Wealth Taxation in Spain
Do you have questions about the newly reinstated Spanish Wealth Tax? Do you know if you need to pay this tax or if you are exempt from it? Are you familiar with the rules and regulations that govern this tax? At Lusa Legal we can answer all of your Wealth Tax questions and more. We can assist you in determining whether or not you are required to pay the Wealth Tax Spain and if so ensure that you take full advantage of all of the exemptions that you qualify for. We can utilize a Spain Wealth Tax calculator to make sure that you pay the correct amount in taxes and we can help you to pay your taxes on time. Lusa Legal is here to provide you with all of the information that you require on the Spanish Wealth Tax.
What do you need to know about Spanish Wealth Tax?
The Spanish Wealth Tax (also previously known as Impuesto sobre el Patrimonio Spain) was reinstated in the country in 2017 after being abolished in 2008. Certain changes have been made, and the new Wealth Tax in Spain, focuses on taxing those residents and non-residents with total combined assets equaling an amount of €700,000 or greater. The amount that is payable is determined by the amount of wealth a person has, therefore the greater their wealth, the more money owed in taxes. This specific tax is calculated on the total amount of assets, after deductions, that a person has as of December 31st and must be paid by June at the latest. The implementation of this tax is supposed to be a temporary one, and was in an attempt to assist in raising the economy of Spain.
Wealth Tax for Residents vs. Non-Residents of Spain.
There are some important differences to note between the regulations and requirements for residents of Spain compared to non-residents, when it comes to paying the Spanish Wealth Tax.
Residents: Residents are allowed a €300,000 tax break on their primary place of residence and if their spouse is also on the deed to the home, they will be entitled to the same tax deduction of €300,000 as well. For residents, the Spanish Wealth tax is calculated based on the resident’s total worldwide income, after all deductions have been taken into account and is payable to the specific local tax office of the city of residence. There is also a cap on the amount of tax that is payable for residents of Spain of a maximum of 60% of total taxable income.
Non-Residents: Non-residents of Spain are not given any allowances for properties owned within the country, as these premises should not be considered their primary home (as they are not primary residents of the country). Non-residents are only taxed on their Spanish assets in Spain and are required to pay the federal government.
What is considered taxable under the Wealth Tax in Spain?
Under the Spanish Wealth Tax, the following assets are, eventually, considered taxable:
- Properties owned
- Assets related to businesses
- Life insurance
- Pieces of artwork
- Valuable antiques
- Intellectual property rights assets
What is considered exempt under the Wealth Tax in Spain?
Under the Spanish Wealth Tax, the following items are considered exempt:
- Spanish Historical Heritage property
- Historical Heritage of Autonomous Communities property
- Specific types of art or antiques
- Any domestic or household item
- Any item that is necessary for the running of an individual’s business
- Certain types of shares
We will help you with Wealth Taxation in Spain
Are you in the process of filing your Wealth Tax Barcelona or Spain? Do you have questions about the newly reinstated Wealth Tax, its regulations and most specifically how it may affect you? Our team of international legal professionals at Lusa Legal are waiting to assist you. Call today to see how we can help: +34 682 085 432.