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IurisConsulting Property Lawyers Wealth Tax |
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Wealth tax is levied annually and is payable by resident individuals on worldwide assets at December 31 of each year, valued in accordance with tax rules. A tax return must be filed if a resident taxpayer's net worth is 108.182 Euros or more. Non-residents are taxable on property situated or rights exercisable in Spain owned on December 31 each year, whatever the value of the estate. Non-residents are subject to Wealth Tax on any property located in Spain at the same rate as residents. Thus, all non-resident individuals with a dwelling in Spain are liable for Wealth tax and a tax return must be filed and presented every year by the fiscal representative of the owner of the property. Urban property is to be included in the return by declaring the highest of the following 3 values:
This, then, is the amount for tax assessment, as long as debts or arrears are not outstanding on the property. Thus, the taxable amount is determined by the difference between that value and the charges on the property and the debt principal invested in the property. The amount due is calculated by applying the tax scale, which is approved every year, to the base amount. Certain assets are exempt from this tax such as household effects, those required for a business activity performed habitually, personally and directly by the taxpayer and constituting his main source of income. Each individual must file a separate return. Accordingly, if a property is owned by a married couple or by various persons, each one of them must file a single return for the corresponding part. Form to be filed is 714, the same as for resident taxpayers, and the filing period is from 1st May to 20th June. Simplified tax return form 214 (for both Income and Weath Tax). There is a simplified tax return for non-residents in the case of a dwelling used as the taxpayer's own residence. With this form 214 the taxpayer may file both Income Tax and Wealth Tax together. The owner who occupies a dwelling which constitutes his / her sole property may use the simplified tax return form 214 in order to submit the tax return for: - The Wealth Tax of the value of the dwelling. The filing period is the calendar year after the one which the tax refers to, and the place of filing is the Regional tax Authority which the estate belongs to.
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