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Practical Heritage Manual 2022.

Fee bonus in Ceuta and Melilla

Regulations: Art. 33 Wealth Tax Law

If among the assets or rights of economic content computed for the determination of the tax base, there is any located or that should be exercised or fulfilled in Ceuta and Melilla and their dependencies, the tax rate will be reduced by 75% of the part thereof that proportionally corresponds to the aforementioned assets or rights.

This bonus will not apply to non-residents of these cities, except in relation to securities representing the share capital of legal entities domiciled and with corporate purpose in the aforementioned cities, or in the case of permanent establishments located there.

The portion of the tax to which the bonus applies can be calculated by dividing the net value corresponding to the assets and rights located in Ceuta and Melilla and their dependencies (VN) by the taxable base and multiplying this quotient by the total tax. That is to say:

VN x Total share ÷ Taxable base

Example:

Mr. SMG, resident in Malaga, presents the following data in his Wealth Tax return for the year 2022:

  • Taxable base:  1,400,000
  • Taxable base: 700,000

The following are among the declared assets:

  • Commercial premises located in Ceuta with a net value of: 195,000

  • Shares of SA "X", domiciled and with exclusive corporate purpose in Ceuta, whose net value amounts to: 100,000

Determine the amount corresponding to the tax bonus for assets located in Ceuta and Melilla:

Solution

  • Full amount of the Wealth Tax (1) = 2,790.35

  • Net value of assets in Ceuta and Melilla (2): 100,000

  • Part of the share corresponding to said assets (3) = 199.31

  • Bonus (75 per 100 s/199.31) = 149.48

  • Amount to be paid (2,790.35 – 149.48) = 2,640.87

    However, please note that, from 1 January 2022, a 100% tax reduction applies to residents of the Autonomous Community of Andalusia, so the taxpayer will not have to pay any amount in this case.

Notes to the example:

(1) See the tax scale applicable in the Autonomous Community of Andalusia in chapter 4.

Up to 668,500.00 = 2,506.85

Rest (31,500) x 0.90% = 283.50

Total full fee (2,506.85 + 283.50) = 2,790.35  (Back)

(2) As the taxpayer is not a resident of Ceuta or Melilla, he or she is not entitled to apply a tax credit for the premises. (Back)

(3) The portion of the full quota corresponding to the shares of SA "X" is determined by the following operation: (100,000 x 2,790.35) ÷ 1,400,000 = 199.31. (Back)