Wealth Tax Spain
When is a wealth tax declaration required in Spain?
You are obliged, on your own initiative, every year before 30 June, to file a declaration of wealth tax in Spain if your wealth exceeds the exemptions in Spain.
If your gross wealth (your assets without deduction of debts) is more than 2 million euros, you should always file a tax return, even if your net assets (after deduction of debts) are less then the exemptions.
Residents must report the assets they have in Spain and in other countries. Non-residents only have to give up the possessions that they have in Spain. The tax that has to be paid in Spain can usually be settled in your own country.
Rates of wealth tax Spain
Spain has 17 federal entities (‘autonomous communities’) that are allowed to maintain their own rates and exemptions. If they do not maintain their own rates, then the general national Spanish rates apply.
General national rates of wealth tax Spain
| power up | to (euro) | rate | at the beginning of scale |
| 0 | 167,129 | 0.2% | 0 |
| 167,129 | 334,253 | 0.3% | 334 |
| 334,253 | 668,500 | 0.5% | 836 |
| 668,500 | 1,337,000 | 0.9% | 2,507 |
| 1,337,000 | 2,674,000 | 1.3% | 8,523 |
| 2,674,000 | 5,347,998 | 1.7% | 25,904 |
| 5,347,998 | 10,695,996 | 2.1% | 71,362 |
| 10,695,996 | > | 3.5% | 183,670 |
Exemptions
There is a general exemption of 700,000 euros. In some regions this is lower (in Catalonia it is 500,000 euros), in others the bonification still applies (Madrid).
There is an additional exemption for the owner-occupied home of 300,000 euros. This applies to the house where people actually live, and therefore not to a holiday home or second (third, ..) home.
Rumors
Until 2007, Spain, like many other countries, simply had a wealth tax. In 2007, when the trees grew into the sky, the wealth tax was 100% ‘bonified’. Political terminology that indicated that the tax as such was not abolished, but that 100% ‘discount’ was granted.
Times are changing and when the crisis started the bonification in most parts of Spain was abolished again and the wealth tax was ‘temporarily’ reintroduced for (political promise) ‘exclusively’ 2011 and 2012. Meanwhile it has been extended for 2013, 2014, 2015, 2016 and 2017 …
The tradition is now that it is proposed annually to abolish the wealth tax, but that this is ultimately not accepted or reversed. As soon as the abolition is final, we automatically place a message on this website.
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