Take a tax break in Spain...

The anger of the British public bubbled over when Housing Minister, Margaret Becket tried to defend herself, fellow ministers and MPs on television over the expenses scandal and again hours later when new figures showed housing repossessions were up 50% and mortgage arrears up 62% - despite the “help” provided the McBroon Government.

Yet another McBroon failed initiative as 1,000 families a week are turfed out of their homes as a result of banker greed and sheer incompetence of the McBroon Government. MPs handed millions for kitting out their second homes, while British families struggle to pay the mortgage in a recession caused by the McBroons.

British over-50s are thinking it’s time to get out as they realise they will be paying in increased taxes until Retirement Day. Also thinking of quitting are many of the wealth generators after the punishment handed out to them in the latest McBroon Budget:

• New top rate of income tax at 50% for those earning over £150,000;
• Loss of personal allowances for those earning over £100,000;
• Levying a basic rate only relief on pension contributions over £150,000.

Former Labour Party contributor Tim Waterstone, described the 50p tax as a “spiteful political move” and heralded it as a “disincentive to entrepreneurs”. There are already reports of entrepreneurs announcing their plans to relocate to Switzerland, Monaco and the Isle of Man.

The international lawyer, Mark Wilkins has suggested Brit high earners might consider an even better lifestyle in Spain –“A country where the tax regime does not seem to be fuelled by the politics of envy. A country that is some three hours from office desk to home office, has exceptional road, transport and health infrastructure, some of the best golf courses on the planet, as much beach as you and your kids can dream of, schooling that sits head and shoulders above many of its UK Ofsted counterparts…”

He also points to an average of 325 days of sun a year and an average summer coastal temperature of 36 degrees, a current property market offering real value for money and an EU recognised initiative to ensure that previous planning uncertainties are a thing of the past.

Mark Wilkins outlines the tax position. “Spain has as its highest income tax rate – a 43% ceiling, applicable to earnings in excess of €53,407.

“Wealth tax has been effectively abolished in Spain and the personal allowances for all resident earners – regardless of earnings - vary from €8,551 for a joint declaration to a cumulative child allowance that rises with the 4th child to €4,182. Consequently, in addition to a saving on income tax of 7%, it seems in cash terms earning £150,000 and electing Spain as your tax residency may well leave you, under the current Spanish regime, materially better off."

If that is a lifestyle decision you want to investigate, start with Libertad, a tax break purchase method that helps keep family money in the family. The Sun newspaper reviewed Libertad in detail and the latest Spanish property bargains can be found online.