THIS NEWS IS SO GOOD, WE’RE TELLING YOU
ABOUT IT FOR A SECOND TIME!
Yes, you heard us right, Wealth Tax in Andalucia has been abolished.
The Government in Andalucía is in the process of approving today a 100% allowance for the Wealth Tax liability, as announced by Juanma Moreno, the President of the Junta yesterday, which means in practice the elimination of this tax in the region.
The measure will be effective from Wednesday 21st September 2022 , applicable to Residents in Andalucía and Non-Residents who are liable to Wealth Tax for assets located in this region.
Ten of the top 20 wealth tax payers in 2019 left Andalucia in 2020, resulting in a loss of income for the region of nearly 18 million Euros (3.5 m in wealth tax and 14m in personal income tax). Moreno said he wants people who spend long periods here to make it their permanent home and pay tax here. He estimates it will attract 7,000 new residents which will more than make up the loss of previous revenues.
The Conservative Party, following the tax policy of Madrid where the Wealth Tax was eliminated years ago, has put Andalucía on top of the list of the most attractive locations to live or invest in Spain in terms of taxes, along with other previous decisions taken to practically eliminate the inheritance and gift tax for close relatives, or the reduced transfer tax flat rate of 7% approved in 2021. He also announced a reduction in Income Tax by at least 4%.
Moreno also announced that water consumption tax in the autonomous region will be suspended in 2023.
This measure will boost the Region by removing one of the main barriers for foreigners moving to Spain permanently, or just to buy luxury properties in their personal name, but also attracting those living in other less favourable regions in Spain.
A very welcome and largely demanded decision. If you are planning to move to Andalucia or have delayed doing so until now, please contact me to discuss this important step taken by the regional government and how it could change your and your family’s life style for the better into the future.