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Heritage 2019

4.3.6. Deduction for taxes paid abroad

In the case of PERSONAL OBLIGATION to contribute and without prejudice to what is provided in the International Treaties or Agreements, the amount of this Tax will be deducted, due to the assets that reside and rights that could be exercised or had to be fulfilled outside of Spain. , the lesser of the following two:

  1. The effective amount of what was paid abroad due to a personal tax that affects the assets counted in the Tax.

  2. The result of applying the average effective tax rate, expressed with two decimal places, to the part of the taxable base taxed abroad.

    average effective tax rate will be understood as the result of multiplying by 100 the quotient obtained by dividing the full amount resulting from the application of the scale by the taxable base. The average effective tax rate will be expressed with two decimal places.

The Autonomous Community may establish deductions in this tax, which will be compatible with those established by the State, without being able to modify them, applying subsequently to the state ones. In fiscal year 2019, deductions have only been established in the Autonomous Community of Galicia.

COMPLETION

For the program to perform this calculation, the following information must be entered through a data capture window:

  • Cash amount paid abroad

  • Net value of assets encumbered abroad

    The net value is obtained by subtracting from the value of these assets the deductible debts corresponding to them, as well as the proportional part of those other debts that, while also deductible, are not linked to any asset element.

The deduction is calculated individually for each asset located abroad. The program supports up to three different elements.

  1. 4.3.6.1 Deductions of the Autonomous Community of Galicia