Deadline for the payment of Wealthtax

In the article we published on our website in October 2011, we informed you about the approval of Royal Decree 13/2011, which temporarily restored the wealth tax for the years 2011 and 2012.

With this report we would like to remind you, that there are only 4 month remaining to present the declaration and to pay the tax for the year 2012, as the deadline for the entry is June 30, 2013. We remind you that the wealth tax is a direct tax, which take the net worth of asstes from resident and non-resident physical persons (legal persons are excluded from the tax).

To calculate net worth you have to sum up all the goods and economic rights, deducting liens, charges, debts and family obligations. From the tax base are € 700.000 exempted. This means in practice, that only contributors who accumulate assets of over € 700,000 as physical persons, have to pay this tax.

There is also a € 300,000 reduction of the value of the main residence.

Like the income tax rate, it is a progressive tax, so the rate increases based on the increase of the taxable income, from which the € 700,000 is already deducted.

In regard to the deadline of payment, as we have stated above, it is a restored tax for the years 2011 and 2012, unless future changes in tax law. The tax is accrued on 31 December 2011 and on the 31 December 2012 (Keep in mind that the tax is calculated to the net asset of the contributor of December 31). To pay the tax, it is necessary to submit the relevant declaration with the amout of tax electronically. The law established term for it is, 6 months from the date of accrual, which runs until June 30, 2012 (for the accrued assets in 2011) and until June 30, 2013 (for its assets in 2012 ).

Marbella, 6th of march 2013

Nadia Baranovska Lawyer
Pérez de Vargas Abogados