Net Worth In Spanish

How to Calculate Net Worth in Spanish

Net worth refers to the total value of all of your assets minus liabilities, including cash and assets that can be measured, such as your home, investments (like stocks or mutual funds ) or valuable personal property like jewelry or art work. It can also include business assets.

El Boletn Oficial del Estado (Spain’s official gazette) published Law 38/2022 on 28 December 2022, making significant changes to wealth taxes in Spain. These included creating the Temporary Solidarity High Net Worth Tax for those owning significant assets and properties in Spain – both residents and nonresidents alike; applying it to individuals who own assets valued over EUR 3 Million with tax liabilities exceeding EUR 300,000. As this tax falls within federal jurisdiction and cannot be devolved to autonomous communities; in most cases it will replace existing Wealth Tax laws.

The High Net Worth Tax will have a marginal rate of 3.5% and, unlike its predecessor, will cover both ownership and lifetime usufruct rights of assets. This makes the new tax particularly appealing to taxpayers living in regions which currently offer Inheritance or Gift tax exemptions or reductions on close family transfers such as Madrid or Andalucia; also taking advantage of double tax treaties signed by Spain that cover wealth taxes can also help.

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