The President of the Junta, Juanma Moreno, announced on Monday that Wealth Tax will be scrapped in Andalucia from the 21st of September. This will apply to both Spanish nationals and to those who have a secondary residence there. The region follows Madrid as the second region to subsidize this tax.
This is being done in an attempt to attract high-level tax payers to the area and to encourage them to remain in Andalucia permanently in order to bring an increased level of investment into the area. This follows 20 of the top wealth tax payers leaving the region in 2022, taking with them 18 million euros worth of tax.
This is predicted to attract 7000 new residents to the area, the economic benefits of which will exceed by far the 0.6% of regional income provided by wealth tax in previous years.
The region is also set to reduce personal income tax by 4.3% and abolish the water tax.
This communication is based on our understanding of current tax legislation and practices which is subject to change and is not intended to constitute investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity.
This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.
Expat financial advice providers and their clients need to be especially vigilant to ensure that they meet their legal obligations under the newly updated Common Reporting Standard (CRS), which will come into effect in September 2018.