Wealth Tax? Who must pay this tax?
The Wealth Tax ((Impuesto de Patrimonio - IP) is an extraordinary tax that is aimed at those people who have a high economic capacity. The obligation to pay for it is originated in the fact of being the owner of the property or in patrimony possession whose net value is more than 700.000€. The payment of this tax is complementary to the IRPF (income tax) and income tax for non-residents.
If you are a resident of Spain and the Canary Islands you also need to know that the usual residence (up to a value of 300) will not pay for wealth tax either.
Who has the obligation to pay this tax?
Persons who have their residence in Spain must pay for all their net patrimony (from €700,000 and, also from 300,000€ in the value of their main residence) independently of where these possessions are located.
Non-residents for the possessions and rights they have in Spain, provided that their net value exceeds 700,000€.
To find out if a person is habitually resident in Spain, he must justify having remained during the calendar year more than 183 days in Spanish territory and that his main nucleus or activities base or economic interests are in Spain. It is also presumed that a person is a habitual resident in Spain if his/her spouse not legally separated and his/her minor children reside in Spanish territory.
Wealth Tax is presented on the same dates as the income tax return and is completed by filling Form Nº 714. Telematic filling is obligatory.
If you need further information on this subject or any other tax advice, do not hesitate to contact us.
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Mª Asunción Laynez Forniés
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www.asunlaynez.com