Wealth Tax is an annual tax payable on the total net value of assets owned by a person on 31 December in Spain. The total net value refers to all assets and rights of economic content owned by a natural person, less any charges and encumbrances that diminish their value, as well as personal debts and obligations.
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Both residents and non-residents in Spain are subject to Wealth Tax. However, there are a number of exemptions that vary depending on your residency status in Spain and the region in which you are located. Some Spanish autonomous regions, including the Valencian Community, have their own tax laws in force which allow them to establish their own tax-free allowances and deductions or to set the tax rate they deem appropriate.
Although wealth tax may catch you by surprise, it is important to note that for wealthier people, it can have a significant impact. If you live in Spain and are wondering whether you have to pay wealth tax, please contact us.
When selling a property in Spain, it is necessary to pay two different taxes: Plusvalía (also known as Impuesto sobre el Incremento de Valor de los Terrenos de Naturaleza Urbana or IIVTNU) and Impuesto sobre la Ganancia Patrimonial.
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