The 2022 Wealth Tax Manual from the AEAT reports that when filing the Wealth Tax declaration for the 2022 fiscal year, seven autonomous communities (Andalusia, Aragon, Asturias, Balearic Islands, Catalonia, Galicia, and the Community of Madrid) offered regional discounts at different percentages. Later, Extremadura joined, and recently, Cantabria implemented a general discount starting with the… Continue reading Tax Advisor: Regional Discounts in the Wealth Tax
Tag: Wealth Tax
Tax Advisor: Constitutional Court evaluates challenge to Wealth Tax in Spain
The Constitutional Court is currently evaluating whether the permanent inclusion of the Wealth Tax in the 2021 Budgets violates the principles of legal reserve and economic capacity. This measure has been contested, and a ruling is expected from the justices in the coming weeks. The dispute revolves around the legality of permanently reintroducing the tax,… Continue reading Tax Advisor: Constitutional Court evaluates challenge to Wealth Tax in Spain
Tax Advisor: Tax residence of individuals in spain
The main criteria for determining the tax residence of individuals is the time spent in Spanish territory. The number of days spent in Spanish territory includes both days of physical presence as well as sporadic absences. Given the nature of sporadic absences as an indeterminate legal concept, in order to determine the number of “days… Continue reading Tax Advisor: Tax residence of individuals in spain
Tax Advisor: Tax Reforms in Madrid for 2024: Changes in the Wealth Tax (IP) and Personal Income Tax (IRPF)
The Community of Madrid has approved Laws 12/2023 and 13/2023, both dated December 15, introducing modifications with effects from 2023 that impact, respectively, the Wealth Tax (IP) and Personal Income Tax (IRPF). The modification in the Wealth Tax (IP), approved by Law 12/2023, implies the suspension of the regional 100% discount on the IP quota… Continue reading Tax Advisor: Tax Reforms in Madrid for 2024: Changes in the Wealth Tax (IP) and Personal Income Tax (IRPF)
Tax Advisor: Fiscal Transformation in Madrid: From 100% Tax Relief to a New Paradigm
Since 2008, the Community of Madrid has maintained a complete 100% tax relief on the Wealth Tax, arguing that this tax is perceived as unfair and ineffective, in line with the majority of tax doctrine and comparative law, where most European Union and OECD states do not apply it. However, Law 38/2022, dated December 27,… Continue reading Tax Advisor: Fiscal Transformation in Madrid: From 100% Tax Relief to a New Paradigm
Tax Advisor: The Constitutional Court Rejects Appeals Against the Wealth Tax: Analysis and Jurisprudential Doctrine
The Full Court of the Constitutional Court has rejected the appeals of unconstitutionality filed by the Assembly of Madrid and the Regional Government Council of the Region of Murcia against the Temporary Solidarity Tax on Large Fortunes (Wealth Tax) (ITSGF), established by Law 38/2022 of December 27 and detailed in its article 3. These appeals… Continue reading Tax Advisor: The Constitutional Court Rejects Appeals Against the Wealth Tax: Analysis and Jurisprudential Doctrine
Tax advisor: Wealth Tax: Updates, Declaration, and Connection with Wealth
One of the main fiscal novelties is the introduction of the Solidarity Tax on Large Fortunes or the Temporary Solidarity Tax on Large Fortunes. This is a temporary tax applicable for the fiscal years 2022 and 2023, although there is a possibility that it may continue to be in use after its review. We explore… Continue reading Tax advisor: Wealth Tax: Updates, Declaration, and Connection with Wealth
Tax Advisor: Possible Exodus of the Wealthy to Portugal Following the Approval of the Wealth Tax
The recent approval of the wealth tax by the Constitutional Court (TC) on November 7th has led to an increase in inquiries from wealthy investors at law firms seeking to change their tax residency to Portugal. The neighboring country has extended its special tax regime for non-habitual residents, similar to the Spanish Beckham Law, with… Continue reading Tax Advisor: Possible Exodus of the Wealthy to Portugal Following the Approval of the Wealth Tax
Tax Advisor: Constitutional Court Ruling: Rejection of Appeals against Wealth Tax
The majority of the Plenary rejected the unconstitutionality appeals filed by the Andalusian Regional Government and the Galician Regional Government against the Temporary Wealth Tax. The arguments presented by these regions were similar to those analyzed in a previous ruling that dismissed a similar appeal from the Community of Madrid. The only difference was that… Continue reading Tax Advisor: Constitutional Court Ruling: Rejection of Appeals against Wealth Tax
Tax advisor: Beckham Law: pending regulatory development
Foreign workers planning to arrive in Spain in 2023 face some legal uncertainty due to the delay in the approval of the regulations for the ‘Beckham Law,’ which allows foreigners to be taxed through the Non-Resident Income Tax (IRNR) instead of the Personal Income Tax (IRPF), with a fixed rate of 24% up to 600,000… Continue reading Tax advisor: Beckham Law: pending regulatory development
