Personal Tax Rates comparison advice UK and Spain

Hi

Please could someone post a simple comparison between UK and Spanish tax rates.

We are retiring in a couple of years, have just purchased a property in Spain and will have a UK works pension but no UK state pension for a number of years.

Is the Spanish system similar to the UK whereby there is a % rate applied on your income less any personal allowance?

On our last visit speaking to a fellow Brit he said that, as he had not earned more than 30,000 euros he had his tax paid fully refunded ?

does that sound correct, seems a high figure to me!

Thanks again for your advice and assistance 

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In a short sentence 30,000 free of tax,Would be a dream to me you have a personal allowance in Spain which is approx. half of the U,K, one  you get extra allowances for things like mortgage,children and senior members of the family living with you,also if you have certain illnesses,plus a few other things you may be able to get. The lowest rate of tax is then 24.75%,rising Quickly to 30%.On my pensions which total less than 30,000 I pay approx. 1500 Euros more being a resident in Spain than if I lived in the U:K. But I can only get my personal allowance,I am not entitled to any other allowances

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The personal allowance is €5151 if your under 65, €6069 over 65 and €6273 over 75. In addition to the other allowances mentioned (although the mortgage allowance is being phased out) there is an earned income allowance (including pensions) of a maximum of €4080 for €9180 reducing to a minimum of €2652 over €13260. In addition if you are marked you can combine your incomes and do one return if that's more beneficial, in which case you get an extra €3400. For the last couple of years, ther has been a reduction of €400 for people on low income (about €8000) reducing to zero over about €12000. This was to be abolished last year, but was then retained. The personal allowance in the UK is £9440 under 65, £10500 under 65 and £10660 over 75

This message was last edited by Kathyslad on 15/07/2013.

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KERRYB-I think the fellow Brit you spoke to needs to see a qualified tax accountant-he may find he has LOTS of income tax to pay!

People are often given bad advice on tax in Spain, so make sure you find someone who really understands tax and the implications on moving to Spain.

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