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2021 Wealth Tax practical guide.

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

Regulations: Art. 37 Wealth Tax Act

Taxpayers are obliged to file a Wealth Tax return, whether for a personal or real obligation, in which one of the following circumstances occurs:

  1. Your tax payment, determined in accordance with the regulations governing this Tax, and once the applicable deductions or bonuses have been applied, it results in tax or,

  2. When, in the absence of the above circumstance, the value of your assets or rights, determined in accordance with the tax regulations, is greater than 2,000,000 euros.

For the purposes of applying the first limit [circumstance (a)], please note that if the taxable base, determined according to the rules of the tax, is equal to or less than the tax-free threshold established, either in general terms at 700,000 euros, or in the amount that in exercising their regulatory powers over the aforementioned tax-free threshold, the Autonomous Communities have approved for their residents (See Chapter 2), there will be no obligation to declare. Likewise, the tax payments approved by some Autonomous Communities (Chapter 2) should be made in order to determine whether or not this circumstance is the case. All of this provided that the gross assets do not exceed 2,000,000 euros.

As for the application of the second limit [circumstance b)], all the taxable person's assets and rights must be taken into account, whether they are exempt from the Tax, counted without considering the charges and charges that decrease the value of the same, or the debts or personal obligations to which the taxpayer must be liable.

Residents in Spanish territory who become resident in another country may opt to continue paying tax on their personal obligation in Spain for the all the goods and rights of economic content held by them at 31 December, regardless of where the goods are located or the rights can be exercised. The option must be exercised by filing the tax return in the first financial year in which it had ceased to be a resident in Spain.

Note: The option may also be exercised by taxpayers who have ceased to be resident in Spain in the years in which the tax on Wealth Tax (2008 to 2010, inclusive) and at the time they chose to continue paying tax in Spain for their personal obligation.

Similarly, the tax on equity of the personal income tax taxpayers who opt be taxed for Non-Residents Income Tax, maintaining the status of taxpayers for Personal Income Tax, in accordance with the special for "workers posted to Spanish territory" established in article 93 of the Personal Income Tax Act. And the tax specialities of non-resident taxpayers who are resident in a Member State of the European Union or the European Economic Area, in accordance with the provisions of Additional Provision four of the Wealth Tax Act.