Spanish Wealth Tax Abolished

Spanish ‘Wealth Tax‘ has been abolished with effect from 1 January 2008. (Impuesto Extraordinario sobre el Patrimonio)

As this tax was levied based on assets held on 31 December of a given year, the tax for 2007 will therefore be payable as usual during 2008. However no wealth tax will be payablle for 2008 itself during 2009.

The tax treatment for residents and non-residents is different. Residents pay this tax on their worldwide assets, less various exemptions. Non-residents pay the tax only on assets held in Spain, but there are no exemptions.

Undoubtedly the move, announced after the re-election of the Spanish PSOE government, is designed to mitigate the damage to the Spanish housing market and construction industry in the wake of the current economic downturn; it may also encourage some people to re-locate to Spain if 18 per cent income tax is the only tax they will have to pay.

Whilst because of the allowances available this affected non residents more than residents it is none the less a welcome move.

This also means that non resident owners who did not like to sort out their own wealth tax may no longer need to retain the services of a fiscal representative; however, you do need to check out your agreement with your representative and give them notice as soon as possible.

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38 Responses to Spanish Wealth Tax Abolished

  1. Teemo August 30, 2008 at 4:52 pm #

    this is great, it enabled me to send an email to my fiscal rep to tell him I no longer require his services, Another bill I do not have to pay in the future ……… yippppeeeee

  2. Ray Norval October 10, 2008 at 4:58 pm #

    With reference to the aspect of non residents no longer requireing fiscal representation, how do they pay their non residents property owners imputed income tax?

  3. Liz Ward October 27, 2008 at 10:21 am #

    does this mean the Renta which non-residents paid on the same form is also abolished.

    is there something in the place of these taxes? I sort out my own taxes ie without the help (or otherwise) of a spanish legal whizz.

  4. tax payer October 29, 2008 at 12:01 pm #

    please I wish to know when the Spanish goverment changeg the law and in which official book (BOE) was published.

    I pay the form 214 that encloses two kind of Spanish taxes, does it mean that the goverment abolished both of them.

  5. Spanish Owner November 18, 2008 at 1:20 am #

    You have to pay wealth tax in 2008 (as it is for period Jan 1st to Dec 31st, 2007, A YEAR IN ARREARS).

    You need to pay renta tax in future & will still need a Fiscal Representative to complete this OR DIY, as we do.

    It isn’t difficult once you know how but the 1st year you do it is the worst. you need to buy the envelope containing three 214 forms. You need to get hold of a sheet of stick on labels too with your ID on. All this is to be obtained from your tax office. Envelope with three forms in is 50c & each person named on your escritura (deeds) needs to submit one set of three forms. Pegatinas, the ID labels are free. You need to show your NIE details. Fill form in, take envelope with forms inside plus cash to a major bank, pay whatever taxes work out at, bank stamps them all, keeps two copies, stamps third & returns to you. We will be submitting our own for the 2nd year next month.

  6. Chris Dunn December 3, 2008 at 1:41 pm #

    Please can someone send me a form to cover my Income and wealth tax. I believe it is form 214.

    Many Thanks

  7. alec December 29, 2008 at 3:21 pm #

    I would like to dispense with the expense of using a Fiscal Rep in the future in order to cut my overheads.
    To date they have always done my 214 declaration.
    My question is:
    To pay non resident IRNR (Renta) and no other taxes, do you continue using form 214 or do have to use form 210.
    There are 3 names on my Escritura.
    Also does anyone know how to fill these in?
    Can I get hold of an example somewhere?

  8. Teemo January 6, 2009 at 10:32 pm #

    I normally live in the uk so do I still need to pay the wealth tax, my fiscal representative seems to think i do.

    And what is Renta tax, never heard of that one before.

  9. carol January 10, 2009 at 4:41 pm #

    Just because it is mentioned in the newspapers does not mean it is law!!!
    until one can see the number of the Spanish law which governs the abolition of the wealth tax —wealth tax still has to be paid …in 2008 and until the law is passed.

