ANDALUCIA DROPS WEALTH TAX TO ATTRACT INVESTMENT
Sep 20, 2022
From Wednesday 21st September 2022, the Regional Government of Andalucía is dropping the impuesto de patrimonio, or wealth tax in the region in a bid to attract new wealthy investors. , In terms of tax incentives, this will make Andalucía the second most attractive region in Spain, after Madrid.
The announcement, made by Juanma Moreno, President of the Junta de Andalucía, will apply to the top 0.2 per cent of the wealthiest tax payers, along with non-resident home owners in the region.
At present, the tax is applicable to those people with assets over 700,000€, with an exemption of 300,000€ on the main residence.
The move was considered after half of the top 20 contributors of the wealth tax in Andalucía 2020 have moved away from the region. Working on the premise that what the regional government loses in wealth tax will be gained in IRPF income tax from new investors, estimated to be some 7,000 high-earning tax contributors.
Changes to the scale of IRPF paid in the region will also apply to those people earning between 12,450€-35,200€, helping professionals and families to enjoy more disposable income.
Over the long-term, the Junta de Andalucía is aiming to offer the best tax advantages and less bureaucracy in order to create a more attractive and sustainable economic model for investors and business owners in the region which is excellent news for those looking to purchase real estate in the area.