Amazing video! Super helpful for knowing the components of salary and tax deductions. Would be lovely to see a video for expats as well, for example the Beckam's Law (there is very little information available on how it actually works)!
I made this video a while ago, whilst you do pay tax from €0, there is indeed a personal minimum which offsets it up to a certain amount (about what you mention). Here's an updated video that I made this year: ruclips.net/video/uo0wuiP5Xo4/видео.html
@@LucasJ-YT ohh good choices! Both quite advantageous from a tax perspective! I moved here about a year and a half ago, I used to live in France before that and I’m originally from the U.K.
@@MillennialsWithMoney pretty cool. I’ll drop you a message on Ig as I’d be interested to hear about your experience living abroad as thats something I’m hoping to do at somepoint!
Hi! Great video, what do you think, as a freelancer, what is the best way to work in Spain - via the Beckham law or just like a regular freelancer? Additionally, imagine a EU citizen over to Spain and does not start work immediately, just living off the savings, how would it be possible to get himself and family members cored by a medical insurance? I mean government one, is there something like paying monthly just get access to it? Thanks!
Thanks Andrei! The Beckham law is not a scheme to come and work in Spain, it’s a tax incentive for higher net worth individuals and high income earners when they first move to Spain (similar benefits available under the new digital nomad scheme, which depending on your activity may be an entry option to explore). For the second query, you may be able to make voluntary contributions to the government social security but I’m not 100% sure. Hope this helps!
thanks for the video. would really appreciate another one covering a calculation of income and social taxes in a particular case, lets say we took a job with salary of 10000 euro/month. how much would be the (bloody) irpf and the social taxes? Do companies state the salary before all the taxes in the job offers? I mean, if I see 10 000 euro/month in the offer what do I get after taxes?
Thanks for the feedback! I will keep this in mind and consider it as a topic for future videos 😊 from my experience job offers are made with the salary before tax, however Cinco Días (economic section of El País) has a good IRPF calculator which will help you understand what you can expect to pay in taxes and SS contributions
Hey. Thank you for you video ! I have a question. I hope you can help me out! I moved from the Netherlands and started working this year since may in Madrid. Now I saw on internet and in your video, if you earn below 22000 (which I do!) you don't have to fill in the yearly tax form. However, I also saw if it is your first year here, you do? some people I met who moved here from Mexico, they say they didn;t do it. And since I am probably moving back to NL in 2 months ,i will not be able to go to the ayuntamiento in may 2023 to fill in the tax form. So my question is, how does this work? Or because i earn below 22000 it doesnt matter.
Hey! I’m not sure about the first year rule.. maybe you can ask a tax adviser about that. It also sounds like you might not have been here long enough to be considered tax resident (183 days in the fiscal years), which opens up another question of if you need to do a non resident declaration or certify that you don’t need to declare. But as long as you have been with one employer and earn less than 22k in theory you shouldn’t need to complete the declaration (unless there are other criteria relating to investments etc which might mean you need to). Also you don’t need to complete the declaration in person, it can be done online through an approved partner (e.g. TaxDown) or directly on the AEAT website. Personally I would contact a tax professional as there are a lot of specifics here. Hope this helps!
Thank you for the content. My question is rather limited. I have some savings. Will not work in Spain or elsewhere. Taking a one year hiatus.(No new income) Want to live for one year as non profit visa. Then Modify on the renewal. Is any of the money I made before ever requesting the residence in play for taxes?
Hey, my understanding is no as only income (whether from work performed, capital gains, dividends etc.) is taxed, always worth checking with a tax advisor though 😊 thanks for watching!
Hey Teemo, you’ll pay between 19-24% on any dividends or capital gains depending on how how much you receive. The table is in the BOE article link, you can do a ctrl + f for “base liquidable del ahorro” and you will find the table. Hope this helps!
Hi in 4:20 it shows the tax brackets for Catalonia with final tax 44% for income €60k+. But, in the chart next to it (the example) for an 80k income net is 52k?? How is that 44% or am i missing something?? Thanks
Hey, I think maybe the naming of my columns it what is confusing here. Where I put “final tax rate” in the first table, it’s not the final tax rate the person it will pay, rather it’s the final tax rate for that salary bracket when summing the autonomous and state rates. On the 80k the effective rate is 35% because it takes into account also the lower brackets which have lower rates. Essentially they would only be taxed 44% on income above 60k, and would pay lower rates on income below this. Hope this helps resolve your doubt!!