  10. John January 16, 2009 at 11:14 pm #

    I am interested in completing my own Form 214 for the ‘Renta’ this year (as describe by “Spanish Owner” ) but do not know which part of the form applies to what? Can you help?

  11. ROY February 9, 2009 at 7:35 pm #

    In 2008 and 2009 I have both investment gains and losses. My bank is deducting withholding tax from gains. How do I optimise my situation’

    I am very happy that the patrimonio tax is abolished!!

  12. lauriebaker February 10, 2009 at 12:02 pm #

    you now require form 210 .one set (5) for each person on your deeds ,however it sounds like more paper work , but as I understand .form 1 -3 are the same as are form 4-5 so its a matter of copying same details Thrice and twice,hope this is of some help,yes you still have to pay ,but the 25% has dropped to 24% , you can download tese forms on http://www.spanishforms.co.uk

    • admin February 10, 2009 at 12:07 pm #

      @ lauriebaker

      Thanks for the information and the website link to the forms. For some reason the site is down on the link given.

      We are sure it will be of use. :-)

  13. lauriebaker February 10, 2009 at 12:10 pm #

    Oops!! Sorry you get the tax forms at http://www.spanishtaxforms.co.uk = also if you need a handy translation site ,try http://www.aeat.es just type your required language in and it translates for you, handy Good Luck Laurie El Chapparal torry

    • admin February 10, 2009 at 12:12 pm #

      Great stuff.. thanks Laurie

  14. lauriebaker February 10, 2009 at 12:29 pm #

    O,K You can swear at me if you like,now the Correct sites are as follows= for your 210 etc you need http://www.aeat.es
    for the translation site its=www.systran.com you can also follow links on the site http://www.spanishtaxforms.co.uk , however whichever way you go , the forms are in Spanish, not like U.K .my wife just received hospital appointment, on bottom of form was. “If you require this form in a different language please let us know.!! 12 ,yes Twelve translations available (Free) Lets press for these official forms to be at least in English etcin Spain and even Europe, comn Espana. Sorry about the mistake,(previous,) I,m havin a bad day. Laurie

  15. george Woodgate March 5, 2009 at 3:33 pm #

    Having been left in a muddle by the closure of our fiscal reps business,we were grateful to lauriebaker for the info and connected websites.
    We are still not sure whether the Renta tax is due from non-residents who do not rent their properties but the info todate is certainly useful and may enable us to deal with the tax affairs ourselves, so thanks.

  16. John Matthews March 13, 2009 at 8:41 pm #

    I own a Spanish property,purchased in August 2008, and as I understand it I will not be liable for wealth tax as this was abolished or reduced to Zero Rated in Deceber 2008 and was back dated to January 1st 2008.
    I use the property purely as holiday home and do not rent it.This ,together with my bank account,are the only assets I have in Spain.I would therefore classify myself as a non resident.

    I have read some of the feedback on the subject of wealth tax and I am still confused .I understand that what is generally refered to as “WealthTax” actually comprises of two taxes (a)wealth tax and(b) RENTA and that the RENTA is still payable?
    That being the case
    Which tax form do I use?
    How do I calculate the tax and complete the form?

    Form 214 seems to be the one suggested on the official Agencia Tributaria web site. http://www.agenciatributaria.es where there is also a document,in English.”Taxation of non residents”,35 pages which is very informative,together with a frequently asked questions section again in English.All these can be downloaded in PDF fornmat.The form 214 can also be downloaded,alas ,in Sanish
    The form 210 which has been mentioned seems to deal with share dividend an tax reclamation.
    Any comments?
    John

    ,I.

