Residence Tax - Page 5

Hi Jim just to clarify this allowance is for a single person over 65 14,265 euros for a couple (not married) £28530 ?

Hi Jim,

And a married couple over 65?

Thanks

Mike

As I said, it's per person, per calendar year.

If both spouses have a reasonable level of income, forget all about doing a joint return as that will invariably work out as far more expensive an option.

i recommend talking to phil pennick at Pennick Blackwell. they deal with tax & savings advice for thousands of people. speak english and understand ex-pat circumstances.

We only have our state pensions coming in,and mine isn't a full pension,but we still have to do a yearly return. We pay 140 euros to the tax accountant at our Abegados for his services. Luckily the tax goes down according to the exchange  rate. We live here permanently,and this is our only home. 

As I said early in this thread:

just to make the situation clear:

as a resident, having once done a tax return, if no tax is due in future years then you don't need to do a tax return.

However, keep details of your income in the years for which you don't submit a return, in the (very unlikely) event that Agencia Tributaria make a query. After five years you can destroy those records.

It sounds like your fiscal is ripping you off by doing nil returns when those aren't necessary.

Hi, just hoping for clarification re my tax . I had an asesor work out my tax and submit the forms. I have a state pension of £9345 and a private pension of £6736 am over 65. The figure to pay is €2040. Seems a bit high to me. Your thoughts would be appreciated 

Thanks

Chris

£9345 + £6736 = £16081 x 1.1393 = €18321.08

Too high to qualify for earnings related allowance

Less the special €2000 allowance gives a taxable base of €16321.08

State tax:

€12450 @ 9.5% = €1182.75

Balance €16321.08 - €12450 = €3871.08 @ 12% = €464.53

Valencia tax:

€12450 @ 10% = €1245

Balance €16321.08 - €12450 = €3871.08 @ 11% = €425.82

State tax + Valencia tax = €3318.10

Personal allowance of €6700 only gets tax relief at the base rate of 19.5% = €1306.50

Tax due  = €3318.10 - €1306.50 = €2011.60

I've only run this calculation once, so please check it.

If the above is correct, it sounds as though your asesor has used the wrong exchange rate.

Hi Jim. Thankyou so much for all your help. That has put my mind at rest. I was worried as he didn't speak a lot of English and I didn't know if we were understanding each other correctly. But doesn't seem much in it so I can relax and check his figures

Thankyou

Chris