Contact

News & Insights

Making Sense of 2018 Spanish Budget

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.

Other News

Pension Freedoms. Are they for you?

Readers may remember the pension freedoms announced by George Osborne in 2014.  These became effective on April the 6th this year. The fanfare accompanying the announcement and indeed subsequently is often set against the backdrop of pensioners sat in Daimlers or on Yachts having drawn all their money out and lavished it on some frivolous purchase.

The reforms promised that over 55’s would have access to their pension cash as they pleased whether it was the full amount or in small payments. Or indeed it could be left invested. The choices on offer appeared staggering, always bearing in mind that there are tax implications for taking large sums.

Read More

Select your country

Please select your country of residence so we can provide you with the most relevant information:

You are currently viewing the Blacktower Financial Management EU website.

You may be looking for the Blacktower United States website.

Blacktower United States > X Stay on this site

Or choose your country.