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Could Alicante get rid of the Wealth Tax for expat homeowners? And how would it affect taxpayers in Spain?
Andalusia is scrapping its Wealth Tax, and here’s why that matters for anyone who owns property in Alicante
In an effort to attract more high-end investment and foreign property buyers, the president of the Junta de Andalucía this week announced his intention to do away with the Wealth Tax, which taxes people in Spain on the value of their assets. But could Alicante do the same and if so, what would this mean for expats living on the Costa Blanca?
“Getting rid of the Wealth Tax will benefit expats looking to move to the area because they will be able to live as residents and pay the same tax as non-residents,” explains Isaac Abad, a lawyer with Abad Abogados specialising in conveyancing, property law, taxes and residency in Alicante.
Many people who choose to buy a property in Spain do so as non-residents because they only have to pay tax on whatever assets they have in Spain, and not declare their personal income plus pay the Wealth Tax as a resident has to do.
By removing the Wealth Tax (known in Spanish as the ‘Impuesto sobre el Patrimonio’), Andalusia will become a more attractive place for foreigners to buy property in Spain.
However, it is unlikely, says Abad, that Alicante will do the same, mainly for political reasons.
“Andalusia is run by the conservative PP party,” says Abad, “and so are Murcia, Madrid and Galicia. Andalusia has decided to scrap the Wealth Tax following Madrid’s lead and it’s likely Murcia will be next.
“There will be a General Election in Spain in 2023, and the PP party will be looking to oust the standing Socialist government. The conservatives’ main claim to be the next ones to run the country and be better than the Socialists is that they are better on the economy, and they will try to persuade voters with measures made to stimulate the economy, such as eliminating the Wealth Tax to incentivise more people to invest in the country.”
Alicante, which is currently governed by a left-wing party in the Valencian Community, is thus not likely to get rid of the Wealth Tax any time soon because they say this tax helps to raise money from the rich to redistribute to the poor.
Indeed, the president of the Valencian Community, Ximo Puig, has explicitly stated he has no plans to do away with the Wealth Tax and has warned against the move to avoid any single area of Spain becoming a tax haven for ‘fiscal dumping’.
In Murcia, on the other hand, it is more probable that the Regional government will try to get rid of the Wealth Tax come 2023, as they have been discussing for several years now.
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Specialists in Conveyancing, Property Law, taxes, probate and residency in Murcia
Abad & Asociados Abogados y Economistas, S.R.L. is a firm of English-speaking lawyers and accountants founded in 1996 in Murcia by Isaac Abad, winner of the “Best Lawyer 2022” award in Tax Law in Murcia granted by “Best Lawyers”.
The Abad Abogados Murcia law firm specialises in offering innovative legal solutions to its clients, prioritising quality, satisfaction and success. With offices in central locations in Murcia city, Los Alcázares and La Zenia in Orihuela Costa, Alicante, it is easy for expats and foreign citizens abroad in Spain to access the legal services they need.
The team at Abad can help you with any issues relating to Real Estate and Property law, Taxation, Litigations and Commercial law in Spain. From getting a NIE number in order to 
be able to undertake official paperwork in Spain, to completing your residency and visa requirements, they are there to ease every step of the move to Spain for people wanting to come and live in the country.
be able to undertake official paperwork in Spain, to completing your residency and visa requirements, they are there to ease every step of the move to Spain for people wanting to come and live in the country.They can also handle any resident and non-resident tax declarations in Spain, including property taxes and issues surrounding double taxation across international borders, as well as inheritance tax and wills.
Whether you want to formally register your own business in Spain, take someone to court or face being taken to court yourself for whatever reason, Abad & Associates will be by your side.
Their unqualified successes in helping clients navigate these issues have made Abad Abogados one of the leading firms of Lawyers and Accountants and Tax Advisors in the Region of Murcia and in Alicante province.
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