The reason for this article is mainly to solve in a formulaic way the doubts rose to many of our clients when deciding whether to become a resident for tax purposes or not.
We will give an answer to the main questions they ask:
Do I have to include my entire wealth outside Spain if I am living in Spain?
Yes, you must include all assets in the declaration from the moment you become a resident in Spain.
Is the value from my main home part of Assets?
Your first home is part of your heritage, even though many Autonomous regions do not take this into account when calculating the tax base of the wealth tax for residents, i.e., it is deducted or there is a significant amount up to a certain limit. It is convenient to be registered in your first house to avoid that tax authorities incorporate the value from the property to the tax base.
When do I have to pay wealth tax?
Currently, they required to wealth tax to those people with more than €700,000 in assets not including the first home, as long as the autonomous region, with competence on this tax, would set a different quantity.
If both my wife and I jointly own assets over € 1.3 million, do we have to pay wealth tax?
You do not have to pay wealth tax as long as none of you exceed the quantity of €700,000 individually.
What is the tax rate for wealth tax?
If the autonomous region has not approved any specific tax rate, it would be based on the national rate scale facilitated as follows (applicable to the value exceeding €700,000):