I bought a property in Spain in 2007 and I have just received a letter from the Solicitor who dealt with our purchase. The letter tells me that I owe tax which is a wealth and property tax. Does anybody know anything about this? I am led to believe that the wealth tax is no longer payable from 2008.
I was recently told by a partner at Blevins Franks that whilst the tax has been abolished, people will still have to complete an annual return for the tax, and will be issued with a tax credit for 100% of the tax due.
Basically, the authorities want to be kept informed of an individual’s wealth each year, thereby keeping the door open for the tax to be easily re-introduced – should the government feel it needs the Wealth Tax revenue in the future!