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Spanish tax

Posted: Mon Feb 27, 2023 12:28am

5 replies148 views6 members subscribed

Nashy

Posts: 4

Location: Alcúdia

Joined: 27 Feb 2023

I am considering retiring & moving tonSpain but I am still unsure on what taxes are paid?

I have done a little research and found that the tax is much higher than the UK?

In the UK you have an allowance of around £12,000 before tax deductions, where as Spain only has an allowance of around £5000. I am very confused because whenever you see ex pats living in Spain they are always happy with cost of living, weather, slower pace of life,etc,etc,etc. I have made some calculations with my state pension + company pension and It looks like I would almost pay €9000 in taxes?

I would be most grateful if someone could enlighten me.

Many thanks,

Nashy

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5 replies

Posted: Mon Feb 27, 2023 3:24am

Darro

Super helpful member

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Location: Catral

Joined: 8 Sep 2021

Posted: Mon Feb 27, 2023 3:24am

It's not as easy to work out as it is in UK but broadly speaking you can earn around €13k before paying any tax.If you are a UK citizen coming on an NLV then of course you will need an income €28,800 (€36,000 for a couple) which could generate a tax bill of perhaps €8,000.

Posted: Mon Feb 27, 2023 7:56am

Nashy

Original Poster

Posts: 4

Location: Alcúdia

Joined: 27 Feb 2023

Posted: Mon Feb 27, 2023 7:56am

Darro wrote on Mon Feb 27, 2023 3:24am:
It's not as easy to work out as it is in UK but broadly speaking you can earn around €13k before paying any tax.If you are a UK citizen coming on an NLV then of course you will need an income €28,800 (€36,000 for a couple) which could generate a tax bill of perhaps €8,000.

Many thanks Darro

That reply helps!

Posted: Mon Feb 27, 2023 11:00am

Stevec2x

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Posts: 1860

1055 helpful points

Location: Playa Flamenca

Joined: 23 Jan 2020

Posted: Mon Feb 27, 2023 11:00am

Just to say that Darro is correct - I draw an income from my personal pension set at around €12k per year, which ensures that I don't have to pay any tax.

Cheers

Steve

Posted: Mon Feb 27, 2023 5:36pm

Nashy

Original Poster

Posts: 4

Location: Alcúdia

Joined: 27 Feb 2023

Posted: Mon Feb 27, 2023 5:36pm

Many thanks Steve, for adding your reply.

Nashy

Posted: Mon Feb 27, 2023 9:42pm