Who is liable for wealth tax?
The Spanish wealth tax return must be submitted before 30 June of the following income year, when one of the following conditions is met:
- Global net worth > 700,000 euros.
- Global gross wealth > 2 mio euros.
- Spanish net worth > 700,000 euros
- Spanish gross wealth > 2 mio euro.
Gross wealth is defined as the value of all assets and rights that are not exempt from wealth taxation.
Assets and rights exempt from wealth taxation
There are some assets and rights that are exempt from wealth taxation, and they are therefore not included in the calculation of gross wealth.
|Asset / right||Exempt|
|Primary housing||300,000 euros|
|Certain works of art||2,400 – 90,150 euros|
Spanish wealth tax calculation
The calculation of the Spanish wealth tax in summary form looks like this:
|Calculation of Spanish wealth tax|
|= Net worth|
|= Taxable wealth|
|x Wealth tax rate|
|= Calculated wealth tax|
|– Reduction due to wealth tax limit|
|– Foreign paid wealth tax limit|
|– Local special reduction (transfer tax, inheritage tax…)|
|= Deed price, acquistion value|
Valuation of real estate
Real estate is generally valued at the higher of the following three possible values:
Cadastral value (valor catastral)
Value verified by the Spanish tax authorities regarding other tax (transfer tax, inheritance tax…)
- Deed price, acquisition value…
If no local deduction has been adopted, the national deduction can be applied. If the national basic deduction is more attractive than the local one, non-residents can apply the national one.
The national wealth tax rates
The national wealth tax rates are applied when no other rates are set locally.
|Wealth tax rates 2020 national euros|
Example of national wealth tax calculation:
Of a taxable wealth of 500,000 euros, the wealth tax amounts to 836 euros of the first 334,253 euros, and 0.5% of the remaining taxable wealth corresponding to 829 euros. In total, the Spanish wealth tax calculated according to national rates thus amounts to 1,665 euros.
Reduction in the calculated wealth tax
Local special deductions in the calculated wealth tax for the years 2019 and 2020.
- 100% Madrid (2019 and 2020)
- 75% La Rioja (2019)
Wealth tax limit
Of the taxable income (profit excluded), the income tax plus the wealth tax can amount to a maximum of 60%. However, the wealth tax can be reduced to a maximum of 20% of the calculated wealth tax.
Wealth tax rates Andalusia
As can be seen below, local wealth tax rates in Andalusia do not differ significantly from national ones.
|Wealth tax rates 2020 Andalusia euros|
Example wealth tax calculation Andalusia:
Of a taxable wealth of 500,000 euros, the wealth tax amounts to 1,003 euros of the first 334,253 euros, and 0.61%, of the remaining taxable wealth corresponding to 1,011 euros. In total, the Spanish wealth tax after the rates in Andalusia thus amounts to 2,014 euros.
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