Who is required to file the Wealth Tax return (IP)?

Regulations: Art. 37 Wealth Tax Law

Taxpayers are required to file a declaration for the Wealth Tax, whether by personal or real obligation ⁽¹⁾, in which any of the following circumstances occur:

1. Your tax rate , determined in accordance with the regulations governing this Tax, and once the applicable deductions or bonuses have been applied, results in to be paid or,
2. When , the above circumstance not occurring, the value of his/her assets or rights , determined in accordance with the regulations governing the Tax, is greater than 2,000,000 euros .

For the purposes of applying the first limit [circumstance a)], it should be noted that if the taxable base, determined according to the tax rules, is equal to or less than the established exempt minimum, either in general terms of 700,000 euros , or in the amount that the Autonomous Communities have approved for their residents in the exercise of their regulatory powers on the aforementioned exempt minimum (See Chapter 2 in this regard), there will be no obligation to declare. Likewise, in order to determine whether or not this circumstance occurs, consideration must be given to the deductions or bonuses on the full tax rate approved by some Autonomous Communities (Chapter 2). All of this provided that the gross assets do not exceed 2,000,000 euros .

As regards the application of the second limit [circumstance b)], all the assets and rights of the taxpayer must be taken into account, whether or not they are exempt from the Tax, computed without considering the charges and liens that reduce their value, nor the debts or personal obligations for which the taxpayer must respond.

Residents of Spanish territory who take up residence in another country may choose to continue paying personal tax in Spain on all assets and rights of economic content that they own as of December 31, regardless of where the assets are located or where the rights can be exercised. The option must be exercised by filing the declaration in the first year in which the person ceased to be a resident in Spanish territory.

Note: The option may also be exercised by those taxpayers who ceased to be residents in Spanish territory in the years in which the tax on wealth was eliminated (2008 to 2010, both inclusive) and chose at the time to continue paying taxes in Spain due to personal obligation.

Likewise, the subjection to the Wealth Tax by real obligation of the IRPF taxpayers who choose to pay the Non-Resident Income Tax must be taken into account, maintaining the status of taxpayers for the IRPF , in accordance with the special regime of "workers posted to Spanish territory" established in article 93 of the IRPF Law. and the specialities in the taxation of non-resident taxpayers who are residents of a Member State of the European Union or the European Economic Area in accordance with the provisions of the Fourth Additional Provision of the Wealth Tax Law.

⁽¹⁾ The concept of passive subject of the Wealth Tax by personal or real obligation is discussed in Chapter 2 of the Wealth Tax. ^(Back)