Spanish tax man

[Optomist]

"If you do earn more then there is a double taxation agreement in place so you would not pay more than the higher of the two so you don't need to worry"

This is the bit I must have got wrong.

No Probs Rod , i had been writing about the allowances  just before i said that so its natural you would think i was still referring to them .  :tiphat:

[Rod]

"If you do earn more then there is a double taxation agreement in place so you would not pay more than the higher of the two so you don't need to worry"

This is the bit I must have got wrong.

[Optomist]

So Optomist, you are saying that in theory your allowance in Spain is pointless. Just multiply your £10600 UK allowance by todays rate, or whenever the tax man decides the date to do it, of 1.4 euros and it comes out at 14840 euros? Only over that do you pay at 24%, is that correct?

I dont understand Rod , how did i say it was pointless or anything about the UKs 10600 GBP allowance . We must have our wires crossed or Im missing the point your making because i am certainly not saying anything like your example , your referring to the UK allowance i was referring to the Spanish one , applying an exchange rate the the UK allowance in this instance has no place in the calculation , the UK taxman might do an exchange rate conversion to work out the tax due to a non resident with income here but the Spanish tax man would only work out an exchange rate on a residents income from the UK , their UK allowance is not relevant as would be the Spanish allowance to the UK tax man . Ultimately the tax payable is the higher of the two states .

I must have wrote it badly and created a misunderstanding somewhere .

Think i have found where the misunderstanding has come about , when i said the poster was within the allowance i meant they were within the Spanish allowance also , my reference to the poster earning more than the allowance was intended to mean they would only be paying the higher of the two tax payments not the higher of the two allowances . As i said , just badly wrote , apologies for the confusion  .

[Rod]

So Optomist, you are saying that in theory your allowance in Spain is pointless. Just multiply your £10600 UK allowance by todays rate, or whenever the tax man decides the date to do it, of 1.4 euros and it comes out at 14840 euros? Only over that do you pay at 24%, is that correct?

[Optomist]

There have been changes for 2015 the personal allowance here has increased , for you its now €6700 + €3400 for a spouse if doing a joint return , there's also the disability allowance starting at €3000 so you are well inside the threshold . If you do earn more then there is a double taxation agreement in place so you would not pay more than the higher of the two so you don't need to worry , if anything as a resident you could be better off now your doing a return as any tax deducted here at source from bank interest etc you will have returned to you up to the threshold of the personal allowances .

The person filing your tax return should tell you the same if you ask .

[June Brenda]

Hello. I have just visited Lucas.  For my first tax returns in Spain.   Now I have people telling me I'll be taxed. 

I get 114pounds a week. And 30pounds disable payment.  I don't pay tax in England.  They have said it has changed for this year.   So we will pay. Does any one know how much you can get before tax

Cheers.