In a landmark decision, the Spanish Supreme Court has clarified the taxation implications under the Personal Income Tax (IRPF) in cases of co-ownership dissolution and property adjudication. This post delves into the key aspects of the ruling, offering valuable insights for taxpayers and legal professionals alike.
As outlined in the AEAT’s 2022 Wealth Tax Guide, when filing the Wealth Tax return for the 2022 financial year, seven autonomous communities in Spain offered regional tax breaks on this tax, each varying in percentage (Andalusia, Aragon, Asturias, Balearic Islands, Catalonia, Galicia, and Madrid). Later on, Extremadura and Cantabria also joined this list.
One of the main changes published in the Autonomous Community’s budget for 2024 is the revision of the Wealth Tax exemptions.
A new exemption threshold has been introduced, raising the Wealth Tax exemption limit to three million euros. Previously, it had been 700,000 euros (excluding the primary residence).
As an international law firm specializing in Spanish taxation, we are eager to share some crucial updates from the Spanish government that could impact you if you’re a non-resident with …