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Spain Personal Tax Rates 2012January 2012 Starting January 1, 2012 there is an additional 0.75%-7% tax which is imposed in additional to the regular progressive rates of 24% -45%. The additional 0.75% tax is imposed on income of up to EUR 17,707 while the 7% tax is imposed on income exceeding EUR 300,000 resulting in a top marginal 52% rate compared to the previous 45% rate. For saving income, e.g. interest and dividend, there is an additional 2%-6% tax which is added to the previous 19%/21% rates. The new tax hike is a part of the Spanish austerity measures. Spain Hong Kong Double Tax TreatyApril 2011 Spain and Hong Kong signed on April 1 2011 a DTA, double tax treaty. According to the tax treaty the withholding rates for royalties and interest are 5%. The withholding rate for dividend is 10%, or exempt when the recipient is a company holding 25% or more of the paying company. Spain's GDP Decreased by 1.3%May 2010 According to an advance estimate by the statistics office the Spanish GDP decreased by 1.3% in the first quarter of 2010 , as compared to the same period in 2009. Spain's Credit Ranking DowngradedApril 2010 The credit rating agency Standard & Poor's downgraded on April 28, 2010 Spain's credit rating one step, from the previous AA+ to AA. Spain's previous downgrade was in January 2009. Spain's downgrade follows the downgrading of Greece and Portugal by S&P on 27/4/2010. Spain's economy is about four times bigger than Greece's economy and about six times bigger than Portugal's economy. Spain 2010 New Tax RatesFebruary 2010 According to the Spanish Budget Law from 1.1.2010 the standard 30% corporate tax rate would be reduced to 20% for SMEs, small and medium size enterprises. The current 18% income tax rate on saving income would be raised to 19% for income up to EUR 6,000 and 21% for income exceeding this limit. From 1.7.2010 the standard V.A.T. rate would be raised from the current 16% rate to 18%. Spain New 43% Tax Rate for FootballersNovember 2009 The Spanish government plans to raise the tax rate for foreign football players earning more than EUR 600,000 per year. Currently foreign footballers pay 24% tax under the "Beckham Law" effective from 2002. From 1.1.2010 the new tax rate will rise to 43%. The new tax rate will apply only to new contracts signed by foreign footballers and skilled people from 1.1.2010 onwards. So far, due to the 24% low tax rate the Spanish football league has been very attractive to foreign top footballers who enjoyed a low tax rate compared to the higher tax rates in other European countries. |
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