  17. Gericom March 25, 2009 at 6:08 pm #

    As well as local rates (IBI taxes payable to the local authority) it is correct to say that 2 further taxes were due i.e. the “Wealth ” (Patrimonio) tax on all assets in Spain and “Income” (La Renta) tax on income arising in Spain. This La Renta is due whether or not you actually rent out your Spanish property and derive an income from it. For non-residents with ONLY ONE property in Spain AND who did NOT rent out their property, a simplified Form 214 was available to enable calculation and payment of both taxes, Wealth and La Renta. The La Renta tax was calculated using a formula based on the Cadastral value of the property – thus it is a notional tax but unfortunately is still payable now that Wealth tax has been abolished.
    In all cases where there is more than one property owned OR the property is actually rented out, Form 214 cannot be used – the correct form is Form 210 which also covers other income sources such as dividends etc. However, since the abolition of Wealth tax I have seen mention of a NEW simplified Form 210 being made available to replace the old Form 214. To the best of my knowledge, this new form is not yet available from the Agencia Tributaria website – but I expect it will be very soon, if they wish people to pay their tax before 30th June, that is. The only way to be sure is to enquire at the local tax office in Spain. Hope this some help.

  18. sunseeker April 26, 2009 at 8:22 am #

    The website referred to in this thread http://www.spanishtaxforms.co.uk does have a link to the Agencia Tributaria website but I notice that they also offer to calculate the tax and complete 210 forms for non-residents for £19.95 per property. This seems very cheap but has anybody used them?

  19. John Matthews April 26, 2009 at 12:31 pm #

    Thanks for your comments Gericom I too have heard a whisper about a new form to replace the old 214.
    I`ve seen nothing on the Agecia Tributaria site.
    Ihave sucessfully down loaded form 214 ,but for some reason I cant down load the original 210 form, all I get is an error message.From what I can make out from the Spanish information on how to download the form it seems to make great play on “adobe professional”,which I haven`t got.Does anybody know if this is the problem or has anybody sucessfully down loaded this form?

  20. Alec April 28, 2009 at 11:33 pm #

    Does anyone know how to fill in form 210 for the purposes of paying RENTA as a foreigner with a Spanish holiday home.
    There are 3 names on my Escritura, I believe we all have to file and pay 33%.
    Can I get hold of an example form with the appropriate bits filled in so I can copy and just put in my own figures?

  21. John Matthews May 2, 2009 at 9:05 pm #

    Hi Alec, I too am in the same position as you. This could be a case of the blind leading the blind but I have done some research and found the following.
    Form 210,which is used for a number of different declarations, is available on the Agencia Tributaria webs site http://www.aeat.es and consists of 7 pages in Spanish. The pages are not numbered, but in the order they appear on line pages 1-3 are almost the same and 4-7 are almost the same. There is one small difference, on the bottom right corner of each page is the title of the person/department to whom that copy should go. Pages 1-3 appear to be for the declaration and pages 4-7 appear to be remittance advice. Every time you call up a set of pages it generates a barcode and unique reference number for the full set of pages. If you make a mess of one then you will need to regenerate another full set of pages so that all the references match.
    You can fill the forms in online and the system copies all data from 1 through to 3 and 4 through to 7.You cannot “save” the forms or submit them on line. Alternatively you can print them off and fill them all in by hand.
    Also on the above site there are 7 pages of instructions on how to complete form 210. albeit in Spanish. So if you are fluent in Spanish reading then your problem is solved but for those of us who aren’t then read on.
    On the following web site there are instructions and examples, in English, of how to complete form 210.But ,as they were originally intended for those who had Alliance Leicester shares which were bought out by the Spanish Santander group and now have to declare their dividends in Spain,the business end of it deals with the entry of share data and not la renta.
    However, it gives a good idea of how to fill in most of the form.
    http://www.santandershareholder.co.uk/images/upload/newpdfs/spanishtaxguidanceoct20.
    or go to Scottish Powers web site a which has a similar help page.
    Returning to the”aeat” web site, there are 3 advisory leaflets in English which explain in general terms how to complete form 210.These are1,”Owner of a property for own use”(3 pages) 2,”Taxation on urban buildings belonging to non- resident individuals”(8 pages) 3,”Taxation of non residents”(35pages)
    In these it tells you how to calculate the tax due and this seems to be 2% or 1.1% (if the house has been revalued for IBI purposes since 1994) of the catastral value (valor catastral) of the house as stated on the Suma or IBI bill (council tax) which you receive around October. This value varies from area to area and is normally between 20 to 60% of the real market value. The result of this calculation is the base or total notional rent you are assumed to have received. The amount of tax payable is 24%, which is the current rate for income tax, of the calculated notional rent. There is a worked example by a Spanish lawyer on the following web site.www.marbella-lawyers.com
    If the house is owned by more than one person then the tax liability is divided equally. The income type code is 02
    It states in the above leaflets that you use part A of form 210 to declare this information and this is where I am coming unstuck ,which amount goes where?The other problem is that you need the location ,address, administration and code number of the tax office which deals with your house?
    Any comments?

