Regulations: Art. 25 Wealth Tax Act
The real encumbrances and encumbrances that reduce the value of the respective assets or rights, as well as the personal debts and obligations to which the taxpayer must be liable are considered deductible debts and encumbrances on the Wealth Tax.
Debts will only be deductible when they are duly justified, without the interest being deductible in any case.
The debts will be valued at their nominal value on the date of accrual of the tax (31 December).
The following will not be deducted:
The amounts guaranteed, until the guarantor is obliged to pay the debt, for exercising the right against the principal debtor and being unsuccessful. In the event of a joint obligation, the guaranteed amounts cannot be deducted until the right against the guarantor is exercised.
The mortgage that guarantees the deferred price of the purchase of a good, without prejudice to the fact that it is the deferred price or guaranteed debt.
The charges and charges corresponding to goods exempt from this tax, or the debts incurred for the acquisition of the same.
When the exemption is partial, as in cases where the value of the main residence is greater than 300,000 euros, it will be deductible, if applicable, the proportional part of the debts corresponding to the non-exempt part of the asset or right in question.
Special case: Debts related to assets and rights
The inclusion of these debts together with the remaining deductible debts will only occur when the following circumstances occur:
When the equity elements used for business and professional activities are not exempt from Wealth Tax.
When the taxpayer does not have accounting in accordance with the Commercial Code.
Note: In the event of a real obligation to contribute, only the charges and charges that affect the goods and rights that are carried on Spanish territory or that can be exercised or have been fulfilled in the same, as well as the capital debts indicated in the invested assets, will be deductible.