Wealth tax in Andalucia, as well as the rest of Spain, was an unwelcome burden on both the expatriate community and locals alike. However, Andalucía has now become one the regions in Spain with the fewest taxes after Madrid. From Wednesday 21 September 2022 there will no longer be a wealth tax in Andalucía. This, along with previous reductions in income and inheritance taxes in Andalucia are a clear sign that the local government are determined to attract more wealthy individuals to the area.
The below table has now become historical and for information purposes only.
|Wealth||Bands (€)||Tax rate 2020||Tax rate 2021|
|on next||167,129 to 334,252||0.36%||0.3%|
|on next||334,252 to 668,499||0.61%||0.5%|
|on next||668,499 to 1,336,999||1.09%||0.9%|
|on next||1,336,999 to 2,673,999||1.57%||1.3%|
|on next||2,673,999 to 5,347,998||2.06%||1.7%|
|on next||5,347,998 to 10,695,996||2.54%||2.1%|
Remember that this tax till exists in many of Spain's autonomous regions and is based on an individual's world wide assets. So if you jointly own assets, the value is split and each of you has the €700,000 allowance plus €300,000 for your main residence. There is also the 60% rule to take into account which can, in some cases, reduce wealth tax liability outside Andalucia by up to 80%.
See more information on avoiding wealth tax in Spain here. Please feel free to contact us for more information and advice bespoke to your individual situation.
Patrick Macdonald ASCI
International Financial Adviser