Spanish Government General Budget 2018 – A Summary

The Government´s budget for 2018 has finally been approved. Below a summary of changes that might interest or affect members.

Starting with a positive one: going to the movies is going to be cheaper as the IVA / VAT on tickets will go down from 21 to 10%. Effective immediately.

Another improvement: paternity leave from 4 to 5 weeks and for ´funcionarios´ the option to take the leave once the mother´s leave has ended. Effective immediately.

Pensions will increase with 1,6% for a medium pension to 3% for a minimum pension, 1,35% for Autonomos not in receipt of minimum pension. The increased pension payments will be realised as of August, but the measure will be implemented retro-actively as of January 1st this year, so during July all pensioners will receive an extra payment with the increase over the months January-July.

IRPF Income Tax changes. The threshold of 12.000 euros will go up to 14.000 euros. Higher allowances for those with income from work between 14.000 and 18.000. Extra allowances for those with a disabled spouse or for large families. Effective this tax year, so as of RENTA 2018, to file in April-June 2019.

Autonomo contributions increase, from 275 to 278,80 euros/month, for those that have chosen to pay based on the minimum ´base de cotización´, the large majority of self employed in Spain.

Renewing your Spanish DNI or passport is more expensive now. 12 euros for DNI and 30 for a Spanish passport.

For foreigners living in Spain, the ´tasas´ to pay for official documents like NIE certificate (EX 15) or Residency Certificate (EX 18) have gone up as well. Prices now 9,64 euro for NIE certificate and 12.00 for the green Residency Certificate.

Please note: The information provided is based upon our understanding of current legislation. It is not legal advice but is provided freely to enable you to be properly informed. We recommend that if you are considering taking action, you should seek professional advice.