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2017 Wealth tax

4.2.19. Debts

In this section, the charges and encumbrances of a real nature must be recorded, when they reduce the value of the respective assets and rights, as well as the debts or personal obligations for which the taxpayer must be responsible, including those that are related to elements affected by economic activities. when the taxable person does not keep accounting in accordance with the Commercial Code, and provided that said assets are not exempt from the Tax.

The charges, encumbrances and debts related to affected elements that are exempt must be recorded in section "D. Exempt goods and rights related to economic activities."

The debts will be valued at their nominal value on the date of accrual of the Tax (December 31) and will only be deductible when they are duly justified, without interest being deductible in any case.

The following will not be subject to deduction:

  1. The guaranteed amounts, until the guarantor is obliged to pay the debt, because the right has been exercised against the main debtor and it has failed. In the case of joint obligation, the guaranteed amounts cannot be deducted until the right is exercised against the guarantor.

  2. The mortgage that guarantees the deferred price in the acquisition of an asset, without prejudice to whether the deferred price or guaranteed debt is.

  3. The charges and encumbrances that correspond to goods exempt from this Tax.

  4. Debts incurred for the acquisition of exempt goods or rights. When the exemption is partial, the proportional part of the debts will be deductible, if applicable.

In cases of REAL OBLIGATION to contribute, only the charges and encumbrances that affect the assets and rights that reside in Spanish territory or can be exercised or must be fulfilled therein will be deductible, as well as debts for capital invested in the indicated assets. .

COMPLETION.

On page 8(I) a data capture window will open where you will indicate the amount of debts corresponding to each asset or right in accordance with the rules indicated above.