Wealth tax
Jun 11th 2008 | 10:03 pm
#1
Thread Starter
Forum Regular
Joined: Nov 2007
Posts: 133
From: East Finchley and Javea
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!
Jun 11th 2008 | 10:20 pm
#2
Joined: Apr 2008
Posts: 1,433
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.
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.
Jun 11th 2008 | 11:34 pm
#3
Senior Moment
Joined: Jan 2006
Posts: 20,459
From: On the edge
Re: 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!
Jun 11th 2008 | 11:52 pm
#4
Lost in BE Cyberspace
Joined: Jun 2005
Posts: 6,912
From: Puente Esuri
Re: 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!
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
Jun 12th 2008 | 2:44 am
#5
Thread Starter
Forum Regular
Joined: Nov 2007
Posts: 133
From: East Finchley and Javea
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.
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.
Jun 12th 2008 | 4:00 am
#6
BE Forum Addict
Joined: May 2004
Posts: 1,059
From: Guadalhorce Valley, Málaga
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.
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.
Jun 12th 2008 | 5:27 am
#7
Retired and loving it!
Joined: Sep 2007
Posts: 5,211
From: Ontinyent - Valencia region (campo)
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.
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.
Jun 12th 2008 | 5:56 am
#8
Structural Surveyor
Joined: Mar 2006
Posts: 1,048
From: Sevilla/Cordoba border
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.
Jun 12th 2008 | 9:56 am
#9
BE Forum Addict
Joined: May 2004
Posts: 1,059
From: Guadalhorce Valley, Málaga
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.
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.