Are there anyways to bypass the taxation on all world assests/income. Is it really as simple as just going abroad before the 183 days and return some weeks later to maintain being a non Spanish resident? Seems really harsh to have to declare rental income over 1k and assets over 50k. Crazy! Spain went from 0-100 so quickly on taxation 😂😂😂 (EU national so no visa needed)
Haha 😂 so recently the ECJ declared the 720 model unconstitutional so unless the government comes up with some alternative people no longer have to declare their overseas assets. There’s also the “Beckham law” for people who’ve recently become resident but have significant overseas assets but I need to look into it a little more myself, though I believe this can also link into the 183 days and perhaps without needing to leave Spain before clocking up enough time to be considered tax resident.
I’m a dual citizen of the US and Spain, can I simply not file taxes if I earned zero income in Spain? I’ve taken no benefits from the Spanish government ever in my life
Thanks for watching! You need either Cl@ve, eDNI or Certificado Digital to log on, but once you are logged on you can see your personal info in the portal
Hey, Thx a lot for your video it was really helpful ! I recently moved to Spain (August 2022) meaning I would become tax resident in July 2023 correct ? From my calculations, I would basically be paying 43.8% of taxes on my annual income (including income tax and social security). Now, I have the possibility to not become tax resident and go back to France before July 2023 permanently. Does it mean that, in the meanwhile if I contact HR I can benefit from being a non-resident/European citizen and only pay 19% income flat tax ? Best
You’re welcome, thanks for watching Romain! 😁 I would definitely recommend speaking to a tax adviser, but yes based on your arrival date you shouldn’t be a Spanish tax resident in 2022. Im not sure if it’s quite as straight forward as 19% flat tax for non residents (unless Beckham law applies) as there is still a progressive system taxing non residents on their Spanish sourced income. Hope this helps in the meantime!
Hii.. M in Madrid with my husband.. But now i have option fo part time job 180 euro..for some hours..soo i need to join my husband social security number as a dependent or i need to apply for mine???
Hi Dude i am non europe resident and i am here only for 3months as i have been deputed for project purpose so can i claim a refund from spain income tax after 3 months
Thank you! I spent a lot of time listening to Spanish music, TV, films and speaking with friends (and of course living here helps 😁). I’m happy for now as I’ve found ways to minimise my cost of living which somewhat offset the higher taxes 😊🇪🇸
Hey Striangle, here are the IRPF brackets for the Basque Country (which will be applicable in Donostia-San Sebastian). The Basque Country and Navarra have their own fiscal regimes different from the rest of the autonomous communities: www.bizkaia.eus/home2/Temas/DetalleTema.asp?Tem_Codigo=8337&idioma=CA
@@MillennialsWithMoney Thanks for the information. Is the tax given in the link above ( autonomous community tax) the only tax, or are there additional central/national taxes?
@@striangle2169 if you jump to 3:46 in the video you’ll see the base state tax in the “tipo estatal” tax, which is the part of the income tax made up of “state” taxes. The column that says “tipo autonómico” in the same table shows the rates for non-residents, so you would substitute the data from Navarra or País Vasco in this column accordingly. Note that you might have autonomous tax bands that don’t coincide with the state bands.
Leave a comment and tell me about your experience working in Spain!
Really helpful! The method of explanation was very good👍
Thank you mate!! Glad you found it helpful 😁
Amazing video! Super helpful for knowing the components of salary and tax deductions. Would be lovely to see a video for expats as well, for example the Beckam's Law (there is very little information available on how it actually works)!
Thanks Shreya!! I’ll see if I can come up something for that 😁
....I wonder how people live in a country that is super expensive, earnings are not high and they are heavily taxed....
According to the internet personal tax allowance is €5,550 per year. Might be a mistake here: 2:34
I made this video a while ago, whilst you do pay tax from €0, there is indeed a personal minimum which offsets it up to a certain amount (about what you mention). Here's an updated video that I made this year: ruclips.net/video/uo0wuiP5Xo4/видео.html
Always find it interesting how different countries tax systems work. Fun thinking about where I'll move to when I get money 😂
Ahaha yeah man it’s a madness 😅 where are you thinking of?
@@MillennialsWithMoney Portugal and Switzerland are probably my top 2 currently. Have you always lived in Spain or did you move?
@@LucasJ-YT ohh good choices! Both quite advantageous from a tax perspective! I moved here about a year and a half ago, I used to live in France before that and I’m originally from the U.K.
@@MillennialsWithMoney pretty cool. I’ll drop you a message on Ig as I’d be interested to hear about your experience living abroad as thats something I’m hoping to do at somepoint!
Absolutely!! More than happy to help 😁
Hi! Great video, what do you think, as a freelancer, what is the best way to work in Spain - via the Beckham law or just like a regular freelancer? Additionally, imagine a EU citizen over to Spain and does not start work immediately, just living off the savings, how would it be possible to get himself and family members cored by a medical insurance? I mean government one, is there something like paying monthly just get access to it? Thanks!
