Wealth tax in Spain (Impuesto Extraordinario sobre el Patrimonio) was scrapped in 2008 by Zapatero´s government. However, in September 2011 it was reintroduced, this was the last legislative measure taken by the socialist government before the election on the 20th November 2011. It is hoped that the tax will help to reduce the deficit. The Spanish resident and non resident property owner is liable for
a tax on capital assets called "patrimonio".
A Spanish resident has an exemption of 108.182 euros which is raised
to 150.253 euros when the asset is the principal residence. This
means that no husband and wife is exempt from 300.253 euros if
both their names are on the title deed. A resident must declare
all his worldwide assets including property, stocks, cars, yachts,
jewels, works of art. etc. The basis of the valuation is real market
value. The tax rate will vary between 0.2 and 2.5%, depending on the contributory base after allowances: the previous threshold of €150,000 has also been raised to €300.000 in the legislation for the principal residence. The first €700,000 is the national tax-free allowance (for residents and non-residents alike).
A
non resident need only declare his property and assets in Spain.
The
tax is declared and paid annually at the same time as the income
tax but on a separate form 714.
Wealth Tax rates
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