Wealth Tax in Spain

Wealth Tax in Spain is regulated by the Spanish Law 19/1991, of 6 June, on Wealth Tax.

This is a direct and personal tax on the net worth of individuals under the terms of this Law.

For the purposes of this tax, the net worth of the individual shall consist of all the goods and rights of an economic nature that he or she owns, with a deduction of the charges and liens that reduce their value, as well as the personal debts and obligations for which he or she is liable..

The taxpayer will only be responsible for the assets and rights that he or she owns when these are located, can be exercised or must be fulfilled in Spanish territory.

Due to the fact that this tax is been given from the Spanish to the regional authorities, in the event that the regional authorities has not regulated a minimum exemption, the taxable base (base impobnible) will be reduced by 700,000 euros.

The minimum exemption mentioned in the previous section will be applicable in the case of non-resident taxpayers who are subject to a personal obligation to contribute and to taxpayers who are subject to a real obligation (“Obligación real“) to contribute.

The tax will be due on 31 December of each year and will affect the assets held by the taxpayer on that date.

And once the taxable base has been reduced, the taxable base will be taxed at the rates of the scale approved by the Tax region authorities.

If the Tax region authorities has not approved the scale referred to in the previous section, the taxable base will be taxed at the rates of the following scale:

Assessment base up to eurosFee eurosRest of Assessment base up to eurosApplicable rate percentage
10.695.996,06183.670,29from now on2,5

Please do not hesitate to contact our Law firm in Marbella if you have any questions about Wealth Tax in Spain or when buying a property, our team of expert lawyers in Marbella will be happy to advise you and carry out all the formalities and procedures to assist you in your purchase.