On 27 December 2022, the new Law 38/2022 was published in the Official State Bulletin, which, among other issues, creates the new temporary solidarity tax on large fortunes that may have great significance when it comes to attracting new residents with large estates to our country or to the purchase of luxury homes by non-residents.
It is a state tax, not ceded to the Autonomous Communities, and has been very controversial because it is complementary to the Wealth Tax and cancels the tax advantages of those Autonomous Communities that had decided to subsidise the latter tax in order to attract new residents with large estates to their regions.
Furthermore, the recently approved tax sets the accrual date on 31st of December of each year, which means it affects 2022. This fact has been referred to the Supreme Court, which must decide on the following question that is of interest to the Court of Cassation: « To determine whether it violates the principle of non-retroactivity to impose a tax in the same financial year in which its regulatory law comes into force, whose tax period is the calendar year and which is accrued on the last day of the calendar year, when said entry into force occurred prior to the date of accrual ».
Regardless of the pronouncement issued by the high court, it is our task as real estate lawyers in Murcia, Costa Blanca and Madrid to inform our clients of the tax implications of this new tax given the value of the properties and the residence applications of individuals with larges estates.
This new tax, of a personal nature and complementary to the Wealth Tax, is levied on the net wealth of individuals over 3,000,000 euros.
Therefore, all residents in Spain with an overall personal net worth of more than 3,000,000 euros will be subject to the tax on a personal liability, and all non-residents with assets in Spain whose value exceeds this amount will be subject to the tax on a real liability.
The net worth shall be determined by the difference between the value of the assets and rights owned by the taxpayer and the charges and encumbrances of a real nature, when they diminish the value of the respective assets or rights, and the personal debts or obligations for which the taxpayer is liable.
Once the net worth has been determined, a minimum exemption of 700,000 euros and up to a maximum of 300,000 euros for residents in Spain will be applied to taxpayers with a personal liability (only applies to residents and not to non-residents) for their main residence.
The amount obtained will constitute the tax base to which the following tax scale will be applied:
Up to euros
|Remaining net base
Up to euros
The fee to pay, together with the Personal Income Tax and Wealth Tax payments, may not exceed, for taxpayers subject to the tax by personal obligation, 60 % of the sum of the taxable bases.
In order to avoid double taxation, the taxpayer may deduct from the amount payable for this tax, the amount of Wealth Tax actually paid.
As we have indicated previously, this will cancel the tax advantages of those Autonomous Communities that have approved bonuses in Wealth Tax.
Therefore, given the relevance that this may have for taxpayers with large estates, from Imont Legal & Taxes we recommend these taxpayers to turn to our real estate lawyers to calculate the value of their assets and the Wealth Tax and this new solidarity tax on large fortunes.
If the Supreme Court finally considers the implementation of the tax illegal for the financial year 2022, taxpayers will have until 31st of December 2023 to plan their tax situation and avoid, if possible, the payment of these taxes. Thus meeting with your real estate lawyer in Spain is very necessary.