Wealth tax is an annual tax, payable on the total net value of your assets by 31st December. If you are resident in Spain you are liable on your worldwide assets.
Wealth tax is payable on the value of most of your assets. This includes real estate, savings and investments, jewellery, art, cars, boats, etc. Loans are deductible on your net taxable wealth (provided that they were not used to buy or invest in assets which are exempt from this tax).
Tax rates in Spain are progressive and range from 0.2% for assets up to 2.5% depending on the assets value. There are, however, variations between autonomous communities and the top rate is higher in many regions.
In general, each resident individual has a tax free allowance of €700,000 plus a €300,000 allowance on the value of his main home. Again, this allowance can vary in some regions.
Allowances mean that many people are exempt from this tax. For wealthier residents it can have a significant impact.
Please note, tax regulations and tax rates change frequently in Spain, so this information may be out of date. Therefore, it is highly advisable to contact us for the latest information.
Please contact us if you want our firm to file your wealth tax return.