# personal tax allowance and social payments confused ???



## Blondieashton (Apr 8, 2012)

Hello everyone,

My husband and I are researching a move to the canary islands and are looking at buying or starting a business. Not sure which island yet prob either GC lanzarote or Fuerteventura.

We were initially moving to cyprus as the tax allowance is very good. This still maybe an option in a couple of years.

But we have been a little confused over the personal tax allowance in spain and the amount you have to pay ever month to social.

Is it correct that you have to pay €225 pp every month for health cover etc seems alot of money to find

Have also read that you only get €5,100 roughly ever year before you pay tax then its upwards of 24% !!

Concerned you have to pay out alot before you start taking a wage ??
Would like to know how you manage with this?

Any info would be fab 

Many Thanks in advance


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## xabiaxica (Jun 23, 2009)

Blondieashton said:


> Hello everyone,
> 
> My husband and I are researching a move to the canary islands and are looking at buying or starting a business. Not sure which island yet prob either GC lanzarote or Fuerteventura.
> 
> ...



:welcome:

your info is a little out of date 

if you are self-employed you have to pay self-employment NI (known as autónomo) which starts around 265€ a month (each) - mine is rather more than that  - although there are discounts for under 30s - here's an excellent guide Guide to Spain's autonomo system

then you pay tax on top of that - your info on that is about right there Spanish income tax rates 2012 and 2013


how do you manage?? I sometimes wonder that myself....


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## Stravinsky (Aug 12, 2007)

Blondieashton said:


> Hello everyone,
> 
> My husband and I are researching a move to the canary islands and are looking at buying or starting a business. Not sure which island yet prob either GC lanzarote or Fuerteventura.
> 
> ...


Yes, autonomo charges are not cheap! I actually thought they started higher than that

Tax rates here:

Spanish tax rates and allowances 2013. Tax rates Spain.


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## Blondieashton (Apr 8, 2012)

Wow thanks for the info, cant believe how high the payments are !! How are you ment to earn a living ?
Might have to re-think this one :-(

Such a shame as have seen some nice businesses for sale.


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## Stravinsky (Aug 12, 2007)

Blondieashton said:


> Wow thanks for the info, cant believe how high the payments are !! How are you ment to earn a living ?
> Might have to re-think this one :-(
> 
> Such a shame as have seen some nice businesses for sale.


Thats partly why so many that came over here to work, have now gone back to the UK. That autonomo charge applies generally even if you don't do any business


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## goingtobcn (Sep 9, 2012)

xabiachica said:


> :welcome:
> 
> your info is a little out of date
> 
> if you are self-employed you have to pay self-employment NI (known as autónomo) which starts around 265€ a month (each) -* mine is rather more than that * - although there are discounts for under 30s - here's an excellent guide Guide to Spain's autonomo system


I thought it was a fixed rate


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## xabiaxica (Jun 23, 2009)

goingtobcn said:


> I thought it was a fixed rate


no, various things including your age come into play - & I'm REALLY old


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## goingtobcn (Sep 9, 2012)

xabiachica said:


> no, various things including your age come into play - & I'm REALLY old


:lol: I thought you meant that it can vary each month - that's why I was confused!


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## gus-lopez (Jan 4, 2010)

goingtobcn said:


> :lol: I thought you meant that it can vary each month - that's why I was confused!


It can. The circa 270€/month is the STARTING figure. You can actually elect to pay more up to around 1600€/month. It entitles you to a far greater pension.
People like Doctors , Dentists, etc; do not have any choice to pay more as the amount is increased every year to account for the fact that they should be earning more !


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## Blondieashton (Apr 8, 2012)

Thanks again for your replys 

Although it seems high do you feel its worth paying ? Also does this include dentist visits or do you have to go private ? 

Unsure what direction to go in now, we were ment to be going back to cyprus to do more research as tax etc is good but you do have to pay for healthcare. But we do like some of the canaries so do we move there and pay the social money payments??

Also which island in the canaries ?
So much to way up as both cyprus and the canaries have pros and cons


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## xabiaxica (Jun 23, 2009)

Blondieashton said:


> Thanks again for your replys
> 
> Although it seems high do you feel its worth paying ? Also does this include dentist visits or do you have to go private ?
> 
> ...



you don't have a choice if you're working - it's like NI payments in the UK - obligatory

there's no dental included - well, they'll pull a tooth at the health centre - but it does pay towards your state pension as well as your healthcare


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