 32 posts
Gestorial services before we go? - 10 posts
Has anyone used a buying agent? - 7 posts
Trying to find a person who installs log burners and install alarms in Balsicas in Murcia - 3 posts
Wanted - Long Term Let - San Miguel De Salinas area - 0 posts
Stephie - 0 posts
taking car to Spain - 4 posts
Paying voluntarily into social security? - 11 posts
Long Term Rental - 3 posts
The Party Spaniardo - 0 posts
What are you thinking when you are driving alone? - 4 posts
Calahonda Car Boot - 2 posts
looking to rent LONG TERM 15k radius of Torrevieja, Costa Blanca - 0 posts
Help needed please - 2 posts
wifi in Andalucia - 0 posts
Handing back the keys to the bank. - 9 posts
Sad news about Julia Sinclair (Jules1) - 7 posts
Inconsistent judicial rulings, BG malpractice and ongoing concerns re consumer rights - 2 posts
looking for house to rent long term - 5 posts
Business Opportunities - 4 posts
Can anybody suggest how I can get my house valued for insurance - 3 posts
JUSTICE FOR SOME AT LAST - 0 posts

Number of posts in this thread: 22

DISCLAIMER:  All opinions posted on these message boards are the opinion solely of the poster and do not necessarily reflect the opinion of Eye on Spain, its servants or agents.


1 | 2 |
Our Weekly Email Digest
Name:  
Email:
   


This site uses cookies. By continuing to browse you are agreeing to our use of cookies. More information here. x