15 February 2008
This year's income tax rates for Spain have been announced, with property owners advised to familiarise themselves with the allowances to avoid confusion.
Spanish property website Kyero.com has issued a set of guidelines for British people with homes in Spain who may be affected by income tax regulation.
Anyone who spends 183 days or more in Spain this year will be declared a Spanish tax resident and is therefore liable to make income tax contributions, although tax on income in 2008 will not be payable until next year, Kyero.com explains.
Spanish tax residents will be taxed on their 'general' income, which includes money from salaries, pensions and rent payments.
There is a progressive scale for income tax rates recently announced by the Spanish authorities, which is as follows: 24 per cent on income up to €17,707.20 (£13,257), 28 per cent on income between €17,707.21 and €33,007.20, 37 per cent on income between €33,007.21 and €53,407.20 and 43 per cent on income over €53,407.21.
People with particular queries about their income tax liabilities are advised to seek professional financial advice.
HM Revenue & Customs recently announced changes to the tax system whereby days of arrival to and departure from the country are now counted as days of residency.
