So the new tax limits have been issued in Andalucia. First of all: remember that personal income tax is split into two bits in Spain, the bit collected for the central government (Madrid) and then the bit for the region you live in (in my case, Andalucia). Madrid takes, if I remember correctly, between 12% and 22% of your income, depending on how much you earn.
Now, Andalucia has decided that to balance its books, it will increase its tax margins to make the highest tax band in the region a whopping 56% of your income (if you earn over 300,000€ a year). Making Andalucia, along with Catalunya, the most expensive place for the wealthy to live in Spain. (legal tax tip: move to Murcia, flats are cheap, and get on the padrón there instead. You don’t actually have to move).
But, anyone earning under 60,000€ will continue to pay the same as they do now, and people earning 60k will pay the same as people earning 100k.
So, the table (Andalucia’s portion of the tax, add the national one on top):
under 60,000€: no change.
60-80,000€: from 21,5% to 23,5%
80-100,000€: from 22,5% to 23,5%
100-120,000€: no change, stays at 23.5%
Above 120-300€: 25.5%
All of this to take effect next year. Where the loonies think they’re going to find people earning more than 300k in Andalucia is anyones guess. Also, aren’t we bankrupt now?
Interesting note: Griñán and his ministers earn just over 60,000€ a year. They’ve announced that they will accept a 5% pay cut “to share the pain”. That, according to my rough calcuations, puts them under the 60,000€ a year limit, meaning that this pay cut is roughly offset by the tax increase they would otherwise be exposed to. Hmm. As the Spanish say: el que hace la ley, hace la trampa.
Meanwhile, with a more immediate effect, petrol will go up to the maximum Andalucia can put it up to, Capital Gains tax goes up, as do a whole raft of secondary taxes.
Here’s an (free) idea to get some more money: Make the politicians who stole billions from the public coffers over the last few years pay it back. Anyone with me?