The budget, which has now been published in the Spanish Official Gazette, contains a number of important provisions, including a pension increase, with state pensions rising between 1% and 3%, depending on the individual recipient’s circumstances. The extension of the Spanish wealth tax (which was re-introduced on a temporary basis in 2011) for at least one more year is likely to be of interest to many expats, although this was predicted so is unlikely to come as a surprise either to them or their expat financial advisers in Spain.
However, despite the continuation of the status quo, advice remains important in this regard; if you reside in Spain and have assets worth more than €700,000, and a home worth more than €300,000 (allowances are doubled for married couples and civil partners), it is worth talking to your expat financial adviser in Spain as to how it is best for you to manage your wealth in this regard.
Furthermore, the threshold for income tax in Spain has been increased from €12,000 to €14,000. This means that those expats who carry out occasional work and earn less than €14,000 per annum, may not need to submit an income tax return provided of course that they are not earning income from other sources.
Another interesting facet of the budget is the introduction of a 30% deductible allowance for those who provide investment to start-ups, providing relief of up to €60,000 per annum. There are also further deductions for families with three or more children and those who have one or more disable dependents.
Aside from the new income tax threshold and the above listed details the budget leaves income bands and tax rates the same as they were in 2017.
Blacktower – expat financial advisers in Spain
Blacktower Financial Management provides expat financial advice in Spain. The international financial advisers in our offices throughout Spain can help you understand how to plan your investments and pensions and how to plan your estate and effectively reduce your tax liability.
For more information contact us today.
This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.
The United Kingdom finally left the European Union on 31 January 2020. As such, the two jurisdictions are now in the process of implementing the Withdrawal Agreement, with the transition period ending at the close of 31 December 2020.
The number of British pensioners living as expats in the European Union (EU) fell from 468,790 in 2017 to 462,680 in 2018, according to figures based on data derived from the Department for Work and Pensions.