Spain Tax Update

17.10.13

Please note that this article is over six months old. While Blevins Franks takes care to make sure that information is accurate on the date of publication, some content may change over time. You should not rely on the accuracy of legislation and tax information in this article; take professional advice for your circumstances.

Income taxes have increased in Andalucía, and Valenciana has made some changes to its local succession tax rules.

Andalucía taxes  

The community tax rates for Andalucía increased from 2011, affecting everyone with general income of over €80,000.

There has now been another rise for 2013 income. The tax rate for the top three income tax brackets, which cover income of €120,000 and over, all increased by 2% to 25.5%.

These community rates are added to the national income tax rates, so that the top three total income tax rates in Andalucía are now 53%, 55% and 56%. For most other regions the top rate is 52% (Cataluña also has 56%).

The wealth tax rates also increased for Andalucía in 2013, and the top rate is now 3.03%.

Valenciana succession tax

The personal tax free allowance for spouses and direct line relatives in Valenciana increased from €40,000 to €100,000 from 7th August 2013.

However, the 99% reduction in the tax payable on inheritances received by spouses and direct line relatives was lowered to 75%. In the case of gifts, the limit for this allowance has been reduced from €420,000 per estate to €150,000. As before, gifts from the previous five years taken into account.  

The overall effect is that many people will pay more succession tax under the new rules.

Remember, the beneficial local Valenciana rules only apply if both yourself and your beneficiaries have been habitually resident in the region for the previous five years.

These changes underline the ongoing financial pressures that continue to persist within national and local government, and which can result in higher taxes. They highlight the need for people to arrange their financial affairs today, to best position themselves for the future.

23 September 2013

Tax rates, scope and reliefs may change. Any statements concerning taxation are based upon our understanding of current taxation laws and practices which are subject to change. Tax information has been summarised and generalised; an individual is advised to seek personalised professional tax advice.

Tax rates, scope and reliefs may change. Any statements concerning taxation are based upon our understanding of current taxation laws and practices which are subject to change. Tax information has been summarised; individuals should seek personalised advice.

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