Spanish Wealth Tax Abolished
August 29, 2008
Spanish ‘Wealth Tax‘ has been abolished with effect from 1 January 2008.
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.
Comments
5 Responses to “Spanish Wealth Tax Abolished”
Got something to say?
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
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?
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.
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.
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.