The Andalucian regional president, Juanma Moreno, announced that wealthy residents and non-residents second home-owners will no longer have to a wealth tax usually paid on worldwide assets.
Foreigners and Spanish nationals who live in the region or have a second home and have worldwide assets over above €700,000, will receive a 100% tax deduction on the tax. Before getting removed between 0.2% and 2.5% on any amount above this threshold was owed.
Before the announcement the only region where the wealth tax did not exist in the country was Madrid.
There are a range of beautiful properties available in Andalucía including this 6-bedroom villa with terrace for sale in Nueva, Andalucía priced at 13,500.000 Euros. The full listing can be viewed on the Lucas Fox website.
Last year approximately 20,000 people in Andalucía paid wealth tax. Experts forecast the new tax scrap will attract an additional 7000 new high-earning tax contributors to Andalucía.
Arjen Spittael, sales and listings manager at Lucas Fox Marbella commented: “This wealth tax has been a particularly negative thing for high net-worth buyers investing in exclusive properties. Indeed, we already know of some who were planning to sell their properties in Spain because of the high wealth tax.”
“This should be a major incentive to buyers for high value properties. Although this initiative reduces revenue for the regional government in the short term, it will attract more home and business owners to Andalucía. They will not have to pay wealth tax anymore, but will be taxed on their income, as standard. Those income taxes should secure Andalucía more investment in the long run, than keeping the wealth tax. Also, this will hopefully attract more business owners setting up their businesses here, which in turn will pump money into the economy while creating new jobs. It’s a win win!”