Wednesday, April 01, 2009

Good news for non residents

Finally, Law 4/2008, dated 23rd December 2008,  has introduced an exemption of 100% for the corresponding wealth tax bill which is good news for those residents who own a second property and for those non residents who own a holiday home. For example, a non resident who owns a property with a purchase price per deed of 300.000€, without a mortgage and with a rateable value of 100.000 euros, would have been paying up to now a total tax bill of 875 euros corresponding to both notional income tax and wealth tax. Now, due to the suppression of wealth tax, this bill would be reduced to 275 euros for solely notional income tax.

Although this is obviously good news, the action taken by the Spanish Government has been provoked to a certain extent by pressure from the European Union as this tax does not exist in the majority of member states of the EU.

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