Binding tax consultation ref. V0676-19 examines a case where a Mexican tax resident owns several properties in Madrid and its possible wealth tax taxation.

Any individual – non Spanish tax resident – is taxed on assets it may own in Spain pursuant to Spanish wealth tax regulations when some thresholds and requirements are met.

According to Spanish wealth tax regulations, taxpayers who are residents in a EU member country or EEA country will be able to apply the regional regulations where the majority of the assets lie.

Following the above and the particulars of this case, since the taxpayer is a resident in a third party country (Mexico) and not an EU or EEA country, the taxpayer will be taxed according to the state regulations and not Madrid’s regional regulation which as at the date of this article, is less hefty.