New tax on non-productive assets of legal entities in Catalonia

As of June 30, this new tax will begin to be applied, which taxes companies’ luxury goods that are not essential for the development of its activity: luxury vehicles, boats, works of art, aircraft, jewellery and antiques. We tell you the basic keys to the Tax on non-productive assets of legal entities.

It is a direct and personal tax that taxes the economic capacity of taxpayers, which is manifested by the possession of assets that are considered non-productive. It taxes property and any right or ownership over using non-productive assets.

What are the non-productive assets of legal entities, and what exemption cases exist?

The non-productive assets of legal entities subject to the tax are the following:

• Real estate.
• Motor vehicles with a power equal to or greater than 200 horsepower.
• Leisure boats.
• Objects of art and antiques with a value greater than what is established by the Historical Heritage Law.

The assets above are understood to be not productive in the cases detailed below:

• If they are transferred free of charge to the owners, partners and participants of the taxable person or to persons linked to them.
• If the use is transferred, for a price, to the owners, partners and participants of the taxable person or to natural persons linked to them or to entities in which any of them has a stake.
• If they are not involved in an economic activity or public service.

However, they are not considered unproductive if:

• If they are intended for non-owner workers, non-partners or non-participants in the company.
• If they are allocated to the economic and socio-cultural services of the personnel serving the activity.

The ownership of the aforementioned non-productive assets is derived from the following assumptions:

• Ownership of a surface, usufruct, use or property right.
• The use as a consequence of the transfer through a financial leasing operation or the acquisition of the asset with reservation of title.
• The use derived from any agreement allows the transfer of all the risks and benefits inherent to the ownership of the asset that is the object of the agreement above.

The following are exempt from this tax:

• Public administrations or public law entities.
• Diplomatic representations, consular offices and international organizations.
• The real estate of foundations and non-governmental organizations.

Applicable type

A scaled applicable rate ranges from 0.210% to 2.750%.

Accrual and management of tax

The tax will accrue on January 1 of each year, and in 2017, the accrual date is June 30. Taxpayers must submit the self-assessment and pay the tax. The Catalan Tax Agency carries out the management, collection and inspection.

Infringements and sanctions

The current tax regime in Catalonia will apply to infractions and sanctions related to the Tax on Non-Productive Assets. The Law also regulates the obligation of those who sell art, antiques, and jewellery to inform the Tax Agency about the acquisitions of these types of goods produced by legal entities.