Wealth Tax - need to declare?

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angryminion
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Wealth Tax - need to declare?

Postby angryminion » Mon Jul 22, 2019 6:00 pm

Hi all, can't seem to find a defnitive answer to whether I need to fill out a Wealth Tax declaration so hoping I can get one here.

I am a UK national, non-resident for tax in Spain, owner of a 1-bed flat in Barcelona (value around €180,000), no savings within my Spanish bank account, no other assets within Spain. This value of the flat is under the value at which the Wealth Tax kicks in, the question is do I still need to submit a declaration even though no tax is due on the property or is there no need to do that?

Many thanks,

AM

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costakid
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Re: Wealth Tax - need to declare?

Postby costakid » Mon Jul 22, 2019 6:28 pm

PM El cid or Beachcomber. They will give a more accurate answer than most of us. Beach is best on this I think. Cid a close second.

Beachcomber
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Re: Wealth Tax - need to declare?

Postby Beachcomber » Mon Jul 22, 2019 6:51 pm

You are well below the wealth tax threshold so no need to do a declaration but you do need to do an annual non-resident income tax return on the imputed and/or actual rental income.

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marios
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Re: Wealth Tax - need to declare?

Postby marios » Mon Jul 22, 2019 6:56 pm

This is what I had in 2018, I think this is for wealth tax.


This is to remind you that, if you have any assets worth 50.000€ or over then you are obliged to declare them by the 30th of March 2018.

Also, if you have declared an asset in previous years and it increased by the equivalent of 20.000€ or more at 31/12/2017 then you are obliged to present the relative documents by the 30th of March.

Remember that the asset types are divided into three categories:

Property - Any property outside of Spain
Bank accounts - Current, Savings, Fixed deposit, etc...
Investments - Funds, Annuities, Life Insurance, Stocks, Shares, etc...
If the sum total in any of these categories reaches 50.000€ or over, then the assets should be declared.

angryminion
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Re: Wealth Tax - need to declare?

Postby angryminion » Mon Jul 22, 2019 7:18 pm

Thanks all, for some reason I've just had it my head the last couple of days that I should be declaring the property on a wealth tax submission, even though I'm not liable for any. I made the determination a few years ago that I didn't need to submit one, just had the doubt set in. Must be age..

Flat isn't rented out but have submitted the non-resident income tax return after following the (excellent) instructions here. Thank you again.

Beachcomber
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Re: Wealth Tax - need to declare?

Postby Beachcomber » Mon Jul 22, 2019 7:25 pm

Marios is talking about Form 720 Asset Declaration which is different to wealth tax and only applies to residents anyway.

If you want a third party answer in black and white check here:

https://www.pellicerheredia.com/en/taxes/wealth-tax

The usual caveats apply with third party web sites but the information shown here does seem to be correct.

Paddy Pumpkin
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Re: Wealth Tax - need to declare?

Postby Paddy Pumpkin » Tue Jul 23, 2019 2:11 pm

Be aware that a wealth tax declaration may need to be made even if you are not liable for any wealth tax. The need to submit a declaration differs from Community to Community.

For example in Madrid there is no wealth tax, but if you have assets over 2 million you have to make a declaration. So nothing to pay but you still have to state what assets you have. This declaration is separate and independent from the modelo 720.

In short 720 is a declaration of assets outside Spain and doesn't render those assets subject to wealth tax. Wealth tax declaration ( I think modelo 714) is a declaration of assets that may be subject to wealth tax regradless of the location of the assets.

So your modelo 720 could say assets of 1 million but you are subject to wealth tax on 3 million as you have another 2 million of assets in Spain

Beachcomber
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Re: Wealth Tax - need to declare?

Postby Beachcomber » Tue Jul 23, 2019 3:18 pm

The OP is a non-resident so national rules apply in respect of wealth tax and the 720 asset declaration does not come into the equation at all.


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