Goldenmaniac
17-09-2011, 19:05
At a meeting of the Spanish Cabinet yesterday the move to restore the Patrimonio (wealth) tax was ratified.
The tax had effectively been suspended after the then Socialist government reduced the amount of the tax levied to zero, whilst still leaving the law enabling it on the statutes.
However there is still some confusion over how many people will have to pay it, and what regional governments will get out of it.
Ministers have been accused of causing confusion and muddying the waters over the various Spanish autonomous regions’ entitlements, after government spokesman José Blanco said 90,000 wealthy individuals would have to contribute more to the ailing economy, The Economy Minister, Elena Salgado estimated on Thursday that 160,000 people with assets of over 700,000 euros (excluding that of their primary residence) would be liable.
Primary residences with a value of up to 300,000 euros are exempt.
Blanco added further to the confusion on Friday when he said “no region will charge twice,” a reference to the compensation that autonomous regions have been getting from Madrid since 2008 to compensate for lost income due to the reduction of the tax to zero. Salgado, however, had contradicted him and had said the regions would continue to receive this money, plus whatever they could collect through the reinstated tax.
The tax which will remain in place for just 2 years, this year and in 2012, is expected to bring in over 1 billion euros source:http://newsinthesun.com/2011/09/even-ministers-confused-by-re-introduction-of-wealth-tax/
There are a couple of things to note so far I think;
One this will not need to be addressed until at the earliest January 2012 and up to Dec 2012 for Non resident returns. And end of June for Resident returns ( because no amendments have been made to the underlying legislation only the % payable and exemption amounts on the taxable base .
Two Logically if you are fiscally non-resident your primary residence can not be in Tenerife. If your property is high end and you can't deduct it from your assets value suddenly 700,000 euros is not as much as you think!
However I stress these are only my initial thoughts and as a royal decree needs a lot of reading through..... I may be gone some time :)
The tax had effectively been suspended after the then Socialist government reduced the amount of the tax levied to zero, whilst still leaving the law enabling it on the statutes.
However there is still some confusion over how many people will have to pay it, and what regional governments will get out of it.
Ministers have been accused of causing confusion and muddying the waters over the various Spanish autonomous regions’ entitlements, after government spokesman José Blanco said 90,000 wealthy individuals would have to contribute more to the ailing economy, The Economy Minister, Elena Salgado estimated on Thursday that 160,000 people with assets of over 700,000 euros (excluding that of their primary residence) would be liable.
Primary residences with a value of up to 300,000 euros are exempt.
Blanco added further to the confusion on Friday when he said “no region will charge twice,” a reference to the compensation that autonomous regions have been getting from Madrid since 2008 to compensate for lost income due to the reduction of the tax to zero. Salgado, however, had contradicted him and had said the regions would continue to receive this money, plus whatever they could collect through the reinstated tax.
The tax which will remain in place for just 2 years, this year and in 2012, is expected to bring in over 1 billion euros source:http://newsinthesun.com/2011/09/even-ministers-confused-by-re-introduction-of-wealth-tax/
There are a couple of things to note so far I think;
One this will not need to be addressed until at the earliest January 2012 and up to Dec 2012 for Non resident returns. And end of June for Resident returns ( because no amendments have been made to the underlying legislation only the % payable and exemption amounts on the taxable base .
Two Logically if you are fiscally non-resident your primary residence can not be in Tenerife. If your property is high end and you can't deduct it from your assets value suddenly 700,000 euros is not as much as you think!
However I stress these are only my initial thoughts and as a royal decree needs a lot of reading through..... I may be gone some time :)