Valencia has doubled its Wealth Tax exemption threshold from €1 to €2 million, effective 2026. Here’s what it means for foreign residents and property investors.
Individuals who are non-residents in Spain and own property in Spain are required to pay certain taxes to the Spanish Tax Authorities.
The Madrid Regional Assembly has approved a new personal income tax (IRPF) deduction, aimed at foreign investors who relocate to the Madrid region.
Since January 1st is open the term to file Spanish Tax Form 720 related to the obligation of Spanish tax residents to file an informative declaration of the assets and rights hold abroad.
The President of the region of Madrid, Isabel Díaz Ayuso, has announced the implementation of a new regional deduction in the Personal Income Tax.
From January 2023 the reform of the special tax regime for workers posted to Spain came into force. This special tax regime is better known as the “Beckham Law”.
Throughout our experience in advising on international or cross-border Estates, especially those involving individuals living in the United States, we have noticed the great difference that exists both in succession rules and in the documentation needed for the heir to acquire the Spanish assets received by the deceased.
Court of Justice of the European Union (CJEU) has ruled that the Spanish sanction regime of the foreign asset declaration (Modelo 720) is contrary to European law.
In a judgement dated on January 27th, 2022, the Court has considered that this sanction regime is null and void since it goes beyond the statute of limitations, and also because the fines imposed on taxpayers who do not declare or declare incorrectly or extemporaneously are disproportionate.
This judgement opens the door to recover all fines imposed in Spain for application of this sanction regime.
According to a recent judgement of the Spanish Constitutional Court dated on October 26th, the way of calculating the Municipal Capital Gains Tax (also known as “Plusvalía Municipal”) is unconstitutional.
The Spanish Supreme Court agreed in 2018 that foreigners living in Spain that received a cross border Estate from their relatives living abroad, and whom are required by law to pay Estate tax as residents in Spain, will be able to take advantage of the tax benefits established by the Comunidades Autónomas when paying the Estate tax rather than the Government Estate tax which is much more burdensome by not collecting these tax benefits.
