Impuesto de Patrimonio, Wealth Tax abolition. Ahora Si!!!!
Since we announced in tax precision the abolition of the Wealth Tax by the Spanish government, last April, we have been getting many questions from our readers questioning if the abolition would happen and legislation will be enhanced soon.
From a legal point of view, I have been always defending that abolition was already approved by the Government. Please see the postings at Taxprecision.com.
However many readers were receiving conflicting advice from Tax consultants, lawyers and even Tax officials. Many of them said that the abolition was not confirmed. As a Tax lawyer I exercise extreme due diligence in terms of the information I post and I have been very confident with this particular abolition. Anyone understanding how the legislative process work in Spain should have been crystal clear with this matter and from here I would like to send a message to our readers to make sure they always check with qualified advisers and that those qualified advisers "do their homework".
For those who still need to be 100% sure, the Government of Spain has now officially announced, by second time, the abolition of the Impuesto de Patrimonio, which you can see in the official Government page at La Moncloa.es.
Legislation has not yet been enhanced on this regard and we shall wait to see the final piece coming very soon. Meanwhile, and as usual, we welcome any comments or questions.
The Moncloa website announces in English that Inheritance Tax has been abolished. However the Spanish version makes it clear it is Impuesto de Patrimonio. This is an unfortunate mistake which has led to at least one article in English press announcing abolition of IHT. Presumably expats are still subject to IHT via Madrid, whilst residents of e.g. Valencia are 99% exempt as residents. This looks like another case for the European Court on grounds of discimination.
Fiona, Colmenar - September 21 2008 0851am - So, as of now, does anyone have the correct information? Is it Inheritance Tax? Patrimonio? (which I understand to be the dreaded collective worldwide wealth tax) - with my other half on the point of spending a large sum to remain with a big foot on the UK housing market ladder & boost EasyJet to the tune of 47% toing & froing rather than move to be 100% with his family due to the existing laws, what is the situation???! When will/may it come in? If? And WHO sanctioned an incorrect translation press release to go out? Shoot them! (ok, I jest - but as a former journalist really I despair....)
Fernando del Canto.- The tax we are discussing here is Impuesto de Patrimonio or Wealth Tax. Inheritance Tax abolition is in the agenda in some Communities but no steps have been taken by the National Government conductive to abolition. 21/09/08
Gabriele from Tenerife, October 25 2008 -
Thinking back to the time when I received a joyful email by my "tax adviser" and unofficial tax consultant who works closely with an official Spanish tax consultant I believed that IHT = Inheritance tax had been abolished in Spain and Tenerife for all.
However, when I looked at the German translation of the new tax amendment received by my "tax adviser" I was puzzled thinking it was not quite clear.
The link supplied for the supposedly original Spanish text didn't reveal anything.
In the end I brushed off doubts assuming that my adviser should know better.
Please, note that the Spanish in particular have a way to formulate law in a language style (permit me to put it that way...) which I find rather confusing. Sometimes, it makes me think back to my school days when I argued with my teacher about a Latin text translation of Julius Cesar Wars. This is, of course, contrary to what is said about the logic in Latin and the structure of the Spanish language derives from Latin.
However, there are times when things are written down in a rather unclear way on purpose I am affrayed to believe.
I fear the same may have happened when this law amendment was published. Of course, I cannot prove this.
Anyway, a while later, I received a 2nd email from my "tax adviser" asking me to hang on because, suddenly much about the new tax law seemed to be unclear and, suddenly, there were doubts that expats were meant to enjoy this new change of law.
I was told that the text interpretation of the Spanish original was now argued by lawyers and that I may, please, hang on.
So far, many months later, I haven't received news about it.
Therefore, I am much under the impression that the English translation which was published for the Media by somebody for and on behalf ( I assume) of the Spanish Government was indeed done in "bona fide" (good belief) and that it was indeed for the new Inheritance Tax Law Spain and not for the New Law for abolition of Patrimonio Tax which means "sort of" a Wealth Tax.
Read details about it on page Property law Spain.