Page 39 - Property Portfolio - October 2019

The average gross salary in Spain is €34,469, but What does this mean for taxpayers?
after the real tax rate of 43.31%, workers in the The Institut’s overall outlook is that ageing
country are only left with €19,541 to spend on populations are putting pressure on pension and
themselves and their families. healthcare spending for governments throughout
the bloc. This does not bode well for future tax
The country with the latest tax freedom day cuts; as the population ages and fewer people are
this year is once again France. With the highest actively employed, taxpayers are required to plug
real tax rate of 54.73%, the symbolic date when the gap. With under half of the EU’s 513 million
French workers stopped paying tax was over citizens in the labour force, the report concludes
halfway through the year, landing on 19 July. that “economic growth remains European
workers’ best hope against tax increases in the
Cyprus continues to have the earliest tax freedom near term”.
day on 8 April, nine days ahead of runner-up
Malta on 17 April, with Ireland taking third These therefore remain taxing times for
place at 26 April. When it comes to the lowest taxpayers, and not just for workers, as retirees
real tax rate, Cyprus leads at 26.6% with Malta are also faced with higher taxes. Of course, the
following at 29.3%. research is just indicative of the average taxpayer
in each country – higher earners will generally
What about the UK? have a later tax freedom day.
According to the study, the UK’s tax freedom day
again comes fourth, landing on 8 May, with a In many cases, there are steps you can take to
real tax rate of 34.94%. lighten your tax burden, especially on your
capital investments and pensions. While we
However, many think tanks undertake their own all have to pay our share of taxes, cross-border
research to calculate their country’s tax freedom taxation is highly complex; do not risk getting
day, using different methodologies. While the it wrong or paying more than you have to. Take
Institut Economique Molinari looks at income personalised, specialist advice on the compliant
tax, social security contributions and VAT, the tax mitigation opportunities available in Spain
UK’s Adam Smith Institute (ASI) measures the and the UK – you may be surprised at how you
entire tax take, including taxes that do not come can improve your tax situation.
directly out of the earner’s pocket.
All advice received from Blevins Franks is
The ASI’s approach places the UK’s 2019 date personalised and provided in writing. This article,
three weeks later, on 30 May. One day later however, should not be construed as providing any
than 2018’s result, this is the latest date since personalised taxation or investment advice.
comparable records began in 1995.

Keep up to date on the financial issues that may affect you
on the Blevins Franks news page at www.blevinsfranks.com

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