With the arrival of the Income campaign, every year the same doubts and uncertainties arise about the Property Tax in Spain. A tribute that affects more than 200,000 taxpayers each year in our country. However, there are thousands and thousands of people who are still not sure who has to pay it, how it is calculated and how it is managed.
What is wealth tax?
The wealth tax (IP) is a general, direct and personal tax.
Taxes the property or possession of the patrimony, falling on its net value. In other words, it is a strictly individual tribute/tax that falls on individuals and is complementary to personal income tax. It is applied only to people’s assets, not to their annual income or economic transactions.
The IP is, in turn, one of the most special tax duties of the Spanish Treasury. Abolished in 2008, this tax was reinstated in 2011. And to date, it is paid every year.
It is also sometimes known as a tax on wealth or on the rich.
Spain is one of the few countries, along with France, Switzerland, Norway or the Netherlands (they have similar taxes), that levies this tax.
