On November 3, the Supreme Court confirmed that non-residents with assets in Spain can also benefit from the 60% limit of the Wealth Tax (IP). This mechanism prevents the combined tax burden of the wealth tax and personal income tax (IRPF) from being confiscatory and can even reduce the wealth tax by up to 80% if the combined taxation exceeds it.
Key points of the ruling:
- Previously, only residents enjoyed this protection; non-residents were at a disadvantage.
- The Supreme Court considered this difference discriminatory and contrary to EU law.
- Residency cannot justify a higher tax burden on non-residents.
Opportunities for non-residents:
- Review past non-prescribed assessments for potential refunds.
- Incorporate this limit into future tax planning to optimize the tax burden.
- Reassess assets and structures to ensure compliance while minimizing the burden.
This is a key moment for families and international investors with real estate, corporate structures, or financial assets in Spain.
At Allyon, we support you in taking advantage of this opportunity, optimizing your tax exposure and ensuring compliance.