# Spain to Keep Wealth Tax in 2013 Budget



## skip o (Aug 1, 2011)

SmartMoney News - SmartMoney.com

The wealth tax is on all savings, annuities, basically your entire worldwide net worth, yes?


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## baldilocks (Mar 7, 2010)

skip o said:


> SmartMoney News - SmartMoney.com
> 
> The wealth tax is on all savings, annuities, basically your entire worldwide net worth, yes?


Link doesn't work.


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## mrypg9 (Apr 26, 2008)

It depends. Some savings and pension funds are subject to DTOs and beyond the reach of the Spanish tax authorities.

Providing the tax threshhold is set at a reasonable level, it's a Good Thing imo. The gap between the super-wealthy and the rest of us Europe-wide is obscene, especially in the UK, and makes nonsense of all this talk about 'we're all in this together'.


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## snikpoh (Nov 19, 2007)

baldilocks said:


> Link doesn't work.


Link works OK but doesn't take you to where it was intended, I suspect.


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## baldilocks (Mar 7, 2010)

mrypg9 said:


> It depends. Some savings and pension funds are subject to DTOs and beyond the reach of the Spanish tax authorities.
> 
> Providing the tax threshhold is set at a reasonable level, it's a Good Thing imo. The gap between the super-wealthy and the rest of us Europe-wide is obscene, especially in the UK, and makes nonsense of all this talk about 'we're all in this together'.


From what I have seen, personal exemptions, plus normal house value (i.e. not a 25 bedroom mansion|) should leave most expats in the clear, however...


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## NickZ (Jun 26, 2009)

mrypg9 said:


> It depends. Some savings and pension funds are subject to DTOs and beyond the reach of the Spanish tax authorities.
> 
> .


The tax treaties don't tend to cover wealth taxes. 

IIRC the old Spanish wealth tax started at 700K not including primary residence. 

Spanish wealth tax 2012 guide

That claims for 2012 700K plus 300K for primary residence


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## mrypg9 (Apr 26, 2008)

NickZ said:


> The tax treaties don't tend to cover wealth taxes.
> 
> IIRC the old Spanish wealth tax started at 700K not including primary residence.
> 
> ...


We won't be included in a Wealth Tax then

But my partner has the proceeds of the sale of business assets in a UK SIPP investment fund....interest therefrom is a major part of our income. Presumably there will be a distinction between these and other assets?

We sold all properties we had in the UK and since we left have been living off the proceeds and steadily eroding them....


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## Megsmum (Sep 9, 2012)

NickZ said:


> The tax treaties don't tend to cover wealth taxes.
> 
> IIRC the old Spanish wealth tax started at 700K not including primary residence.
> 
> ...




if only.......................:eyebrows:


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## NickZ (Jun 26, 2009)

mrypg9 said:


> But my partner has the proceeds of the sale of business assets in a UK SIPP investment fund....interest therefrom is a major part of our income. Presumably there will be a distinction between these and other assets?
> 
> We sold all properties we had in the UK and since we left have been living off the proceeds and steadily eroding them....



No idea. Some body would need to find the relevant spanish law and then see if they've even thought of such things 


The other thing the 700K + 300k is per each member of the family.


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## mrypg9 (Apr 26, 2008)

NickZ said:


> No idea. Some body would need to find the relevant spanish law and then see if they've even thought of such things
> 
> 
> The other thing the 700K + 300k is per each member of the family.


Neither my partner nor I will be having sleepless nights over this....


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## baldilocks (Mar 7, 2010)

mrypg9 said:


> Neither my partner nor I will be having sleepless nights over this....


Nor us, four years today since our actual arrival!!


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## mrypg9 (Apr 26, 2008)

baldilocks said:


> Nor us, four years today since our actual arrival!!



December 2nd around 6p.m. and it will be four years in Spain for us.. 

December 19th around 3p.m.marks seven years away from the UK.


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## xabiaxica (Jun 23, 2009)

baldilocks said:


> Nor us, four years today since our actual arrival!!





mrypg9 said:


> December 2nd around 6p.m. and it will be four years in Spain for us..
> 
> December 19th around 3p.m.marks seven years away from the UK.


http://www.expatforum.com/expats/la-tasca/131210-spanniversary.html#post944569


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## khorram (Apr 12, 2011)

I am buying a flat worth 700K. Do I pay wealth tax and how much?


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## thrax (Nov 13, 2008)

I came into this world with nothing and when I leave I will have most of it left.


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## snikpoh (Nov 19, 2007)

khorram said:


> I am buying a flat worth 700K. Do I pay wealth tax and how much?


If it's your main residence and you are legally resident in Spain (tax etc.), then I believe you can offset 300k against any wealth that you might have.

Bear in mind that ones wealth is ALL assets no matter where they are - cash, property, vehicles, pension pots etc....


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## khorram (Apr 12, 2011)

Cheers.


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## chris&vicky (Feb 6, 2013)

Does the limit on wealth tax include private pension schemes? A private pension scheme is likely to have many hundreds of thousands in.


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## mrypg9 (Apr 26, 2008)

chris&vicky said:


> Does the limit on wealth tax include private pension schemes? A private pension scheme is likely to have many hundreds of thousands in.


I should imagine so. Our income partly derives from such funds.

As a principle, I have no objection whatsoever to paying my fair share of taxation. I abhor equally tax dodgers and welfare scroungers, and there are considerably more of the former than the latter.
But the key word here is 'fair'and I do not consider it to be fair that those earning and owning more, whether in the UK or Spain, seem to find it easy to avoid contributing their share.

Some immigrants here tend to be overly obsessed with concerns about taxation. 
This seems to be in inverse proportion to their knowledge of matters financial. The seminar we attended recently was of interest only in that it showed that many immigrants did not understand the difference between capital/assets and revenue derived therefrom.

Most British immigrants here are not 'wealthy' but comfortable, with reasonably secure income and modest but solid assets in Spain or the UK. It's easy to get delusions of wealth when comparing with the very many Spanish families eking out a living on a low wage or no wage. The wealthy round this area are a few Brits, the Russians and a few Germans...and the Mafiosi of various nationalities.
The truly wealthy will be found elsewhere...in tax havens such as the BVI, Bermuda, the Seychelles.....or with residences dotted all over the globe.
There are also many British immigrants of all ages who have landed on hard times but who are desperately 'keeping up appearances'.

Although I don't think the Spanish economy would collapse if we all ******ed off back to the UK, in these times of crisis any Government will be keen to keep any additional source of revenue, however comparatively insignificant. Add this to the general inertia of Spanish bureaucracy and I would put money on us all still debating these things in ten years' time...


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## Stravinsky (Aug 12, 2007)

mrypg9 said:


> Some immigrants here tend to be overly obsessed with concerns about taxation.
> This seems to be in inverse proportion to their knowledge of matters financial. The seminar we attended recently was of interest only in that it showed that many immigrants did not understand the difference between capital/assets and revenue derived therefrom.


Heh heh, thats so true .... the threads that are running on tax, assets and the like on different forums have proved that. Having a GOOD financial advisor in both Spain and the UK is very important and thats what we made sure we had in place when we came here. In my experience of being on forums for some 8 years now, many people moved to Spain not having a clue about what they were getting into, and that included residency, tax and health. That's often the reason I think so many end up going back. Living the dream, or escaping something .... the two often get confused 

I'll be honest, although you wouldn't believe it because of my strong comment on these subjects, the reason we are re evaluating isn't actually anything to do with tax. If that had been the case I would have found a legal way around it, and thats still quite possible for some as Mary has often pointed out


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