Wealth Tax

[Major Tom]

Hello,
Please can anyone say if the "Wealth Tax" has been re-introduced in
Mallorca, so I can start saving for it ?
Thanks....

 

[Deanscroft]

I believe the Wealth Tax has been reactivated (it was reduced to 0% not cancelled) throughout Spain. However the bottom limit at which you pay is now considerably higher than previously. I think I read that your combined assets held in Spain will need to be well over one million before you get the dubious honour of contributing to the Spanish economy by this method.

 

[Nick]

Maybe someone could give finite clarity on this please, particularly the limit as to which it is imposed?

Also, I'd imagine it's up to the individual to declare it?

 

[Deanscroft]

The tax has been revived for 2011 & 2012. This means a persons wealth is assessed as of 31 Dec 2011 and 31 Dec 2012 and any tax due declared and paid the following May/June. The basic allowance before paying tax has increased to 700,000 € and the allowance against the value of a primary residence is now 300,000€. I think this means that a resident gets a 1m euro allowance and a non-resident 700,000€. Anything over these limlts is then taxed on a sliding scale of 0.2% to 2.5%. This appears to suggest that a non-resident with a property valued at 700,000€ will pay 1400 euros tax.

Thats the basic facts but there are other interesting points which I have been unable to find the answers to like -

How is the value of a property assessed? This is particulary relevant as many properties were undervalued when purchased as a tax dodge.
The tax is administered and collected by the Regional Council and they have the right to alter the allowances and rates so what are the figures for Mallorca?

Anyone out there with more info?

 

[lollipop]

No more info other than if the property deeds are in two names then they get that allowance each. When you complete tax forms the value of the property is halved.

 

[pollensa]

when wealth tax was in place previously, I think that it may have been based on the 'cadastral' value which is used to calculate the town hall taxes. I know that our solicitor who prepares our annual return asked for those bills - but I could be completely wrong!
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