  22. John Matthews May 2, 2009 at 9:21 pm #

    Hi sunseeker,The company you refer to, spanishtaxforms.co.uk ,is recommended by Santander for the completion of form210( see my earier posting).I have contacted them and they seem keen and efficient.Their charge is per house and not per person so if you have a number of joint owners the price is the same ,around £20.
    They will complete the form and calculate the tax ,which they say takes litterally 2 min,but you still need to supply all the relevant data and when the forms are returned to you you still need to deal with the Spanish end of things i.e. distribution of the copies,getting them to the right tax office,and payment at a major Spanish bank.They will do all of this for you but of course it will cost you!If I can`t manage to get the rest of the data I need I was thinking of giving them a go.

  23. Alec May 6, 2009 at 11:11 pm #

    Hi, John Matthews,
    Thanks for your info but I think I’ve seen all those sites myself and because they’re for purposes of dividends they are filled in differently as you say.
    Fluent Spanish certainly is letting us down.
    I know how to fill 85% of the form now.
    Working out what to pay is easy.
    For this year I have now decided to use the help of………

    enquiries@spain214.com – Their charges appear acceptable.

    Next year I will be wiser and attempt it myself.

  24. Mrs Owen May 9, 2009 at 6:35 pm #

    My husband and I are resident in Spain when one of us dies, will the surviving partners be liable to Inheritance Tax if so how is it calculated.

  25. Jonca July 1, 2009 at 10:02 am #

    Hi John, Tried the web site you indicated (http://www.aeat.es) but it would not show the form 210. There seem to be an error message come up. How did you get access to the form?

  26. sunseeker July 21, 2009 at 7:25 am #

    Further to my earlier question, I have now used http://www.spanishtaxforms.co.uk myself for our 210 forms this year as £19.95 (for both of us as joint owners) was by far the best price I could find. They have been excellent and I got my forms, with stickers, the following day.

  27. Taff August 16, 2009 at 12:03 pm #

    Having read all the comments on wealth and rent tax (even if you dont rent), I still cannot obtain an English translation of the two new forms issued to me at the tax office in Cartagena. The guy who deals with non Spanish speaking non residents and residents cannot speak a word of English. Lets face it most of the continentals speak English.

  28. Robert Fogg September 5, 2009 at 9:49 am #

    I want to know where I can copy my 2 part document I already know that I need 4 copies of one and 3 of another and how to calculate the tax and would be willing to share it with anyone for free. Rob.

  29. John Matthews September 7, 2009 at 12:26 pm #

    Hi Jonca,Sorry for the delay but Ive been away.When I down loaded my forms there was two sections of forms, one for certified users and one for other mortals.If you click on the certified users selection it will come back with an error message. You need to click on the figures 210 NOT the text in the other mortals section below and this will bring up the form.
    Having said all of the that I`ve just revisited the site and found that the form 210 is now only available to certified users!.
    Obviously they have altered things,maybe they thought it was too easy for us! Possibly they have now issued a new form as was rumoured and we now need to use one of the forms which are now showing in the latter section.
    Anybody know how to become a certified user ?