Thanks Andrei! The Beckham law is not a scheme to come and work in Spain, it’s a tax incentive for higher net worth individuals and high income earners when they first move to Spain (similar benefits available under the new digital nomad scheme, which depending on your activity may be an entry option to explore). For the second query, you may be able to make voluntary contributions to the government social security but I’m not 100% sure. Hope this helps!
I earn less than €22.000 per year, but they cut 18 % tax from me. What can i do ?
You can go with enough money in the bank to apply for the visa and then grow your income whilst in Spain perhaps
thanks for the video. would really appreciate another one covering a calculation of income and social taxes in a particular case, lets say we took a job with salary of 10000 euro/month. how much would be the (bloody) irpf and the social taxes?
Do companies state the salary before all the taxes in the job offers? I mean, if I see 10 000 euro/month in the offer what do I get after taxes?
Thanks for the feedback! I will keep this in mind and consider it as a topic for future videos 😊 from my experience job offers are made with the salary before tax, however Cinco Días (economic section of El País) has a good IRPF calculator which will help you understand what you can expect to pay in taxes and SS contributions
Hey. Thank you for you video ! I have a question. I hope you can help me out! I moved from the Netherlands and started working this year since may in Madrid. Now I saw on internet and in your video, if you earn below 22000 (which I do!) you don't have to fill in the yearly tax form. However, I also saw if it is your first year here, you do? some people I met who moved here from Mexico, they say they didn;t do it. And since I am probably moving back to NL in 2 months ,i will not be able to go to the ayuntamiento in may 2023 to fill in the tax form. So my question is, how does this work? Or because i earn below 22000 it doesnt matter.
Hey! I’m not sure about the first year rule.. maybe you can ask a tax adviser about that. It also sounds like you might not have been here long enough to be considered tax resident (183 days in the fiscal years), which opens up another question of if you need to do a non resident declaration or certify that you don’t need to declare. But as long as you have been with one employer and earn less than 22k in theory you shouldn’t need to complete the declaration (unless there are other criteria relating to investments etc which might mean you need to). Also you don’t need to complete the declaration in person, it can be done online through an approved partner (e.g. TaxDown) or directly on the AEAT website. Personally I would contact a tax professional as there are a lot of specifics here. Hope this helps!
@@MillennialsWithMoney thanks a lot!!
Thank you for the content. My question is rather limited. I have some savings. Will not work in Spain or elsewhere. Taking a one year hiatus.(No new income) Want to live for one year as non profit visa. Then Modify on the renewal. Is any of the money I made before ever requesting the residence in play for taxes?
Hey, my understanding is no as only income (whether from work performed, capital gains, dividends etc.) is taxed, always worth checking with a tax advisor though 😊 thanks for watching!
@@MillennialsWithMoney Thank you! I am using an agency and I'm trying to contact a contable . To get the question nailed down. But thank you again! 🙃
Do I have to pay this on my dividend income from stocks as a Spanish/American Expats???
Hey Teemo, you’ll pay between 19-24% on any dividends or capital gains depending on how how much you receive. The table is in the BOE article link, you can do a ctrl + f for “base liquidable del ahorro” and you will find the table. Hope this helps!
I'm allowed to enjoy Spain for 90 days within 180 days, that'll do me, no complications.
Fair play!
Thanks!
You’re welcome bro!!
Hi in 4:20 it shows the tax brackets for Catalonia with final tax 44% for income €60k+. But, in the chart next to it (the example) for an 80k income net is 52k?? How is that 44% or am i missing something?? Thanks
Hey, I think maybe the naming of my columns it what is confusing here. Where I put “final tax rate” in the first table, it’s not the final tax rate the person it will pay, rather it’s the final tax rate for that salary bracket when summing the autonomous and state rates. On the 80k the effective rate is 35% because it takes into account also the lower brackets which have lower rates. Essentially they would only be taxed 44% on income above 60k, and would pay lower rates on income below this. Hope this helps resolve your doubt!!
@@MillennialsWithMoney thanks! Is 80k per year good for a single person in Barcelona? Average? above? Bad?
@@baklava6138 welcome!! 80k per year as very good and a long way above the Spanish average!
Basically estoy skinto after all those taxes.
😅😅😅
Hi Jonny. Does the tax year run January to December? Thanks. 🙂
Hey there, yes it does 😊 thanks for watching!
