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2018 Wealth Tax

3.1. Taxpayers

A) BY PERSONAL OBLIGATION

Natural persons who have their habitual residence in Spanish territory are subject to the Tax as a personal obligation, and the tax is required for their entire net assets regardless of the place where the assets are located or the rights of which they are the owners can be exercised.

When a resident in Spanish territory becomes resident in another country, he or she may choose to continue paying personal tax in Spain. The option must be exercised by filing the declaration for personal obligation in the first financial year when the person has ceased to be a resident on Spanish territory.

To determine habitual residence, the criteria established in the Personal Income Tax regulations will be followed.

The representatives and officials of the Spanish State abroad and of foreign Organizations, Institutions or States in Spain will be subject to the Wealth Tax by personal or real obligation taking into account the same circumstances and conditions as those established for such taxable subjects in the rules of the IRPF.

B) BY REAL OBLIGATION

Natural persons who do not have their habitual residence in Spain and are owners of assets or rights that are located, can be exercised or must be fulfilled in Spanish territory are subject to a real obligation.

These people are required to submit a declaration exclusively for these assets or rights.

Natural persons who acquire tax residence in Spain as a result of their move to Spanish territory and who choose to pay non-resident income tax will also be subject to a real obligation, provided that the following conditions are met:

  • That they have not been residents in Spain during the 10 years prior to their new move to Spanish territory.
  • That the move to Spanish territory occurs as a consequence of an employment contract.
  • That the work is actually carried out in Spain.
  • That said work is carried out for a company or entity resident in Spain or for a permanent establishment located in Spain of an entity not resident in Spanish territory.
  • That the income derived from said employment relationship is not exempt from non-resident income tax.

From January 1, 2015, non-resident taxpayers who reside in a Member State of the European Union or the European Economic Area will have the right to apply the approved regulations of the Autonomous Community where the highest value of the assets and rights of which they are holders and for which the tax is required, because they are located, can be exercised or must be fulfilled in Spanish territory.