Lawyers for Wealth Tax in Spain
Our tax lawyers will guide you through the process step-by-step.
How can a lawyer help me?
The preparation and submission of the Wealth tax return is something that should not be prepared on the spot. It is important to discuss and obtain tax advice from a professional that advises how to structure your assets and sources of income to optimize your taxation on both ends. Besides, with the proper assistance you can reduce or even not have Wealth tax liability.
¨We will be with you each step of the journey.¨
What is the Wealth TAX?
Wealth tax is an annual tax, payable on the total net value of the assets as of 31st December. The Wealth Tax taxes the individual net wealth of a taxpayer, which is a tax that does not exist in several countries of the OCDE.
It applies both to Spanish Tax residents and Spanish Non Tax Residents. Spanish Tax Residents are subject to this tax on what is their worldwide patrimony. Spanish Non Tax Residents only pay wealth tax on assets located in Spain.
What should be taxable?
The Wealth tax, as said, taxes the net value of the patrimony of the taxpayer and is determined by direct assessment.
Said assets are:
- Properties (Real Estate): considering that the value taken as a reference is the largest of the assessed value, proven by the Administration for other taxes or the acquisition value. If the property is under construction are taken as reference the amounts paid.
- Deposits in current or savings accounts, short or long term. This includes Cryptocurrencies accounts and wallets.
- Values representing the transfer to third parties of equity capital, negotiated in organized markets.
- Other values representing the transfer of equity capital.
- Shares or other values representing the participation in the equity capital of whichever type of entity, negotiated in organized markets.
- Shares or other values representing the participation in equity capital of whichever type of entity.
- Life Insurances and temporary or lifelong pensions.
- Jewelry, luxury furs, vehicles of over 125 cc, recreational or sportive vessels, airplanes, yachts.
- Art and antiques.
- Intellectual and industrial property rights.
What are the requirements?
In case your individual net wealth is over the different thresholds of every Autonomous Region Spain, you will have the obligation to submit the 714 Form, Wealth Tax return, and report all of your goods and assets, independently on where they are located.
The most common thresholds are:
- Catalonia: 500.000 Euros
- Andalusia: 700.000 Euros
- Valencia: 600.000 Euros
- Madrid: There is no Wealth Tax! However, you will have to report (and not pay taxes) if your net wealth is over 2.000.000 Euros.
What is the process of getting the tax return prepared and submitted?
Once we engage in our services, we will send you an email, in which we will request you a breakdown of your worldwide assets, with their corresponding valuation. After an analysis to discard those assets that will not be included, we will prepare a draft of the Wealth Tax Return and, if applicable, apply a reduction, based on the joint tax limit, between the Personal Income Tax and the Wealth Tax.
Frequently Asked Questions
No. The transfer of goods and assets results, usually, into a Capital gain, that will be taxed on your Personal Income Taxation. Besides, the receiver of the goods and assets will have to pay Gifts Tax.
No. However, there are certain charges and burdens that can be deducted from the Wealth, such as the mortgages. Besides, personal debts and liabilities will also be deductible if properly justified.
There are certain assets and goods that are exempted from the calculations. Of course, we can provide you with more information on how to structure your wealth and assets, or divide them, so this can have a low impact on your tax liability.
Only in case you have started to perceive money from them. If your pension plan, or 401k or Traditional IRA has not accrued yet, it must not be included.
Yes. Spanish tax Residents have to pay taxes on their worldwide wealth and assets. The fact that an asset is located outside of Spain does not exclude this asset from being included in the Tax return.
Yes. If you are a Spanish tax resident, because you have been over 183 days physically in Spain, you will be taxed on your worldwide assets, independently on where are they located.
Yes. If their net wealth located in Spain is above the thresholds reported abroad, they will have to pay Wealth Tax on those assets.
We are a department formed by qualified legal experts who have been trained in the field of tax law. We work on these requests every day and it’s our passion. For us, Lexidy is a way of life and what excites us the most is to be able to deliver the happiness and satisfaction of a successful process. We want to help you achieve your goals and dreams.
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