The thorny issue of black money in Spain is one you should be aware of when buying Spanish property. Black money is when you buy a house for one price, let’s say 200,000 Euros for argument’s sake, and you declare less on the deeds, for example 180,000 Euros. The reason people do this is very simple, tax avoidance. The buyer would save themselves around 1400 Euros in tax in the above example, 7% of 20000 saved, and the seller might well save a lot on capital gains, eg 18% of any capital gain, let’s say the original purchase was made at 150,000 Euros and then the sale was declared at 200,000 in theory there would be a capital gain of 50,000 Euros minus costs on purchase and sale, round about 15,000 Euros. The saving therefore would be around 3600 Euros
A report has just been leaked to the Cadena SER radio station that the black economy in Spain now makes up 23.3% of all transactions. This means that a quarter of the economy in Spain doesn’t show up on the official figures for the size of the GDP for example. The figure is 5% higher than a decade ago and it is getting higher due to the famous “Crisis”.
How to Get a NIE Number in Spain Getting a NIE number in Spain can be a very long and tedious process. The worst thing about it is that the process is constantly “evolving” i.e, changing without notice. The funny thing about this is that when you actually talk toContinue reading
There is one thing that comes along with life just like breathing and that is taxes. Taxes in Spain are different to taxes in most other places in the World
Looking into the reasons why Real Madrid can buy players for ridiculous amounts of money and why those players want to come to Spain.
Thanks to an article I was pointed to by the excellent Barry Davys at Expat Financial I asked myself this question over the weekend, what type of person can keep their job in the UK but live in Spain? (You can find the original article here) Obviously those who earnContinue reading