Announcement! Following the recent relection of the Spanish Government, Spanish Wealth Tax(Impuesto Extraordinario sobre el Patrimonio) will be eliminated by 2009. Read more on the Abolishment of Wealth Tax in Spain.
Wealth Tax in Spain – Impuesto Extraordinario sobre el Patrimonio
[Updated May 2008]
Spanish Wealth tax is a tax on assets ** and is applicable to both residents and non residents.
For non residents it is only based upon property and other assets that are situated in Spain and no allowances are given.
For residents it is based upon worldwide assets **, however, there are exemptions and deductions **; each individual pays nothing on the first Euros €108,182 of assets and each individual is entitled to a further exemption on the first Euros €150,253 of their principle residence.
Therefore if you are resident and own one property and the combined value of that and your other assets is less than Euros €516,000 you will have no wealth tax to pay.
Wealth tax was introduced in 1978 to encourage those individuals who had been hiding their wealth to be more transparent. It is an incremental tax and as the table illustrates it increases relative to the value of property.
What are my assets **
These includes; Bank accounts, stocks and shares, investments, share in a business, gold, cars, yachts, aeroplanes, works of art and jewellery.
What are my deductions **
Deductions are available for debts against businesses, mortgages on property and any tax of a similar nature levied in another country.