Wealth Tax is extended

In a new chapter in this exciting world of tax advice , the extension that affects the Wealth Tax is confirmed. The Tax Agency has confirmed that this is a measure that can be applied both in 2016 and in the following year.

Like all decisions of this type, it contains fine print. There are requirements and minimums that you should know to know if you can benefit from the letter. In order not to complicate things and create confusion, tax advice is complicated enough to make it more difficult. We will go little by little and tell you everything related to the long-awaited extension.

Extension 2017

The Tax Agency has decided to extend it for another year, and it can also be applied in 2017. All taxpayers who meet the requirements set out below will have to present it:

• Fee to enter: if they have a fee to enter, they are obliged to present it without excuses. Failure to present it can lead to fines that end up undoing all the work done.
• 2 million euros: you should know that if your assets add up to more than that amount, you will have to present it to avoid major problems with the Tax Agency.

Now that you know if you are part of these two cases, you must know that there is a minimum exemption from paying the wealth tax if you are part of that group. Below, we detail the aspects to consider when applying the extension to the wealth tax.

Minimum exempt from Wealth Tax

Current regulations establish the minimum exemption to be paid in the Wealth Tax at €700,000. Remember that, due to specific legislation in this country, this figure could vary depending on the autonomous community where the tax is due.

The habitual residence is also exempt from tax. That is, it should not be included in the total result. Of course, ‘s maximum amount for habitual residence is €300,000. Everything over that figure must be taxed accordingly.

Wealth Tax Bonus

As in the previous case, the autonomous communities usually have special bonuses for paying fees. In the Madrid community, there was a 100% bonus during 2016. In other cases, such as La Rioja, the bonus remains 50%.

In any case, community regulations change rapidly, so be sure of this point. It would be a shame if you ended up paying more than you should due to ignorance. Get in touch with your community administration so you don’t miss anything.

Final conclusions

If, once all the calculations have been made, you have a fee to pay, you will have to submit the declaration. Don’t stop doing it under any circumstances!

If, on the other hand, this fee does not work for you, but the value of your assets and rights exceeds 2 million euros, you will have to present it as well. As in the previous case, do it, or you could face unwanted fines that would undoubtedly harm the work done.