Life in Culebrón

Nearly everyone who lives in Spain has to do an IRPF, income tax, return each year; the declaración de la renta. Before Brexit, some Britons argued they paid their taxes in the UK and didn’t need to pay in Spain. While there may be rare exceptions, in general, if you live here, you pay income tax here. Many Britons living in Spain are also taxed in the UK, for example, on Government Pensions (ex-teachers, ex-military and the like). However, thanks to a bilateral tax agreement between Spain and the UK, the income that is taxed in the UK isn't taxed again in Spain. People, living in Spain, with an income below 22,000€ from just one source, and paying tax on that income, don't need to file a tax return. If the income is below 15,000€ the income can come from two sources but the second income can't be more than about 2,000€. These figures change each year, but they are roughly accurate for now. So, it’s not easy to avoid doing a declaración. It's not a particularly onerous,...

Something in today's news about income tax completely flummoxed me. I think I've got it worked out now. I may be wrong so don't take my ramblings as gospel but I thought you may be interested too. The current Spanish Government is a coalition. That coalition can usually garner support from other parties to approve its legislation, but not always. Today, one of the news stories was about a row within the two parties that make up the Government. Yolanda Diaz, from SUMAR, has done a deal with the Unions to put the minimum wage up to 1,184€ per month. Because there are 14 payments in the Spanish year that's a total income of 16,576€ per year. At the moment the minimum wage is 15,876€. Yolanda Diaz also pushed through legislation which dropped the working week from 40 hours to 37.5 hours for the same pay. The majority party in Government, the Socialists or PSOE, argue that, as the minimum wage is now a reasonable income, it should be taxed like other incomes. SUMAR argues th...