wealth tax

[richt71]

What's the real impact of wealth tax if one gets residence in the canaries? From what I've read it seems like a major tax

[mary]

http://www.spanishpropertyco.com/spanish%20wealth%20tax.htm

This may help you

[vecino]

All depends on how rich you are !
Income Tax is going down next year .
5% VAT in the Canaries helps I can tell you .

[richt71]

All depends on how rich you are !
Income Tax is going down next year .
5% VAT in the Canaries helps I can tell you .

I wouldn't say I'm well off by any means but I do have 6 rental properties that as I understand may be included in this tax if I moved to GC! As I read it I could be liable for a rather large wealth tax bill based on these rental properties! :sadguy:

[J1969]

If a person is genuinely wealthy, I would not see the Spanish wealth tax as prohibitive.

[shirley]

Richt
I wouldnt think it would be (as bad )as all the rates youd pay on them if they were in england. Its still far cheaper to live here and own properties here.

[richt71]

Richt
I wouldnt think it would be (as bad )as all the rates youd pay on them if they were in england. Its still far cheaper to live here and own properties here.

Thing is Shirley while the council tax on occupied houses is £8,000 my tenants are responsible for the tax and not me. Whereas in the Canaries the wealth tax I'd pay based on value would be somewhere between £25-£30K!
Anyway I've got an appointment with a Spanish tax specialist to discuss this but thanks to everyone for replying here!

[shirley]

I suppose you are right if its included in the rent you charge then.
You are doing the best thing, getting proffesional advice, We will have to do the same as you sometime in the near future. As our profits increase here, on all the building we are doing, We are starting to own properties now. Once they are finished, Its wether to keep some properties or sell them all off. Its juggling the tax implications all the time. And to think i came out here for peace of mind, No robbers and so on. Well there is !but now in another form HA HA

[vecino]

I would not worry too much as there are plenty of rich Spanish - you just have make sure your tax adviser is a good one then you will be fine .


I wouldn't say I'm well off by any means but I do have 6 rental properties that as I understand may be included in this tax if I moved to GC! As I read it I could be liable for a rather large wealth tax bill based on these rental properties! :sadguy:

[shirley]

Had some good advice myself, richt. Apparently its best to form a company and have the apartments in the company name, Then you are not (personaly)taxed on them. It works out better under the inheritance laws as well, You just leave the (shares) in that company to whoever you like. Its shares in a company then that you are leaving, not actual property, so they dont come under the family inheritance laws, less hassle.