Income Tax Question (Catalonia)

Hi Paul did you get any answers?
This is my question too. It seems any income over a certain amount (can't find out how much) will be taxed in Spain if you are in Spain more than 183 days in the Spanish Tax year (Jan-Dec)


Non Resident
A non-resident is liable to pay income tax only on monies that are earned within Spain. A non-resident will not normally qualify for any deductions or allowances.

Residents
Tax falls into two categories in Spain. There is general income (renta general) and income from savings (renta del ahorro). These are then combined into the ‘imponible’ base. This is the equivalent of the gross income. Deductions and allowances take this down to the ‘liquidable’ base, which is the net taxable income. There is a tax free allowance (minimo personal y familiar) for every person of €5151 is this now 9000 euros? or maybe 11000

After 183 days in Spain do you need to apply to be a Resident? or can you continue as non-resident? Does the non-resident tax status continue (i.e.. only tax on Spanish income)? or do you become automatically resident for tax purposes? ******If you are resident for tax purposes (but a non resident) are you also entitled to the tax free allowance (minimo personal). Do you have to make a declaration of worldwide earnings if (imponible base) is less than €9000? 0r 11.000?******

How will any tax declaration be done if you leave Spain?

If you live in Spain for more than 183 days in the yrar then you should pay tax in Spain. Yes you get tax allowances and you can claim business costs as in tje UK.

You will need to ask the UK tax people to exempt you from UK tax so that ypu are not doubly taxed.

Do you know what the allowances are or where to find this information? I have asked on various forums but cannot find the answer.

Deductions and allowances
Deductions and allowances are available. The "Minimo Personal y Familiar" is the tax-free allowance. Any allowance not used against the general income can be set against the savings income.

The basic personal allowance for 2015 is €5,151 per person. For joint returns the allowance given to the first spouse is €5,151 plus €3,400 for the second spouse. A single parent gets €5,661. The basic allowance is increased by €918 for someone aged 65 or more (so €6,069 in total) and by a further €1,122 for someone aged 75 or more (€6,273 in total). The personal allowance (including additions for age, dependents and incapacity) is not deducted from taxable income but is given as a tax credit against the total tax payable.

Note that the allowances are not given as a deduction against income, but instead are given as a tax credit against the total tax payable. The amount of credit is calculated by taking the total personal allowance and multiplying this by the scale rates of tax, starting with the lowest rate first. It is then deducted from the taxpayer’s total tax payable for the year. This has the effect of relieving tax not at the taxpayer’s marginal rate, but first at the lowest rate of 20%, and then at the higher rates where applicable.

Personal Allowances for Spanish income tax- minimo personal


Personal allowance


Under 65 years old    5,550 Euros
65+    6,700 Euros
75+    8,100 Euros

Child allowance


First child    2,400 Euros
Second child    2,700 Euros
Third child    4,000 Euros
Each further child    4,500 Euros


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

65+   1,150 Euros
75+   2,550 Euros

Maternity allowance (Reduccion por cuidado de hijos)

2,800 Euros per annum per child under three years old.

Earnings related Personal Allowance (for employees)

For taxpayers with salaries of less than 14,450 Euros and other income less than 6,500
Euros, there are the following deductions:

Earnings not more than 11,250    3,700 Euros
Earnings 11,250 to 14,450    3,700  -  1.15625 x (Earnings - 11,250)
Earnings 14,450 +    0
In addition, there is also a general allowance of 2,000 Euros applicable independent of
the income of the taxpayer.

Thank you for the detailled explanation.
Is this the same for "Non Resident" but "Resident for tax purposes" status? (Ie living in Spain for more than 183 days in the tax year but not a Resident)?

If so I will forward it to my accountant in the uk to ensure I keep below the amount where I would need to declare and pay tax as at the moment any earnings I may have will be in the uk.
No job here (only outgoings)! hence why I don't wish to pay tax in Spain.

Hi Paul,
I received this information.
Deductions and allowances
Deductions and allowances are available. The "Minimo Personal y Familiar" is the tax-free allowance. Any allowance not used against the general income can be set against the savings income.

The basic personal allowance for 2015 is €5,151 per person. For joint returns the allowance given to the first spouse is €5,151 plus €3,400 for the second spouse. A single parent gets €5,661. The basic allowance is increased by €918 for someone aged 65 or more (so €6,069 in total) and by a further €1,122 for someone aged 75 or more (€6,273 in total). The personal allowance (including additions for age, dependents and incapacity) is not deducted from taxable income but is given as a tax credit against the total tax payable.

Note that the allowances are not given as a deduction against income, but instead are given as a tax credit against the total tax payable. The amount of credit is calculated by taking the total personal allowance and multiplying this by the scale rates of tax, starting with the lowest rate first. It is then deducted from the taxpayer’s total tax payable for the year. This has the effect of relieving tax not at the taxpayer’s marginal rate, but first at the lowest rate of 20%, and then at the higher rates where applicable.

Personal Allowances for Spanish income tax- minimo personal


Personal allowance


Under 65 years old    5,550 Euros
65+    6,700 Euros
75+    8,100 Euros

Child allowance


First child    2,400 Euros
Second child    2,700 Euros
Third child    4,000 Euros
Each further child    4,500 Euros


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

65+   1,150 Euros
75+   2,550 Euros

Maternity allowance (Reduccion por cuidado de hijos)

2,800 Euros per annum per child under three years old.

Earnings related Personal Allowance (for employees)

For taxpayers with salaries of less than 14,450 Euros and other income less than 6,500
Euros, there are the following deductions:

Earnings not more than 11,250    3,700 Euros
Earnings 11,250 to 14,450    3,700  -  1.15625 x (Earnings - 11,250)
Earnings 14,450 +    0
In addition, there is also a general allowance of 2,000 Euros applicable independent of
the income of the taxpayer.

Are you able to advise where you obtained the information from?

Many Thanks