Catalonia is the first Spanish autonomous community to introduce a special tax on luxury goods. The anti-fraud measurement is introduced retroactively.
0.2 to 2.75% tax on luxury possessions
All these assets are considered ‘non-productive assets’ and the owners must pay a tax of between 0.2 and 2.75 per cent.
The new measure concerns the following goods, registered in the name of legal persons:
- Real estate
- Vehicles with a capacity of more than 200hp
- Pleasure yachts
- Private aircrafts,
- Art works
In the case of real estate, the cadastral value will be taken as the starting point. When it comes to art and antiques, the current value is being taken into consideration. For all the other goods, the same criteria are applied as for the determination of taxes in the case of inheritances, donations, patrimony transfers and documented legal acts.
The measure is introduced retroactively and taxpayers have until November this year to submit and pay the taxes due for 2017, 2018 and 2019.
Fight against fraud
The purpose of the measure is to prevent people from declaring their assets in the name of companies, in order not to declare them within their wealth tax declaration. The regional government wants a better distribution of wealth in the region and also considers the measure as anti-fraud.
The measure has already been approved by the regional government and now it is up to the regional parliament to decide on it. The parliament gave the green light already in 2017, but the Constitutional Court suspended the proposal. In February 2018, the measure was accepted after a substantive change.
Do you want more information about this post or about taxes in Spain? Read below what you can download for free or ask us your question without obligation.
Brochure Tax Rates Spain 2019
Download free and without any obligation our brochure Tax Rates 2019, with the current tax rates for companies, individuals and real estate. A ‘must have’ for advisers who have clients with business, family or a holiday home in Spain.
Best deal > Free alert service
We offer our clients, advisors and visitors of this website the possibility a free alert service. No costs and no obligations. We will inform about deadlines for tax returns and interesting changes and possibilities for (specificly) foreigners who are living in Spain, have business in Spain or who have family or a house in Spain.
Do you want to stay up to date? Then fill in your name and email in the Free alert service fields on our home page. Subscribe now, it’s free.
All about starting a business in Spain
We, EuroEconomics, the company behind EasyTaxSpain, have a team of more than 50 tax advisors, lawyers and accountants. Do you want to start a business in Spain? Then download:
Ask us easy your question
Do you have questions about taxes or starting a business in Spain and are you looking for a contact that looks after tax affairs and tax returns in Spain?