Our law firm and economists in Marbella wants to inform you not only about the increase in the Wealth Tax in Spain but also about the reestablishment of the indefinite nature of this tax.

According to Law 11/2020, on General State Budgets for 2021, the scale of the Wealth Tax in Spain increase. It is substantially modified where the last tranche is increased, which becomes 3.5%.

The Treasury meets its main objective of the year with the approval of the general state budgets for the year 2021 but with an increase in the general scale of the wealth tax in Spain.

Be careful, this increase will have effects for those declarations of the wealth tax that are presented in the year 2022.

 

 

National wealth tax assessment scale

 

As of January 1, 2021, the scale applied to the part of the taxable base of the Tax is modified so that the rate applicable to the last tranche becomes 3.5% (previously it was 2.5%).

Thus, the new applicable scale is the following:

Payable base

Up to euros

Fee

Euros

Rest payable base

Up to euros

Applicable rate
Percentage
0,000,00167.129,450,2
167.129,45334,26167.123,430,3
334.252,88835,63334.246,870,5
668.499,752.506,86668.499,760,9
1.336.999,518.523,361.336.999,501,3
2.673.999,0125.904,352.673.999,021,7
5.347.998,0371.362,335.347.998,032,1
10.695.996,06183.670,29En adelante3,5

 

Indefinite nature of the Wealth Tax in Spain

Likewise, the indefinite nature of the Wealth Tax is restored.

 

General rules of the Wealth Tax in Spain

For the calculation of the Wealth Tax in Spain, the following general rules must be taken into account:

 

  • When calculating the tax, you must take into account not only the Assets and Rights, but also the related Debts and Obligations.
  • To calculate the property’s value, the taxpayer must include the highest value between the Tax, Cadastral and Acquisition value.
  • The first € 700,000 are exempt from tax.

 

The wealth tax in Spain accrues annually on December 31 and the tax return must be filed and paid six months after it was done before the end of June of the following year.

The obligation to complete the Wealth tax return falls on all taxpayers with a positive result and also on taxpayers whose assets and rights have values ​​greater than € 2,000,000, even if their Wealth tax returns are negative and therefore, they do not have to pay.

 The wealth tax in Spain is applicable throughout the Spanish national territory, although each autonomous community can regulate the exempt minimum, the tax rate, deductions and bonuses as long as they are compatible with the state standard.

 

Wealth Tax in Spain

 

Tax rate of the Wealth Tax in Andalusia

The wealth tax in Andalusia does not seem to have undergone changes as it appears in the following link:

https://www.juntadeandalucia.es/organismos/haciendayfinanciacioneuropea/areas/tributos-juego/tributos/paginas/impuestos-cedidos-patrimonio.html

Payable base

Up to euros

Full fee

Euros

Rest of the taxable base Up to eurosApplicable rate Percentage
0,000,00167.129,450,24%
167.129,45401,11167.123,430,36%
334.252,881.002,75334.246,870,61%
668.499,753.041,66668.499,761,09%
1.336.999,5110.328,311.336.999,501,57%
2.673.999,0131.319,202.673.999,022,06%
5.347.998,0386.403,585.347.998,032,54%
10.695.996,06222.242,73en adelante3,03%

 

Welex, your Marbella tax advisor and economist specialized in Wealth Tax in Spain.

 

Do you want to ask a question regarding the wealth tax in Spain? Do not hesitate to contact us.