Andalusia has abolished a “wealth tax” for second home owners Spain.
This reduces the amount of tax you have to pay foreigners on their properties. The new policy should make Andalucia attractive to foreigners looking for a second home Spain.
Under SpainOf the 17 regions, Andalucia now has the second lowest VAT requirements Madrid.
The ‘el impuesto de patrimonio’ or wealth VAT, which previously applied to residents and non-residents with net assets of €700,000 and more. It was levied on worldwide property for Spanish nationals and on Spanish property only for non-residents.
Andalucia is hoping the move will attract investment and attract high-income taxpayers to the region, which is growing occupation and financing public services.
Why is Andalusia abolishing the wealth tax?
That VAT The cut is part of a broader strategy to lessen the impact of rising living costs Andalusia.
By scrapping wealth taxthe local government hopes to attract investment, stimulate economic activity and increase employment in the region.
“Andalusia must be competitive and measure itself against the best,” reads a statement on the Junta de Andalucia website.
After the announcement andalusian Regional President Juanma Moreno tweeted: “In 2023 alone [the wealth tax cut] will leave 360 million euros in the pockets of the Andalusians”.
According to the government wealth VAT While accounting for just 0.6 percent of the region’s annual tax revenue, it deterred wealthy residents from staying in the region.
In the last fiscal year, half of the top 20 taxpayers left the region, resulting in a €3.5 million loss in wealth tax and a €14 million loss in income tax.
Through encouragement high earner In order to stay in Andalusia, the region receives income taxes.
“What’s in it for us? Attract investment and increase the number of taxpayer and collection. Goal: more activity, more jobs and more resources for basic public services,” said Andalusian regional president Juanma Moreno in a tweet.
Not only wealthy residents benefit from this Andalusiathe tax reform.
Those who earn in the lower income Income taxes will be cut by 4.3 percent, along with increased personal allowances. This ensures that inflation-related wage increases are not eaten up Steer.
How popular is Andalusia for expats?
Andalusia is currently home to almost 740,000 foreign residents. Almost half of them come from Europe.
That United Kingdom and Romania represent the largest population group with 88,000 and 75,000 respectively, followed by Italy with 24,000, Germany with almost 16,000, Russia with 14,000 and France with 13,500.
In total, Spain is home to more than 7.3 million foreign-born people. Of these, 2.2 million come from Europe.
In addition to Seville – the capital of Andalusia – the region is home to some of them Spainincluding Cadiz, Granada, Malaga and Marbella.