What is Spanish Wealth Tax ?
What is Spanish Wealth Tax?
The Spanish Wealth Tax, or Impuesto sobre el Patrimonio, is a tax that is levied on the net worth of individuals. The tax applies to individuals who have assets with a value of €700,000 or more. This article aims to provide an overview of the Spanish Wealth Tax system, including regional variances and exemptions.
Overview of the Spanish Wealth Tax:
The Spanish Wealth Tax is a national tax that is subject to regional variances. This means that the tax rates and thresholds may vary depending on the region in which the taxpayer resides. The tax is levied on individuals with a net worth of €700,000 or more. The tax rates range from 0.2% to 3.5%, depending on the value of the taxpayer’s net assets.
Regional Variances in the Spanish Wealth Tax:
The Spanish Wealth Tax is subject to regional variances. Some regions in Spain are exempt from the tax, while others have different tax rates and thresholds. The following table provides an overview of the different tax rates and thresholds for the Spanish Wealth Tax in each region:
|Castilla y Leon||2.50%||€500,000|
As we can see from the table above, the tax rates and thresholds for the Spanish Wealth Tax vary depending on the region in which the taxpayer resides. Some regions, such as the Canary Islands, are completely exempt from the tax, while others, such as the Basque Country, have the highest tax rate of 3%.
Exemptions from the Spanish Wealth Tax:
Despite the Spanish Wealth Tax being levied on individuals with a net worth of €700,000 or more, there are some exemptions that apply. The following table provides an overview of the different exemptions from the Spanish Wealth Tax:
|Main Residence Exemption||The main residence of the taxpayer is exempt up to €300,000.|
|Business Assets Exemption||Assets used in a business are exempt up to €1,000,000.|
|Assets Located Abroad||Assets located abroad are exempt from the tax.|
Qualified & Regulated Advice
Contact Chorus Financial today for a free, no obligation call with a qualified Financial Adviser in Spain. Provide brief information on what you need help or advice with, and let us know what part of Spain, or elsewhere, you are based in so we can assign the best Spanish based financial adviser for you.