Personal Finance Assistance from Farrand & Co

For more information about living and working in Spain or how our professional services can help you, contact us at info@farrandandco.com

Farrand & Co

Established in Spain since 1992. We offer a service that is uniquely experienced in both Spanish and UK fiscal, taxation, personal and business financial administration. We explain and guide in straightforward and approachable terms that you will understand.

Inheritance Tax Farrand & Co

Spanish Income Tax Rates 2005 - 2006

These rates are on income after deducting tax allowances. All figures are in Euros.

 20052006
First  4,080€ @ 15%     4,162€ @ 15%   
Next  9,996€ @ 24%    10,195€ @ 24%   
Next 12,240€ @ 28% 12,485€ @ 28%
Next 19,583€ @ 37% 19,976€ @ 37%
Over 45,899€ @ 45% 46,818€ @ 45%

Tax Free Allowances

 20052006
Personal Allowance    3,400€    3,400€  
Spouse 3,400€ 3,400€
First Child 1,400€ 1,400€
Second Child 1,500€ 1,500€
Third Child 2,200€ 2,200€
Subsequent Child 2,300€ 2,300€

Not all allowances are shown here. There are others e.g. mortgage payments, pension contributions, allowances for working mothers with children under 3, etc. etc.

Calculation

To calculate the tax liability, add up the tax free allowances to which you are entitled, deduct them from your income/ earnings to arrive at your taxable income. Then using the tax tables at the top of the page you can work out the total tax payable. This will be reduced by any tax you have paid at source by deduction from your earnings.