Frequently asked questions about Wealth Tax

According to what is established by the Wealth Tax Law, this is a direct and personal tax that taxes the net assets of natural persons. Based on the above, a series of frequently asked questions are raised about the Tax about Heritage that we are going to answer to resolve the main doubts.

Who has to pay the tax?

Those obliged to pay the tax are divided into two groups:

• Natural persons who habitually reside in Spain must pay this tax based on their net assets regardless of where the assets are or where the rights can be exercised. In this case we speak of a personal obligation.
• Natural persons for assets and rights of which they are owners when the assets and rights are in Spain or can be exercised in Spanish territory. In this case we speak of real obligation.

What assets and rights must be declared?

Among the assets and rights that must be declared, we find the following: real estate, deposits in current accounts, securities representing participation in the equity of any type of entity traded in organized markets, securities representing the transfer of capital to third parties own securities negotiated in organized markets, life insuranceand temporary or life annuities, jewellery, luxury furs and vehicles, boats and aircraft, objects of art and antiques, real rights, administrative concessions, and rights derived from property intellectual and industrial, among others (articles 10 to 24 of the Wealth Tax Law).

When is it paid?

The Wealth Tax accrues on December 31 of each year, and this year, it will be paid between April 5 and June 30, 2017, both included. If the declaration result is to be deposited and the payment is directly debited to a bank account, the presentation cannot be made after June 26, 2017.

How much do you pay?

To calculate the amount to be paid for the Wealth Tax, a rate is applied to the taxable base based on a scale prepared by each Autonomous Community. If the Autonomous Community does not regulate anything, The one established in Article 30 of the Wealth Tax Law applies. For example, for an asset of 167,129.45 euros, a rate of 0.2% is used.

Who collects it?

The Wealth Tax is applied throughout the Spanish territory, and its performance is transferred to the Autonomous Communities. Therefore, these are the ones that can regulate the exempt minimum, the tax rate, deductions and bonuses.

The regulations established by the Autonomous Communities must be compatible with the state regulations. The state regulations will apply if any Autonomous Community does not regulate the aspects above.

What is the exempt minimum?

The minimum exemption amount that applies for 2016 for taxpayers with a personal obligation is 700,000 euros, except in some autonomous communities such as Aragon where the minimum exemption is 400,000 euros, Catalonia 500,000, Extremadura 500,000 euros (except in cases of people with disabilities for which a scale is established) and the Valencian Community with an exempt minimum of 600,000 euros.

The exempt minimum for non-resident taxpayers who pay taxes due to a personal obligation and taxpayers who pay taxes due to a real obligation is 700,000 euros.