Spanish Wealth Tax Abolished
Fernando Del Canto wrote: "Friday 18th April 2008 will be remembered as the day when the Spanish Wealth Tax (Impuesto de Patrimonio) was suppressed by the Counsel of Ministers.
The abolition will be effective for this tax year, i.e. 31st December 2008.
How will this change affect High Net Worth Individuals living or wanting to move to Spain?
This change will make possible for many individuals to stop worrying about paying taxes on worldwide assets and start paying a flat 18% Income Tax in Spain, if their income is coming from investments, dividends or capital gains. Compared with the hectic 43% suffered by most taxpayers, this is an interesting incentive to consider relocation to Spain.
We shall keep informing on the legislative development and regulations on these great news."
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This gives great incentive for the wealthy who may want to relocate to Spain. Tax seems to be one of variables people consider first before they decide to move. Since the US Dollar is very weak at this time, that incentive may not be great for US residents who consider move, but European residents can greatly benefit from this type of incentive.
Mina N. Sirkin is a Family Wealth Lawyer in Los Angeles, California. Ms. Sirkin is a Board Certified Specialist attorney in Estate Planning, Probate and Trust Law by the Board of Legal Specialization of the State Bar of California. [email protected]. http://www.SirkinLaw.com.
