POTENTIAL SPANISH TAXES

Holaitsdavid wrote on Mon Feb 14, 2022 5:04am:

You need to speak to a 'tax expert', link below, one thing Spain, S.S other than state pensions rest earnings & private pension, subject to tax extra 34% extra social security, plus tax, which is backdated to 1st January, & no tax cap social security over 65. With income at over basic rat...

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...e tax rate plus SS it could cost with security over 64%. This a high tax, from a socialist government. You also need a new Drivers license and test after 6 months.       

http://c-a-p.es/,

"From my recent research, it is now clear that if I become a Tax Resident in Spain my modest (but adequate) income will be further eroded"

Indeed, up until Brexit most Brits had little problem keeping their tax affairs in the UK, however, those wanting to stay have rushed to their peril for a TIE & now subject to 'being a Spanish Tax resident', taxes are one thing & with a higher tax free allowance than UK, but the major blow Spain being no age limit on 'social security for those over 65' & that's an additional 34%. Strangely most web sites mention the tax rates and leave out the 'social security'. one reason being, if employed in Spain the employer pays 90%. However, income other than pensions face horrendous tax rates when you add the 34% SS. It turns UK by comparison into a tax haven.

See link below. 'Foreign private pension schemes are not treated as pensions by the Spanish tax system and instead are subject to income tax like a savings or investment schemes, much like Spanish “Planes de Jubilación” that can be obtained from any Spanish high street bank'

https://www.spenceclarke.com/articles/when-a-pension-is-not-a-pension/

ALEX45 wrote on Mon Feb 14, 2022 8:18am:

Thank you for the information you provided me. The answer is a Professional Tax Agent as you suggested. I’m starting to doubt as to whether Spain is the right place to retire in view of the Tax implications,considering that I haven’t paid a cent in Tax since I retired 11 years ago.

ALEX45 wrote on Sun Feb 13, 2022 9:27pm:

Getting frightened reading Spanish Taxes on Transfers of Funds from Overseas for Living Expenses. As I am contemplating retiring from Australia to Spain this year,I’m starting to get cold feet when I read about Taxes. I am 76 years old,on a part government pension,which I would lose when I perm...

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...anently leave Australia,and have an investment portfolio which I draw an amount every two weeks to live off,and I DON’T PAY any tax whatsoever on either,because tax on my portfolio had been paid at a reduced rate during my working life. Assuming I transfer say € 1000 per week from Australia,what would you guesstimate the Spanish Tax be ,if any?

I would be grateful for any feedback on this crucial subject. I must add that I did consider Portugal,been there on a conference with International Living and felt that,whilst it’s a beautiful country,I found it a bit on the quiet side and that’s where Spain,I believe,has more to offer. These are just personal observations and stand to be corrected.

Your information,experiences and views will be much appreciated.

Kerri wrote on Thu Feb 17, 2022 7:26am:

Maybe a silly question but why not move to another part of Australia if you want warmer weather or an adventure?  And/or just take 90 day holidays here and there around the world since it seems you are quite financially independent.....and use Australia as a base camp?

Moving permanently to a foreign Country at 76 I am sorry to have to say but seems precarious to me for many reasons. ...

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Do you speak Spanish?  

ALEX45 wrote on Thu Feb 17, 2022 6:44pm:

Kerri, thank you for your contribution to my posting. Yes you are right that at my age it is a bit precarious to make this move. My passion in life is travelling,moving around,seeing new places,meeting new people and sampling local food. Whilst Australia is a beautiful country with plenty of suns...

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...hine and beautiful beaches etc. most people around the wlike to travel and experience new things in life. Australia,unfortunately,in my situation is too far to be able to keep moving from country to country. It virtually takes one whole day from the time I depart Sydney to the time I arrive in Europe. Whilst having a base in Europe,you can be any where in Europe in a matter of two to four hours,and that is a huge advantage when travelling is your passion. I do speak a few other languages,but not Spanish which is a drawback.

Kerri wrote on Thu Feb 17, 2022 7:24pm:

Hi Alex,  Oh yes I totally understand where you are coming from now.  Thanks for explaining.  Now I see why you want to be here!  This situation with Schengen (90 day restriction) and the 6 month residency (tax) rule is so prohibiting and frustrating for so many people !

Well maybe its worth paying some extra taxes to be able to take advantage of the years in your life while you can travel and enjoy yourself!.  Perhaps there is a way to "have your cake and eat it too".  There are plenty of countries in the EU.  Maybe one with a better situation tha...

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...n Spain for you.  As a base to travel have you thought of somewhere like Estonia?