Wealth/Property Tax.Non Spanish residents are required to file a return for this tax on property owned in Spain on December 31st of each year.The tax is calculated by applying the tax scale approved by the Government each year,to the value of the property for tax assessment.The value is taken from the highest of the following:
• The value of the property shown on the Real Estate
Tax/Rates receipt.
• The value assessed by the authorities for tax
purposes.
• The purchase deed price (Escritura).
The base taxable is determined by the difference
between that value and the charges or mortgages
affecting the property.
7.4 Property owned by a non resident company
Where the property has been bought via a non Spanish
resident company you should be aware some companies
will attract a special tax payable every December 31 st .
The rate applicable is 3%according to the The City
Hall of ficial registered valuation of the property normally
shown on the Real Estate Tax receipt.
There are a few exemptions applicable to this tax rule.
For instance,companies that are subject to a Treaty as
to the exchange of information,will be exempt from this tax providing that individual shareholders of the company
are Spanish domiciled or domiciled in States with similar
Treaty rules.
This tax rule is mainly designed for those off-shore
company structures that are set up to hold ownership
of a Spanish property therefore avoiding other taxes
that may be applicable if the property were owned by
individuals.
For tax planning on ownership and company structure,it
is important to consult a specialist solicitor with knowledge
of taxation and company matters in Spain as the subject
is quite complicated.
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