PROPERTY SEARCH

Date Published: 20/09/2022

ARCHIVED - Is Murcia about to get rid of the Wealth Tax for expat homeowners? And how will it affect people who pay tax in Spain?

ARCHIVED ARTICLE -

Andalusia is scrapping its Wealth Tax, and here’s why that matters for anyone who owns property in Murcia

<span style='color:#780948'>ARCHIVED</span> - Is Murcia about to get rid of the Wealth Tax for expat homeowners? And how will it affect people who pay tax in Spain?

In an effort to attract more high-end investment and foreign property buyers, the president of the Junta de Andalucía this week announced his intention to do away with the Wealth Tax, which taxes people in Spain on the value of their assets. But could Murcia do the same and if so, what would this mean for expats living in the Region?

“Getting rid of the Wealth Tax will benefit expats looking to move to the area because they will be able to live as residents and not pay any Wealth Tax on their assets worldwide,” explains Isaac Abad, a lawyer with Abad Abogados specialising in conveyancing, property law, taxes and residency in Murcia.

Many people who choose to buy a property in Spain do so as non-residents because they only have to pay tax on whatever assets they have in Spain, and not declare their personal income plus pay the Wealth Tax as a resident has to do.

By removing the Wealth Tax (known in Spanish as the ‘Impuesto sobre el Patrimonio’), Andalusia will become a more attractive place for foreigners to buy property in Spain.

In this sense, says Abad, it is likely that Murcia will soon follow Andalusia in eliminating the Wealth Tax because they don’t want to be left behind.

“This measure will make it much more attractive to buy property in Andalusia, so Murcia will probably bring in the same measure in 2023,” says the expert.

For several years now, the Regional government in Murcia has been talking about implementing such a move, which would save 4,500 of the highest-earners in the Region approximately 27 million euros, but this may be a propitious moment to finally take the leap for political reasons as well.

“The Region of Murcia is run by the conservative PP party,” says Abad, “and so are Andalusia, Madrid and Galicia. Andalusia has decided to scrap the Wealth Tax following Madrid’s lead and it’s likely Murcia will be next.

“There will be a General Election in Spain in 2023, and the PP party will be looking to oust the standing Socialist government. The conservatives’ main claim to be the next ones to run the country and be better than the Socialists is that they are better on the economy, and they will try to persuade voters with measures made to stimulate the economy, such as eliminating the Wealth Tax to incentivise more people to invest in the country.”

It is for these same reasons that places like Alicante in the Valencia Region and Barcelona in Catalonia are unlikely to get rid of the Wealth Tax any time soon because they are currently governed by left-wing parties who say this tax helps to raise money from the rich to redistribute to the poor.

If the new tax laws come into force as expected, concludes Abad, “2023 could be a good year to buy property in Murcia or Andalusia.”

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Abad Abogados English-speaking lawyers in Murcia and Los Alcazares

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Specialists in Conveyancing, Property Law, taxes, probate and residency in Murcia

Abad & Asociados Abogados y Economistas, S.R.L. is a firm of English-speaking lawyers and accountants founded in 1996 in Murcia by Isaac Abad, winner of the “Best Lawyer 2022” award in Tax Law in Murcia granted by “Best Lawyers”.

The Abad Abogados Murcia law firm specialises in offering innovative legal solutions to its clients, prioritising quality, satisfaction and success. With offices in central locations in Murcia city, Los Alcázares and La Zenia in Orihuela Costa, Alicante, it is easy for expats and foreign citizens abroad in Spain to access the legal services they need.

The team at Abad can help you with any issues relating to Real Estate and Property law, Taxation, Litigations and Commercial law in Spain. From getting a NIE number in order to Abad Abogados English-speaking lawyers in Murcia and Los Alcazares

be able to undertake official paperwork in Spain, to completing your residency and visa requirements, they are there to ease every step of the move to Spain for people wanting to come and live in the country.

They can also handle any resident and non-resident tax declarations in Spain, including property taxes and issues surrounding double taxation across international borders, as well as inheritance tax and wills.

Whether you want to formally register your own business in Spain, take someone to court or face being taken to court yourself for whatever reason, Abad & Associates will be by your side.

Their unqualified successes in helping clients navigate these issues have made Abad Abogados one of the leading firms of Lawyers and Accountants and Tax Advisors in the Region of Murcia and in Alicante province.