Just wondered if someone would be able to shed some light regards tax issues in Spain.
I recently received a letter from my future employer that as I have not lived and paid taxes in
Spain previously and dont currently have a Residencia Fiscal, apparently the IRPF retention will be 24%.
Just wondered if that is the case and can I assume that after paying taxes for a year that it will be reduced?
Thanks in advance.

There are (like the UK) tax allowances for personal allowance, children, mortgage etc so after these allowances are taken into account based on your personal circumstances the net taxable income is taxed at 24% (first band) based on 15.66% central and 8.34% local making 24%

Welcome to Spain!

THANKS Robi for your invaluable knowledge.

The retention for IRPF (income tax) differs depending upon whether an individual is fiscally resident or not. For this reason your future employer has indicated that you are not tax resident and the retention will be higher at 24%.

When one then comes to prepare and file an annual tax return these monies are taken into account and any over-payment is repaid. Alternatively, if your actual tax exceeds that retained you will pay the difference.

Over the course of time this retention will reduce when you become tax resident.

G Mor?n
CB Legal & Fiscal
info@legalandfiscal.com