Income tax increase for high earns in Spain approved

The Spanish government has decided to increase the income tax for the highest earning workers.

For earnings above 120.000 euros annually, the new tax percentage will be 44 %, up one percentage point. For incomes higher that 175.000, the new tax is going to be 45 %, raised by two percentage points.

The government also approved a raise in the minimum pensions by 1 % in 2011. Other pensions remains freezed in order to save money, as economy ministry Elena Salgado explained these past days.

Electricity price in Spain will rise 4.8 % from 1. October

The price of electricity in Spain is to rise by 4.8 % starting October 1st, according to an agreement signed yesterday by the Ministry of Industry, Tourism and Commerce.

Increased fuel prices and seasonal adjustments for the upcoming winter are the reasons for the increased price.

The electricity price will have climbed by more than 30 % in Spain the last five years after this newest increase. The consumers organization “Facua” stated that there was absolutely “no justification” for the price increase decided yesterday, but did not indicate it would take any kind of action against it.

Tourist arrivals start to pick up again as economic crisis passes

The Spanish tourist industry this year had its best August for arrivals since 2006, but the country has yet to reach post-crisis levels amid stronger competition from cheaper destinations such as Turkey.
The Industry, Tourism and Trade Ministry said the number of overseas visitors rose 4 percent last month froma year earlier to just under 7 million. But disregarding last year when arrivals fell 8 percent, the figure for this August was the lowest since 2004.
Industry Minister Miguel Sebastián attributed the improvement to a pick-up in the key UK market where the economic downturn combined with the weakness of the pound had kept British visitors away in droves. The Italian and French markets also improved as the crisis eased

RESIDENCE REQUIREMENTS

From 28 March 2007, Royal Decree 240/07 requires that all EU citizens planning to reside in Spain for more than 3 months should register in person at the Oficina de Extranjeros in their province of residence or at designated Police stations. However, you will no longer be issued with a residence card. Instead you will be issued a Residence Certificate stating your name, address, nationality, NIE number (Número de Identificación Extranjeros) and date of registration.

If you are an EU citizen with a valid residency card, you do not need to do anything until your card expires. On expiry you must register at the Oficina de Extranjeros or designated police stations.

HAVE YOU WORKED IN SPAIN?

Whilst Spain continues to be a popular choice of residence amongst European pensioners, more and more British people are making the move earlier in life. The number of people who have worked and made social security contributions in both countries is therefore increasing. Living and working in Spain may be a dream come true for many. However, when it comes to the financial side of things, such as claiming pensions and benefits, the added factor of having lived and/or worked in another EEA country can seem like a headache most of us could do without!

But it doesn’t have to be. In terms of where you apply for your pension or benefit, the rules are relatively simple. You should make one application through the social security office of the country where you last worked and made contributions. So, if this is Spain, you should apply through the Instituto Nacional de la Seguridad Social (INSS). If your last place of work was the UK however, apply through the International Pension Centre.

After working in more than one EEA country, it is possible for your contributions from each one to be taken into account when calculating your pension or benefit. You must therefore give as much information as possible about your working life when you apply.

For example, when calculating your pension, the total number of qualifying years you have in the UK and Spain will contribute to your entitlement. If you have worked a combined total of 15 years, the minimum number of qualifying years for a pension in Spain, which is higher than the UK minimum, you may well be entitled to a pension from both countries.

It is also worth noting that state pension age in Spain is 65 for both men and women. However, a woman who has worked in both countries and who has a sufficient number of qualifying years, can apply for her UK State Pension at 60 and her Spanish entitlement at 65. If this does apply to you, you can continue to work in Spain until you are 65 whilst receiving your UK pension, but remember that you would need to make your application through Spain

You may also be thinking about paying voluntary contributions to top up your pension entitlement in either country. If you are currently working in Spain, but wish to voluntarily contribute to the UK, you can pay for any of the last 6 years where you have not contributed enough previously. In addition, anyone who reaches state pension age between April 2008 and April 2015 is entitled to pay voluntary contributions for any 6 years back to 1975, providing they already have 20 full qualifying years. If you are interested in paying UK voluntary contributions, contact HMRC.

COMPANY START-UPS RISE FOR SEVENTH MONTH IN A ROW

The number of new firms set up in Spain in July rose annually for the seventh month in a row in July, rising 9,2 percent after a hike of 7,0 percent in June, the National Statitics Institute said Tuesday.

HOME SALES CONTINUE THEIR RECOVERY IN THIRD QUARTER

Spanish home sales rose for the third quarter in a row in the period April-June and at a much stronger pace than the previous three months, as the housing market showed further signs of steadying after a prolonged slump.

The Housing Ministry said sales in the second quarter were up an annual 24,7 percent at 149.527 units after an increase of only2,3 percent in the first quarter of the year. On a quartely basis, home purchases climbed 39,6 percent. In the 12 months to June, sales rose 4,8 percent to 495.684. "Sales continued the recovery initiated in the forth quarter of 2009" the Housing Ministry said in a statement.

GOVERNMENT'S LABOR REFORM PASSED DESPITE UNIONS' WARNING

The Spanish government's controversial labor reform bill passed its final hurdle in the lower house yesterday, and is set to be signed into law. Congress threw out most of the amendments included in the bill by the Senate, and the new legislation retains largely the form aproved by Congress after a first reading in July.

The Socialist administration of Prime Minister Jose Luis Rodriguez Zapatero claims the make over of the jobs market is needed to address high unemployment, wich at over 20 percent is currently double the average in the European Union. The unions, however, argue it panders to demands of employers by cutting the cost of firing workers, and will fail to achieve its supposed end of creating more employment.

The bill relaxes the economic and financial conditions under wich companies can lay workers off with severance pay of only 20 days per year in service and promotes an alternative contract with compensation of 33 days as opposed to most current permanent contracts, wich carry an etitlement of 45 days' pay. It also reduces from 100 to 30 days the grace period given to unemployed workers who refuse training or a new job proposal by the state employment agency.

WEDNESDAY 8, CLOSED

We want to remind our clients that on Wedenesday September 8th, Orihuela celebrates the feast of Virgin Nuestra Señora de Montserrat. Due to that, our office will be closed that day.

NEW LEAFLET

You can now download our new leaflet for this Autumn. As it says, the new fees are for September and October. We want to help the enterprising people at these difficult moments.

Just click here.

SPANISH JOBLESS RATE HIGHEST IN EUROPEAN UNION

Spain continued to top the jobless rate table in the European Union as unemployment rose from 20,2% in June to 20,3% in July. The unemployment rate in July in the EU was stedy at 10% and was also unchanged in the euro zone at 9,6 percent.

OPEN ALSO IN THE AFTERNOON

Summer is getting to end and with September, we return to our normal schedule. Our opening hours are:

Monday to Friday

From 9,30h to 14,00h and from 15,00h till 18,00h.

Saturday & Sunday closed.

We remind you ways to contact us:

In our office in Orihuela Costa: In N-332 Road to Cartagena, at La Mosca Shopping Centre (SUPERCOR & HALIFAX), first floor, premises 8 (next to ATHENA TAVERN). Orihuela Costa.

Phone: 96 532 77 14
Mobile: 615 72 22 73
e-mail: vpadvisers@gmail.com

Have a nice day.