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Wealth Tax. Important Change to the law.

Wealth Tax. Important Change to the law.

Old Jul 4th 2022, 6:58 pm
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Default Wealth Tax. Important Change to the law.

Law 12/2022, of June 30 2022, regulating pensions in Spain has now been passed into legislation. This modifies the Law approved by Royal Legislative Decree 1/2002, of November 29, by introducing the following changes to (amongst other things) Wealth Tax in Spain: The law has been modified to equate the tax treatment of pan-European (EU) personal pensions to that of pension plans in Spain.

This change is great news for Spanish taxpayers who have (or are thinking of setting up/transferring in to) pension plans elsewhere within the EU, given that, to date, the rights consolidated in foreign pension schemes could not officially benefit from this exemption to Wealth Tax. This change eliminates the existing discrimination in relation to the tax treatment applicable to pension plans set up in other EU countries.

This will benefit all ex patriots who reside in Spain and who have consolidated rights in QROPS or QNUPS pension plans in Malta for instance.
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Old Dec 3rd 2022, 7:32 am
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Default Re: Wealth Tax. Important Change to the law.

Hello to everyone,
I wanted to ask the following about "wealth tax" in Spain. I am a Spanish resident and I am trying to see whether I need to pay "wealth tax" to the Spanish authorities. Can anyone tell me, please... would "31st December 2022" be the "reference date" for me to check how much I have in: savings, shares, property, etc... to see whether the wealth would add up to £500,000 (and in that case I would declare the "wealth" I have)?, or is it the wealth that one has during 2022 (regardless of specific dates) that counts? I am a bit lost as to when (at which point in time) you need to consider in order to sum up what you have. I am sorry, I am not very good at explaining myself! Many thanks for any advice. Best regards.
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Old Dec 3rd 2022, 7:30 pm
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Default Re: Wealth Tax. Important Change to the law.

Remember that wealth tax 'kicks in' at different levels in different areas.

Also, there is an allowance of about 350k for your main property.

This means that in the Valencia area, your wealth would need to be in excess of one million before needing to pay wealth tax.

I don't know about the dates.
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Old Dec 3rd 2022, 7:32 pm
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Default Re: Wealth Tax. Important Change to the law.

More info here

https://www.pellicerheredia.com/en/wealth-tax-spain/
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Old Dec 3rd 2022, 8:58 pm
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Default Re: Wealth Tax. Important Change to the law.

Looks like figures have changed a little - now only 500k not 700k and home allowance down to 300k
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Old Dec 3rd 2022, 10:06 pm
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Default Re: Wealth Tax. Important Change to the law.

A potential problem many of us would love to have!
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Old Dec 3rd 2022, 10:54 pm
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Default Re: Wealth Tax. Important Change to the law.

Your first point is the correct one. Wealth tax is taken as a ´dip sample´ on each December 31st each year that you are tax resident in Spain. The national general allowance is €700K on your worldwide assets and €300K on your own use property. The autonomous regions have the power to set their own rates. For example the general allowance in Cataluña is €200 K less at €500K. Also of note (as another example) is Andalucía who this year effectively scrapped WT in an announcement in summer 2022. However the national (socialist coalition) didn't like this and are trying to introduce a new counter tax for individuals with net assets (i.e. total assets minus total liabilities) worth at least €3 million. They will call it the "Solidarity Tax".
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Old Dec 4th 2022, 1:00 am
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Default Re: Wealth Tax. Important Change to the law.

Originally Posted by Patrick2976
Your first point is the correct one. Wealth tax is taken as a ´dip sample´ on each December 31st each year that you are tax resident in Spain. The national general allowance is €700K on your worldwide assets and €300K on your own use property. The autonomous regions have the power to set their own rates. For example the general allowance in Cataluña is €200 K less at €500K. Also of note (as another example) is Andalucía who this year effectively scrapped WT in an announcement in summer 2022. However the national (socialist coalition) didn't like this and are trying to introduce a new counter tax for individuals with net assets (i.e. total assets minus total liabilities) worth at least €3 million. They will call it the "Solidarity Tax".
Valencia is also only 500k now
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