Spanish Wealth Tax Explained

January 07, 2008

Everyone who owns property in Spain has to pay an annual wealth tax based on the net value of their assets in Spain after permitted deductions, such as mortgages. This tax is collected by regional governments and is referred to as Impuesto sobre el Patrimonio.

The tax is based on the net value of you property (less mortgage, if any) or another value deemed appropriate by the tax authorities.

The tax rate works on a sliding scale with marginal rates starting at 0.2% and rising to 2.5% for assets worth over 10.7 million Euros.

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