Tax and N.I.

[morro]

I have applied for a teaching job in Zaragoza and would like to know how much tax and N.I. I would have to pay. Also is it expensive to import my U.K. car into Spain?

[Suenneil]

Hi

Its not a straight forward answer as it will be dependent on your income, type of contract and type of employment ... but I have copied some information below on the tax system that may be of help to you. If you are contracted then the social security payments will also be based on your salary amount, (%), I am trying to find some info for you now and will post later if I can find it in my files!

Sue

Individuals will be regarded as tax residents:

* if they spend more than 183 days in a calendar year in Spain,
* if their centre of vital interests (economic interests, business or professional activities) is in Spain.

Residence:

* is assumed if an individual’s family lives in Spain in the absence of proof to the contrary.

Married persons may elect to file a single or a joint tax return. The joint tax return does not allow splitting of income.


Taxable income includes:

* employment income,
* all compensation received for personal services,
* salaries and wages,
* payments for certain business-related expenses,
* pensions,
* housing allowances,
* other allowances paid in cash or in kind.

Certain deductions applicable to residents only are permissible for 2009 including:

* social security contributions,
* personal allowance of EUR 5’151 per year,
* employment allowance between EUR 2’652 and 4’080 per year depending on the net salary,
* allowances for children
* contributions to Spanish pension plans made by employer and employee up to certain limits,
* certain travel allowances paid by the employer to the employee may be exempt in specific circumstances.


Income tax rates for residents are progressive, for 2009:

* 24% on income up to EUR 17’707.20 for a single person without dependent children,
* 28% on income between EUR 17’707.20 and EUR 33’007.20,
* 37% on income between EUR 33’007.20 and EUR 53’407.20,
* 43% on income over EUR 53’407.20.

A tax rule for expatriates in Spain who are employed by a Spanish company or by a foreign company with a permanent establishment in Spain has been in force since 1 January 2004. These expatriates may choose to be subject to tax either at progressive rates with deduction of certain expenses and allowances, or as non-resident taxpayers at a flat tax rate of 24% with no deduction of expenses or allowances.

Filing date:

Tax returns are usually filed from the 1st of May to 30th June following the end of the calendar year.

[Suenneil]

Hi again

SS payments are split between you and your employer ... the table below gives a basic overview of the payments that are made by both .... but there may be some slight deviations from this depending on your job and contract type. It also shows what % SS contributes towards unemployment benefit etc.


Percentage of gross paycheck
Reason for contribution Employer Employee Total
Standard 23,6% 4,7% 28,3%
Unemployment* 6,0% 1,6% 7,6%
Other** 2,0% 0,1% 2,1%
Total 31,6% 6,4 38,0%

*These percentages may be slightly different depending on your work contract.
**Salary guarantee in case of bankruptcy; professional studies; additional amount based on the employee's professional classification.

Note that these percentages only apply up to a maximum gross salary of roughly 36,000€.


Sue