The Wealth Tax taxes the net assets of natural persons, that is, the assets and rights that belong to the taxable person after deducting the charges and encumbrances that reduce its value, as well as personal debts.

The taxpayers of the tax are natural persons and can be based on two types of taxation:

  • Personal obligation. It is taxed in Spanish territory on the taxpayer’s assets throughout the world, regardless of where the assets are located or the rights are exercised. To pay taxes, you must exceed the exempt minimum.
  • Real obligation. Tax is paid in Spain only on the assets and rights of which the natural person is the owner, provided that these assets are located or the rights can be exercised in Spanish territory. In these cases, the exempt minimum does not apply.

The deadline for submitting this tax ends on June 30.

Wealth Tax Exemptions

Based on Article 4 of the Wealth Tax Law, the following assets and rights are exempt from the tax:

    • Those that make up the Spanish Historical Heritage that are registered in the General Registry of Assets of Cultural Interest or the General Inventory of Real Estate.
  • Those that comprise the Historical Heritage of the Autonomous Communities.
  • Certain objects of art and antiques.
  • The household trousseau.
    • The rights of economic content in the following instruments: – The consolidated rights of the participants and the economic rights related to pension plans, insured pension plans, corporate social welfare plans, collective insurance contracts and private insurance.< /li>
  • Rights derived from intellectual or industrial property.
    • Securities belonging to non-residents whose income is exempt.
  • Business and professional heritage.
    • Participations in certain entities, with or without listing on organized markets, excluding participation in Collective Investment Institutions that meet certain requirements.
  • The taxpayer’s habitual residence, with a maximum of 300,000 euros.

In addition to these general exemptions, Autonomous Communities such as the Canary Islands or Castilla y León have established other exemptions. You can consult them here.

Reduction due to exempt minimum

The regulations applicable to the Wealth Tax establish that the Autonomous Communities may determine a minimum exemption from said tax. If the Autonomous Community does not set an exempt minimum, the tax base will be reduced by 700,000 euros. The Autonomous Communities that have established a different exempt minimum are the following: Aragón (400,000 euros), Catalonia (500,000 euros), Extremadura (500,000 euros), Valencian Community (600,000 euros),

Bonuses and deductions

In general, the following bonuses and deductions are applied based on state regulations:

  • Deduction for taxes paid abroad.
  • Fee discount in Ceuta and Melilla.
  • Aragon. Bonuses on protected assets of taxpayers with disabilities.
  • Principality of Asturias. Bonus on the assets of people with disabilities.
  • Balearic Islands. Bonus for cultural consumer goods.
  • Catalonia. The bonus of the protected assets of people with disabilities is a bonus of forest properties.
  • Galicia. Bonus for shares or participations in new or recently created entities.
  • Madrid. 100% general bonus.
  • La Rioja. The general bonus of 50 per cent of the quota if it is positive.

If you have any questions about the application of exemptions, deductions and bonuses you can consult with our tax advisors specialized.

SEND ENQUIRY