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What is the official income tax threshold in Spain- if you ask anyone the answer varies tremendously.
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I found this
http://www.spainaccountants.com/it.html
Personal Allowances for Spanish income tax- minimo personal
General allowance 5,151 euro
Age allowance (65+) 6,069 euro (75+) 6,273 euro
Disabled allowance 2,316 - 7,038 euro depending on degree of incapacity
Child allowance
First child - 1,836 euro
Second child - 2,040 euro
Third child - 3,672 euro
Each further child - 4,182 euro
Elderly relative living with family whose income is less than 8,000 euro pa:
65+ 918 euro
75+ 1,122 euro
Maternity allowance (Reduccion por cuidado de hijos)
2,244 euro pa per child under three years old.
Earnings related Personal Allowance (for employees)
Earnings not more than 9,180: 4,080 euro
Earnings 9,180 to 13,260: 4,080 - 35% x (Earnings - 9,180)
Earnings 13,260 + : 2,652 euro
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Camposol, the answers vary because it depends on the regional authorities and also on the particular circumstances of each taxpayer.
The deductible amounts mentioned by Johnx vary each year. They can also be increased by the Comunidad Autónoma in which the taxpayer resides. Many Comunidades increase these deductibles. Therefore, this needs to be checked locally.
As to the annual income amount under which there is no obligation to file a tax return, this amount also varies each year and can be different depending on the particular circumstances of each tax payer. For example for 2012, the general threshold is 22.000 euros of total annual income but this applies only when there is only one source of income. In case of more sources, there are different rules for calculating the threshold. Also, there are different rules when the taxpayer receives income from a spouse as alimony or child support or when the payer of the income does not make withholdings on account, as for example, in a foreign pension.
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I realise that I am liable to shot down on this, but I remember reading (somewhere) that the exception from making a tax return for those earning under a certain amount was precisely that ’earning’.
That is, those who are employed and thus their employer include them in their return. For those who do not work including UK pensioners, I understand that they are obliged to make a return, regardless of the level of income.
I am just around the tax allowance, so some years I have had pay a little, other years none, but I have always made a declaration.
NB As I said, I am not saying this is 100% correct (but making the declarations has meant when I have sold, no retention was required, as I was able to prove by my returns that I was tax resident).
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_______________________
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Ream GB
From yoir post it would seem my understanding was correct
QUOTE Just as in the UK, Spain has a system of taxation at source which mean a lot of people never fill in a tax return. If you have a salary and some bank interest which have both been taxed at source by your employer and bank respectively, you will already have paid your tax and will not have to do a return provided the combined income does not take you into higher tax rates which would mean a supplementary tax bill has to be calculated.
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Hi, Johnx
You are correct because although the rules are detailed, the general idea behind them is that when the income a taxpayer receives has been subject to tax withholdings at source, as is the case for earned income most of the time, then the threshold is higher (22.000 per year for 2012) and when the income is not subject to tax having been previously withheld, the threshold is much lower (11.200 euros per year for 2012). Also the threshold is even lower when the source of income is only income from capital (interest, dividends, etc.).
The main reason is that Hacienda has roughly calculated that if tax has been withheld by the employer or other payer at the usual rates for earned income, the 22.000 total income means that the taxpayer will most likely be entitled to a refund of tax withheld, thus rendering the filing of a return to obtain the refund voluntary. That is the reason for the only one payer rule, because if there are several payers then the amount withtheld by each one may substantially reduce the level at which tax withheld needs to be refunded.
So you are right in saying that, in general, the higher threshold applies mostly to earned income and the lower threshold to other circumstances. However, I would advise everyone to check what their particular threshold is.
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i do know that even if you are taxed at source its in your interest to submit a tax return anyway.
i did in 2008 before i went autonomo and got 4k back
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i coldnt stay away from you miserable whining whingers for some reason
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So Now with your rebate you can afford go to IKEA "mongrel"
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Fomer member revisiting r.
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I understand the 22,000 level is:
For those whose salary has already had deductions
The money comes from one source
Does not apply to those who are eligible to apply for the double taxation treaty between UK and Spain
In other words this does not apply to any retired expats. I find that people are told inaccurately, by so called tax experts that they can receive up to 22,000 euros before tax- they go away delighted, indeed I was told this myself, and had to find out that the actual threshold was much lower.
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with regard to the child element is it children upto the age of 16, 18 or some other age?
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hi johnzx
the figures you quoted are exactly the same as my
solicitor uses to do my tax return.
same figures(no increase) he has used for the
last 3 years.
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