Your beneficiaries will become liable to pay death duties that will depends on the value of your wealth (i.e. property plus savings in the bank, etc.), and that usually amounts to a figure in between 15 % and 50 % of the value of the gift to each beneficiary, except in the case of the gift house (or half of a house) by a deceased spouse to his/her survivor (in the case only of the single main residence) where a tax discount of 99,99% is applied. The duty is based upon the value of the property at the date of death.
The wealth value associated to a property is based on what the declared value of the property was when you purchased it. For residents, the first €175.000 euro is not taxable. There is also a €300.000 exemption on main home for residents. This wealth tax increases on a sliding scale as shown in the following table.
Wealth Bracket - Tax Rate
Up to €167,129: 0.20%
€167,129 - €334,247: 0.30%
€334,247 - €668,500: 0.50%
€668,500 - €1,337,000: 0.90%
€1,337,000 - €2,673,999: 1.30%
€2,673,999 - €5,347,998: 1.70%
€5,247,998 - €10,695,996: 2.10%
Above €10,695,996: 2.5%
The wealth tax sliding scale above is "cumulative". For example, if you purchased a property for €300,000 then you would be liable for wealth tax every year according to the following calculation:
The first €167,129 at 0.2% is €334.26 plus the remaining €132,871 (€300,000 - €167,129) at 0.3% is €389.61 . Therefore the wealth tax on a Spanish property worth €300,000 is €732.87.
Those who are liable to pay Wealth Tax are individuals who are fiscal residents in Spain as well as non-residents who have assets on Spanish territory.
Spanish Wealth Tax is based on the total net assets held on December 31 of each year and the tax rates range from 0.2% to 2.5%. Fiscal Residents are liable for wealth tax on their net worldwide assets, while Non-Residents are taxed only on their net assets located on Spanish territory or taxable in Spain.
The general conditions of the new Wealth Tax are as follows
- Soon there are going to be changes over the Wealth Tax, but nothing has been decided yet. We are waiting for a new Decree on this matter. Soon there are going to be changes that the Spanish Government is going to implement on the Wealth Tax, but nothing has been decided yet. We are waiting for a new decree on this matter.
- The minimum taxable amount has been raised to €700,000 (previously: €108.182,18). Therefore, individuals whose total wealth in assets is less than €700,000 are not liable to pay Wealth Tax until now.
- Each resident may deduct from the Wealth Tax the value of their main residence in Spain up to a maximum of €300.000
For Wealth Tax in the Andalusian Autonomous Community, as indicated in the following table
With effect from 1 January 2012, the gross tax introduced is calculated by applying the tax base types fixed in the following table:
TAXABLE - TAX DUE - REST OF TAXABLE BASE UP TO - % APPLICABLE RATE BASE
0 - 0 - 167,129.45 - 0.24
167,129.45 - 401.11 - 167,123.43 - 0.36
334,252.88 - 1,002.75 - 334,246.87 - 0.61
668,499.75 - 3,041.66 - 668,449.76 - 1.09
1,336,999.51 - 10,328.31 - 1,336,999.50 - 1.57
2,673,999.01 - 31,319.20 - 2,673,999.02 - 2.06
5,347,998.03 - 86,403.58 - 5,347,998.03 - 2.54
10,695,996.06 - 222,242.73 - And above - 3.03
Wealth Tax is levied on an individual basis. When a property or other asset belongs to two or more individuals, each person will pay tax according to the percentage of the property held in their name and the corresponding loans. In the case of married couples, if assets are shared by both spouses, 50% shall be assigned to each unless proof to the contrary is presented.