Tax Rates
PERSONAL INCOME TAX - 2008
Spanish Tax Rates 2008 (correct as at 4th June 2008)
Husband and wives can choose to be taxed jointly or individually, however it does not automatically follow that both will get the full allowances listed here.
General Taxable Base:
Tax Bands Tax Rate Gross Tax Payable
€0 - €17,707.20 24% €4,249.73
€17,707.20 - €33,007.20 28% €8,533.73
€33,007.20 - €53,407.20 37% €16,081.73
€53,407.20 and above 43%
Personal Allowances:
65 and under €5,151
66 to 75 €6,069
Over 75 €7,191
Age Allowances:
Over 65 €918
Over 75 €2,040
Earned Income Allowance:
This is given if you receive income from employment or pension income
Minimum : €2,652
Maximum: €4,080
Other allowances are available such as for dependent children aged under 25, who live with the taxpayer and have income less than €8,000 per annum.
Mortgage tax relief is available on mortgages used to buy the main residence, at 15% up to a maximum of approximately €9,500.
WEALTH TAX 2008
It has been reported that wealth tax for non-residents was abolished from 1st January 2008 which means that declarations will still have to me made for 2007.
I have not published a table, but residents Wealth Tax applies above €150,253.02 on your main residence, plus €108,182.18 in respect of other "wealth" such as savings and investments. So, a married couple with joint net assets in excess of €517,000 potentially have a liability.
