Residents:
Worldwide assets with the following deductions:
Individual allowance:
€108,182.18 (€216,364.36 for a
married couple)
Own home
individual allowance:
Up to €150,253.03 (€300,506.06
for a married couple with the house in joint
names)
Tax Rates
The Spanish rates of wealth tax for the
2002 returns applicable to the net tax base
of wealth owned on 31st December 2002 are
as follows:
| Euro from |
Euro
to |
Tax
Rate |
Total Tax Payable at top of band |
| Nil |
167,129 |
0.2% |
334 |
| 167,129 |
334,253 |
0.3% |
836 |
| 334,253 |
668,500 |
0.5% |
2,507 |
| 668,500 |
1,337,000 |
0.9% |
8,523 |
| 1,337,000 |
2,673,999 |
1.3% |
25,904 |
| 2,673,999 |
5,347,998 |
1.7% |
71,362 |
| 5,347,998 |
10,695,996 |
2.1% |
183,670 |
| Over 10,695,996 |
|
2.5% |
|
Exempt Assets
The following
assets are exempt:
Owner managed small business
Family companies meeting certain conditions
Household contents (excluding jewels,
fur coats, vehicles, boats, art and antiques)
Pension rights
Intellectual property rights in the author’s
ownership
Any asset which does not have a redemption
or disposal value on 31st December
Limits
to Wealth Tax
Cumulative wealth
and income taxes cannot exceed 60% of the
total taxable income base of residents (there
is no limit of non-residents) and is subject
to paying a minimum of 20% of the wealth
tax calculation. This reduction does not
take into account capital gains tax which
is payable on gains arising from disposals
at the rate of 15%.
This wealth
tax limit is a significant reduction
and wealthy Spaniards can therefore avoid
taxable income! There are certain ways of
making very tax-effective investments which
can substantially reduce your tax liability.
Bank Balances
Bank balances are valued at the higher of
the closing balance on 31st December or
the average balance during the fourth quarter.
This information is automatically given
by the bank.
Returns
and Payments
The wealth tax form has to be completed
and tax is payable between 2nd May and 1st
July for the previous tax year.
Source:
BlevinsFranks
See
also
Spanish
Capital Gains Tax
Spanish
Inheritance and Gift Tax
Residency
Scope
of Spanish Tax
Spanish
Income Tax
|
