Gavel and Small Model House on Wooden Table.

The Directorate-General for Taxation (DGT) in Spain has provided a positive update for international investors in real estate stocks.

The introduction of Law 38/2022 last December, which brought about changes to Spain’s Wealth Tax, created ambiguity among international investors because of its wording.

Now, though, the DGT has clarified that direct investments in publicly listed companies by overseas investors, or those in non-resident companies with significant real estate assets in Spain from such investments, are not classified as based in Spain.

Additionally, if an investor’s indirect investment is in a listed entity, this is not considered Spain-based either.

This means that these investments won’t be subject to the Wealth Tax or the new Solidarity Tax on Large Fortunes since they’re not based in Spain.

A 50% threshold

However, under the updated guidelines, securities not listed on regulated markets, which have a significant portion (at least 50%) of their assets in Spanish real estate, are deemed Spain-based.

This means that non-resident holders of these securities would potentially owe the Wealth Tax and the new Solidarity Tax.

Invest in Spain with confidence

In recent times, the DGT has been steering towards more investor-friendly decisions such as these.

This comes as good news for foreign investors eyeing sectors like real estate and renewable energy in Spain.

If you’re thinking of taking advantage of this but need help understanding tax obligations in Spain, we can help!

Get in touch now and we can help you to invest in Spain with confidence.

Maria Luisa Castro

Director and Founder
María founded CostaLuz Lawyers in 2006 and is the Firm’s Director. María is registered Lawyer number 2745 of the Cadiz Bar Association and is licensed to practice in all areas of law throughout Spain. Working closely with her team, María has developed the firm into one of the most highly regarded and trusted Spanish Law Firms acting for English-speaking clients with legal problems in Spain. We’re here to help. Contact us today for a free, no-obligation, initial legal orientation.
María Luisa De Castro - Costaluz Lawyers

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