Taxes

[jamesfshaw]

It looks as if taxes are likely to increase to make up the current budget problems in Spain and the Balearics.

Any sign of what may be in store for us?

[jamesfshaw]

Here is what Eye on Spain says -
Guardia Civil and tax authority take action over foreign cars
The time may now be up for those Expats driving around in foreign plated cars. The government needs more funds and now this is their latest target. Time to get he plates changed if you haven't done it yet.

Good luck

Jim

[andrew711]

They set up a control outside the international school in Portals the other day - clever so-and-so's - and bagged a dozen cars which were on foreign plates and had not been re-registered. They put controls out from time to time at the airport for the same reason.

[barefoot]

We changed ours a few months after moving here, and I felt very sanctimonious doing it (and my pocket was an awful lot lighter) but boy, am I glad we did.

[jamesfshaw]

I note that one of the first increased taxes is on income.
Here is what has been reported.

" the average salary reduction will be of 222 euros per year (19 euros per month) with extra payments also included".

And that of course is the 'average'!

There will be other changes. I wonder if Property Tax Tribut IBI will be increased as that affects both residents and non-residents with property?

[majprop]

There will be an increase in V.A.T., this planned, but not confirmed as yet, to rise to 23% from 18% although possibly not until 2013.
In April the conveyency tax on properties will increase to:-

Property Value upto 300.000€ remains at 7%
From 300.000 to 500.000€ 8%
From 500.000 to 700.000€ 9%
Anything over 700.000€ 10%.

This will be an escalating scale rather like the Income tax here (Which is also being increased).

[jamesfshaw]

Spain's government has unveiled a €27bn deficit-reduction package that includes spending cuts and tax hikes on large companies, as it tries to convince the EU and investors that it won't need a bailout.