Spain: The introduction of the new tax: temporary tax on solidarity of Large Fortunes and Wealth Tax

In brief

With effect from 29 December 2022, the Temporary Tax on Solidarity of Large Fortunes (TSLF) enters into force, accruing on 31 December 2022.


In focus

The approved text does not include changes to the text initially sent by the Congress of Deputies since none of the amendments presented in the Senate have been accepted.

The key points are as follows:

  • It is a complementary tax to the Wealth Tax (WT) that coincides in its main configuration.
  • It will be applicable to the two fiscal years that accrue after the entry into force of the Law.
  • Therefore, the tax will apply in 2022 and 2023.
  • The Family Business exemption and all other exemptions from the WT are maintained.
  • The same joint limit of TSLF and WT is maintained with the PIT quota. The aggregate quota of all of them may not exceed 60% of the personal income tax base (excluding profits with a generation period of more than 1 year), but with a minimum tax limit or floor of 20% of the TSLF quota. Therefore, the minimum effective tax rate for the highest assets will be 0.7% (which, for those taxpayers resident in Autonomous Communities in which the WT was already applied, represents a maximum surcharge of 0.2% compared to the current taxation under this tax).
  • It will be required, in addition to taxpayers resident in Spain (on their worldwide assets) both Non-Resident and Impatriate taxpayers (Beckham Law) for the assets they own in Spain. Additionally, the exempt minimum or the joint limit will not apply to them.
  • The WT fee actually paid to the corresponding Autonomous Community (or, in the case of Non-Residents and Impatriates, to the State) will be deducted from the one that corresponds to pay for this tax.

The approved text also provides for the amendment of the WT Law so that non-resident taxpayers with companies domiciled abroad whose main asset is real estate located in Spain will be taxed for their participation in such companies in both the WT and the TSLF.

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