Wealth tax
Wealth tax (also known as property tax or tax on the rich), as the name suggests, is a tax that one has to pay when one’s assets reach a certain amount. It is called impuesto sobre el patrimonio in Spanish.
Asset tax rate
Tax rates may vary from region to region. The Spanish central government has established a default table of tax rates. Some regions (such as Catalonia, Valencia or Andalusia ) have their own tax rates, while others apply the tax rates set by the central government.
The following is a table of the tax rates of the central government of Spain, applicable to the Canarias, Aragón, Castilla-La Mancha, etc.
- From 0€ to 167.129,45€: rate 0,2%.
- From 167.129,45 € to 334.252,88€: rate 0,3%.
- From 334.252,88€ to 668.499,75€: rate 0,5%.
- From 668.499,75€ to 1.336.999,5€: rate 0,9%.
- From 1.336.999,5€ to 2.673.999,01€: rate 1,3%.
- From 2.673.999,01€ to 5.347.998,03€: rate 1,7%.
- From 5.347.998,03€ to 10.695.996,06€: rate 2,1%.
- From 10.695.996,06€ and above: rate 3,5%.
Example: The taxable base is between 0 Euros and 167.129,45 Euros, the tax rate is 0,2%. If a person has a taxable base of 100,000 Euros, then he/she will have to pay 200 Euros in asset tax.
Note: The taxable base is the value of the assets minus debts and some deductible items.
Madrid Tax Rates
Madrid is currently exempt from wealth tax. However, if you meet the conditions for taxation, you need file the tax return.
Tax rates in Catalonia
As you can see, the tax rate in Catalonia is a little higher. The taxable base is between 0 and 167.129.45 euros, and the tax rate is 0.21%, which is 0.01% more than the rate set by the central government.
Example: I live in Barcelona and have a habitual residence house worth 300,000 euros, and 750,000 euros in bank deposit. Total assets: 1,050,000 euros.
Catalonia is exempt from taxation for habitual residence houses up to 300,000 euros. The tax break (tax exemption) in Catalonia is €500,000 and only the excess over €500,000 is taxable.
So in this example, only 250,000 € will be taxable.
Related article:Introduction to Wealth Tax in Spain
