博鱼体育集团

In Spain, the wealth tax (Impuesto sobre el Patrimonio) is a tax on the net worth of individuals and is applied at both state and regional levels. However, the regional governments have the authority to adjust certain aspects of the tax, including exemptions, deductions, and rates.

In the Balearics, the ruling Partido Popular and Vox parties have agreed a new regional budget for 2024 which includes a change to the threshold at which the wealth tax applies, rising from 鈧�700,000 to 鈧�3 million.

The change will apply to 2024 wealth tax returns, which are submitted in 2025.

The change helps the Balearic islands compete with Andalucia and Madrid which both provide a 100% tax-free relief.

This change does not affect Spain鈥檚 separate Solidarity Tax, a temporarily levy currently imposed by Spain鈥檚 central government in 2022.

According to Jack Harris who oversees 博鱼体育集团 Frank鈥檚 Ibiza market, 鈥淎ny fiscal changes such as these is seen as a positive move for international buyers whose decision making is largely sentiment driven and will only shine more of a spotlight on the allure of the Balearics鈥�.

Robbie Gray, Director at Villa Contact, 博鱼体育集团 Frank鈥檚 partner in Ibiza confirms that the team have seen an increase in enquiries since the new rule came into effect at the start of the year.

Robbie adds, 鈥淭his threshold increase will significantly reduce the yearly costs to foreign buyers of owning property in the Balearics, making the islands a much more appealing location in which to invest in a second residence abroad".

The detail

In Spain, wealth tax is calculated based on the value of your assets as at 31 December each year. If you are a resident of Spain, it applies to your worldwide assets. For non-residents, it affects Spanish assets only.

The tax is payable on the net value of most of your capital assets, such as real estate, savings and investments, shares, art, antiques, cars etc.

Each individual, resident receives a personal tax-free allowance of 鈧�700,000 under state rules. Spanish residents can get an additional allowance of up to 鈧�300,000 against the value of their main home excluding properties owned through corporate structures.

Couples owning assets in joint names can effectively double the allowances although they submit separate returns.

With the increased threshold above 鈧�3 million the different rates for different levels of wealth have also been adjusted.

Individuals will pay tax of 2.35% for the excess up to 鈧�5,454,958, above that figure the rate is 2.9%, and above 鈧� 10,909,915 the rate is 3.45%.

For more information on the Ibiza market contact Jack Harris.

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