Suspension of the wealth tax

Javier Nieto - Sep 23, 2022 - Pure Living News

Suspension of the wealth tax

On September 21, 2022, the Andalusian Government confirmed the total suspension of the wealth tax.

What does this mean?

Undoubtedly this is good news for investors who had views to invest in our autonomous community.

By doing so, the Andalusian Government intends to promote, in some way, economic activity and the creation of new jobs, whilst also motivating individuals to establish their tax residence in Andalusia.

This is nothing new… already in the community of Madrid and in some countries of the European Union they stopped using this type of tax a long time ago which is not surprising, as it doesn’t the economic activity in any territory.

This new action, although approved on September 21st, will not come into force until 2023. Therefore, unfortunately, it will not be reflected in the fiscal year until 2024.

It is important to add that this will benefit both residents in Andalusia and non-residents who have properties in the autonomous community.

This news also affects other taxes, such as the tax on water (which will also be abolished for a year) and includes measures related to personal income tax, such as the deflation of the first brackets of the regional rate.

This measure is mainly intended to soften the noticeable inflation that Spain is suffering during this last year.

The president of the Andalusian Government, Juan Manuel Moreno, indicated that Andalusia will be the “second region with the least taxes in Spain” and, that the way to compensate this tax will be by the increase in income tax collection of those future investors.

It is too early to predict whether the suspension of this tax will be a success or not. The president of the board assures, that with these measures they will not only leave Andalusia in a good position, but will also make the community prosper.

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Javier is the founder and CEO of Pure Living Properties. Born and raised in Marbella in an entrepreneurial family who settled on the Costa del Sol in the 1960s, when Marbella’s real estate and tourism industry was just a fledgling market, Javier is an expert connoisseur of Puente Romano, which he calls home, and the Golden Mile, but also of the best areas, projects and companies, as their owners and developers have been among his inner circle since childhood.

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