Non-residents' wealth tax liability
Circumstances in which the tax is payable by non-residents and how they are taxed
The Wealth Tax taxes the net worth of natural persons . The net wealth consists of all the property and rights with economic content he or she owns, after the burdens and encumbrances diminishing their value, such as the personal debts and obligations for which they are responsible have been deducted.
Unlike natural persons who reside in Spanish territory, who are subject to the tax “by personal obligation”, non-residents are subject to the tax “by real obligation”.
In the first case, the tax is required for the entire net worth regardless of where the assets are located or the rights can be exercised (worldwide assets), while in the second case it is required for those assets that are located, could be exercised or must be fulfilled in Spanish territory (assets in Spain).
In order to determine net wealth, in cases of a real obligation to contribute, only charges and encumbrances affecting assets and rights which are located in Spanish territory or which may be exercised or have to be fulfilled in Spain, as well as debts for capital invested in the aforementioned assets, shall be deductible.
There is a minimum exemption of 700,000 euros applicable to non-residents subject to a real obligation to contribute.
The Tax will be accrued on December 31 of each year and will affect the assets of which is the owner on said date . Consequently, there is no tax period for this tax, so that if, for example, a person dies on a day other than 31 December, the tax does not accrue in that year.
The state scale of the tax is as follows:
From 1 January 2021:
| Taxable base Up to euros | Share euros | Remaining Taxable Base Up to euros | Applicable type Percentage |
|---|---|---|---|
| 0.00 | 0.00 | 167,129.45 | 0.2 |
| 167,129.45 | 334.26 | 167,123.43 | 0.3 |
| 334,252.88 | 835.63 | 334,246.87 | 0.5 |
| 668,499.75 | 2,506.86 | 668,499.76 | 0.9 |
| 1,336,999.51 | 8,523.36 | 1,336,999.50 | 1.3 |
| 2,673,999.01 | 25,904.35 | 2,673,999.02 | 1.7 |
| 5,347,998.03 | 71,362.33 | 5,347,998.03 | 2.1 |
| 10,695,996.06 | 183,670.29 | upwards | 3.5 |
Before 1 January 2021:
| Taxable base Up to euros | Share euros | Remaining Taxable Base Up to euros | Applicable type Percentage |
|---|---|---|---|
| 0.00 | 0.00 | 167,129.45 | 0.2 |
| 167,129.45 | 334.26 | 167,123.43 | 0.3 |
| 334,252.88 | 835.63 | 334,246.87 | 0.5 |
| 668,499.75 | 2,506.86 | 668,499.76 | 0.9 |
| 1,336,999.51 | 8,523.36 | 1,336,999.50 | 1.3 |
| 2,673,999.01 | 25,904.35 | 2,673,999.02 | 1.7 |
| 5,347,998.03 | 71,362.33 | 5,347,998.03 | 2.1 |
| 10,695,996.06 | 183,670.29 | upwards | 2.5 |
To complete the wealth taxation corresponding to non-residents, it is necessary to take into account the applicable exemptions, the effects of the taxpayer invoking their right to apply agreements to avoid double taxation and the special features contained in the regulations, in particular, the option for residents in other EU and EEA countries to apply autonomous community regulations.