Farrand and Co - Accounting

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.

Farrand and Co - Accounting Services for Self Employed

Self Employed

At Farrand & Co we offer specialised services for those working as self-employed, both in the UK and Spain.

Spanish Tax Rate Changes in 2007

Corporation Tax

  • The rate for small and medium limited company businesses will decrease by 1% per annum from 30% to 25% from 2007 to 2011. All Farrand and Co limited company clients fall into this category.
  • The larger company rate will move from 35% to 30% over the same time scale.

Tax Rates

  -The 15% band is removed
First17,360€ @ 24%Effectively, this is an increase
Next15,000€ @ 28% 
Next20,000€ @ 37% 
Over52,360€ @ 43%Down from 45%

Other Changes

  • Employees earning 9,000€ or less will pay no tax, or technically, tax at 0%.
  • There will be a flat rate of 18% on investment income.
  • Capital gains tax will stay at 15%
  • Tax relief on home mortgages will be reduced to a flat rate of 15%.

Capital Gains Tax

In January 2006 Spain lost a case before the European Court, which found that it was contrary to EU rules to charge 15% CGT on residents and 35% on non-residents. Although when Spain does anything about this will be another matter. We expect someone will have to take a case to Court in Spain first.