Gecko Towers
With effect from tomorrow (21.09.22), in accordance with the decree of Andalucia’s President, Juanma Moreno, the much despised “Wealth Tax” will be effectively abolished by being given a 100% exemption.
The idea is simple. Many would be Andalusian residents, including those from the UK, who had previously toyed with the idea of moving their tax residency elsewhere, to Portugal for example where specific tax incentives are offered, will now be undoubtedly more attracted to become resident in Andalucia.
Many wealthy tax payers had been scared away from Andalucia in 2020 by the impact Wealth Tax.
The logic of encouraging those to remain and others to join them – anticipated to be in the region of 7000 new residents annually – after the qualifying 183 days of residency, giving rise to Spanish tax residency, means that those willing to pay income tax on their worldwide assets, at not unattractive rates, will act as a stimulus to the region’s economy and increase employment.
The net effect of this important move, should be to increase the levels of income tax paid and thereby surpass the comparatively low levels (circa €95m in the last tax year) of punitive Wealth Tax. The negative baggage that was implied by the imposition of Wealth Tax is also stripped away.
Income tax in Andalucia ranges, dependent on income, from currently 19% to 26% with a threshold of €200,000 needing to be achieved before the higher rate applies. Combine this with very attractive inheritance tax provisions and competitive capital gains tax makes the prospect of settling in Andalucia all the more attractive. And that’s before you even start to consider the “California of Europe’s” climate, infrastructure and environment……
Should you be interested in discussing the legal process involved in buying a property in the Marbella region, we would be delighted to assist you. Our multi-disciplinary team of bi-lingual, highly experienced and wholly independent Abogados and Asesores Fiscales are ready to help you.
Please call me, Mark FR Wilkins, during usual business hours on +34 600 343 917 or, if you prefer, or e-mail me at mark@roslegal.es
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