Wealth tax

In 2008 the Spanish government decided to apply for a 100% tax credit against each person’s liability for any payment due to their ‘Wealth tax’, but now this rule has been rescinded.

Anyone who spends more than 182 days in any calendar year in Spain is regarded as resident for tax purposes.

This tax can be varied region by region and the Comunidad Valenciana (Valencia, Alicante and Castellón provinces), Islas Baleares and Madrid have decided that they will continue to apply the 100% tax credit, which means residents of these regions will not, therefore, pay the tax.

For tax years 2011 and 2012 this tax is payable by individuals whose net worldwide wealth exceeds seven hundred thousand euros. Currently, this tax is expected to only apply for 2011 and 2012, but in the current economic climate, this can change.

The rate of tax applied is 25% of the ‘imputed income’ available each year from the asset, which in the case of property is taken to be 2% of its value. This applies whether there is any actual income or not.

The total must be declared before the first of April 2013. Assets discovered after the declaration date will be taxed at over 50% of the imputed income, plus 150% of the tax due.

So, if you are a Spanish tax resident with a valuable boat and maybe a house in the UK as well, talk to your Spanish accountant or Gestor! And if you haven’t got one, find one!

Complied with help from Jim Baerselman’s website

See http://jimbsail.info