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I have just read that Patrimonio tax has been reinstated.
The new rules are yet to be announced, as I understand
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Re "I have just read that Patrimonio tax has been reinstated.
The new rules are yet to be announced, as I understand"
Johnzx, would you please say where you acquired this knowledge, a link would be great! 
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I edit a news sheet ( a voluntary job, the writer is Norwegian and his English is not 'perfect' so I correct it before the letter is circulated). It has a private circulation to about a thousand property owners. It was mentioned in this week's letter, so i do not have a link.
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It is wealth tax which all property owners (and people with any assets) must pay, although if one is resident and makes a tax return here the first 150,00 euro odd value is ignored
It was suspended a couple of years ago, although many thought it had been abolished which was incorrect
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Spain is looking at re-instating a wealth tax ahead of general elections as part of a drive to improve national accounts. The tax, a form of inheritance tax dropped in 2008, brought €2.1bn (£1.8bn) to government coffers in 2007 but was abandoned as part of efforts to stimulate the economy.
Source: The Independent
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Yes, Manyana, the government is planning to reinstate Wealth Tax, amending the tax to hammer the rich so that they pay more.
When abolishing Wealth Tax in 2008 Zapatero said the tax was "obsolete and complex".
Patricia
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I hope Patrimonio Tax does not come back, It will be yet another nail in the coffin for sales.
A couple of years ago when I was discussing Patrimonio Tax with my accountant, he said that his wealth made me look poor and that his senior partner made him look, and that neither he nor his partner ever paid the tax. He said in the main it was only paid by foreigners.
Don't know how true this is, although several years ago when I was making my tax return at the Hacienda office, they said, even though my home exceeded the allowance there was no tax to pay. The official then wandered off and when he came back said, yes I did have to pay on the excess over the allowance.
I subsequently discovered that it was the practice that Spaniards never paid the tax on their actual home, no matter what its value was..
I also discovered that when paying the tax one was not required to pay more in Patrimonio Tax than they paid in income tax. However, if a person did not pay any income tax then they had to pay 10% of the Patrimonio Tax due.
I had a discussion with a financial adviser (who has written several books about living in Spain) and then to his adviser. Both said my understanding about the 10% was incorrect. When they subsequently checked they got back to me and said my understanding was correct. I then paid 10% of the tax due.
Very confusing at times !
This message was last edited by johnzx on 24/08/2011.
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Tax on new build properties reduced to 4% then when they move in charge them wealth tax
Robbing Peter to pay Paul comes to mind
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From the announcement of the Goverment for the reinstatement of Patrimonio Tax, it does seem like the Tax will only apply to very high net worth individuals. Some sources say starting at one million euros. Others say an even higher amount. We won't have to wait long to find out.
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Yes, Lobin. I also read that piece of news. One source said 1.2 million euro.
It remains to be seen.
Patricia
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Hi, Campana,
From what I have read, it seems that reinstating the Patrimonio Tax for high net worth individuals is part of what the Government has negotiated with the Trade Unions in order to get them to accept further pay and expenditure cuts in order to control the public deficit.
Another of these measures is to increase the Profits Tax for companies making profits over some high thresholds although in the long run these companies will probably pass on this extra tax to the consumers.
The details of these an other measures will soon be known as the plan is to activate them before the end of the year.
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What is this going to mean for non resident owners?
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The details of the new Patrimonio Tax have not yet been announced so it is not possible at this time to know how it will impact non-residents who own property in Spain. In the past, non-residents were subject to the tax based on the properties they owned in Spain.
Since as opposed to residents, they were not subject to tax on their worldwide net worth, but only on their Spanish net worth, they were not entitled to the general exempt deductions. I don't know if that will remain the case when the tax is reinstated. We shall have to wait and see or perhaps someone else has had access to the new proposed legislation and can comment.
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If you need money (and Spain needs money) there are a lot of votes in soaking foreigners, especially those who own property, but don't live there since they can be perceived as being rich and can therefore afford it.
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Spain to bring back Patrimonial Tax
A Royal Decree is to be introduced at Friday's cabinet meeting
The Spanish Prime Minister, José Luis Rodríguez Zapatero, will bring back Patrimonial Tax at next Friday’s cabinet meeting, following a request to do so from the Socialist candidate for the November General Election, Alfredo Pérez-Rubalcaba.
A Royal Decree will be used, and no new law will be needed to reactivate the tax, although the new tax will be modified so as not to affect the middle classes.
However press reports indicate that Rubalcaba is not entirely happy with the tax which will result, although it is the only option which can be introduced so quickly. The new Socialist manifesto was to promise that Patrimonial Tax would become a state controlled and not regional tax as present.
Even so Rubalcaba considers the re-introduction of the tax as ‘just’. It is expected to generate 1.4 billion €.(Typicallyspanish)
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Not the middle class,
and not the rich as they will pay their financial advisers to gets around it,
so that leaves just the poor,
and as the Spanish won't pay it,
that means the poor bloody non-resident foreigner.
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_______________________
Poppyseed
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