what you should know about the spanish federal wealth tax

Tax & Legal
20 January 2023

by Stephanie Vanmarcke and Ana Topircean

What you should know about the Spanish federal wealth tax

Spain’s wealth tax is known as “Impuesto Sobre el Patrimonio” (IP). In Spain, collection and administration of wealth tax is the responsibility of the country’s various autonomous regions. Every region is free to decide whether or not to impose a wealth tax. Andalusia, for example, chose to do away with all forms of wealth taxation on 20 September 2022. All good things come to an end, however…

What you should know about the Spanish federal wealth tax

At the end of 2022, the Spanish authorities introduced a new law at the federal level making everyone liable to pay a form of wealth tax, even if they live or own property in a region without any wealth tax currently. In other words, Spain now has a federal wealth tax.

Annual solidarity tax

The law concerns a new, complementary tax on top of any existing regional wealth tax. This tax applies to taxpayers holding Spanish assets in excess of EUR 3 million net on 31 December of the relevant year.

The first self-assessment would need to be submitted between May and June 2023, based on the assets held on 31 December 2022.

The solidarity tax is a temporary measure applicable in 2023 and 2024. The measure will be reviewed in 2024.

Who will be affected by this new legislation?

The solidarity tax applies throughout all Spanish territories, regardless of regional wealth tax, for both natural and legal persons.

For residents of Spain, all assets worldwide will be taken into consideration.

For non-residents, only Spanish assets are relevant, such as Spanish properties, liquid assets in a Spanish bank account, shares in a Spanish company, etc.

Any questions? Please do not hesitate to contact one of our experts.

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Stephanie Vanmarcke

Team Manager International stephanie.vanmarcke@vdl.be

Ana Topircean

Advisor International ana.topircean@vdl.be

In our opinions, we rely on current legislation, interpretations and legal doctrine. This does not prevent the administration from disputing them or from changing existing interpretations.

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