Main News
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Law 11/2020, of December 30, on the General State Budget for the year 2021 ( BOE of the 31st), in its first repealing provision replaces the hitherto temporary nature given to the Wealth Tax by Royal Decree-Law 13/2011, of September 16 ( BOE of the 17th) and which required its extension year after year, and establishes, as of January 1, 2021, its indefinite nature.
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Furthermore, Law 11/2021, of July 9, on measures to prevent and combat tax fraud, extends to all non-residents, whether they are residents of a Member State of the European Union or the European Economic Area or a third State, the right to the application of the regulations approved by the Autonomous Community where the highest value of the assets and rights they own and for which the tax is required is located, because they are located, can be exercised or must be fulfilled in Spanish territory; all of this in line with the recent jurisprudence of the Supreme Court on the extension of the principle of freedom of movement of capital enshrined in the Treaty on the Functioning of the European Union.
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That same Law 11/2021, of July 9, on measures to prevent and combat tax fraud, in line with the changes introduced in other taxes in the valuation of real estate for which it is established that the taxable base will be the reference value provided for in the consolidated text of the Real Estate Cadastre Law, approved by Royal Legislative Decree 1/2004, of March 5, adds this valuation rule in the Wealth Tax for real estate whose value has been determined by the Administration in a procedure.
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Furthermore, the aforementioned Law 11/2021 modifies article 17 of the Wealth Tax Law to determine, as of July 11, 2021, that life insurance contracts in which the policyholder does not have the power to exercise the right of total surrender, and in cases where temporary or life annuities are received from life insurance, will be included in the taxable base of the Wealth Tax for valuation at the amount of the mathematical provision.
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The Autonomous Communities of Galicia, La Rioja and the Region of Murcia have approved new regional deductions on the tax rate.
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Regarding the Wealth Tax model, the main changes are the following:
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For securities representing participation in the equity of any type of entity, it has been considered necessary to correctly identify the entity issuing said securities, so the Tax Identification Number (NIF) must be recorded when dealing with securities of resident entities, since non-listed entities do not have an ISIN granted by the National Securities Market Commission and identification using the name or corporate name of the entity generates many discrepancies.
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A section has been introduced in the Model to identify virtual currency balances, which until now had to be included in the generic section of “Other assets and rights of economic content”.
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