Hi,

I am new to the entire taxation system of spain, but i have been working for a consultancy company for the past 17 months.
Recently i declared my tax for the previous year, and they responded by saying that i have to pay them an amount.

So my question is, how is it possible that i have to pay tax, if all of my taxes were payed every month through the company i work for.

This is baffling me..

Please can anyone shed some light on the situation..

are you selfemployed ?

The amount that they have been taking monthly (assuming I understand your post correctly) has not been sufficient to meet your total tax bill after all the other issues have been taken into account.

This can happen in the UK also when your tax code is incorrect for example or when you do a tax return you may be in te situation of having to pay higher rate tax (which is only deducted at basic rate)

Generally speaking in my opinion and experience the Spanish tax system is fairer: ie still mortgage interest tax relief, investment income only taxed at 18 % etc.

see here for good info:

http://www.spainaccountants.com/