Are there anyways to bypass the taxation on all world assests/income. Is it really as simple as just going abroad before the 183 days and return some weeks later to maintain being a non Spanish resident? Seems really harsh to have to declare rental income over 1k and assets over 50k. Crazy! Spain went from 0-100 so quickly on taxation 😂😂😂 (EU national so no visa needed)
Haha 😂 so recently the ECJ declared the 720 model unconstitutional so unless the government comes up with some alternative people no longer have to declare their overseas assets. There’s also the “Beckham law” for people who’ve recently become resident but have significant overseas assets but I need to look into it a little more myself, though I believe this can also link into the 183 days and perhaps without needing to leave Spain before clocking up enough time to be considered tax resident.
Hasta que te detienen en España ,por hacer Fraude Fiscal.asi que cuidado
I’m a dual citizen of the US and Spain, can I simply not file taxes if I earned zero income in Spain? I’ve taken no benefits from the Spanish government ever in my life
Thank you this was really useful information. Can you guide as well how to check on the govt. tax portal my tax information ? Many thanks in advance.
Thanks for watching! You need either Cl@ve, eDNI or Certificado Digital to log on, but once you are logged on you can see your personal info in the portal
Hi, someone is working for me for 30 hours in a month and I pay her 1000€
Do you know how much is the social security would be for me to pay ?
You can use this calculator, but maybe check with a professional to be sure cincodias.elpais.com/herramientas/calculadora-irpf/
Hey, Thx a lot for your video it was really helpful !
I recently moved to Spain (August 2022) meaning I would become tax resident in July 2023 correct ?
From my calculations, I would basically be paying 43.8% of taxes on my annual income (including income tax and social security).
Now, I have the possibility to not become tax resident and go back to France before July 2023 permanently.
Does it mean that, in the meanwhile if I contact HR I can benefit from being a non-resident/European citizen and only pay 19% income flat tax ?
Best
You’re welcome, thanks for watching Romain! 😁 I would definitely recommend speaking to a tax adviser, but yes based on your arrival date you shouldn’t be a Spanish tax resident in 2022. Im not sure if it’s quite as straight forward as 19% flat tax for non residents (unless Beckham law applies) as there is still a progressive system taxing non residents on their Spanish sourced income. Hope this helps in the meantime!
43.8%! You are either earning too much or you love to work for tax😂
They are over taxed in Spain
yippee! no shit Sherlock, there is a price to pay for life in Paradise x
Hii.. M in Madrid with my husband.. But now i have option fo part time job 180 euro..for some hours..soo i need to join my husband social security number as a dependent or i need to apply for mine???
Hi Khushi, everyone has their own social security number in Spain which can be obtained from the local social security offices. Hope this helps!
@@MillennialsWithMoney yes thnx
Hi Dude i am non europe resident and i am here only for 3months as i have been deputed for project purpose so can i claim a refund from spain income tax after 3 months
Hey apologies for the late reply - most likely not as it’s Spanish-sourced income, but worth checking with a tax advisor.
How do you speak Spanish so well? 😲 Also are you happy with how much you pay for income tax or you are thinking about relocating due to high tax?
Thank you! I spent a lot of time listening to Spanish music, TV, films and speaking with friends (and of course living here helps 😁). I’m happy for now as I’ve found ways to minimise my cost of living which somewhat offset the higher taxes 😊🇪🇸
Can you please share the tax structure of Donostia-San Sebastian Spain?
Hey Striangle, here are the IRPF brackets for the Basque Country (which will be applicable in Donostia-San Sebastian). The Basque Country and Navarra have their own fiscal regimes different from the rest of the autonomous communities: www.bizkaia.eus/home2/Temas/DetalleTema.asp?Tem_Codigo=8337&idioma=CA
@@MillennialsWithMoney Thanks for the information. Is the tax given in the link above ( autonomous community tax) the only tax, or are there additional central/national taxes?
@@striangle2169 if you jump to 3:46 in the video you’ll see the base state tax in the “tipo estatal” tax, which is the part of the income tax made up of “state” taxes. The column that says “tipo autonómico” in the same table shows the rates for non-residents, so you would substitute the data from Navarra or País Vasco in this column accordingly. Note that you might have autonomous tax bands that don’t coincide with the state bands.
43.5%! HOLY MOLY!
🥲
What about ssi income from usa but live in spain for more than 180 days like a year or more?
I would imagine unless you can get an exemption under the Beckham law then it would be taxed
Don’t pay taxes in Spain but it was interesting nonetheless 😎
Thanks Sandy!! Glad you found it interesting 😁 looking forward to more videos about tax in Belgium from you!!
4:29 its better than in Romania !!! in Sapin you lust 25% from brut salary in Romania you lost 43 % ohh God how i hate my country(Romania) !!!!
Are you friend ship me