Bet you the ‘patrimonio’ wealth tax is on its way back

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This topic contains 11 replies, has 8 voices, and was last updated by Profile photo of katy katy 6 years, 6 months ago.

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  • #55623
    Profile photo of Anonymous
    Anonymous
    Participant

    The Spanish government is desperate for cash, and Zapatero says it’s only fair that those who have the most pay the most. Taxes are going up people.

    I’ll bet one of the first taxes they bring back is the Spanish wealth tax or ‘Patrimonio’, which they reduced to zero in 2008. Note they never abolished the tax, just reduced it to zero, so bringing it back will be easy.

    Basically, the patrimonio is a tax on wealth or assets like houses. For many people without a mortgage it worked out around 1,000 Euros or more a year.

    Don’t be surprised if other taxes on property go up a lot, not just the patrimonio. You can get other kinds of wealth out of the country, but never real estate. The taxman will go for the easy target.

    For a good summary (in Spanish) of the various taxes the wealthy have to pay in Spain:
    http://www.elpais.com/articulo/economia/impuestos/pagan/ricos/elpepueco/20100519elpepueco_11/Tes

    Mark

  • #98645
    Profile photo of rt21
    rt21
    Participant

    I share Mark’s view as well. And I bet the tax is based on the notional value of a property not its real value

    I also feel that the Regional governments will also start putting their hands in everyone’s pockets because they are going to suffer from a significant reduction in funds from central government.

    Richard

  • #98646
    Profile photo of katy
    katy
    Spectator

    Central Government is also clawing taxes back from many towns too. Marbella has been asked to pay back around 8 million euro, a few more coastal towns about 4 million. This is because taxes collected were much lower than predicted. Will be a blow to some Town Halls as they are struggling to pay staff and some even phone bills etc.

  • #98647
    Profile photo of Arthur Stuttard
    Arthur Stuttard
    Participant

    There may well be a shortfall on the patrimonio now that non-residents can deduct expenses.

  • #98649
    Profile photo of Anonymous
    Anonymous
    Participant

    Compared to the tax increases we are expecting in the UK, €1,000 per annum isn’t that bad. We already pay £2,650 per annum council tax. 🙁

  • #98650
    Profile photo of katy
    katy
    Spectator

    This is an addition to council tax. It is a tax on worldwide assets. eg. if you are resident in Spain and paying spanish tax then eg. if you also owned a uk home there would be a tax on the value of the UK home say of 25%.

  • #98651
    Profile photo of Anonymous
    Anonymous
    Participant

    @katy wrote:

    This is an addition to council tax. It is a tax on worldwide assets. eg. if you are resident in Spain and paying spanish tax then eg. if you also owned a uk home there would be a tax on the value of the UK home say of 25%.

    😯 Katy, are you saying that Spain will tax UK residents of Spain, on their UK property if they own one? That’s is outrageous if that is the case. So, that means Cameron & Co. could tax UK nationals, resident in Spain, who own a property in Spain, classing it as a “second home”?(they say they are going to tax second home owners) Doesn’t bear thinking about.

    Or.
    Have I misunderstood the whole thing? 😕

  • #98654
    Profile photo of rt21
    rt21
    Participant

    just read that El Mundo quotes Manuel Chaves, the Minister for Regional Policy, as saying that ‘There is no possibility of imposing a reduction in spending on the autonomous communities’.

    That statement could be interpreted in many ways and must make bond holders even more wary of investing in Spain

    Richard

  • #98655
    Profile photo of Fuengi (Andrew)
    Fuengi (Andrew)
    Participant

    @Claire wrote:

    😯 Katy, are you saying that Spain will tax UK residents of Spain, on their UK property if they own one? That’s is outrageous if that is the case. So, that means Cameron & Co. could tax UK nationals, resident in Spain, who own a property in Spain, classing it as a “second home”?(they say they are going to tax second home owners) Doesn’t bear thinking about.

    Or.
    Have I misunderstood the whole thing? 😕

    If your a spanish resident then you get taxed on world wide assets, but there are quite a deductions, etc.. that are applied.

    If your a non-resident who owns a property in spain, then you only get taxed on your assets in spain.

  • #98656
    Profile photo of Anonymous
    Anonymous
    Participant

    don’t forget it’s the “valor catastral” you declare; so it’s not so bad !! Anyway, this is just the socialists demonstrating to the workers they’re taxing the rich as well 😆 😀

  • #98657
    Profile photo of petej
    petej
    Participant

    I was amazed they withdrew the tax in the first place, even with this tax, IBI, water, rubbish etc it’s still cheaper than just my council tax in the UK, same number of bedrooms!

  • #98659
    Profile photo of katy
    katy
    Spectator

    Not so if you were a resident though as the tax would apply to worldwide assets including the house owned in the UK, Florida etc. Yes there are allowances for residents but not so generous as the British system. We shall be paying less tax in the UK this year. However, I do realise that this could change with the CON-dems plans 😐

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