Spain’s Additional Temporary Wealth Tax Passed through Spain’s Parliament on December 29, 2022.
The Wealth Tax applies to worldwide assets of Spanish residents and non-residents.
The tax is a temporary two-year measure to be assessed annually on December 31, 2022 on individuals holding assets above EUR3 million.
Spanish residents will have an exemption amount of EUR700,000, plus a EUR300,000 homestead amount.
The tax rate brackets are the following:
o 1.7% on assets from EUR3 million to EUR5.35 million
o 2.1% on the next EUR5.3 million; and,
o 3.5% on assets above EUR10.7 million.
There are limitations on the imposition of the tax:
o A taxpayer’s wealth tax will be credited against his/her solidarity tax;
o The taxpayer solidarity tax, wealth tax, and income tax cannot exceed 60% of a taxpayer’s taxable income;
o However, a taxpayer is subject to paying a minimum of 20% of the solidarity tax.
A foreign tax credit is available for taxpayers leaving overseas if levied on the exact nature of wealth taxes abroad.