Wealth Tax
 

Ok I've read some of the info on Tax for Spanish residence and wealth tax came up. The tax free allowance doesn't look all that big. I understand that you each get about 150,000 euros if you buy a house in joint names. So that might mean if you have a house over this amount and a decent car and perhaps some capital you could en up paying this tax. Does anyone out there have any first hand experience of paying this

Re: Wealth Tax
 

No but I looked into it. Fred will tell me if my rates arent up to date but in 2006:

A resident of Spain pays nowt on the first 108102 euros on valuation of assets and a further 150253 exemption on his principal residence. So a residence up to 300,000 euros will attract no wealth tax if you are a couple as you make separate declarations.

Re: Wealth Tax
 

Yes those are the rates for 2007 as well.

I think your maths are a bit out. I make it nearer 500k as you both get 108k plus 150K.

Also bear in mind that what you "think" your house is worth and what Hacienda think it is worth can be miles apart - in your favour!

If you have just paid over 500k and declared the full amount on the escritura then you may have a problem. If so, sell the Ferrari!

Re: Wealth Tax
 

No My maths isn't out, I didn't add it up. I referred to 300,000 of property .... the assets of course are 108102 per resident as I mentioned

Re: Wealth Tax
 

Fair comment but most people "hide" their other assets so the house is normally the issue.

Unless of course you have two Ferraris - I wish.:)

Re: Wealth Tax
 

Hasn't everyone? :D