Wealth tax in Spain for expats

 

Spanish wealth tax applies to the ownership of assets less any allowable charges or debts. Therefore wealth tax is calculated on the net wealth of an individual. Assets liable to the tax include immoveable property, cars, cash, shares, jewellery etc; things allowed to reduce this include mortgages, charges and loans.

The following are the national rules. The autonomies have the power to amend allowances etc.

 

Property

The valuation of property for wealth tax purposes is based on the higher of;

  • The cadastral value (rateable value).

  • The aquisition cost (as delared on the "escritura" title deed).

  • Official Valuation undertaken by the Tax authorities.

There are special rules for valuing bank balances as well as other assets. Residency affects the scope of wealth tax, residents and non residents are taxed as follows;

 

Residents

SPanish tax residents are liable to wealth tax on their worldwide assets. They also benefit from the following allowances:

  • General allowance €700,000. This allowance is available to reduce all net assets liable to wealth tax

  • Habitual residence €300,000. This allowance is available against your main residence in Spain and is in addition to the general allowance

  • If you have a business then there is an allowance which effectively excludes the value of the business subject to certain conditions such as the business being your main source of income.

  • Wealth tax payable can also be capped subject to certain conditions (i.e. wealth tax plus income tax cannot exceed 60% of taxable income).

Non Spanish Residents

Non Spanish residents are liable to wealth tax solely on assets located in Spain.

They only benefit from the €700,000 allowance as their main residence will be outside Spain.

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Please note that every care has been taken to ensure that the information provided is correct and in accordance with our understanding of current Spanish tax law 2013. You should note however, that we cannot take on the role of an individual taxation adviser and independent confirmation should be obtained before acting or refraining from acting upon the information given. The Spanish tax law is subject to change. Legislation varies from country to country and the policyholder’s country of residence may impact on the above.

Please feel free to contact us at anytime including evenings and weekends. You can fill in the form on the right, email us or cal us direct on the above number. Home consultations are available and are free of charge all over Spain. We are appointed representatives of Blacktower Financial Management (International) Ltd (BFMI). The group was formed in 1986 to provide independent wealth management advice and a bespoke service for both individual and corporate clients. More...

info@finance-spain.comMinitienda 15, Centro Comercial Plaza, Nueva Andalucia, Marbella 29660, Malaga, Spain