Bad news for all non-Spanish individuals who want to invest in Spain or who already own property in Spain and are obliged to file Wealth Tax. The Directorate General of Taxes (DGT), a body of the Ministry of Finance responsible for answering questions from taxpayers regarding doubts in the interpretation of tax regulations, has recently and repeatedly established in consultations V1343-21, V1571-21 and V2120-21 that, when calculating the acquisition value of a property for the purposes of Wealth Tax, it will not only be necessary to take into account the price paid, but also the taxes paid. So, it will not only be necessary to take into account the price paid, but also the taxes paid for the purchase, which can be up to 11.5% (maximum rate applicable in the Balearic Islands) and in the case of acquisitions subject to VAT between 11.5% and 22.5%, corresponding exactly to VAT at 10% or 21% plus stamp duty at 1.5%.
This increase in the basis for calculating Wealth Tax makes it more than ever necessary to prepare a good tax optimization prior to the purchase of any property.
If you have any questions or if you would like to know more about this subject, please contact our office.