Owners of property in Spain valued over € 700,000 are required to pay the so-called luxury tax (Impuesto sobre el Patrimonio) to the royal budget. The rate is progressive and ranges from 0.2% to 2.5%. The net asset value less liabilities and encumbrances comprises the calculation base. The legislation provides a lot of exemptions and deductions. For example, if the real estate property is the main place of residence, it is subject to exemption in the amount of € 300,000 according to the general rule, although autonomous communities of Spain can independently modify the mentioned limit.

Tax Return
requirements

  • 01.
    When applied all deductions and exemptions, the total amount of tax return expressed in a positive amount.
  • 02.
    When applied all deductions and exemptions, the amount of tax return is negative, but the total value of the property and rights exceeds 2,000,000 €.

Luxury tax
exemption requirements

  • ИInvestments within the private retirement either savings or insurance plans.
  • Premiums received under group insurance agreements.
  • Property and rights associated with business if it is the main source of income.
  • Pieces of art and antiques recognized as historical heritage.
  • Intellectual and industrial property rights not associated with business activities.

Even without the status of a resident of Spain, you must annually submit returns to the tax office. Nevertheless, it can be difficult to understand all intricacies of the country's fiscal legislation without a reliable advisor. Spain Legal's clients receive detailed advice on tax payments and have access to comprehensive expert support allowing them to legally reduce costs and expenses, recover a part of payments, avoid double taxation and fines.

Our tax advisor
rvices include

  • Preparation and filing of real estate and income tax returns.
  • Fiscal planning and optimization.
  • Registration with the tax authorities, obtaining an identification number (NIE) and electronic certificates for signing documents.
  • Support in the tax and other government agencies/representation of your interests by proxy.
  • Assistance in registering a business of any format.
  • Accounting, consulting and audit for residents and non-residents.