# Tax System in Spain



## online30 (Jan 28, 2013)

Hi everyone, 

This is my first post, please go easy!

I was working in UK and was paying taxes. However, this month I moved to Spain to take up a job. Before leaving UK, I have claimed my over taxes back. 

Now I am here in Spain and about to sign my contract but my company told me that I'll be taxed at the rate of 24% for first 183 days and after that I'll become fiscal resident and this tax percentage will come down to 14% something. However, they told me if you were working in UK then there might be an agreement between UK and Spain where you can get relief by paying less tax.

Any one has idea about this? What shall I do?

Thank you!


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## Overandout (Nov 10, 2012)

Firstly, if you have regulated your tax in the UK before coming to Spain, you will have no dual taxation issue. You will have paid the correct PAYE in the UK and now you must pay the correct IRPF in Spain.

With regards to the initial percentage of IRPF deductions, I believe that this is correct. It is similar to having an emergency tax code in the UK PAYE system. In contrary to the UK system however, the future deductions will not be decreased so as to provide you with a correct net deduction for the year. You will have to fill out a tax return (Declaración de la Renta) through which you will be refunded the tax over-paid. This is what happened to me in my first job in Spain also. I cannot remember the percentage that was deducted but I think it was indeed 24%.

The “correct” deduction of 14% sounds low to me, but of course it depends on how much you are earning so I wouldn’t want to comment on that. I don’t know what the actual tax bands are by gross income.

This is just a quick reply based on my experience as an “empleado” (I think we are not the majority here) but I am no tax expert so if anyone wants to correct me or add info then we will all learn more!


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