Do you need to pay Wealth Tax? The answer is probably YES.

What is Wealth Tax?

Wealth Tax is an annual tax, payable on the total net value of your assets as at 31st December. It is payable on the value of most of your assets, such as real estate, savings and investments,
jewellery, art, cars, boats, etc.

Both residents and non-residents are subject to paying wealth tax. Allowances mean that many people are exempt from this tax, but for wealthier individuals, it can have a significant impact.

The rules vary depending on your residency status in Spain and the region you are in, as many Spanish autonomous regions, including the Comunidad Valenciana, have their own tax laws in force.

As a resident you:

  • Pay tax on worldwide assets.
  • Have ample tax allowances.
  • Are entitled to a 600,000 € deduction per person in the C. Valenciana (700.000 € in Murcia).
  • Are entitled to a deduction of 300,000 € on your main home.
  • Are required to submit the wealth tax declaration:
    • If it results in a fee.
    • With goods valued in excess of 2 million euros.

As a non-resident you:

  • Pay tax on Spanish assets only.
  • Are subject to National Law, not the Law of the regions the assets are located in.
  • Are entitled to a 700,000 € deduction per person.
  • Are required to submit a wealth tax declaration:
    • If it results in a fee.
    • With goods in Spain valued in excess of 2 million euros.

 

How is Wealth Tax calculated?

All of the taxpayer’s assets are valued according to the rules applying to the asset. For example, homes are valued at the highest value be it the purchase price or value given by the administration, and bank accounts will be valued by the highest balance between the 31st December and the average balance of the last quarter. Once the assets have been valued, the allowances are applied.

Below you will find a table with the tax rate in the Comunidad Valenciana, which ranges between 0.2% and 2.5%.

Wealth Tax Comunidad Valenciana

When do I have to submit my Wealth Tax Declaration?

Those required to submit a wealth tax declaration form will have from April to 30th June of each year, coinciding with the income tax period.

Please note that tax rates, scope and reliefs may change and we advise for you to seek professional advice from Tax advisors who can take care of the Wealth Tax for you.