Special rule: Exempt assets and rights with progressiveness

Regulations: Art. 32 Wealth Tax Act

Taxpayers subject to the tax due to a personal obligation to contribute that are holders of property or rights located or that can be exercised or must be fulfilled in a State with which Spain has signed a bilateral agreement to avoid double taxation, in which virtue these assets are exempt of the Spanish tax, but may be taken into account to calculate the tax corresponding to the remaining capital elements, they must determine the full tax amount according to the following procedure:

• The value of exempt assets and rights, determined in accordance with the tax valuation rules, if applicable, in the value of the charges, levies and debts corresponding to them that, if this exemption were not granted, would be considered tax deductible , must be added to the amount of the tax base, in order to determine the basis for the application of the tax scale.

• Once the resulting tax is obtained, the average tax rate is determined. This average tax rate is the result of multiplying the quotient resulting from dividing the tax rate by 100.

• Once this average rate has been obtained, it will be applied exclusively on the net tax base, without including exempt goods and rights, except to determine the tax rate, also known as exempt items with progressiveness.