Andalucia introduces 100% tax rebate in wealth tax

In this blog of Mercury Abogados in Marbella we are going to see the new wealth tax rebate in Andalusia, for tax returns from the year 2022.

First we must remember that the Wealth Tax (hereinafter, IP) is an annual state tax, and whose collection is 100% transferred to the regions of Spain (Comunidades Autónomas in Spanish). Which taxes the net worth of individuals as of December 31, every year.

Taxation of residents and non-residents

We must remember that non-residents are taxed for their limited tax obligation, that is, the sum of the values ​​of assets or rights located only in Spain. This is unlike tax residents in Spain who pay said tax with the value of their assets or rights worldwide.

Finally, it is necessary to state that the Andalucia rebate in wealth tax does not exempt from the obligation to, if applicable, submit the tax return, if calculating the tax amount, it results positive. And this tax are filed on the same dates as personal income tax returns, between April and June of the following year using form 714.

As you can see, this means significant savings. So, we recommend that you contact our expert tax lawyers at Mercury Abogados in Marbella for more information.

Also, do not hesitate to contact our Law Firm in Marbella if you have any questions about taxes in Spain and Andalusia. Also even to advise you on any other matters.  Our expert lawyers would be delighted to assist you.

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