UNDERSTANDING SPAIN'S INCOME TAX SYSTEM 💸🇪🇸 Employee, Self-Employed Tax and Social Security

[@MillennialsWithMoney]

Link in the video description for the calculator download and membership sign-up!

[@Agapimo]

🏆Incredibly useful information presented in a clear and concise manner🎉

[@MillennialsWithMoney]

Thank you so much!! 😁

[@dpboy8]

Perfect! Thanks for the helpful stuff to make up my mind if moving to Spain might be doable

[@MillennialsWithMoney]

Thanks for watching Barrie, glad it's helped!!

[@thesoulpath]

great video, thank you so much! I purchased the full calculator tax sheet, it's very helpful!

[@MillennialsWithMoney]

@@thesoulpath great to hear Victoria, thanks for watching and for downloading!! 😁

[@danhall789]

Jonny this is super helpful, thank you!! I'm due to move to BCN from the UK in a few months and your videos are really informative and make me feel more confident about relocating 😁

[@MillennialsWithMoney]

Amazing Dan!! Thanks for watching and all the best for your move to Barcelona!! 😁

[@serinadelmar6012]

Fantástico, muy claro, ¡gracias guapo!

[@DaveIngelson]

Great video. Worth mentioning the punitive Wealth Tax starts as low as 500k€ in net assets - I've paid ~60% income tax due to it the last 3 years.

[@MillennialsWithMoney]

@@DaveIngelson thanks for watching! Good point, although only in a few autonomous communities, and as you say based on assets not income.

[@mr-vet]

Hopefully this wouldn’t apply to my home here in then US, which I do not plan on selling if I move to Spain (or Italy…). My adult daughter would continue to live in the house (and me and my wife continue to pay the mortgage. So, I don’t see how Spain could tax an asset that has unrealized gains.

[@belkispadilla7224]

So, retirees pay 19% over their SS income and get taxed over passive income as well? Could u clarify this, please?

[@MillennialsWithMoney]

If I understand the question correctly, pension income is taxed through the general base according to the progressive scale, and then dividends, interest and/or capital gains are taxed at their corresponding progressive scale. Both are taxed but following different criteria as the type of income of each is different. Hope this helps and thanks for watching!

[@Chinedu311]

Is it normal that employers do not offer pension plan? My wife received some offers and none offered that. Do i inform my employer about the pension so they withold a different amount for tax or it is reconciled at filing tax return

[@MillennialsWithMoney]

I guess it depends on the employer, some offer it but maybe not all… the employer calculates a withholding % based on your gross salary throughout the year and then it’s reconciled in the tax return. Hope that helps and thanks for watching Chinedu!

[@melanyapa]

Thank you for the great video. I have downloaded your Tax Calculator and I have a question. What is the difference between Net monthly income (12 payslips) and (14 payslips). Could you please clarify this?

[@MillennialsWithMoney]

Hello! Thanks for downloading the calculator! This is something for employees, because whereas in a lot of countries it is common to get paid once every month (12 times in a year), in companies in Spain it’s sometimes the case that your annual pay will be paid in 14 “pays” - once a month, with one extra pay in summer and another in December. I added this metric so that people can see an estimate of what their paycheque would be depending on how their salary is paid. Hope this helps!

[@melanyapa]

@@MillennialsWithMoney. Thanks for the clarification. 🤩 Btw, on the calculator, is there a place I can select the Beckham Law and other deductions like moving to a different region

[@MillennialsWithMoney]

@@melanyapa welcome! Yes, on the advanced calculator there is a drop-down where you can select the Beckham law, and you can change autonomous community to get an estimate of the income tax in that region. Region specific deductions aren’t included but there is an other deductions line where you can add the value of specific deductions if you know of them.

