Wealth tax

Old Jun 11th 2008, 10:03 pm
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Default Wealth tax

I was assured the other day by a friend who lives in Spain that the wealth tax for non-residents ( ie based on the assumption that the property is being let out) was recently scrapped. I've seen no mention of this on the forum and you guys seem to know everything that goes on. So is there any truth in what he says. He really was quite adamant over it!
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Old Jun 11th 2008, 10:20 pm
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Default Re: Wealth tax

Friday 18th April 2008 will be remembered as the day when the Spanish Wealth Tax (Impuesto de Patrimonio) was suppressed by the Counsel of Ministers.

The abolition will be effective for this tax year, i.e. 31st December 2008.

How will this change affect High Net Worth Individuals living or wanting to move to Spain?

This change will make possible for many individuals to stop worrying about paying taxes on worldwide assets and start paying a flat 18% Income Tax in Spain, if their income is coming from investments, dividends or capital gains. Compared with the hectic 43% suffered by most taxpayers, this is an interesting incentive to consider relocation to Spain. You will still have to cough up on rental income If you check out the Free Beer Section of this site above you will find more detailed help.

Last edited by poshnbucks; Jun 11th 2008 at 10:22 pm.
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Old Jun 11th 2008, 11:34 pm
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Default Re: Wealth tax

Originally Posted by raddickle
I was assured the other day by a friend who lives in Spain that the wealth tax for non-residents ( ie based on the assumption that the property is being let out) was recently scrapped. I've seen no mention of this on the forum and you guys seem to know everything that goes on. So is there any truth in what he says. He really was quite adamant over it!
What Posh said ........ But it doesn't change levying the tax you pay on the Spanish property as if it is let out I dont think
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Old Jun 11th 2008, 11:52 pm
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Smile Re: Wealth tax

Originally Posted by raddickle
I was assured the other day by a friend who lives in Spain that the wealth tax for non-residents ( ie based on the assumption that the property is being let out) was recently scrapped. I've seen no mention of this on the forum and you guys seem to know everything that goes on. So is there any truth in what he says. He really was quite adamant over it!
There were 3 Taxes on property owned in Spain for non-residents of Spain

1. Wealth Tax. Deleted from 1st Jan 2008

2. Imputd Rental Tax. Still to be paid annually based on the Catastral value of your property

3. Rental Income Tax. Still to be paid on any rental income received. If you do not rent out there is none of this tax to pay
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Old Jun 12th 2008, 2:44 am
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Default Re: Wealth tax

2. Imputd Rental Tax. Still to be paid annually based on the Catastral value of your property

Do you know what the official name of this tax is?. It's something I've never paid and wanting to get everything in order before I move to Spain I guess I better find out how much I owe.
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Old Jun 12th 2008, 4:00 am
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Default Re: Wealth tax

Non resident income tax is called 'Impuesto sobre la Renta de no Residentes'

The imputed income tax is on your own presumed use of the property not on the assumption that the property is let. In this case you have to declare the rental income separately pro rata according to the number of days it is let.

Last edited by Beachcomber; Jun 12th 2008 at 4:03 am.
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Old Jun 12th 2008, 5:27 am
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Default Re: Wealth tax

Originally Posted by Beachcomber
Non resident income tax is called 'Impuesto sobre la Renta de no Residentes'

The imputed income tax is on your own presumed use of the property not on the assumption that the property is let. In this case you have to declare the rental income separately pro rata according to the number of days it is let.
Otherwise known as IBI (I think).
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Old Jun 12th 2008, 5:56 am
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Default Re: Wealth tax

No, IBI (Impuesto sobre Bienes Inmuebles) is an annual tax levied by the town hall on property. A bit like Council Tax in the UK.
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Old Jun 12th 2008, 9:56 am
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Default Re: Wealth tax

Non-resident income tax is administered by AEAT (Hacienda). IBI, as Hillybilly says, is administered by the local Town Hall.

The only way in which they are connected is that the valor catastral, upon which the notional (imputed) income tax is based is shown on the IBI receipt.

Last edited by Beachcomber; Jun 12th 2008 at 10:55 am.
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