fionamw

This is my first post so please anyone advise me how to/where to do it better ... I'd like to know if there's a cast iron way to know the up to date situation on the Spanish government's deliberations on abolishing Patrimonio. I live in Spain with our little boy (in the Axarquia in Andalucia) but my other half, having rather more funds than I, has shied clear of moving over permanently because of the 2.5% wealth tax levied on residents....
however, as you possibly know, this tax SHOULD be on its way out, and I need to know when!!!! As an add-on to this, how does anyone know anything for certain on legal matters when so many advisors are touting their wares in English-speaking papers all over the place, you don't know who to believe for the best. (eg I just heard that all new building in our area, or maybe more than just our area, since 1994, is ILLEGAL! yet no doubt no ayuntamiento is going to do anything about it???)

Hillybilly

When new laws are passed, changed etc they are published in the Boletin Oficial del Estado
http://www.boe.es/g/es/index.php

Beachcomber

The wealth tax rate is currently 0,2% (not 2.5%) on values up to 167.129,45 euros and progressively higher percentages on values in excess of that amount. This is based on the highest value of the rateable value, escritura value or revised value imposed by the tax office.

The abolition of wealth tax was an election promise by the government which, as far as I know, has not yet been passed by parliament.

Don't forget that wealth tax is only one of the two component parts that make up the annual non-resident taxes. Even if wealth tax is abolished you will still be liable for the notional income tax imposed on your own use of the property. This is currently 24% of 1,1% (in most cases) of the rateable value. This increases to 2% if your rateable value has not been revised since 1994.

If you are paying taxes as a Spanish fiscal resident you have certain allowances which means that it would be unlikely that you would need to pay wealth tax anyway.

jurdyr

with all the thinks happen in the bank and down turn , dont think you going to see this been election promise by the government are abolition more link you see IVA and Income tax going up this year abolition more euros out you pockets
Fuel Drink cigarettes are to be one that will get hit

fionamw

It's my understanding that patrimonio, as opposed to the tax on gain in value or income tax or any of the others, applies to ALL your forms of wealth - house(s) here, UK, anywhere else in the world, stocks, bank accounts, etc etc.... for residents. For non-residents it only applies to wealth held in Spain (which for most of us would be our house) and obviously there are allowances. But there are probably loads of folk (I speculate, of course...Marbella, Puerto Banus might hold a few) whose worldly wealth SHOULD be taxable but they don't declare it. My other half is an accountant & doesn't want to take chances. So seeking out certainty about the progress of the abolition of patrimonio is key. (which I see can be done, albeit in Spanish)

snikpoh

As stated above and as I have stressed in the past, it is my opinion that this has not yet been voted on and so is still a very real tax.

I keep hearing a lot of people stating that the tax has gone and how they are moving money into Spain as a 'haven' - this is clearly a little premature.

Mitzyboy

Thats after allwances though isn't it, just to be clear

fionamw

mitziboy: Yes there are allowances but (a) don't forget it's NOT just the value of your house that may be at issue and (b) be sure of what percentage tax rate you may be liable for..... You & The Law in Spain has always seemed a good read to me, but as per the reason for my post in the first place, not even they know for sure if/when the patrimonio abolition will happen.

noelrosie

My gestor has just prepared our patrimonio for tax year 2007 and she does not know when it is due to be abolished.

Mitzyboy

I know for a married couple the allowances are reaching over €400,000 and thats including €105k each on the main residence
My gestor and my abogado both say that next year there wont be Wealth Tax, but this is Spain... who knows

Fred James

The abolition of wealth tax was propsed earlier this year as part of the plan to stimulate the economy. This included a 400€ tax deduction for all tax payers which is already in force.

The cabinet subsequently approved the abolition of wealth tax in June and it is awaiting the issue of a new decree.

I have seen no suggestions that the government will do a u-turn on this but it is always possible although pretty unlikely.

Beachcomber

As stated in my post, only if you are a fiscal resident (ie submitting annual tax returns as a resident). Non-residents do not receive allowances either on wealth tax or income tax.