On 19th September 2022 the Andalusian Government announced the Wealth Tax in Andalucia will be removed. A 100% allowance for the wealth tax payable, applicable to all residents in Andalucia as well as to non-residents who have assets located in this region. The measure will be effective as of 2022. Andalucia follows the same tax policy as Madrid in an attempt to be one of the most attractive locations in Spain to live in terms of taxes.
Currently (including the 2022 tax year), wealth tax is charged on a sliding scale of 0.2% to 2.5% on the value of assets, worldwide or in Spain depending on your residence status. However, there are exemptions as follows:
- Up to €700,000 allowance on personal assets excluding your main residence.
- Up to €300,000 allowance on the fiscal value of your main residence.
In practice, these allowances mean that most people are exempt from paying wealth tax. As a result, around only 16,700 people paid the tax in Andalucia in 2020 (latest data available).
Wealth tax in Spain (Impuesto Extraordinario sobre el Patrimonio) was removed in 2008 by Zapatero´s government. However, in September 2011 it was reintroduced, this was the last legislative measure taken by the socialist government before the election on the 20th November 2011. It was hoped that the tax would help to reduce the government deficit.
What are the buying costs in Spain?
Wealth tax removed in Andalucia.
Find out everything you need to know about the process in Spain, what documents you need and full information about yearly taxes and community fees here.