Income tax.

Costa:  ........   her tax bill (in Spain) is zero - and she earns 2,500 UK pounds more than me on an annual basis.

We were "computed" together for tax purposes by our Gestoria.

I am curious.   If the declaration was joint how do you know that your wife’s tax was nil ?

Camposol. My Gestoria is a well known and respected busness, with a fairly large suite of offices complete with qualified staff.

I ddi not say he hadn't worked out our tax equation  seperately & jointly - in fact he did the equation both ways (as he does every year) and told us we were better with a joint declaration as I was able to take some of my wifes "tax free" allowance, thus reducing my tax bill.

John - he told us the figures having done the equation both ways.

Costa  ....... as I was able to take some of my wife’s "tax free" allowance,

Not exactly correct.

The tax free allowances are

Personal allowance

Individual        €5,550 (at basic rate)

Aged 75 and over     €8,100

Aged 65 and over     €6,700

For the second spouse in a joint return  there is an additional allowance of  €3,400 (i.e. not actually taking some their allowance)

Theire is also a standard allowance of 2,000 € to be added in the case of earned income. Pension income is considered to be  'earned income'.

Thus if one is over 75 and marred, separate declarations means each gets the 8,100 €,plus 2,000 earned income allowance, if appropriate, in their declaration,  before tax is assessed.    Any unused portion cannot be carried over to the other spouse.

If they make a joint declaration it is 8,100€ plus 3,400

Thus one gets  11,500 € tax free. Plus 2,000€  After that tax is paid according to the tax band

As a rough rule:   If one of them  is not earning then it is beneficial to make a join return.  If each has an income of or over their tax free allowance, it probably better to make separate returns

.

John.

Now I am confused !!

I will get the paper work out and check again, just for clarity, and then re-post on here. It is an interesting thread.

I do know we were taxed together as this was the better option, we have no other "earned income" but we do have a descent amount of savings to declare interest on, albeit not very much interest (and with Brexit it will probably be less next year,).

**

@Camposol: "it is amazing how many think they can earn 22 k before having to declare it."

Indeed it is! But then again, it's amazing how many other things people erroneously believe here!

Windtalker: "you will no longer be a British citizens .....as you have left the UK permanent you are now Spanish citizens"

This is the single most amusing post I have seen on EOS (or any other forum for that matter) in all the years of it's existence! PRICELESS!! 

Harrieman, if you ignore only ONE piece of advice / information you've read here, please make sure it's this bit!! Oh, and as I've said elsewhere, do NOT stay in Spain more than 182 days in one calendar year, and avoid getting tied up with Spanish tax and bureaucracy: it'll make your lives so much easier (and you'll pay less tax probably)

Still LMAO....