Property Wealth Tax, at last Suppressed
This is one of the measures implemented by the Spanish government to improve the economic situation. It also affects non-residents, to whom a special mention is made, and it will be immediately applicable (1st January 2008). This means that if you have purchased your property this year you will only have to pay Property Income Tax (PIT) next year, and if you purchased prior to 2008 this will be the last year in which you have to pay both taxes, paying only PIT next year.
On a 250,000 € property owned by two persons with a 100,000 € mortgage the measure will save them 300 € approximately, and on a 500,000 € property with no mortgage owned by one person the saving is of 2,000 €. I tend to subscribe to the notion that ‘every little bit counts’ and so we can only welcome the measure. Properties owned by Spanish or foreign companies are unaffected by the measure.
As December is quickly approaching, we recommend that you get in touch with your Spanish solicitors as soon as possible in order for them to start arranging the payment.
If you don’t have a solicitor and would like to be assigned one who can offer you this service, please visit the Fiscal Representation page on this site.
I have been told by my accountant that all Wealth Tax should be abolished from the 1st of January 2008, as promised from both sides in the Parliament just before the election last year to the Paliment. Is this information incorrect?
This is correct so you would still have to pay your wealth tax for 2007 prior to the end of 2008. Next year you will only need to pay your non/residents property deemed income tax, corresponding to 2008.