Friday 18th April 2008 will be remembered as the day when the Spanish Wealth Tax (Impuesto de Patrimonio) was suppressed by the Counsel of Ministers.
The abolition will be effective for this tax year, i.e. 31st December 2008.
How will this change affect High Net Worth Individuals living or wanting to move to Spain?
This change will make possible for many individuals to stop worrying about paying taxes on worldwide assets and start paying a flat 18% Income Tax in Spain, if their income is coming from investments, dividends or capital gains. Compared with the hectic 43% suffered by most taxpayers, this is an interesting incentive to consider relocation to Spain.
We shall keep informing on the legislative development and regulations on these great news.
Tags: Spanish Tax