In 2008 100% of exemption was introduced but on the 17th of September 2011 Spanish Government reintroduced Wealth Tax as an emergency measure of recovering some income and they changed the 100% exemption to a tax free allowance of 700.000€ for 2011 and 2012. So all those individuals with net wealth that exceeds 700.000€ will be obliged to file the Spanish Wealth Tax.
The calculation of this tax is based on a scale which starts with a tax rate of 0.2% up to 2.5% of the value of the property as a tax rate band. Wealth Tax has been ceded to the autonomous regions of Spain. They have extensive powers to modify the tax. Regardless of where they have property non-residents will have to follow the state system for this tax.
Need help understanding the taxation system?
Download the FREE Guide to Taxes for Non-Residents in Spain, written by Raquel Perez, owner of Perez Legal.
Are you buying a property?
Then you need to know the process. Download the FREE Guideline Procedure for Purchasing a Property.
Confused with the legalities of buying a home?
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Selling your property?
Get an overview of what is involved by downloading the FREE Guide to Selling Your Spanish Property Legally.
Do you need help planning for the future?
Find out more information on the inheritance system here in Spain by downloading the FREE Inheritance Services book.
Do you pay taxes?
Download the 2019 Tax Payer´s Calendar to find the dates you need to submit your tax declarations.