[@Nelson_McGregory]

Hello and thank you for your insight! I was wondering if you might be able to suggest some english speaking Gestorias or accountants for autonomo workers like myself! it's been very hard to find them. Thanks :)

[@MillennialsWithMoney]

Thanks for watching! Check out PRO Spain Consulting (an affiliate partner of mine), based in Marbella and English speaking :) prospainconsulting.com/? Hope this helps!

[@jaburgue]

Thanks for all this information. it is very helpful!! quick question. would you know if, as a Retired police officer in California, would my pension be exempt from taxes?

[@MillennialsWithMoney]

Thanks for watching! That’s a very specific question that you’d need to speak to a tax advisor about. Hope this helps!

[@Slipperywrench]

Are capital gain losses deductible if you are under the Beckham law?

[@MillennialsWithMoney]

The Beckham law only applies to employment income, so capital gains losses can be used in the savings tax base only. They can be carried forward up to three years as well. Hope this helps!

[@frevebe7693]

So if you are a daytrader you pay between 19-27% or is it then taxed at work income?

[@MillennialsWithMoney]

This is a very good question - from the information I see online it would only be taxed between the 19-27% in the base de ahorro. I'd definitely speak to a tax expert if this is your case though to be 100% sure of any obligations. Hope this helps!

[@frevebe7693]

@@MillennialsWithMoney tx for your answer

[@VanshSharma-us5wj]

Brother i am an individual earning less than 20000 euro annually.if i start investing with small budget e.g. 100 euro per month will i have to declare my tax.

[@MillennialsWithMoney]

It all depends on your situation - if you are self-employed or an employee, your income comes from one or multiple employers, if you sell investments and make capital gains, how big are those capital gains etc… if you are self-employed there should certainly be a requirement to declare income tax and I’d recommend seeking help of a tax professional, if you are employed your employer may be able to help you understand your obligations. Hope this helps!

[@mr-vet]

Luckily for me, if I do move to Spain on a non-lucrative visa…or other visa, my U.S. military pension and Veteran disability are exempt from Spanish taxes. And, when my wife retires from her US government career, her pension will be tax exempt in Spain as well. Although I am several years from the minimum age to receive US Social Security (and my wife a few years after me), we would still pay some taxes on it in Spain, but get a tax credit in the US for those taxes.

[@andreradzichovsky7377]

I don't understand the road tax, is that paid on every car that you own.

[@MillennialsWithMoney]

Hey Andre, check out this video which explains road tax and car ownership costs in more detail: kzbin.info/www/bejne/nnWZY3Sdq9l6e7c

[@walterderosa1009]

Interesting, really.

[@MillennialsWithMoney]

Thanks!!

[@walterderosa1009]

​@@MillennialsWithMoney Hi good morning,. I bought your Excel file to know how much tax I will pay under the Beckham law. Is there any option to do it?

[@MillennialsWithMoney]

@@walterderosa1009 hi Walter thanks! If you purchased the advanced calculator yes there is a drop-down option to apply the Beckham law. You can drop me an email if you face any issues and I’ll gladly assist

[@walterderosa1009]

​@@MillennialsWithMoney Thanks for answering me. Well, I don't know which version it is. I mean, I only paid it 0.99. Probably isn't.

[@MillennialsWithMoney]

@@walterderosa1009 that’s the basic calculator, this one doesn’t have the Beckham Law option in it

[@irp-politics]

You have changed the calculator. It does not have all those features you mentioned in the video anymore.

[@MillennialsWithMoney]

@@irp-politics it does - there is a basic version which is available for free download and there is an advanced paid version which contains everything in the video.

[@irp-politics]

@MillennialsWithMoney I got the paid version and I was sent to download the basic version. 🙃

[@MillennialsWithMoney]

@ can you email me your order confirmation to [e-mail] and I’ll take a look and make sure you get the correct product. Thanks!

[@irp-politics]

@@MillennialsWithMoney will do. thanks

[@OnMyWayVirtualCityTours]

One of the downsides to living in Spain long term. Can't think about it too much or you'll never come, lol.

[@MillennialsWithMoney]

😅😅😂😂