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2021 Wealth Tax practical guide.

Exempt amount

Once the aforementioned requirements and conditions have been met, the exemption reaches all the value of the shares, provided that all the entity's net assets are affected by the economic activity carried out.

However, if there are assets and rights that are not affected by the development of any economic activity in the company's assets, the exemption will only reach the value of the shares in the part corresponding to the proportion between the assets used to carry out an economic activity, reduced in the amount of the debts derived from the activity, and the total value of the entity's net assets.

Elements intended exclusively for the personal use of the taxpayer or of any of the members of the family member to which refers to the previous number 3, or those that are transferred at a price lower than the market price to persons or related entities in accordance with the provisions of article 18 of the Corporation Tax Act.

In such cases, the following formula can be used to determine the value of exempt holdings:

Value of the investments x (net value of the assets assigned ÷ value of net assets of the activity)