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Wealth tax is re-introduced in Spain, effective from January 2011 and solely for two years
The Official State Gazette, the BOE, dated 17-09-2011 included the notice of the reintroduction of this Tax in Spain. The validity of this tax (which ceased to be applicable in 2008 but was never repealed) is scheduled solely for 2011 and 2012. The target is to fund the public purse in a context of economic crisis and as an exceptional measure. The prior regulations of the tax shall continue to be enforceable, with two significant changes:
Firstly, residents shall enjoy an exemption ceiling of 300,000 euros on their primary residence; secondly, there is an additional general reduction of 700,000 euros applicable to both residents and non-residents. Therefore, a large part of non-residents who have purchased houses at prices under this value do not need to be assessed for this tax. In the case they do have to pay the tax, the rate applicable varies depending on the value of the wealth as the tax is not applied at a fixed rate.
It is highly likely that there will be changes in the configuration of this tax over forthcoming months, if there is a change of government in Spain after the November elections.