  30. John Matthews September 21, 2009 at 8:23 pm #

    Hi Jonca,I don`t know wether this too late, but I have found a work round on the aeta site to get access to the 210 form.,
    Go onto google and select.”Agencia Tributaria-non resident income Tax” The page opens up in English, but ignore this and go to the menu on the right of the page Headed”Acceda Directamente” and select “Modelos y Formularios”.
    A fresh page appears in Spanish ,under the paragraph headed”Declaraciones” click on “impuesto Sobre La Renta de no resdentes”
    A fresh page appears in Spanish,scroll right down the page, it`s quite away! to a paragraph headed 210.then click on the “210″ NOT the text.

    A fresh page appears in Spanish headed “Modelo 210″ cick on the Title “descargo del modelo” and after a few seconds the first page of the form will appear in full colour.
    Below the “Modelo 210″ box is a box marked “rellenar formulario” clicking on the right arrow of this box highlights the fields for completion on the computer, the left arrow allows printing of the blank document. Hope this helps.
    I did notice when I was on the site that there now seems to be provision for registered users to complete,submit and pay on-line.All in Spanish of course,but I`m working on it!

  31. Judith Howey September 22, 2009 at 1:29 pm #

    Hi John Matthews, I too managed to down load the form, and there appears to be a bar code number on the form. Would you know if I still have to send for the sticky labels?
    Judith Howey

  32. John Matthews September 30, 2009 at 9:25 pm #

    Hi Judith,Yes ,you still need the sticky labels .The bar code on the forms is unique to that set of 7 forms and simply indentifies that set of 7 forms and their type number. The sticky labels contain all your personal details NIE number, tax ref code,passport number and relevant tax office.All of this is contained in the bar code on the labels.When you take the forms to the bank they will scan both bar codes and this locks the form bar code to your sticky label bar code.
    If you want the sticky labels then you need to present yourself , your oriiginal NIE form and passport at the tax office which deals with your Spanish address area.(it`s useful to have your completed 210 forms with you so they know what you`re about.)They will issue you with an A4 page full of your personal stickers.If you ask they will provide you with a phone number for reordering the stickers.
    Whilst you`re there I would ask them fot the “sobre especial” which is the correct envelope for the forms.From experience I can tell you that some banks will not accept the forms without the envelopes as they have to post completed transaction forms to the tax office
    Having said of all of that ,and I know it`s great fun battling with Spanish bureaucracy ,Spanishtaxforms.co.uk will fully complete all of your households 210 forms and,now I understand ,will also provide you with the stickers.All for £19.95 per household.I beleive they have a Gestori in Spain who deals with that end of things.If you still want to go it alone and if I can help then I will.
    By the way it`s far easier and clearer for the Spanish end of things to complete the forms on the computer,print the whole lot off and discard the copies you don`t need, i.e. reps` copies, and apply the stickers to the forms you need.
    Hope this helps!

  33. Bridie Cushion October 28, 2009 at 8:55 pm #

    I have just received a bill from the Spanish solicitor for the 2008 tax
    Is it or is it not abolished?
    She is charging 125 euros topay it and the bill is less than that!

    Help appreciated!

  34. Lynn Miller December 6, 2009 at 2:40 pm #

    I have read the messages and the whole process still seems rather confusing so has anyone found a website where everything is explained clearly? We own 2 properties so we need guidance on how to cover both of these. Many thanks!

  35. Julie January 14, 2010 at 7:26 pm #

    Hi, I bought a property in Spain a few years ago (2005) and I did not realize I was supposed to pay income and wealth tax as I did not intend to rent it out. Unfortunately I got seriously ill and had to go back to the UK.
    Whilst recieving treatment I ran out of savings and defaulted on the mortgage in Spain. A relative who works from home in UK offered to live there and pay the mortgage till I was well enough to return (I have NIE but not full residencia). Its been 2 years now and I Cant work now. What can I do. The English tax office is asking if I earned income from it. Should I pay English tax or Spanish. Does Spanish tax allow you to offset mortgage payments.

  36. eDWARDS February 24, 2010 at 12:05 am #

    I bought an apartment in February 2009 when should I start paying IBI and basura taxes?

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