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El blog de Maria

Your daily Spanish Law reporter. Have it with a cafe con leche. www.costaluzlawyers.es

Legal tip 626. Wealth tax explained
29 October 2011 @ 22:16

 

Wealth tax, if the new government do not delete it, will be on in Spain during 2011 and 2012.  It is a direct tax on individuals and not on on companies. The taxable facts are merely the owning of goods and rights. Of course this restablished Wealth Tax is for RESIDENTS. So if you are a non resident, you will be paying your non resident tax annually ( 210 form) and do not need to worry about this.
 
Taxable amount is calculated by addding all goods and rights and substracting debts the individual have by December the 31st. 
 
What goods and rights are included?
 
- Real Estate: value to be used is the higher among cadastral, revised value by Administration or acquisition price.
- Proffessional and commercial activities as per value established in the Code of Commerce.
- Bank deposits by higher value between December the 31st or average balance of 4th semester.
- Public debt titles, fixed income security or promissory notes of any listed market
- Cession of capitals to third parties in unlisted markets
- Shares in listed companies, including SICAVs, SOCIMIs and those holding companies where control is not effective. Watch out here as there are a number of exceptions to the taxation of these investments in companies based on ownership and effective control are not applicable in any case to SOCIMIs SICAVs 
- Investments in unlisted companies, taking into account the criteria for exemption on beneficial ownership and control of the company.
- Life insurance and annuity or temporary income
- Jewelry,  sumptuary furs and vehicles, ships and aircrafst
- Antiques and works of art.
- Any other economic  rights  
 
Regarding debts,  the tax base will be reduced by all those debts who have incurred and are not earmarked to exempt estate assets such as the residence
 
 
After accounting of the items above, just those estates over 700.000 € will have to pay Wealth Tax
 
Wealth tax is a progressive tax that increases the rate applicable in terms of increased tax base. This taxable income is calculated by subtracting the taxable minimum and applying the following rates:
 
base-liquidable-impuesto-patrimonio.jpg
 
Base liquidable: Taxable amount
Hasta Eruos: Up to…Euros
 
Cuota: Quota
 
Resto base liquidable: Rest of taxable amount
Hasta Euros: Up to… Euros
 
Tipo aplicable: Rate
Porcentaje: Percentage
 
 

Ojen

"Ojen", Malaga, Spain, by thrrgilag, at flickr.com



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