Many foreign owners on the Costa Blanca are unaware that, in addition to IBI and Non-Resident Income Tax (IRNR), they may be subject to another tax obligation. This is the Wealth Tax in Spain, a tribute that levies the ownership of assets and rights when they exceed certain thresholds.
Who is obliged to declare this tax?
In the first place, it is necessary to clarify that this tax affects both residents and non-residents. However, non-residents are only taxed on assets located in Spanish territory, such as their home in Torrevieja or Orihuela Costa. In contrast, tax residents must declare their worldwide assets.
The obligation to declare arises, as a general rule, when the value of your assets in Spain exceeds €700,000. Nevertheless, this tax-free allowance may vary depending on the Autonomous Community where the main property is located.
The impact of the regulations in the Valencian Community
In our region, the management of this tax has important particularities. For this reason, it is essential to have proper tax planning. Furthermore, the deadline for filing this return usually coincides with the Income Tax campaign, and it is carried out electronically.
How can our firm help you?
Ignoring this obligation can lead to penalties and late payment interest from the Tax Agency. Subsequently, this could complicate future operations, such as the sale of the property or an inheritance.
In conclusion, if you own high-value assets in Spain, we recommend reviewing your tax situation. At Orihuela Solicitors, we are experts in international taxation and can help you optimize your tax burden. If you have doubts about the Wealth Tax in Spain, contact us for personalized advice.
