Tax Rises In Europe

These are taxing times across Europe as governments impose austerity measures to enable them to meet their ambitious, but imperative, deficit reduction targets. The wealthy are beari

These are taxing times across Europe as governments impose austerity measures to enable them to meet their ambitious, but imperative, deficit reduction targets. The wealthy are bearing much of the tax burden. Here are a few examples:

Portugal

– An increase in the top rate of income tax of 2.5% on income over ?150,000

– Increase in capital gains tax on securities from 20% to 21.5%

– A 3.5% ?extraordinary tax? on all personal income received by residents in 2011 on taxable income over ?6,700 – employees will have 50% deducted from their Christmas bonuses; everyone else pays it next year

– Revaluation of properties ahead of a property tax rise in 2012

Cyprus

– A new 35% income tax band on income over ?60,000

– A 50% increase in the tax rate (?defence contribution?) on savings interest, from 10% to 15%

– Defence contribution on dividends increases from 15% to 17%

– Revision of bands and rates for immovable property tax

Spain

– Wealth tax reinstated just three years after it was abolished

France

– A new 3% ?exceptional contribution? tax on incomes over ?500,000

– A 32% tax rise on bank interest, from 19% to 25%

– Revision of capital gains tax regime on properties

Italy

– New 3% solidarity tax on incomes over ?300,000

While some of these tax rises are meant to be temporary, much will depend on how successful governments are in bringing down their budget deficits.

An effective tax planning and wealth management strategy could help you legitimately limit the amount of tax you pay while aiming to protect your wealth. Blevins Franks specialises in these areas and will advise you on your personal situation.

The 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; an individual must take personalised advice.