Post by davexf on Oct 5, 2022 21:56:08 GMT 1
Hola a todos,
Two recent announcements, one by the national government and the other by the regional assembly, are of particular interest to many foreigners, in that together they represent a significant tax break.
Whilst tax rules are set by central government, the autonomous communities, ie regions, have the right to vary them.
First things first, on Thursday 29th September 2022, the Spanish government approved a new two-year fiscal package, which will come into force in 2023.
The measures include a reduction in personal income tax for those earning less than 21,000 euros a year. This applies to all who pay their taxes in Spain, ie Spanish citizens and foreign residents.
Finance Minister María Jesús Montero explained that until now the reduced rate of income tax (IRPF – Impuesto sobre renta de personas físicas) has only applied to people with an annual income of less than 18,000 euros. Now the limit is to rise to 21,000 euros and those whose income is under 15,000 euros will be exempt from this tax altogether.
The second tax break, announced by the recently elected Gobierno Regional de Andalucía (Partido Popular – the People’s Party – conservative) has announced a significant change which is specifically aimed at foreign non-residents who own property in Andalucía.
The so-called Wealth Tax, Impuesto de Patrimonio, whereby non-resident property owners are liable to pay an annual tax on their property, is to be abolished completely, or to be more precise, will be subject to a 100% discount.
The Junta de Andalucía and President Juanma Moreno hope that the abolition of this tax will encourage 100,000 foreigners to make Andalucía their official home and will be decisive in attracting foreign talent and investment
The Junta also expects the measure to dissuade people from moving to Portugal, where an attractive tax scheme for foreign residents has already been introduced.
Two recent announcements, one by the national government and the other by the regional assembly, are of particular interest to many foreigners, in that together they represent a significant tax break.
Whilst tax rules are set by central government, the autonomous communities, ie regions, have the right to vary them.
First things first, on Thursday 29th September 2022, the Spanish government approved a new two-year fiscal package, which will come into force in 2023.
The measures include a reduction in personal income tax for those earning less than 21,000 euros a year. This applies to all who pay their taxes in Spain, ie Spanish citizens and foreign residents.
Finance Minister María Jesús Montero explained that until now the reduced rate of income tax (IRPF – Impuesto sobre renta de personas físicas) has only applied to people with an annual income of less than 18,000 euros. Now the limit is to rise to 21,000 euros and those whose income is under 15,000 euros will be exempt from this tax altogether.
The second tax break, announced by the recently elected Gobierno Regional de Andalucía (Partido Popular – the People’s Party – conservative) has announced a significant change which is specifically aimed at foreign non-residents who own property in Andalucía.
The so-called Wealth Tax, Impuesto de Patrimonio, whereby non-resident property owners are liable to pay an annual tax on their property, is to be abolished completely, or to be more precise, will be subject to a 100% discount.
The Junta de Andalucía and President Juanma Moreno hope that the abolition of this tax will encourage 100,000 foreigners to make Andalucía their official home and will be decisive in attracting foreign talent and investment
The Junta also expects the measure to dissuade people from moving to Portugal, where an attractive tax scheme for foreign residents has already been introduced.
