Spanish Income tax 2016

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gerryh
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Spanish Income tax 2016

Postby gerryh » Wed Dec 07, 2016 10:39 am

I'm working out my budget for 2017.
I know I will be paying less income tax, than I did for last year, because I have earned less in 2016 than 2015 due to the lower exchange rate.
I think I remember reading somewhere that income tax for 2016 will be less than for 2015 due to changes in allowances/ rates.
Is that correct?
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Gerry
Gerry Harris

El Cid
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Re: Spanish Income tax 2016

Postby El Cid » Wed Dec 07, 2016 11:46 am

The only change I am aware of is to the basic rate for taxable income (in Andalucia) up to €12450 which has dropped 2% from 21.5% to 19.5%.

The average exchange rate so far this year is 1.228.

Sid

Miro
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Re: Spanish Income tax 2016

Postby Miro » Wed Dec 07, 2016 3:00 pm

A quickie for you Sid - the increased personal allowance for over 65s - does this apply if you turn 65 any time during the tax year you are declaring for, i.e. if you turned 65 in December 2016, when filing next year for 2016, will the higher allowance apply?
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El Cid
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Re: Spanish Income tax 2016

Postby El Cid » Wed Dec 07, 2016 5:03 pm

If your 65th birthday is in the tax year, you get the allowance for that tax year.

Sid

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gerryh
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Re: Spanish Income tax 2016

Postby gerryh » Wed Dec 07, 2016 5:03 pm

El Cid wrote:The only change I am aware of is to the basic rate for taxable income (in Andalucia) up to €12450 which has dropped 2% from 21.5% to 19.5%.
Sid

So, if my calculations are correct, that is a saving of €249 :thumbup:
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Gerry
Gerry Harris

El Cid
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Re: Spanish Income tax 2016

Postby El Cid » Wed Dec 07, 2016 5:42 pm

That's correct, but if you also factor in the lower exchange rate, a taxable income of £9000 would generate €511 less tax.

Sid

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gerryh
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Re: Spanish Income tax 2016

Postby gerryh » Wed Dec 07, 2016 7:19 pm

Yes I'm aware of the saving due to the exchange rate.
I inputted aprox 2016 earnings, as I haven't received my December pensions yet, into Renta 2015 to get my 2016 tax figure which will be €249 less due to the tax band rate change.
I just need a fairly accurate figure for budgeting purposes.
Cheers
Gerry
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